 VOL 19, NO 37, MARCH 27, 2007 |
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Friday Program: [Steve Goldfarb announced that the Program Committee was a little unhappy about all of the scooters lately, so they decided to help. "Today's speaker," he said, "is from the IRS, and agents will be parked at the top of the stairs to collect documentation from anyone who leaves early." A few people took their chances and left, although post-meeting, your editor can say they missed a great program.]
The topic today is how to avoid a criminal investigation. Basically, the IRS is in the business of scaring people. We want people to know that if you cheat, you might go to jail. You will be proud to know that the US has the highest rate of tax compliance of any nation. People come from all over to learn how we do it. I have a badge and a gun, we are like the FBI and DEA but with a focus on tax. If there is a little blip on your taxes, it’s not going to get to CID (Criminal Investigation Division), it’s the question of 9 million dollars that will bring in the Criminal Investigation Division. There are some high end taxpayers that get involved in some wacky schemes, “abusive tax schemes.” We go after the promoters of these schemes. We also go after the knuckleheads, someone who probably didn’t go to college or maybe even graduate high school, but considers themselves a research expert that knows the Constitution does not require them to pay taxes. They go out and promote this idea with crazy reasons like, “the federal judge is not legitimate because the flag in his court has tassels.”
Tim Johnstone had no visiting Rotarians to introduce. We did have a few guests, though, including Steve Szirmai’s guest from London, recently moved to the area. Our own Brother’s Three, with only two brothers present, sang a little song. It was written by a guy on a walk who was reportedly wearing thongs, or a thong — the details are a little unknown — " Take a Walk on the Eastside."
About 35 Rotarians and several spouses attended. There was golf on Friday and dinner at the end of the day, with a shopping excursion to Port Townsend on Friday afternoon. Melody Carney, wife of Jim Carney won the coveted "Eddy." Sandy Zidar, winner of the 2006 Eddy Award, praised Melody for her "mission-drive" approach to retail therapy. She went on to say that Melody personified Sharon Edberg's drive to "see it all and buy most of it." We salute Melody and look forward to watching her defend her title at the next
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Marta is in her third year at the UW. She is applying for a degree in medical technology. She is very thankful for the scholarship that has allowed her to continue in school and not have to take any quarters off. Sergio is attending Central and is going to graduate in June 2008 with a teaching certificate. He wants to focus on elementary education and hopefully help students reach their goals.
Ron was born and raised in Ballard, attended the UW, graduated in 1970 in accounting and finance. Went into public accounting for four years then moved to Seafirst. After listening to people doing bond trading on the phone and having more fun than he was in auditing, he decided to make a change. Eventually Ron moved into mortgage banking. Ron is married to Stella; their only child at home is a 100 lb. yellow lab. Their first grandchild was born 8 months ago. Last August their team joined Chase, an advantage over being self-employed. Being National allows Ron to close homes in Hawaii, Arizona and lots of other sunny locations. His favorite hobby is golf; he joined Sahalee many years ago when it was only $1800 to join. His handicap is 22 at Sahalee.
Friday Program:
The topic today is how to avoid a criminal investigation. Basically, the IRS is in the business of scaring people. We want people to know that if you cheat, you might go to jail. You will be proud to know that the US has the highest rate of tax compliance of any nation. People come from all over to learn how we do it. I have a badge and a gun, we are like the FBI and DEA but with a focus on tax. If there is a little blip on your taxes, it’s not going to get to CID (Criminal Investigation Division), it’s the question of 9 million dollars that will bring in the Criminal Investigation Division. There are some high end taxpayers that get involved in some wacky schemes, “abusive tax schemes.” We go after the promoters of these schemes. We also go after the knuckleheads, someone who probably didn’t go to college or maybe even graduate high school, but considers themselves a research expert that knows the Constitution does not require them to pay taxes. They go out and promote this idea with crazy reasons like, “the federal judge is not legitimate because the flag in his court has tassels.” Think of it this way, if you can cut your taxes by a million dollars, you can really get a leg up on your competition. You can see why people get the crazy ideas in their heads. CID not only handles tax evasion, but also money laundering. If someone is involved in any number of crimes, and then uses that money to invest in the activity more or tries to conceal it by using their grandma’s name, that is money laundering. Once they follow the money, CID tries to seize the property. This is very important because the property is often the element that allows the crooks to keep going. Some guys will even offer to sit in jail longer provided they don’t have their car, house, boat … taken.
What are the challenges? 10-15 years ago money didn’t flow around the world as easily. Globalization has caused challenges. Money launderers have gotten very creative. It used to be simple, but the bank secrecy law says deposits over $10,000 have to be reported to the IRS. This has made it more challenging for launderers and required them to be more creative. Technology has also made laundering easier. Sayoko asked for immunity for any Club business that may be questioned. CI does not do any audits, they make recommendations for prosecution. We get tips from the general public including ex-wives, ex-business partners. Be nice, don’t offend your book keepers, keep them happy. Local law enforcement often call in an report and we generate our own cases. We do projects to “test the waters.” Are your agents paid on commission? In Rotary, we have something called Rat on a Rotarian. Do we get a cut if we turn someone in to the IRS? With the Wade Cook guy, what was his penalty? Do states have investigative units too? How much cooperation does the US get from foreign nations? Do you have an amnesty program for people who have never filed a return? Can you negotiate with the IRS? What about the “we get you pennies on the dollar” ads? I don’t understand these ads. How often do you try cases and what is your success rate? What costs more, operations or the money you don’t collect?
In honor of the Retreat Golf: TOP TEN CADDIE COMMENTS Golfer: "Think I'm going to drown myself in the lake." Golfer: "I'd move heaven and earth to break 100 on this course." Golfer: "Do you think my game is improving?" Golfer: "Do you think I can get there with a 5 iron?" Golfer: "You've got to be the worst caddy in the world." Golfer: "Please stop checking your watch all the time. It's too much of a distraction." Golfer: "How do you like my game?" Golfer: "Do you think it's a sin to play on Sunday?" Golfer: "This is the worst course I've ever played on." Golfer: "That can't be my ball, it's too old."
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Friday's speaker was Paul Comacho, Assistant Special Agent in Charge of the Criminal Investigation Division of the IRS for the Seattle Field office. (That is quite a title!) Here is what he had to say: 
Jenny showed us the beautiful brochure for Rotary Walks! We are only five weeks away, so spread the word and get the brochures out. Online registration is available at the 
The BBRC held its annual retreat at the Inn at Port Hadlock near Port Townsend Friday evening and Saturday morning, March 23 and 24. The Inn is housed in an old alcohol distilling plant building, a relic of the once-thriving lumber business. Each guest room is different and the staff was quite pleasant and accommodating. The Inn was so nice that a few of the couples decided to say an extra night.
Cyril Faulkner was the first place winner twice in golf: once for having the Individual low score and again for having the lowest team score. Second place went to Norm Johnson for the Team prize and Bob Bowen for the Individual prize. President Jim Zidar received recognition for the "Shortest Drive" and Kim Shrader took an honors win in the "Lowest Cost per Stroke" competition. Jim Carney played well enough to finish in the middle of the pack and, alas, went home without a trophy. Ron Black just went home. This year's weather was overcast with strong wind and no rain. We are saving Dick Brown's weather prowess for "Rotary Walks."
The business of the Retreat took place Saturday morning. Incoming President Phil Salvatori had enlisted three helpers to facilitate three breakout sessions. Fred Barkman led the session on the BBRC Foundation; Paul Chapman chaired the session on youth oriented programs and attracting those involved in Rotary programs to become future Rotarians; and John Martinka led the discussion of public relations.
Tom Smith welcomed back Marta Campo and Sergio Santiago. They are the first scholarship students that we have developed a multi-year relationship with. 
Friday's speaker was Paul Comacho, Assistant Special Agent in Charge of the Criminal Investigation Division of the IRS for the Seattle Field office. (That is quite a title!) Here is what he had to say: 
Another area, especially in the NW, is investment schemes. Basic good rule: If it is too good to be true, it’s not true. If you look at all the cases for the past 3-5 years a large portion are investment schemes costing people millions. Watch out for your friends and neighbors; you wouldn’t believe the devastation these crooks create. There are great web pages that tell about schemes: 
03/05