[Editor’s notes: This report was transcribed by Heather Shannon. The editors are grateful to her for her invaluable assistance.
[This document retains its original spellings throughout, with corrections made only when the meaning may otherwise be unclear. In addition, where known, we have added first or last names in brackets to those identified by a single name. It should be noted that a number of names have not been annotated. The name is either unknown, there may be more than one person with that name or – most often the case – the name is in code.]
B-4-a(97)
Law office report #24
March 27, 1978
page 1
from June [Crym]
[Handwriting at top: “TO CAROLYN LAYTON”]
SECTION I, TAXES
1. We have to know if the trusts that were set up by TOS [Tim Stoen] and Ed years back to which certain members were assigned and $ placed in their name there still exist [Handwriting on duplicate page B-4-a(99): “No – No one”], and if so, who back here has to itemize the interest accumulated on those trusts on their 1977 tax returns. Those of us who remember having been on those trusts do not know how to do our taxes this year, because of this unknown factor. Ben Bowers has to know this one also before he can file.
2. Re Evelyn’s mother’s report that came over radio via Mildred [Terri Buford] 3/25, Section 1:
a. Ginny Cheek plans to do her own taxes for 1977, including the rest home on Road I. Her case is complicated by the fact that all of her 1977 rest home and personal records were stolen from her 998 Divisadero apartment and she is now writing for bank statements, 1976 tax returns, State records on patients, etc.
b. Alice Ingram [Inghram] is going to do hers here, WILL NOT send it overseas and also is one of those who needs to know if she is still in a trust.
c. Janaro – 1977 records were taken by HAROLD, we are checking for more but Bonnie [Beck], Claire [Janaro], and Betty have the same opinion that Harold took these records with him. Records previous to 1977 have to be kept here because the ranch is being audited and Bonnie is working on recaps; the old recaps including depreciation schedules and stuff like that do not come up accurate after Bonnie has studied them. She also showed the depreciation schedule from a previous year to her mother who is an accountant, who immediately recognized that the depreciation schedule was wrong, but recommended that Bonnie not change it, just let it remain the same since IRS has not questioned it. I do not know the year this is; I bring this up because of the confusion which apparently exists in the books after having been worked on by Evelyn’s mother and Harold and others. If you want for Bonnie not to do this work, tell us, but it would not seem practical since the audit information is due in June.
d. Swaney, Swinney [name circled] and Wotherspoon [Handwriting: “Check just 4-5 mo /cash (unintelligible)”] are on their way with this report in 2 duffel bags, but we found no 1977 records – where are they? Ask Harold, or did Evelyn’s mother take them over originally???????? Also included Relics and Things, P.T. Vitamins, P.T. Co-Op, Breidenbach Whispering Pines. The only records left that we know about are Truth, Valley, Apostolic, BusGarage, and needs.
[Handwriting in margin on duplicate page B-4-a(99) – unintelligible]
3. Ben Bowers – Refer to Law Office Report #23, Item 16: I talked with Bonnie – she does not think we should give him specific receipts for room and board, which he is asking for from January throu [through] April 1977 as it is not a legitimate deduction [Handwriting on duplicate page B-4-a(99): “Right”], and would get us in trouble since he was not an employee of ours at a rest home, we had no employees. [Handwriting on duplicate page B-4-a(99): “Right”] I suggested we give him a donation letter for the full amount he needs to itemize, $3400, the usual letter re stolen records, stating we believe he gave $3400. He made $16,000 during 1977, and though 10% is the rule of thumb we have followed, it is not illegal [Handwriting on duplicate page B-4-a(99): “OK”]
B-4-a(98)
Law office report #24
page 3
March 27, 1978
from June
SECTION II, PEOPLE
[Handwriting: “Not mine” unreadable initials]
L. Arletha Arnold – she is not a citizen, and is working on getting her citizenship, which she has to have before she can get a pssport. I referred her to the Chinatown office of the San Francisco Neighborhood Legal Assistance Foundation because I used to work there and they are specialists in immigration work because of the Chinese aliens coming in and leaving the country. They are helping her; and I check with her about every 2 weeks or so to see whats new. Today she said that the immigration department has asked for a statement by her husband (who is Jessemere Harris’s son) saying he is married to her, lives at…, and has known her for such a time. She also has had to get other affidavits of people who have known her for a certain amount of years. She’s on AFDC and so there is an automatic welfare check by the immigration department. That is going on now. She has not told SFNLAF yet that for a while last year she was collecting both AFDC and SSI, which apparently is illegal. What really happened was that her mother in San Barnardino [San Bernardino] used the money and she never saw it, but the immigration dept wont listen to that most likely if they discover it. Vivian G is going to check at her job to see how far back they will check on Arlethat [Arletha that] Phyllis H tells me that if everything goes al wright with the immigration and Arletha gets her citizenship then passport should come within about 3-4 months after that. So it will be awhule yet.
2. David Smith – See Law Office Report #22, Item 6. He wants [Temple attorney Eugene] Chaikin to draw up a power of attorney for him so he can appoint his sister or brother to act on his behalf in the property thing. But his request on this seems to fluctuate back and forth, and now he’s written a note to council as follows: “My sister called me long distance to request my vote relative to my 1/5 interest in the Smith Family Estate. In the event of a $75,000 cash sale, may I accept 20% of this year and 71% in January 1979 to save on income taxes? If I vote to receive 100% cash this year, and the other parties vote for the donation of the arbitartion.” Personally, I would like to ignore this — I dont trust his asking us what he should do with his money in view of his behavior on the radio earlier this month, I think he should make up his own mind and know he is making it up [Handwriting underlining “he is making it up” on duplicate page B-4-a(101): “Yes, especially” unreadable text]. About the money, that is. Perhaps we could have Bonnie talk to him about his taxes, if he is really worried about them. She might be able to convince him to go over, … but I guess not, since he wont even listen to Jim. [Handwriting on duplicate page B-4-a(101): “E”]
pleasant 73’s, folks
B-4-a-(99): duplicate of B-4-a(97)
B-4-a(100)
Law office report #24
March 27, 1978
page 2
from June
to itemize more. See Master Tax Guide, attached. (up to 50%) An isolated case might not be so bad and would appease Ben.
4. Attached with this report for your reference is U.S. Master Tax Guide for 1978, CCH version. We know Harold took one with him, we assume Evelyn’s mother has one too, but this one is sent for Mildred and Julia to look at in addition to Evelyn’s mother. Following are section numbers in it which Bonnie, Jean B and I thnk you should consult if you havent already in relation to our tax problems with unrelated business income, foreign filing dates, corporations, etc. so we can understand better on the radio… If you refer to this on the radio, you might consider referring to the number opposite the section number rather than the actual section number; we can consult this report. Those monitoring our radio could easily understand a section number, so the number in front of it would be bette[r]….
[tax guide table not transcribed]
B-4-a(101): Duplicate of B-4-a(98)
B-4-a(102)
To JUNE CRYM — In re tax requests for information
REPORT #24
1) Does not: Not for 2 years or more last past. Was donated to church to years ago entirely and with no exceptions including all interest.
2) a) okay to put in for an extension. NO OWN HER DOING HER OWN TAXES. Harold and I are in agreement totally. We would rather do the value judgments and we know the policy. Have her collect all material, put down what she thinks should be the figures and send them on to us with names of patients and amounts as she recalls..
b) Is Not. Since WHEN “will not send it over?” Tell her to send hers –moreso– since she is notorious for her bad paper work. ([TERI] BUFORD: TELL DAD ON THIS. ALICE IS WORST OF ALL ON PAPERWORK. SHE CAN BURY HERSELF. THE MORE REASON WE SHOULD DO THE RETURNS.. AT LEAST IT WILL BE “REASONABLE” IF WE DO THEM.. .tish [Leroy])
c) BUFORD.. THIS IS MOST SERIOUS.. PLEASE TELL DAD AND ASK THAT HE DEMAND IT BE SENT… Bonnie has no knowledge of what is involved. It could throw us into immediate audit.. P.T., I mean.. and could bring about attachment on our bank accounts, locking buildings and that whole line of harassment.. )
TELL THEM: RETAIN THE PAID BILLS AND CANCELED CHECKS THERE. SEND TISH “ALL” OF THE ORIGINAL BOOKKEEPING RECORDS.. RICHARD [Janaro] WOULD RATHER CORRESPOND WITH THEM ON THE MATTER, AND RETURN WHATEVER IS NEEDED.. (we will dole it out, get extensions if possible and make up lies and excuses — which we can do via correspondence.. can’t do it in person).. HE FEELS NO ONE THERE REALLY KNOWS THE FACTS, AND WILL JUST MISCONSTRUE TISH, HAROLD AND CHAIKIN ALL AGREE. HE ESPECIALLY NEEDS THE ORIGINAL PAPERS IN THE GOLD BOOK, THE INCOME BOOK, SEND THIS INTACT.. NO NEED TO KEEP A COPY OF THAT SINCE HE KNOWS WHAT IS AND IS NOT THERE–AND WILL ADD FROM HIS DEPOSIT BOOK WHAT IS NEEDED.. WILL HAVE TO BE DECIPHERED.. HE WILL SEND BACK THE DETAILED COPY TO THEM…
BUFORD (THOSE RETURNS WERE DONE BY ELLEN AND HAROLD: THEY APPARENTLY MAY HAVE BOTCHED THE INCOME UP.. I WANT TO CHANGE RECORDS TO COMPLY WITH RETURN.. AND DO “NOT” WANT ANY OF THE OLD PAPERWORK LEFT THERE!!!) Claire can, in June apply for further extension on grounds richard is out of country– IS DONE ALL THE TIME.. JUST TELL BONNIE TO BACK OUT OF IT AND LEAVE IT ALONE. THAT IS A MUST!!!
(By Bonnie showing her mother those records, an outside EXPERT WITNESS has seen them… IRS already checked out and approved 72, 73 and 74.. .and may have looked at 75.. .audited and approved my figures.. Am not inclined to let someone mess us at this point.. could re-open the prior yeras.
Is damnably dumb and egotistical of Bonnie to think her mother so “trustworthy” — she knows we can trust NO OUTSIDERS… “especially relatives!” Where in hell is she coming from?
She sayd depreciation is off–it is not. We took double declining balance and then switched to straight line when it was appropriate.. Federal allows 200% Double declining balance and state only allows 150% as I recall–we took the legal maximum and then changed to straight line in the year it would equalize.. a common practice by CPA’s..
d. WHERE ARE THE OTHER 2 duffel bags of stuff?
B-4-a(103)
TELL CLAIRE TO FILE FOR AN EXTENSION ON THE 14th AND CERTIFY IT.. .on grounds her husband is away on business, which he is, and he will send them the signed request for extension. HAVE HER FILE IT IF HIS PAPER DOES NOT REACH THERE IN TIME [Handwriting: Time underlined twice]! Be sure to certify [Handwriting: “Certify” underlined] it, and save the receipt.
THANK YOU, YES.. WE WOULD LIKE BONNIE “NOT” TO DO ANYMORE ON THIS. IT IS NOT [Handwriting: “Not” underlined] PRACTICAL..
d. Swaney –we have it all.
Wotherspoon –do not have income May thru Oct; no bank statements; nor do we have the August and ?Sept Cash expenditures, though we have Oct, Nov and Dec of these cash expenditures… Place sold in October.
Swinney– Need Nov & Dec expense detail (cash & checks) Dec check stubbs, deposit record & bank statement date checking acct was closed
Paragraph 2d-line 4–Nothing involved on these; no unrelated business income involved: co-op made no profit, was cash exchange; rest are okay.. on next line.
Then on line 6, next to last item, WE NEED THE MATERIAL TO DO THE RETURN. PLEASE DO NOT [Handwriting: “Not” underlined] TRY TO FILE IT.. File for extension by whoever is signing checks.. that person is the secretary.. .It is an 1120S and we need the state and federal forms.. .your extension should be on proper form; no taxes will be owed since it ran at a loss, that is why he closed it down at the end of the year.. or whenever it was.. .will have to ask him.. Ed that is..
IN RE JUNE’S NOTE ON PINK PAPER.. Tell her Chaikin and Tish are well aware of the reference she made in the book. Our decision stands and she should leave it alone. ((BUFORD: IN MY OPINION BONNIE SHOULD BE BROUGHT OVER IMMEDIATELY AS POSSIBLE.. )) ((she has consorted with her mother on this and she may well know it is unrelated business income.. I’d tell her dad had revelation of danger to her and get her ass over here.))
Paragraph 2d line 7–1st item.. get those records to me immediately, in full, as instructed –please, I need them for other information. ((LIE.. I WANT THEM THE HELL OUT OF THERE!!!).. last item on this line is not separate, is part of the church acct.. just an expense dept. on the main books.. these records were stolen thru I think May 76..
3) WHERE IS BONNIE GETTING HER ADVICE: IS SHE CONSULTING WITH HER ON BEN BOWERS CASE TOO??? Agreed with tactics.. .we “believe” he gave that amt., we know he was a large giver; our records were stolen. That is all we can [Handwriting: “Can” underlined] say. Would put us in role of collecting rents, unrelated business income.. .we did not [Handwriting: “Not” underlined]
Report #24, page 3, 27-3-78 [Handwriting: date underlined]
2. Terry–I see a lot involved in this one. SHOULD BE A CONFERENCE ON THIS.- tl [Tish Reloy] There are a couple of ways we can go on it. Basically, I would FIND a way to scare his ass down here: have some of Chris’ friends lurk around and watch him.. .have some threatening calls come in.. but that might also scare him home to Colorado.. .it could backfire.. needs a conference. IF HE WERE HERE, he’d help us get the $$$.. .