B-1 Tish Leroy Tax Memos

B-1-b-1a

Terri,

FROM TISH** We sent a lot of her stuff in town to be mailed. It came in at the last minute and not time to even see it. I asked Paula to clear her letters to various research places.
so who knows? What was there. Here is one copy. -CL [likely Carolyn Layton]

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B-1b-1b

Tish LeRoy memo on members’ tax returns.

BE SURE YOU SEND CHURCH DONATION LETTER ACKNOWLEDGING THE AMOUNT THEY G[AVE]

THESE RETURNS NEED TO BE SIGNED, PHOTOCOPIES MADE INCLUDING COPIES OF THE W2’S. Please return the photocopies to Tish [LeRoy] in next batch of papers coming down to Terri [Buford] and Maria [Katsaris]. Please put Tish’s name on all tax matters… these sometimes set for a while if not clearly designated.

Name	Year	Pay	Line 64 Refunds (Fed)	Line 64 Refunds (State)
Mike Klingman			(671.00)	($8.21)
Patricia A. Martin		S Pa$211	(1152.86)
Gina Kay Severns			(858.00)	(84.00)
James R. Randolph			(548.38)	(158.13)
Hattie M. Newell			(447.45)	(55.00)
Brian Kravitz			(324.20)	(113.90)
Verlina Hollins		S Pa $64.53	(676.46)
Vadia L. Fairly			(709.41)	(33.82)
Laurie B. Efrein			(908.22)	(43.00)
Joann K. Davis			(1909.29)	(85.00)
Jean F. Brown			(1880.00)	(7.00)
Doreen K. Greaves	1976	S.Pa $99	(54.00)
June B. Crym			(1183.00)	(23.00)
Florida M. Johnson			(337.00)	(48.00)
Phyllis Houston (CHECK W/TAX COUNSEL TO BE SURE OF TYPE OF INCOME. … tl [Tish Leroy])			(596.00)	(165.00)
Brenda Y. Jones			(828.00)	(179.49)
Jerry L. Wilson		S Pa $145	(2943.00)
Kathy Purifoy Richardson			(361.00)	(3.84)
Jim McElvane			(585.01	(120.53)
Doreen K. Greaves	1977		(1307.00)	(77.78)
Sandy Bradshaw			(598.13)	(191.55)
Paulette Jackson			(53.10)	(20.00)
Sue Ellen Williams Gallie			(804.00)	(62.00)
Alfreda Saffold		S. Pa $25.5	(401.00)

Those involved should check their returns carefully. Remember there is no problem filing late IF YOU HAVE REFUND COMING… so if there is a question, send it back down to me with a note of explanation. Do not let tax consultant there make final decision UNLESS WE HAVE DISCUSSED IT HERE AND TOLD YOU THIS IS [ILLEGIBLE WORD] TO TAKE… we will spell it out, if so.

Tell Vernell we want to send her to Doyle again… she has moved to Freemont now… There is a big manila brownish envelope about 2 inches thick with tape on it has Vernell’s tax papers in it… or some of Vernell’s papers may have on it the woman’s name and address. I will try to locate it for her.

IF YOU QUESTION POLICY ON THIS, DO SEND DOWN IN DAD’S case with the next person coming down and hold on mailing returns… OTHERWISE, GET THE TAX LETTER FROM THE CHURCH TREASURER– I know that in all cases it was more than we have listed, but you will have to check the records for that. The letter should list the amount we show–whatever it is… including their checks, envelopes and cash offering that you have notation of… I know some cash was put in envelopes beside the tithe envelopes. so you should have a record of this. They had said they committed to 50% but know that it always runs more with the cash offerings. Please include what you show. I recall last year in checking — [10? 15?] ran 5-10% higher than they committed to in the group of tithers.

Thanks… Tish.

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B-1b-2a – 1b-2d

Tish Leroy memo on tax issues from late 1977, early 1978.

[Editor’s note: Abbreviations, minor spelling errors have been retained.]

B-1-b-2a

T0 : JUNE CRYM

FROM: Tish

Response to portions of law office reports. . .

Report #7-12/22/77

Item 1 – Tell Harold to go ahead and list the sale of house… the $15,000 capital gains should not be a problem since he was not working last year and lived with friends much of the time. $7500 of this becomes taxable income. He is allowed up to 50% as a gift to church, or $3750… 1/4 of the total income. This leaves $3750 taxable. With his wife, Loretta, himself and children as deductions there should be no tax.

As a matter of fact, where they lived off of their former
monies, and savings – the treasurer can verify he turned over
the entire check to P.T. She has recall of this and the check itself could be recalled if need be. Where he acted as agent for the church, and had actually signed the deed to P.P. many months before, and kept none of the money – I think Ed did nothing wrong in so advising Harold. However, if that
bothers him – then tell him to take the capital gains as above – and should be no tax.

Item 2 – Recommendation on Truth Enterprises sales tax report: Do get the reports filed for [19]77 along with the $15 for reinstatement: Note you should send letter to St Bd [State Board] in Ukiah letting corporation lapse as of 12/31/77 and ask for refund of deposit on file at BofA Ukiah $250.

Take a copy of the letter of donation of assets and equipment (not detailed) signed by [Eugene] Chaikin and as documented in the minutes of P.T. corporation as received. Thereafter, include this equipment on the PT insurance. SEND LETTER OF ADDITION TO INS CO AFTER YOU HAVE PHONED FOR THE COVERAGE AND GOTTEN ACCEPTED, then send verification letter, certified mail-return receipt requested, verifying the phone coverage agreed to. FIRE INS ESPECIALLY, water damage, vandalism, etc.

(Bonnie) [Beck] Take out sales tax permit in Ukiah – Tell Mr. Venter that she is handling the sales operation only, that Bonnie will be handling the books and working from the church in valley. Take out the permit as P.T., dba Valley Publishing Co. – tell him Mr. Chaikin signed the business over to P.T. and we are getting our printing done “outside” by commercial printers, and buy our own paper to save $$ and Bonnie is handling orders, and all merchandise out of her valley home, that we no longer have the presses … being used by the publishing co., but are sub-bing out our printing … too expensive now that Mr. Chaikin no longer around to handle it for us. He is traveling.

ON YOUR REPORTS – do not list sales, but list under the USE section… but get a SALES & USE TAX LICENSE… “in case” you sell some to [Carlton] Goodlett. We make no profit on what we do for him, so is not a problem. We charge him sales tax on the cost to us.

YOU MUST MAINTAIN the resale # in order to get discounts at Zellerbach and other big suppliers. “Their licenses do not allow selling retail in many eases. Best not to hassle it. We had trouble getting the accounts established to start with – to change to P.T. now would be most inappropriate. This answers (2b)

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B-1-b-2b

Report #7 – Item 2a: This is the vitamin account we are holding open in case we want to get any more thru our wholesale contacts: must buy in quantity thru these dealers, and MUST have wholesale number. Must, however, pay use tax on we buy – and record with the quarterly return. No reason to change locations since all sales have been handled out of valley – and if we have any more, these will be also… FILE A 4th Quarter return; sign as bookkeeper; list: Nothing to report – but add a note to Mr. Venter telling him we plan to start selling again…

Item 3 (Rpt #7) Believe this to be part of a major audit step-up on ALL people by IRS… they were getting computers ready to do this back in late 60’s… intended to be auditing 50% of returns by 1975 and 75-80% by 1976-77 years, so think our people just fell into the percentages.

CAUTION –

They either charge people with a “filing error” or a criminal charge; the latter has to have some grounds, so they use the former.

Their procedure is to disallow all itemised deductions and compute the tax on standard deductions… and call it an error in filing. Many think they just owe it so do not question… Others think they did something wrong so pay it and leave it alone. Those that bring in their proof of deductions do not have to pay the additional.

All forms received for those down here must be sent on to Tish immediately. If people are there, and are non-communalists, tell them to protest the letter – give them a letter stating estimated contributions to the church (June has form) and let them handle it themselves. Tell them to take in their proof of deductions.

CODE CAREFULLY: If not on a paying job or with assets to attach, judgment cannot be believed against them… The crime is failure to “file” your returns not failure to pay them. VERIFY THIS WITH THE TAX PERSON IN THE OFFICE OF CHARLES GEARY [Garry]. That is the law as Tish and Gene recall it – unless this has changed.

In the event they have a job – then should go in and make arrangements to pay off in 6-8 monthly installments – if in fact they do owe the money.

CODE CAREFULLY: (Carolyn [Layton] – see my memo to JJ on this point… very serious) 3a – Estimated contribution letter should be the legal one referring to the theft in May 76: June knows about this report… Should “not” use the letter I “think” June refers to… should be the one from memory… and committment pledged… )

If went over the 10% likely flagged the computer… church letter should handle the problem. (CAROLYN NOTE – Monica Peterson’s $1400 was support for her son and not a contribution – she has some nerve listing it.)

I do think they are over-reacting…

CLEVE’S [Swinney] PENSION is a disability pension, and is not taxable income. It should not have been listed as taxable on the ‘76 return.

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B-1-b-2c

DO NOT PAY ANY TAXES WE HAVE NOT SPECIFICALLY CLEARED FROM HERE. CHANCES ARE THEY ARE NOT OWED. Would be rare exception we would
pay for them. We are not liable for their bills, and they have
no means to pay them.

ITEM 3c CODE CAREFULLY

Do not refer to this paragraph by name of the corporation (Apos), rather, say: “in reference to Item 3c Report 7… LET IT LAPSE… SEND NO FURTHER CORRESPONDENCE: DO NOT CONSULT ON THIS ISSUE WITH
ANYONE. Tax owed has been paid in full with all penalties due: will cost to dissolve, so just let it lapse – we have no further
assets to spend. Is unimportant to do further on it – do nothing.

3c-re 199B… ED AND TISH NEED TO SEE COPY OP THE LAST RETURN FILED. Send it down post haste if June has copy: if no copy at hand, explain our books were stolen, along with tax records… could they please give us photocopy of last return, filed… and will try to see what needs to be added for the next year. Get that down to Tish soon as possible… We had thought our former attorney had filed it – surprised it was not filed, will get it done post haste… We will get info from what we sent in to the Disciples. Have Bonnie send us a copy of what we listed with Disciples – this was published annually in the blue book… she should have a copy.

(CAROLYN: THIS IS IMPORTANT – we can lose church exempt status in California if these are not filed. Chaikin says not filed for 73, 74, 75, 76, 77… though Stone [Tim Stoen] told “me” he had filed it. Do YOu June, have copy of the letter we got from Calif Franchise Tax Board last August?) (CAUTION: I TRUST WE KEPT IN MIND THE THEFT IN FILING WITH THE DISCIPLES FOR 76… )

Item 3c-paragraph 3: ACTION EQUALITY: do not know the corporation structure. If not a foundation, and if officers are in no way criminally liable for failure to dissolve, then Tish agrees.

Item 3c paragraph 4: PEOPLES FORUM INC **CAUTION** do not refer by name. Paper is published by PT and not by the corporation… so not a problem. Let it lapse, Chaikin advised.

Office Report #8

Item 2 – Irene Edwards 941 employers return… HAROLD CAN SIGN THIS AS HER BOOKKEEPER… Say that there is nothing to report… that they let their patients go and had only couple left during first quarter and they (Edwards) did all their own work… no employees to report. Sold house in April of 77. This is not likely to be questioned if phrased simply, NOT well phrased – as though some not-too-bright person wrote it out… They simply had no employees in this period. She does not have to personally sign a 941… I have signed hundreds of them as bookkeeper, across the years and no problems.

Report #9

Item 1 – Truth:

As of Dec 31, 1977 – agree should give P.T. the assets and equipment… LIST THEM: accept them in a corporate resolution and minutes: GIVE THEM IN CORP. RESOLUTION AND MINUTES IN TRUTH CORPORATE BOOKS…

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B-1-b-2d

GET THE INSURANCE COVERED IMMEDIATELY IN COVER LETTER TO INS COMPANY … phone first and record (tape) the conversation acknowledging coverage… say the equipment came in on 1st of January 77 – that we were storing it there for Chaikin, and he decided to give it to us… or some such… don’t say when it came into building… You can enclose a photocopy of the PT corporate minutes LISTING ITEMS RECEIVED… for their records, and it should be donated as of Jan 1, 1977… you will probably got charged ins. as of that date… but DO GET IT INSURED IMMEDIATELY, FIRE, WATER DAMAGE, VANDALISM etc… If costs extra on P.T. policy, get it covered anyway… Of course JJ WILL HAVE TO CLEAR IT… but I cannot imagine us not having this covered with the constant threat of being burned out. KEEP THE INSURANCE UP ON ALL CHURCHES “IF POSSIBLE,” UNTIL ESCROWS ARE CLOSED AND CHECKS ARE IN OUR HANDS… Then, be very careful not to cancel out “all” churches when you cancel one… I would use REGISTERED LETTERS OF CONFIRMATION of what is agreed, and request written memo of insurance from agent and the policy… which should be kept out of the church in a fireproof vault at bank.

We are too susceptible to fire bombs and the like now…

WE DO NOT HAVE TO LIST “INCOME” FROM A BUSINESS unless we receive it. Can file Valley Publishing Co. as a registered DBA of Peoples Temple. On the sales tax form, list USE tax and no sales… “we intend to get to it – but haven’t had time yet… ” Sales office is in valley – Bonnie handles

(CODE CAREFULLY CANNOT SAY IT) PROBLEM WITH GETTING A SALES TAX PERMIT OUT OF SF… IS [IF] THAT WE THEN HAVE OSHA OWING IN TO CHECK ON THE EQUIPMENT… OUT OF REDWOOD VALLEY, THEY DO NOT KNOW WHERE EQUIP IS… AND I DON’T THINK VENTOR TOO INTERESTED OR HAS THOT OF THIS… Maybe have Bonnie get a new permit # in Ukiah and don’t get one in SF… Use church address… I have DELIBERATELY NOT GOTTEN PERMIT AT SF ADDRESS BECAUSE OF OSHA… THEY ARE BASTARDS, AND WOULD NO DOUBT COME OUT TO CHECK ON US, WITH ALL THE PUBLICITY WE HAVE NOW HAD…

“IF” you change status and let Truth Corp. lapse… no longer record as “sales” – see my paragraph on change of bookkeeping procedure… list in a journal, the items we buy – can set up in the CASH OR CHECK REGISTER… as sales taxes payable… it will be on ALL TIMES… we have no exemption on sales taxes…

la-no, (CAROLYN READ – CAUTION – DON’T SAY IT OUTRIGHT!) Only the Osha problems above listed. If we take permit out in Ukiah… Osha may or may not come looking for equip… then just say this is the office we expect to do sales from (church) . . .as unrelated business income… will “farm” out the printing… WE DO NOT MENTION OWNING THE EQUIPMENT TO HIM… WE ARE STARTING A PRINTING BUSINESS AND STATIONERY SALES, income to go to church – will have various members selling and all profits to church… Not so easy to say that in SF… they might come out and find equipment. Anyway in SF fire marshall knows equip has been there some time.

1b-no! It never makes any sales – and DON’T… on what you bill Goodlett, list as REIMBURSEMENT OF COSTS… only… then list that portion as sale… but you have made no profit; it says right on invoice… so you are covered… LIST NO LABOR CHARGE ON INVOICE… Materials only reimb.

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B-1-b-2e

Report #9

Item lc – No – do not list as a business. It is our equipment and we print our church printing on it… don’t say what that printing includes… just call it church printing. Unrelated business income is only involved if there IS BUSINESS INCOME… What we get from Goodlett is only reimbursement of our costs… and no profit, so we do not list it nor do we file an unrelated business income return… No income, no return.

Item Id – Many very large companies will not give individual “implant” operations the same prices they give to actual businesses operated for retail sales… MANY WOULD NOT EVEN DEAL WITH US… This is why we set up Truth to start with… to get the discounts. Stationery outfits are the worst to deal with in this area… they want the extra money unless you are a bona-fide printer “for sale…”

Clancy [Tim Clancey] surely must remember problems we have had in this relation… this would mean setting up new charge accounts, etc… you really DON’T WANT TO TAKE THAT ROUTE!!! Many of the wholesalers are ;icensed to sell ONLY TO RETAIL OUTLET BUSINESSES… so could then not even sell to a non-resale business… They “might” do it – but would lose their license if they got caught.

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B-1-b-2f

Note to Jim Jones, January 1978, Regarding tax filing and returns status.

January 78
To: Jim
Fr: Balkey

Tax Filing & Returns Status

Truth Enterprises: Corporation solely owned by Chaiken [Eugene Chaikin]. Should be allowed to lapse & equipment &
supplies donated to the church. If Truth should be kept open – we’ll have to pay $200.00 for 1978 as well as 1977.
Betty was to have filled in the forms and
sent in the return – but if the information
was in the file cabinet she will have to fabricate a return.

Tish [LeRoy] has no 77 tax information on Truth. The information will come from Kathy Tropp & [Timothy] Clancey for filling in form of sales info.

Suggestion from Tish: That the stock should
be sold and transfered to someone else. He
owns all our printing equipment as he is the
owner.

Chaiken’s suggestion: The transfer of stock is restricted
by California Corp. Commisioners and will be an
unnecessary hassel if considering a transfer.

We need to
donate all aspects to PT: which can be done by
bill of sale and let the rest of it go.

Truth is a subchapter S Corporation: gets priveledges [privileges] of a partnership yet gets filed as a corporation.

Procedure: File returns with no $-then file the copy with Chaikens personal returns – thus you either pay tax due or take the loss.

Chaiken’s tax-man in LA had his 75 returns done but he needs the 76 & 77 followed thru on.

Robert Wicks CPA
11340 West Olympic Blvd.
LA 90064

Buford would know how far Wicks has gotten. She should check with him and see what is happening and see if he is waiting for any more information.

Chaikens Suggestion: Authorize Bob Wicks to sign returns. Buford can get the forms from him for that purpose.

Tish wants to relay traffic;

Do not transfer to S.F. Would require filing a half percent increase more, keep in R.W.V. [Redwood Valley]

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B-1-b-2g

Handwritten note on a legal matter and a child custody case.

 Equality

 Action

Section eq:3

Statement says:

Let it lapse! [“Go ahead” scribbled on the side.]

P.F.

[Illegible words] for 76

Gives to 21st of last mo. to respond.

Mildred called about legal [illegible word] dept. & sent log letter of continuance.

Report #8

Custody Case

1. A 13 yr. old little boy [illegible words] grandma sines baby when 3 yr. put in custody of father [illegible word] mom unfit.

Father [illegible word] want grandma to have little letter to

Michael Daniels – Annie Mae Harris

Father signed all papers.

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B-1b-2h – 2i

Note on tax matters concerning Temple corporate entities.

[Editor’s note: Minor spelling and punctuation errors have been retained.]

Relics & Things: DBA of PT

Should have had final return filed for April. Tish [Leroy] recalls filing – but can not remember if deposit was refunded.

There was a deposit on former Relics Account which Chaiken [Eugene Chaikin] was to have gotten released – Tish thought perhaps about $500.00.

Chaiken thinks that he had it released. Someone will have to check with Bank of America in Ukiah and ask what type of document they want to release the funds. Perhaps Bonny Beck could find out.

Sandy Parks was a signatory on the account.

Apostolic Corp: Don’t pay $200 this year. We are letting it lapse. Leave it alone – no more use to us.

The trust deed that is being collected on it now – was assigned by Lois Ponts to Apostolic Corp so that what she got from her sale of house would be automatically deposited.

Chaiken suggestion: Apos Corp needs to assign it either to Lois & have the check sent here -or- assign it to PT. The best thing would be to assign it to Lois and have it transferred here. Thus avoiding tax implications between Apos & PT.

June should find out who the officers are – we can get them together and have them sign forms for reassignment authorization.

Form called: Assignment of Note & Deed of Trust

Check Cashing & MO Services: Not a corporation: DBA of PT. No returns necessary.

Valley Enterprise: Registered DBA of PT.

Used for separating construction costs from other PT expenses.

No income & No Profit (not true)

Thus no taxes necessary & no returns to be filed. That’s why no Tax ID # was filed. So that they would not have us registered & more easily accessible with our working figures.

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B-1-b-2i

Peoples Tempie Co-op: Registered DBA of PT

Has papers attached for [19]77 returns.

Needs the last quarter return filled in

Tjsh Suggestion: Perhaps should consult
with legal finance counsel.

Copys of DBA forms were in possesion of June [Crym], Harriet [Tropp] & Chaiken. Consult with June on what has happened with then.

If using sales tax ID # – hold open by filing return stating:

Nothing to report

No Sales.

This can be filed every quarter for a year or monthly according to which one we have filed with. June will have to check that out also. This way we can still get vitamins wholesale. If we don’t want to get anymore vitamins – Close out.

Request refund of deposits on all sales tax acts. In sone cases deposits were $250.00. Because PT Co-op is a subsidiary of PT we do not have to file tax return. If anyone should ask – say that it had no income. Things were sold at cost to poor members.

2 Political Corp:

SF equality Action

Peoples Forum

Equality action:

Doing nothing with them. Paying no $.

Letting lapse

Peoples Forum: Was a corporation which functioned a couple of times several years ago. Then the church
started publishing the paper. Let Lapse It is not closed. Don’t pay money on it.

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B-1-b-2j

Handwritten Note about residents and hostile family members.

[Editor’s note: Abbreviations have been retained.]

 Boy

B. Turned 18: Alfred Smith – sweet

hostile family

C. Sisters of Versie

both sisters live in same town.

hostile ex-husbands-

Sarah thinks they should leave before husbands get legal rite [rights] with divorce.

D. [Illegible words] Rodriguez

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B-1-b-3a – 3c are duplicates of B-1-b-2a – 2c

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B-1-b-3d

Memo from Tish LeRoy, 12/22/77.

[Editor’s note: Minor spelling errors have been retained.]

Reponse to June Crym

Letter 12/22/77 — from Tish

Item 3c-paragraph 3… Action Equality: do not know the corporation “structure”… if not a foundation, and if officers are in no way criminally liable for failure to dissolve, then I would agree.

Item 3c-paragraph 4… Peoples Forum, Inc. Note that Peoples Forum paper is published by Peoples Temple and not by Peoples Forum Inc, so Chaikin advises us…

If in fact this is so — he declares just let it lapse, since no activity… Same as for paragraph 3… of section 3c… depends on corporate structure…

IF WE DISSOLVE, HOWEVER, those who might “assume” the forum is published by Peoples Forum Inc… and not P.T. might question it… we do not want to get into sales tax issue… AVOID THATZ… see the comments on Truth for closing it off 12/31/77… P.T. owns equipment after that date, and the truth records thereafter should show COST FIGURES ON INVOICES AS PURCHASED…

Instead of a sales journal, keep those records just for information of materials used on each job… but as materials come in without tax… MAKE A PHOTO of invoice and “log” it in a use tax journal… with cost amount and sales tax due at the 6 1/2% of S.F. rate

CAUTION OF WORDING:

[Handwritten notation before the start of paragraph: “Why? Could be, but why?”] IF IT IS LATER PROVED THAT TRUTH PRINTED FORUM “IN” SAN FRANCISCO, WE ARE LIABLE TO CITY FOR THE EXTRA 1/2% SALES TAX, AND PENALTIES OF UP TO THOUSANDS OF DOLLARS… is very precarious. I would “act” like the equipment was moved into the church on January 1, 1977… and where Chaikin had it before that, we do not know and Chaikin is not available to ask… We had “some” presses in there before –we just did church printing on those… Chaikin bought those from us and sold to someone else we think… so there would be room for the donated presses… or some such CONFUSION… Cannot say we did not “have” presses there — since a trip to the paper companies would show where any deliveries were made… so we farmed out the printing of forum and furnished our own paper at times… bot thru truth… and Mr. Chaikin’s kindness at no profit to him… did as church service, THIS IS TOUCHY BEST…

[Balance of memo, including page, B-1-b-3e – 3f, duplicated B-1-b-2d – b-2e].

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B-1-b-4a

Typewritten memo to Teri Buford, July 16, 1978, regarding corporate tax matters.

[Editor’s note: Minor grammatical errors have been retained.]

Memo to Teri Buford

Re: Truth Enterprises Corp.

16 July 1978

In re the 5 June 1978 letter from IRS re Truth –

(1st) Please advise that return HAD BEEN MAILED in and we have contacted our tax person who is presently out of the city. He will try to get access to the files to secure a copy of the return and will send in a photocopy along with all schedules. The corporation operated at a loss so no income taxes were due.

In re the Law Office Report #35 pages 3 and 4 from June

(2nd) I disagree strongly with Walter… This then necessitated a San Francisco business license… that sets OSHA INTO EFFECT and operation… and it initiates an inquiry that never needs to happen. We are NOT CONDUCTING BUSINESS THERE AND SHOULD NOT SAY SO. Our sales people and business, little as it is, is conducted in the valley and we are best to leave it there.

Our bookkeeper is in S.F. and handles Mr. Chaikin’s other affairs, and inavertently listed the item through clerical errors. she is not regularly experienced in these matters and our tax person had not yet reviewed the file to catch it. The bookkeeper had assigned it to one of her clerks who was not aware that Mr. Chaikin’s business was in Mendocino County.

BE VERY UNSOPHISTICATED in the letter and use a little “embarassed” approach.

(3rd) I advise now (in light of what has transpired) to leave Truth as is with Gene’s name on it… Then if we “do” get into it with St. Board, etc., the Chief Officer is out of the country. IT IS IMPORTANT TO DONATE THE PRINTING EQUIPMENT TO PONY [illegible words] so that the insurance is valid… can include a clause that Terry agrees to permit Truth the “use” of equipment “occasionally and as needed” until their operation is suspended and the corporation disbanded.

WHILE there is no problem, “perhaps,” with the legality of a church corporation printing the items in question — there might be the issue of unrelated business income… which opens up an invitation on taxes that we do not want to enter! So, I strongly advise against having Tony do any printing… as long as Tony MUST print –keep the corporation intact and pay the sales taxes through Mendocino County.

IN ORDER FOR THE CHURCH to continue operations, if the corp. were suspended, would have to get a new sales tax permit.

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B-1-b-4b

That opens the door to Inspectors, OSHA, etc. As long the church is not conducting business and does its own
printing – the inspectors that “do” come by will not give too much trouble. If a business were to be operated
there – opens the door to toooooo much, especially with what has come down in the media!

To June and Jean [Brown]: Most fond greetings to you two stalwart troopers… at best bookkeeping is horrible – when you are not strained bookkeeper. I know it is a living nightmare. However, your inquiries are very thorough, and from all I can see you are doing extremely well with what you have to do with…

Those of you there are constantly on our minds – with the thought that you will soon be joining us here. Truly this is a lovely land, and the magnificence that our town is becoming can only be experienced. Dad works so intensely hard and never a day passes that he does not express his great concern and love for all of you there.

Give our Father’s love and our fondest greeting to all of our loved ones there in S.F.

– Tish [Lroy]

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B-1b-4c – 1-b-4d

[Editor’s note: These pages duplicate B-1b-4a – 1-b-4d, with an additional section on the second page.]

ADDITIONALLY:

1. Discontinue operations of Truth as of June 30, 1978.
2. File final sales tax return and mark it final return.
3. The board of directors here will forward a resolution formally dissolving the corporation, and you can at that time file it with the Franchise tax board…

I am in a rush to file the final sales tax return and mark it FINAL RETURN… Am in no rush to notify franchise tax board…

4. Stop buying anything on the [illegible words]. [Editor’s note: This line is handwritten.]

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B-1-b-5

[Editor’s note: This also page appears at c-7-g-2b on the Law Office Report #35.

Law Office Report #35 (partial), June 30, 1978.

[Editor’s note: Minor spelling errors have been retained.]

Law Office Report #35 • June 30, 1978 • page 3 • from June [Crym]

Also our backtracking just a few days after we went to him in a state of frantic panic when we were under the gun from FCC and couldnt get him to agree that his statements about the bibles were coorborating with Olga’s to Kelly. He sees us as operating always on a panic level, in defense against Baker and always harps on the need to take the offensive, not be so alarmist about things. He does not realize our basic strategy of acting before the fact, i.e. alerting press, etc. So when we change our instructions liek this, it causes him more trouble… and the most important factor–it causes him to lose face with his partnership, with whom he had to discuss the whole issue of accepting title for security. I am not agreeing with him, I am explaining this to you folks; I do understand the necessity for keeping title to places and just working with Dr. Bedford faster. However, the above is informational.

10. Truth E. – this is what I tried to explain on the radio: we have 3 problems with Truth. The first is that we’ve received the attached series of letters from IRS, ending with the latest asking for us to come in and talk, but not saying about what. Walter is in the process of contacting IRS and finding out what it’s all about. The second is that when Harold [Cordell] was here, he and Tish [LeRoy] [Editor’s note: “have never done!” scribbled beside “he and Tish” which was encircled] apparently had discussed the fact of including the computation of a San Francisco tax figure into the quarterly Board of Equalization reports filed on Truth. This was because the business was primarily conducted in the City; the use permit comes out of Mendocino County; the directions were nt to transfer the permit since that would cause problems; Harold said just before he went over to include the k SF BART tax, which is the add on of 1/2 of 1%, to cover ourselves for the eventuality when the Board might question our operating in SF. Well, this was done, and now they sent us the attached letter asking why we have been figuring this in our quarterly reports. Walter adviseed us to just ansser that some business was conducted in SF and that is why the % was added in. We asked him if this was the Board’s way of formally starting an inquiry into whether we were operating full time in SF. He disagreed. Before we write this letter, we are asking your advice whether to do it. Our next quarterly report is due around the first part of July for the past 3 months; we would like to send the letter out with the report.

Finally, there seems to be an assumptin over there on Chet and Tish’s part that we’ve gone ahead and transferred Truth to Tony. We only put the printing equipment on Tony’s insurance policy. The phasing out of Truth was not done because we keept getting more income producing, obviously not church related, printing business, and we are still waiting for Walter’s analysis re the impact of printing political literature under church corp. As long as we keep the printing corp under Truth, then we understand we can continue printing political posters, books like Mary W.’s, stuff like that. If we lapse Truth and go to Tony, we are restricted by cntent. Obiovusly, this may all be irrelevant if we are to move the printing equipment out–but as of now, we’ve done nothing to transfer the corp. to Tony.

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Undated memo to Jim Jones and Carolyn Layton regarding income taxes.

RELATIVE TO INCOME TAXES:

Dear Dad and Carolyn:

IF THE FOLLOWING is in accordance with your agreement, please transmit the following suggestions and information stateside to the attention of June Crym and Jean Brown… as you see the need.

[Handwritten marginal note on first item: “Carolyn: IO need Dad’s okay on Item #1.”]

1.) This morning, Chaikin and Harold and I discussed at some length
the possibilities of my idea to UTILIZE some of the newer sections
of the tax law. IN ESSENCE: we would take the maximum allowable contribution to church – mail WITH THE TAX RETURN a letter of
acknowledgment of the contribution attached to the tax form, this would constitute a receipt from the church to the individual which we do give at time of audit anyway and is not considered a problem…

BY UTILIZING “ONLY” the items on the form that IRS legally allows:

1. The state income tax you pay – they check by computer;
2. The % legally allowed for State gasoline tax;
3. The % legally allowed for State Sales Tax; and
4. The % legally allowed for contribution – substantiated by a receipt from the church sent and attached thereto along with the returns, to IRS. This leaves nothing else to audit…
5. This gives us in the case of the high income bracket people, a much higher deduction and ending in a MUCH LOWER TAX, and thus a major refund… without any fear of audit.

I see of no way where this can hurt us, nor can Chaikin. FURTHER, THERE ARE POSSIBILITIES we are now checking into wherein we might consider filing some amended returns relative to some of donations to the church on properties in times past to get considerable kickbacks.

In cases where the person has indicated MORTGAGE INSURANCE AND
INTEREST PAYMENTS as deductions on prior year tax forms, the computers are designed to pick up when this deduction stops… meaning that in the case of Don and Bonnie Beck, where they paid interest in 1976 and none in 1977… the computer would pick up a SALE OF PROPERTY… which is taxable under capital gains law. THE LAW CHANGED ON THIS THIS YEAR and only 30% “calculable” portion can be taken in a given year, and balance is taxable to the individual – though there is a carry forward allowed so that the entire deduction can be taken over a period of five years forward. The contribution portion is figured thus:

1. a) Deduct your purchase price from sale price to get the appreciation of the property, less 50% for capital gains allowance. The balance is your taxable portion. 30% of this can be donated the first year, and over the next 5 years the entire gift can be deducted in graded percentages.
2. b) Donations of CASH TO A CHURCH is separate and comes under a 50% maximum law – the PROPERTY CONTRIBUTION IS FIGURED SEPARATELY AND IS NOT INCLUDED IN THE 50% maximum allowable gift…

Gene and Harold and I cannot see where this could hurt us – and felt that if anything, under the tax investigation this would improve our case… he can explain the ramifications, since his idea and he will be talking with you about it, he said.

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Undated memo to Jim Jones, from Tish LeRoy, about tax suggestions.

[Editor’s note: Minor errors have been retained.]

Tl [Tish Leroy] to JJ

Tax suggestions

2) RELATIVE TO BARBARA HOYER:

Her continuing to claim Tim Carter, Jocelyn and Mike as dependents – to me seems unwise: it in fact is fraudulent and could be proved SINCE TIM CARTER IS SO VISIBLY active in our
headquarters. UNDOUBTEDLY all the names of active persons here are transmitted to the CIA control center in the states, and “at times” this information might or might not be checked with Tim Stoen; the HIGHEST BRACKET salary people would likely be the ones Tim Stoen would go after… He knows Barbara very well since she was his acting secretary for a time down at the DISTRICT ATTORNEYS OFFICES IN SAN FRANCISCO, and was paid by the city for the position while she held it… Both Tim Carter’s names, and Barbara’s would be known readily to Tim.

Should he see their names on tax returns and on the Georgetown report, I think she was safe prior to the ’77 returns… as it would be most difficult to disprove the position we gave her – especially after the fact… However, not so for 1977. I think fraud could be proved – or at least a sufficiently strong case to greatly endanger her.

Chaikin and Harold are both FOR CONTINUING TAKING THE PERSONAL DEDUCTIONS OF THE RELATIVES on her married tax return… I do oppose this MOST strongly for the above reasons.

[Marginal note: “Compute both ways and take the one that gives most $ for us. E. [Eugene Chaikin]”] In contrast to this, I would propose her filing a joint return with her husband, taking the allowable deductions for them, and utilizing the 50% contribution as indicated on page one of this transmission – which would give us MORE OF A TAX SAVINGS and would not endanger Barbara in any way that I can see.

3) Relative to Checking all returns out, and doing all returns from here…

a) CHECKING OUT RETURNS – I am having Harold and Kay Nelson do the tax returns, splitting up between them the work that is to be done.

INDEPENDENTLY OF THEIR WORK, I am calculating the returns on a large spread sheet – listing names and Soc. Sec # and THEREAFTER using a column per “line #” on the return… so that in fact I calculate each return, separately and independently of their work… trying in this way to pick up all errors, and all “possible” deductions that are legal. It is not likely that we will make the same mistake in same spot…

b) It is simple then to go one step further, with all of the
vital information on the spread sheet (filing status, # of
exemptions, 77 income, withholding taxes paid already, etc)
TO GO ONE STEP FURTHER and calculate based on taking the
maximum allowable CHURCH CONTRIBUTION… which I am doing,
on the same spread sheet… so you will be able to see visibly – just how much money we are talking It should be an appreciable amount!

BY THIS SAME METHOD, use of the spread sheet, I am recommending that we calculate all returns from here – with only a few exceptions. ON ALL THAT SHE CAN, June can do the returns herself, by line #… we can relay our figures so that she can check her own calculations. WE CAN SEND OUT any we question

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Tl [Tish Leroy] to JJ

Tax suggestions

4) # EACH PERSON THERE so that future transmittals can be coded…

Possibly, June and Jean should said down a numbered list, immediately of all persons there, either coming down or
staying – on whom we might have reason to communicate.

Certainly would have to be sent by a reliable^–carrier in a group situation, certainly… not ruling out that a single carrier could be paid to let CIA go thru our case… (excuse
my paranoia)…

The number classification could tell us possibly where the person is – headwise – relative to the organization…

Category A could be numbers 0-150

B could be numbers 200 series

C could be numbers 300 series, etc…

ONCE^: THE LIST IS HERE, and they have a “secured” copy there… we could then transmit a code # and monetary figure for income
amount… . and the returns could be calculated…

[Marginal note from Eugene Chaikin covering balance of page: “I do not like this idea… too likely to screw up, miss a line, give a wrong number, etc– very poor communication. Best we do them here – [balanced illegible]”]

CODE COULD SAY: School supplies #C-345 has 4 126 pieces to the puzzle; or catalog number 4,126… can be used in conjunction with: 327 – (327 representing the amount of withheld tax we would have to figure on the income of 4,126.) THE PERSONS social security # and amount of personal tax exemptions, age and marital status should be included in the list sent down.

Certainly this would have utilization in other areas of your transmittals as well… and other information could be included in the original list sent. FINALLY… the list there should include only the name and number – perhaps in reverse so not readily connected, THE ORIGINAL LIST could be deliberately dis-arranged so as to be not in alphabetical order. THEN, the names could be arranged “in” alpha order with the numbers reversed: alpha part of code=

A=Z, B=Y, C=X… etc; or another less conspicuous method. Then #123 would be listed 321, or 213… consistently.

PREFERABLY – no one but one person there would understand the formula by reading the numbers… but – the LIST in its revised form could be used by 2 or 3 there … if necessary. THEN, June would write out the message from the existing lists
the transmitting person would read it aloud TRANSLATED into its correct # sequence: i.e.

On June’s list. Barb Hoyer would be X-321, Catalog number… The radio transmitter would read this C-123 on transmitting it
to us. If the list there WERE CONFISCATED it would be hard to
break if the original list was disarranged alphabetically, and the modified remaining list had the reverse coding and was subsequently arranged alphabetically… the numbers would then be out of sequence in their reversed state, so that a trained code-breaker would have a terrible time figuring the numbering arrangement if the original arrangement was a list totally disarranged from alphabetical sequence. THIS IS JUST A SUGGESTION
and very likely a much more sophisticated system could be worked out – or already has been…

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B-1-b-6d

Tl [Tish Leroy] to JJ

Tax suggestions

5) If you agree about Barbara, then perhaps you could convey to June, and get me her income, amount withheld by federal and by the state in income taxes… I can calculate the return very quickly and you can either transmit the reply by line# on the tax returns… or we can mail the calculations to June, or we can do both, as your best judgment might indicate.

6) Tell June that Harold brought with him the tax files he had been holding onto. There was information in it that had been sitting since early last year when I started Apostolic with Sandy… and the taxes were turned over to Ellen Klingman and Harold… On about 35-40 tax cases, DONE on them. A few were items that Betty and I found that Ellen had squirreled – Buford should recall that issue… hoping we would have to call on her to save us when she was acting out in the states… So she would have been responsible for what was not done up until time I left… and at that time ALL TAX MATTERS WERE TURNED OVER TO HAROLD… so he has no recourse but his own responsibility from that point to this… When I confronted him on this, his response was that the work could be done HERE JUST AS WELL… which is not true since it would have saved MUCH TROUBLE had it been done there, and since in at least one instance … we lost a refund because the statute of limitations ran out… it had not run out until the end of the calendar year 1977… 12/31/77…

However, he is doing good work on what he is doing now… and he caught an item I erred on where I had not yet checked the code on something… it would have been caught in our double check system anyway, but he is at least being alert, and conscientiously working at this right now. He STRONGLY RESISTED showing me the letter on Barbara Hoyer, even with Chaikin sitting there – wanting to handle it alone with Chaikin. And I think they both erred in their recommendation on it – see my paragraph 1 of this letter…

This is my only concern with him here – he hates to consult, and certainly I have been guilty of this in the past – but it is the reverse of what I am trying to remember to do here… since consultation and planning are natural resources, in a way, to the socialists.

Tomorrow, after I complete what I am presently doing, I will transmit to Carolyn or Buford, the exact responses to the questions June asks in her letter that referred to Doreen Greaves (a 76 return I gave Harold to do when Dorreen turned it in to me… since at the time I was working on Apostolic and could not handle it… He told me in the states it had been done… Here he “could not recall” – yet it appeared on his list he finally turned over to me when I demanded he bring in all the files he brought from the states, and make me a list of them and the status of each tax case.

7) TELL BETTY MC CANN to give to June ALL THE REMAINING 1977 “account” book information on the care homes. ALL OF THE CARE HOMES… including Janaro’s… No one but me should do Claire and Richard’s returns; tell Claire to file for an extension on April 15th… or 14th… not before that! I need income records, cash disbursements and check registers, along with the paid bills for the current year (1977) and the canceled checks.

8) IMMEDIATELY SEND all W2’s on persons down here. Send them as they come in. Send photocopies of the W2’s on persons there.

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B-1-b-7

[Handwritten heading: “Important Please”]

to Dad –via

TERRI BUFORD

In re CLAIRE JANARO – a recommendation

In re their 76 taxes, these were done by Ellen and Harold –I was not available, as I was buried in Apostolic from mid-February thru mid August

An not aware of what “lies” in that material – have asked to have ALL THE TAX DATA SENT DOWN.

Recommendation:

Have Claire and Richard “SELL” the business to Don and Bonnie Beck… the property is not an issue of sale, as it belongs to the church. For a “sum to be paid from their warnings,’’ Bonnie can contract to buy the business. They can pay cash for the furniture and fixtures and have a clear bill of sale on this – not too high a price, though… as it is now old furniture… perhaps sell at undepreciated price…

A conditional contract – based on their income for the GOODWILL in the business… Send their books and records ALL AHEAD TO US… then get Claire out of there! She is not the best person to send thru an audit… Bonnie is sharp, but you don’t act sharp with IRS… you are better to be a disinterested person – as I was, “outside” of the connection with him.

There are a lot of “cute” things we have pulled in that account, that would not be a problem to walk it thru audit if you know your way thru… However, I don’t know what Harold did., have not seen the figures… nor the worksheets which are more crucial.

Then, I would ship Claire down here and quick sale the business to one of the big outfits that buy up places… IF POSSIBLE, to prevent government attachment – or the conniving of TOS [Tim Stoen] on our assets.

She has an extension to file until June – she should be out of there before that time, so that she can then write for an additional extension FROM GUYANA before the first extension is up… We can dilly dally and put it off… just not pay anymore there!

They couldn’t block the sale that way of the property – (for Claire’s interests), and if there is a statute of limitations, let it “out of the bag” that the business was sold at the prior, date (whatever) that Richard had left for South America and Claire had stayed behind to help them get training in the business, and did not want patients leaving which would have happened if they had known it was sold before getting to know the new owners…

I think it is worth consideration.

– Tish

[Handwritten note from Eugene Chaikin: “I think we should sell the Ranch NOW for the best price now available… I don’t know what risk with an audit but it surely would “tie in” to P.T. tax concerns.”]

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B-1-b-8a

Letter to Jim Jones from Tish LeRoy, March 20, 1978, on tax concerns

20 Mar 78

Dear Dad:

We are awaiting your response to the TAX MEMO… In an initial sumary review of 27 returns, from lowest to highest incomes, mostly of persons still in the states, we would receive around $23,400 in refunds with the 50% contribution figure used, and taking nothing as deductions that were not “allowed” on paper by government themselves… with the church tax letter attached, there would be nothing to audit…

Without the contribution listing, taking the straight tax table rate – we would receive a total back of $158 from the total 27 returns…

THERE IS THE FURTHER POSSIBILITY OF FILING SOME AMENDED RETURNS for prior years on some who did not use the full contributions… Chaikin’s idea on this, I am not so convinced they will let us… THEY HAVE THE OPTION TO REFUSE, though do not usually refuse if you have a substantial argument…

IN LOOKING AT THE LAW TODAY… both Harold and I noted the JEOPARDY ASSESSMENT OPTION the government has… It would certainly stand us in stead to go through  quick sale wherever possible, esp. on the apt. building in Los Angeles… and SF church, if possible and the ranch…

It would be good if we could STIR UP SOME DIVISIONARY TACTICS to pull their attention away from our properties and finances… while we are attempting the sales. You have used this method successfully in the past, and have probably already considered it., so I just add my vote for the approach.

Am sure you already are familiar with the JEOPARDY law.… where if they feel you will try to conceal, take assets out of country, etc., they can attach what you have… thru tax law maneuvers, bringing your fiscal year to close early, etc.… Should be kept in mind, as I know you no doubt are already doing.

IN VIEW OF ALL THAT IS GOING DOWN, WE SHOULD PERHAPS, REASSESS WHAT WORK I SHOULD BE DOING… With Andrea Hardin down here now, perhaps she should be considered for a secretary to agriculture, along with Toi… OR… PUT ANDREA [Walker] IN THE SCHOOL and put Inez Wagner in Agriculture. Either of them could sufficiently handle this office with help of Toi [Fonzelle].

I should possibly be pushing their ejections, helping get the department structure set up (now doing it – but am too stretched out with addition of taxes to be effective in anything…) pulling line the book work for farm, medical and warehouses… as well as getting our tax refunds, looking into the laws on social security, checking on those that do not yet have their retirement income collected, etc. We need a lot of letters out to get the W2’s on people (so we can get tax refunds). They allow you 6 months or until June 15 on out of country citizens… but we will do better to file around April 15 with the “MOB” in hopes that an amateur hiree will process our paper and just send us our refunds… If we wait until June 15, and send into Philadelphia where the ALIEN, DUAL STATUS AND OUT OF COUNTRY EXPERTS ARE HOUSED… then I think they might be inclined to delay in sending our refunds, they might lose papers, etc.… We have the returns done on all on whom we have W2’s… and a list of many on whom we NEED W2’s…

ALSO, MANY WHO WORKED in 1976 – have not responded to our plea to come in and give us the information so we can get out letters for the W2’s… there is TOO MUCH APATHY AMONG THE EATING-PEOPLE OF THIS FAMILY… about getting back this money for our collective. Harold and I talked about it and feel that if they FAIL TO COME FORTH NOW, and later a W2 wanders in – and they did not tell us, it should be automatic learning crew…

SOME, like Guy Mitchell had many jobs and made no listing – he said he had around 15 jobs in 77 alone in Texas before coming to San Francisco… As a former personnel person this

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B-1-b-8b

is a red flag to me… It usually marks a person with either major personal problems, one unable to function well, too hot a temper, or… it is of course sometimes the mark of an agent. . . you know ay ever present paranoia, looking for the CIA to come out of the woodwork… but it is still worth bearing in mind. We have never had such trouble with out stock before, and he certainly volunteered fast for a person with no previous training…

Toi is doing well; she is learning shorthand, but it will be TIME before she could handle the minutes and radio followup… Andrea could handle that, and Toi could handle the other office records and procedures… I stronglyrecommend this. I will of course do my best to get done all I can… but presently it is more than I can handle. Probably half a day is all that it would take in office for Andrea or Inez… Inez [Wagner] is also to be strongly considered with her construction background… She is very knowledgeable about parts, etc., and handles people well. Inez would probably bemy choice, though she is presently in book depository. Inez also knows some bookkeeping, and wants to learn more – down the line, she could handle much of this for the farm and analysts, along with Harold.

Interestingly, Harold’s sores are clearing up – You are MOST KIND and loving, Jim… your tender mercy that forgives and eternally gives us another chance, is to me your most endearing trait… when we fall, we know it is worthwhile to get back up and go on… we learn from the fall, and are not demoralized from trying to improve. Certainly we can be more considerate one with another, as we cannot fail to perpetually observe your ever-present example.

Thank you.
Love, Tish

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B-1-b-9a

MEMORANDUM TO DAD

In re 1977 Tax returns
And June’s Law Office Report #15
From Tish Leroy
16 March 1978

ISSUE: Long forms & receipts?

I have checked through the changes in the tax laws; we do have the latest bulletins and tax law changes – and I have checked it CAREFULLY.

June reported to Buford that she HAD TO FILE LONG FORMS, TAKE DEDUCTIONS AND ATTACH RECEIPTS… I CANNOT IMAGINE HOW SHE GOT THIS MISINFORMED… I CAN ONLY ASSUME (A FOUL WORD) that she called IRS herself and gave incorrect “input” or that she called a tax person and gave incorrect unput.

SHE MIGHT HAVE ASSUMED OUR PEOPLE HAD DUAL STATUS: that is, that they were U. S. Citizens AND non-resident aliens… in which case we would have to itemize our deductions… however, I find nothing about attaching receipts – and I did search the books for this one as I had never heard of such a contrivance.

Our status: However, our status is U.S. CITIZENS LIVING ABROAD… – and those at home are the same…

Outside tax person & claim church contribution of MAXIMUM allowed: ON PERSONS WITH HIGH INCOMES, LIKE DON BECK, BONNIE AND Jean Brown and perhaps June Crym… I recommend we send them to the woman who formerly did Rheaviannia’s taxes, and tell her that Rheaviannia sent them…. Her fees are reasonable and she does know the tax laws quite well…  (see paragraph below)

ABSOLUTELY NO ONE SHOULD GO TO H. R. BLOCK,… who gives
housewives a 6 weeks training course and turns them loose on an unsuspecting public; as any one in IRS is certain to know…

Harold brough a lot of unfinished returns, including short forms/ items not requiring more than 10 min to complete… Doreen Greaves among those: Some of the tax work I gave Harold when Sandy and I started Apostolic… early in ‘77; I was over 4-5 months on it, finishing in August, 6th as I recall… I gave him rest on my desk I had not gotten to in taxes when I left in September… He brought it ALL down here; and I do mean all, in some cases losing a refund because 1977 lapsed without filing the returns… not much $$$ but some was lost. As near as I can see he did no returns – so am reluctant to let him do returns now, as he has some heavy errors on them in times past. Yet, he sees it as a status thing, and wants to do them, I know – OBVIOUSLY… He wasn’t going to tell me about the things he had not done, I had to demand he bring in the tax material to me. And; if he even worked an occasional hour of overtime – I would feel more charitable… Frankly I am extremely pissed at him! Yet, he is a socialist brother; and I incline to think his “sores” that are getting worse are a brooding over this tax thing… so

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B-1-b-9b

though I do not feel he deserves to do returns, not that it is anything more than a bother – and I get out of them when I can… yet, I conclude he should be allowed to do them with me, BUT ONLY ON AN OVERTIME BASIS… I incline to tell him just that way, with your permission of course.

Proposal: Kay Nelson is also helping me on the returns., we had planned for her to sit in pavillion tonight and get additional information we need from some folks.

Becky and I have a socialism class to teach tonight, but I propose the following: and it is more than fair, since I only had 3 hours last night, resting from 8:30-11:30; then back to office for rest of night and today… It is easier than getting up at 3 or 4 in morn. And I can do it [a] couple days a week if there are not unexpected meetings…

I propose that Harold and I go to bed right after dinner or each as soon as they can make it – and sleep 3 hours then get up and go back into the office… and just work straight-through… take another 3 hours from 5 pm to 8 pm tomorrow… then get up (missing rally – Toi and Margarita Romano can take minutes… I watched Margarita Monday at Steering setting in, and she listened well!) Harold and I can then work through until we finish… if still not close enough to ’’through” Saturday take 5 hours late in day and again work through night hours when there are no interruptions. Kay can help us in the hours she should and can work… She would want to work longer but Mother cautioned me about this.

We have about 60 stateside returns and 80 for those here (that we know of)… Maria can type returns… We can do them on a MASS SCALE – on an accounting tablet and then type them on the forms… ! think we have enough forms… WE WILL NEED THE W2’s sent down from states for those here… since they are mailed to Philadelphia and not to California.

THIS IS NOT NECESSARY… We could just do the stateside returns, which I could get done almost all myself with Kay’s help in the 2 days… but knowing you – we can also get most if not all of the returns for those here, excepting where we have no W2’s from employers, in which case we can file an information return and request for extention (though automatically they give you 6 mos to file instead of 4 (June 15 instead of April 15 – which is an extra 2 months) if you are out of the country…

I should not say knowing you – because none of us know your mind… but it does seem to ease your mind when these kinds of things are behind us… I have no trouble going a few days on 2-3 hours, provided the sleep is in early evening – I seem to get much drowsier through the late night hours if I
lay down to sleep… Whatever you feel is important – will do. Am sorry not to get this memo to you last eve – I misunderstood Terry but really felt terrible to have misinterpreted. It was my error completely and not hers; She is a most conscientious person so her plight is upsetting to me and I feel I let her down not having this at noon – and am sorry. She is easy to work with and is not unreasonable. I hope it caused you no unnecessary tension… We seem to do that unwittingly. Love, Tish

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B-1-b-10a

Undated letter to Jim Jones from Tish LeRoy regarding tax matters.

[Handwritten note at top: “Dad – is as brief as it should be made – Please read yourself. S very serious. Tish”]

To Dad
From Tish
RE: TAX MATTERS CRITICAL I feel

1) In matter of Tax issues on Truth Enterprises and the Vitamin Acct.

I tried to explain to Debbie [Touchette], but Gene [Eugene Chaikin] and I both concluded she was not sufficiently grounded to comprehend what I was saying — though I explained it 3 times… She was not hearing me. Not against her, she is very bright –but I have had 25 years of dealing with the St Board of Equalization in Calif –and they are bastards if you don’t know what to say or do…

SINCE THE INFO cannot be coded and transmitted, I feel it is in order that I do an indepth letter to Betty and June [Crym], and that we have it posted from Surinam or Trinidad – if it means a plane fare to do it! Rheaviannia [Rheaviana Beam] needs to go to both places, and could mail some other things that would be money-making if able to go… I think Trinidad would be more profitable, Insurance Co is there, and she could handle some claims for us too…

The clock is running out on these two accounts and if not properly handled, could “draw” an immediate audit – and end up costing in the thousands because they in states would not know the danger signals of the auditor’s questions… There are things you do and don’t say! And if you say a “don’t” then you open the gates for a flood of trouble.

2) Am not sure we are being Hassled on IRS inquiries… for this reason… (And I am first in line to be paranoid about the U. S. government… )

(I recall b ack in the 70’s at the start, they were installing computer systems to “catch” people on tax dodges… They had a program set up to hit  50% of the people by ’75… 60-70% for 1976 and 75-90% for 1977…

This was to be the procedure: The computer key operator puts in the information into the computer from the return; “Certain” computers (they at first did not have enough computers) then disallowed certain items… In 1976, they were disallowing deductions itemized for: TAXES, INTEREST, CONTRIBUTIONS, AND CLOTHING, BOOKS & OTHER VOCATIONAL NEEDS… REQUIRING YOU BRING IN YOUR RECEIPTS TO IRS FOR ALL OF THESE… As an alternative to bringing in the receipts, they sent a sheet computing your taxes on the standard deductions, disallowing completely your special deductions (unless you brought in proof of them)… and charging you the difference in tax… ALL DONE BY THIS SPECIAL COMPUTER…

This program has been going on for many years that I know of – it began back in late 60’s, increasing rapidly in 70’s… Was in operation when I worked for CPA office back in 68-69…

THE FORMULA FOR SOLUTION – is 1) get copy of your tax return; if you have not got it – you pay IRS for photocopy, stating you did not save one… or it got lost, or whatever. Cost is $2-$6… usually. 2) When I can see original return, along with IRS letter – I know where they are coming from and can advise how to handle.

In no case do I advise paying… See [Say] the person has no assets. If they have a job in states, however, government can attach wages, but must get judgment first, (easy to get). Federal judge signs order, as I recall… If no assets they cannot collect. Must prove inten to prove fraud – so that is not easy… If have a job, I’d say pay on a “payment” plan till they leave states and job… this prevents attachment, and reduces amt they are forced to pay…

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3) The matter of PT records is as sick…

I Just found out YESTERDAY that in May of 76… Chaikin issued a letter to govt or police, stating PT records stolen… and he said a file on those needing “support of contribution” letters from P. T… HE SAID, stating that this was as we “recalled” they had contributed, but since records stolen,we could not absolutely state this was so…

UNFORTUNATELY Gene did not advise me of this, and l was the person handling the tax matters… As late as last of 76 and until Maria Katsaris left states, she was signing VERIFICATION LETTERS which Gene had approved stating our records substantiated the amounts we listed on the letters of verification…

These verification letters were set up and approved by the attorneys; I
was told to issue them; they were acknowledgement of receipts of exact sums of money.

They were signed by Eva, Maria K. and June Crym. Since June did not start signing until Maria left… and I recall specifically it was Gene that told me June was the new treasurer when I asked him AFTER Maria left “who should be signing these letters of acknowledgment of receipt for tax purposes…” I am POSITIVE these went out with his knowledge.

Yesterday, it came out that these never should have been written, because they became testimony that:

a) Either they lied about records being stolen, or
b) They were lying and documenting tax information which in fact could not be documented, with obvious intent to file fraudulent returns – or complicity in the crime… PERJURY either way… with intent…

A CRIMINAL MATTER against the sigaators – either way…

I really question our continuing to allow Gene to advise without my presence on tax issues… He does not know tax law. When I first took over Bookkeeping dept – I advised on setting up a more complete system on the
P. T. income and brought it up several times in government – in each case TOS & CHAIKIN both advised me I “did not know the law” but they had thoroughly researched it! They managed very expressly to keep me OUT OF THE PT BOOKS. [Handwritten addition: “It was their error that necessitated paying records stolen”]

June may issue the wrong letter… with coding Debbie is sending… am very concerned on this. Again I think a letter of introduction and an exact copy of what she should use should be mailed from another country to her. An airline ticket should be “on hand” for her use at all times… you may have to get her out of there in a hurry! She should travel under her first name and grossly misspell the last name – claiming if questioned on arrival in Guyana that airlines messed up on her ticket… [Handwritten addition: “in my present opinion.”]

I AM ALL THE MORE CONCERNED to get hold of Guyana Tax Law books to read for MYSELF the laws… with both of your former advisors being traitors… and Harriet not knowing tax law at all… someone had better read up on it and I don’t know who else would comprehend what they read… not that I am all that hot, but with intense study, am sure I could figure out what I needed to know.

At first Chaikin was very superior and supercilious about the issue –– then admitted I had never been held at all about the report of stolen records! It is beyond my comprehension why I was not told… But we must begin immediate steps .to correct.

Thank you… Tish

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Report by Jean Brown, December 20, 1977

[Handwritten heading: “Ed & Sarah Opinion”]

REPORTS

JEAN

DECEMBER 20 [1977]

1. RE. BILLS RECEIVED FROM TISH. When we sent in address change notices for people in Guyana in order to be sure family/relative mail was forwarded, we also managed to .give creditors the whereabouts of members with outstanding bills. June and I have to this point gone over each and every bill pretty carefully. Medical bills as a rule we bill to Medicare/Medical or do not pay. Especially for seniors, but more and more for all people living over there. We simply don’t reply to the billers. We are paying bills on Edwards, because of family situation. But I think as a rule we have gotten out of most. Those that are questionable we have sent copies of to you over there for some kind of opinion about payment or non-payment. [Marginal notes of approval]

But Tish has just sent us a package full of bills that have been received through the mail forwarding process to “Mission Village” in Georgetown. I guess that was unavoidable. But neither June nor I understand why Tish opened them all up. Wrote on them, on the faces of the bills. And gave us instructions to write as the person receiving the bills that we no longer live there and to forward further bills to “General Delivery,’’ Detroit, for example. First of all, why does she ask us to  forge the bills/letters — when she could have gone to the various people there and had them sign such a letter?? Also, since she had open all them up, we cannot send them back to sender, which seems a logical way out. Why not send us large packets of the bills when they accumulate, unopened, and we can peel off the Mission Village forwarding sticker and mail them back to the sender, from here. [Notation: “No! Ignore the bills!”]

It has its disadvantages, because you wouId have to send things without checking into them to see what they are. Or someone there could carefully open them and those you wanted sent back could be put in a bundle and mailed to us here. Just a suggestion. I don’t know the best way around these bills – but I think Tish
handled it pretty carelessly.

Also, we are receiving ultimatums from the State for not paying corporation taxes on Peoples Forum, (business tax) on Relics and Things and on Equality Action, Inc. We owe corporation taxes on all – which were never filed. $200 each (approximately). I have asked June to write up a report on all the tax (IRS), inquiries we have received from people for their 1975 tax returns. Maybe we have been careless in filing incorrect tax returns (again, that would be Tish) or maybe the T dep’t is singling us out – which is equally likely, I suppose. Please see June’s report for details.

2. Kathy Purifyo [Purifoy] is doing better. She has cuaght up on letters. We have talked several times since, and she is more willing to accept Kathy Tropps criticism and instruction. She is calling in regularly when she stays late at work and seems to be doing better all around.

3. Andy is overloaded, in my opinion. It is his own fault, but he seems to take on things compulsively and doesn’t know when to say stop. He has taken on additional security posts since a meeting was held about that, plus does replacements for other people. I told him to get more sleep. He keeps up with the PR events, but lately has been going on things himself. He finds it easier to go to a meeting than

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[Editor’s note: This page is almost completely illegible. Only the sentences which can be read have been transcribed.]

to confront Hue [Fortson] or Vera [Washington] for refusing to go or forgetting, as Hue did yesterday with the Race, Religion and Social Concerns committee meeting. Andy went by himself at the last minute because he said Hue forgot and couldn’t be found. Hue is quite often not accountable for his time. He [illegible words] at the meeting [illegible words] and told the group about the [HEW] situation when they asked what was [illegible words] P.T. Another [illegible word] They gave him cold stares and changed the subject as he described it. [Illegible words] to tell them [illegible word] of the good things going on in Guyana. The [illegible words] that people like [illegible word] are losers, [illegible word], etc. Then he felt terrified [illegible word] for going on his own and for not thinking of saying positive things — and [illegible words] because he cannot work with Vera and Hue in PR. I think Andy should be taken off PR, let him handle just the Holland Roberts group. Give the whole responsibility for coordinating PR to Vera and and accept the consequences if [illegible words]. a lot of stress when I talked to him about this last night.

He feels best when he is procuring, but feels the obligation of keeping up with all the PR and he is not doing as much of a service to PR when he is functioning like an unguided [missis? missile?] like [illegible word].

4. Have received [illegible word] letter from Marge Boynton. Says she read all we sent her on Jonestown and it [illegible word] sounds fantastic. I would like to [illegible words] myself. Please convey our wish for a joyous holiday to Jim and his family. I had contacted her since she asked us [illegible words] several [illegible words] asked her to write this summer. [Illegible words] with [illegible word] Younger, he stays at her house when in Ukiah.

at the end she says. One last thought, [illegible words] and my [illegible words] ever available. We miss you and [illegible words]. This is [illegible words] Teri [Buford] thinks so and I agree.

She was very [illegible words].

5. Also a card from [illegible words] which says, “How is Jim? I’ve heard about the latest harassments and just pray all will turn out all right for him.”

6. RE CAROLYN’S TAXES: According to what HR Block worked out, you owed the Feds money which Annie will [illegible words].

PS – [Illegible word] you said you had an enclosed letter for someone in [illegible words] closing out your checking Acct. Account was closed. Tell Dick Tropp to write [on Sunday] letter to Wells Fargo. He has over $1,000 in check acct… we need to get out. [Editor’s note: this last paragraph was handwritten. Beside it is a note that says, “CL do this. Dick to write a letter.”]