Sunday, July 27, 2008

What's Going on Mr. Gheen?

The post underneath this one addressed ALIPAC.us tax issues. ALIPAC is claiming they are not true. So we're going to look into it ourselves and then everyone can make their own decision once the evidence is laid out. If you have additional info, please add but don't get us mad by not providing links to sources and/or the documents. We encourage Mr. Gheen to explain the discrepancies with us as he has ignored us by not posting her version of the events here. Mr. Gheen, we're pro-truth, your post will be welcomed here as long as you can provide evidence to back it up. Don't piss us off by posting claims without sources or documents.



1)Just going to clarify some things. According to ALIPAC.net and FEC reports, ALIPAC.US (are you happy head in ass) was not deducting payroll taxes as they are required to by law. This would clearly be a huge infraction for an organization that criticizes others for not following the laws and unfairly accusing immigrants of not paying taxes when they themselves don't comply with tax laws.

As you can clearly see in this report in 2007, an accountant was an employee that was compensated and Gheen also received a salary but also did not have taxes withheld. Zero state and Federal withholdings, in that quarter in 2007.


Now in 2008,
1409 dollars and 1385 dollars withheld for federal and state taxes by the payroll company which doesn't raise any eyebrows for me. But a 5,000 dollar check written to the united states treasury with the excuse "payroll"?
ALIPAC is 527, they are tax exempt as far as I know. WTF is this about, no way can that be "payroll"?

10500 dollars in wages given out in this quarter. Yet nearly 8,000 was held for taxes or given to the government?
Please explain this Mr.Gheen.


In Gheen's defense, he claims he was the only employee in his statement (which is not true, J.P. was also an employee at the time) and that's why he worked as an independent contractor (what does that have to do with anything? It's your duties not how many employees you have that designates an independent contractor status) and that's why there were no payroll taxes withheld. However, Gheen is the President of ALIPAC. The IRS defines an independent contractor as "a self-employed person who perform services for a customer or client." Does Gheen contract out his presidency for any other organization? I doubt he qualifies. Mr. Gheen, please show us your reply from the IRS to the submitted SS-8 form (you asking the IRS if you qualify as an independent contractor) because right now this looks like a slightly shady move because 1) you were not the only employee, J.P. was also an employee at the time and 2) Who considers the president of an organization to be a contractor and not an employee, it sounds more than slightly ridiculous.



The Watchman has provided me (which I now pass on to you) FEC reports showing your failure to comply with payroll tax withholdings. Can you provide me with something to refute this and explain the 5,000 dollars to the U.S. treasury? He has met his burden and now it's your turn.
We seek the truth at this site and we encourage you to participate Mr.Gheen.

By the way, why do the other blogs get your statement, but we don't? We realize we're a lot smaller, but come on Gheen, defend yourself! We had to go to other blogs to get your "statement" on the issue. We noticed you put up our link but didn't post your statement on our site. We encourage people to discuss things and for corrections for anything they might think is inaccurate. You're more than welcome as long as you tell the truth and can back up your statements.

8 comments:

Anonymous said...

My defense is that the FEC does not regulate taxes. We are in full compliance with the FEC. The IRS regulates taxes. We are in full compliance with the IRS. You are not the IRS, you are an opposition blogger. The source of these false claims is Bob Quasisus who already filed a complaint with the IRS and several other agencies a year ago. The FEC and NC offices rejected his false claims. The IRS has also taken no actions. I am under no onus to answer inquiries from my political opposition. You, however, have a legal responsibility not to make false claims about criminal conduct in writing when you have no evidence of such.

Damn Mexicans said...

Great, thanks for commenting. If you could just provide an explanation for the 5000 dollars to the U.S. Treasury. The Watchman stands by his claims and so do you but only one party has given me any kind of proof is him.

So please help me out Mr. Gheen and explain the 5,000 dollars and if you really want to put an end to this, provide proof of what it was for and we will write you an apology.

Despite what you think, we don't hate you. we are not an "opposition bloggers", we have many of the same goals such as putting an end to undocumented immigration.

Please give us evidence like the Watchman has done to refute his claim and we will write an apology.

If you haven't noticed we are respectable of people. We even debated posting the FEC material be cause it lists the names of your donors who might not want to be publicly associated with your site. We sure wouldn't. Please have J.P. write an explanation if you prefer not to get tangled up in the accounting lingo. Once this is all taken care of for good and solid proof is provided we will even take down the links to the public site listing the FEC material, either way this turns out.

Have a nice afternoon Mr. Gheen and hope you visit us more often for a respectful debate

The Watchman said...

This defense reeks of spin, typical of ALIPAC. Federal PACs file financial reports with the FEC, but enforcing laws requiring employers to pay payroll taxes and withhold taxes from wages are the IRS's responsibility.

I've reviewed every one of ALIPAC's FEC filings from the beginning, and they never paid a penny of employer taxes nor withheld any income taxes from wages until Q2 of 2008, but ALIPAC has had a paid President for several years, and off and on a paid treasurer as well.

This is all shown in ALIPAC's own financial reports at www.fec.gov. I might add numerous times the FEC has gotten after ALIPAC to correct basic math mistakes in their reporting, and more recently a report was filed late, a serious matter, and the FEC is now after ALIPAC to include information about donors per federal statute.

One treasurer even donated the balance of the checking account to the Salvation Army and tried to liquidate ALIPAC. Gheen fired him and demanded a refund from the Salvation Army. Too bad the Salvation Army returned the donation, but I guess they didn't want any money from a hate group.

I'm not surprised that ALIPAC apparently forgot or didn't realize they needed to pay employer taxes and withhold income taxes from wages. But ALIPAC is always throwing stones at immigrants claiming they don't pay taxes (they generally do). How hypocritical!

Tony Cheek said...

We are in full compliance with the IRS.

Doncha just love word games?

We are in full compliance with the IRS.

Well yes, the last quarter Schedule B does show payroll deductions.

We are in full compliance with the IRS.

But what about previous quarters, and previous filings?

They named a lighter after that one: Zippo.

We are in full compliance with the IRS.

Word games are so much fun.

The Watchman said...

ALIPAC.US is not in full compliance with the FEC. Just look at their recent three letters filed with the FEC, where ALIPAC.US tried to justify not providing all donor information required by federal law for contributions over $200.

http://query.nictusa.com/cgi-bin/dcdev/forms/C00405878/339525/
http://query.nictusa.com/cgi-bin/dcdev/forms/C00405878/335901/
http://query.nictusa.com/cgi-bin/dcdev/forms/C00405878/334617/

Apparently, ALIPAC.US expects immigrants to strictly comply with federal immigration laws, but ALIPAC.US can pick and choose which federal election and tax laws to comply with. So much for the 'rule of law' at ALIPAC.US.

The Watchman said...

The evidence that ALIPAC.US paid no payroll taxes before April 2008 is in plain view for all to see.

All federal political action committees, including ALIPAC.US, are required to file detailed financial reports to the FEC, which includes disbursements. Here’s a link to all of ALIPAC.US’s electronic filings:
http://query.nictusa.com/cgi-bin/dcdev/forms/C00405878/
Earlier paper filings can also be found on the FEC web site.

Prior to April 2008 ALIPAC.US’s own FEC reports show monthly payroll to Gheen and their treasurer, but no payroll taxes.

After being reported to the IRS by "The Watchman" of ALIPAC.NET, suddenly in April 2008 ALIPAC.US started paying employer taxes and withholding income taxes from wages through a payroll service. On top of that is a $5,000 payment for “payroll taxes” direct to the U.S. Treasury.

ALIPAC.US’s total disbursements for taxes in Q2 were 68% of payroll, which is extraordinarily high. Without the $5,000 payment (a fine?) taxes were 31% of wages, in line with what one would expect.

Here’s a summary for Q2 of 2008:
Date Description Amount
4/11/2008 Federal and State Withholding $1,417.12
4/14/2008 William Gheen $3,063.48
5/15/2008 Federal and State Withholding $1,409.12
5/15/2008 Jane Patterson $461.75 (treasurer)
5/16/2008 William Gheen $3,063.48
6/3/2008 Jane Patterson $461.75
6/6/2008 Federal and State Withholding $1,385.12
6/16/2008 William Gheen $3,063.48
6/23/2008 Jane Patterson $461.75
4/24/2008 U.S. Treasury (”Payroll Taxes”) 5,000.00

Now here’s one for Q1 of 2008:
1/11/2008 William Gheen $4,000.00
2/4/2008 William Gheen $4,000.00
3/5/2008 William Gheen $4,000.00
Zero payroll taxes and withheld income taxes were disbursed in Q1 of 2008 and prior years! In other words, ALIPAC.US didn’t pay a penny of payroll taxes nor withhold income taxes from wages, at the same time ALIPAC.US was trashing immigrants falsely claiming immigrants don’t pay taxes!

The Watchman said...

"We are in full compliance with the FEC."

Gheen has accused the Watchman of lying about ALIPAC having problems with the FEC and financial irregularities, but read this post from ALIPAC.NET, complete with links to FEC documents available on-line, then tell me who's the liar? Original:
http://www.alipac.net/bored/index.php?topic=1149.0

ALIPAC.US has been through FOUR treasurers in it's short history, and the financial irregularities are numerous. Here's a summary of treasurers and problems with the FEC:

Brian Wert, Treasurer (9/9/04)
http://query.nictusa.com/cgi-bin/fecimg/?_24038513686+0

Franky S. Lee becomes new treasurer (1/31/05)
http://query.nictusa.com/cgi-bin/fecimg/?F25038722657

Mid-year report filed (7/11/05)
http://query.nictusa.com/cgi-bin/fecimg/?F25038844541
Items to note:
Franky Lee paid himself a salary of $250 (but at this point Gheen was unpaid and had loaned money to ALIPAC.US - I wonder if Gheen approved of a paid treasurer when the president received no salary and was owed money?)
Paid Joy Maria Lee (at same address as Franky Lee) a salary of $250 (Did Gheen approve this?)

Amended mid-year report filed (7/18/05) by Franky Lee
http://query.nictusa.com/cgi-bin/fecimg/?F25038842978
Reports another $250 paid to Joy Maria Lee (Did Gheen approve this?)

"Termination" report filed by Franky Lee on 7/15/05
http://query.nictusa.com/cgi-bin/fecimg/?F25038842992
Joy Marie Lee paid $250 again
Franky Lee paid $250 again
Salvation Army receives the balance of ALIPAC.US treasury, $1,317.79! (Obviously Gheen did not approve of the donation because he demanded the Salvation Army return the money)

Daryl Jurbala becomes treasurer (7/15/05)
http://query.nictusa.com/cgi-bin/fecimg/?F25038842719

Amended report filed 8/20/05 filed by Daryl Jurbala
http://query.nictusa.com/cgi-bin/fecimg/?F25038891323
States termination report was "in error." Apparently the previous treasurer terminated ALIPAC.US!!!! (i.e. the word "Error" is more spin).

Year end 2005 report filed 1/30/06
http://query.nictusa.com/cgi-bin/fecimg/?F26038964216
The Salvation Army returned $1,317.79 (I have a letter confirming Gheen claimed the donation was "not authorized" and demanding return of the donation)
Gheen starts receiving a monthly salary of $500 in 9/05 (I guess if the treasurer and his wife (?) got a salary then Gheen deserved one too!)

FEC writes ALIPAC.US pointing out basic math mistakes in year end 2005 report. ALIPAC.US's numbers didn't add up to total given!
http://query.nictusa.com/cgi-bin/fecimg/?F26039014158

Amended 2005 year end report filed, correcting mistakes in previous
http://query.nictusa.com/cgi-bin/fecimg/?F26039103620

4/17/06 filed April quarterly
http://query.nictusa.com/cgi-bin/fecimg/?F26039041952

5/26/06 FEC demands corrections to April quarterly report
http://query.nictusa.com/cgi-bin/fecimg/?F26039091815
Numerous math mistakes made, addresses left out, etc.

April quarterly amended to fix basic math mistakes
http://query.nictusa.com/cgi-bin/fecimg/?F26039103627

8/14/07 FEC demands that ALIPAC.US file their mid-year report, which is late, and threatens civil penalties
http://query.nictusa.com/cgi-bin/fecimg/?F27039510209

8/16/07 FEC files notice of failure to file
http://query.nictusa.com/cgi-bin/fecimg/?F27039510830

9/4/07 Mid-year report due 7/30/07 finally filed correctly.
http://query.nictusa.com/cgi-bin/fecimg/?F27931175362

10/1/07 Statement of organization - new treasurer "Jo" Patterson
http://query.nictusa.com/cgi-bin/fecimg/?F27931288632

10/3/07 Statement of organization re-filed. First statement was in error!
http://query.nictusa.com/cgi-bin/fecimg/?F27931291011

1/31/08 Year end 2007 report filed
http://query.nictusa.com/cgi-bin/fecimg/?F28990254593

3/19/08 FEC demands missing information from contributors, and questions administrative expenses, pointing out that goods and services provided without cost are in-kind contributions (i.e. isn't Willie's home office an in-kind contribution?)
http://query.nictusa.com/cgi-bin/fecimg/?F28039660764

4/16/08 FEC repeats it's demand for contributor information and reporting of in-kind contributions and administrative expenses (i.e. office rent)
http://query.nictusa.com/cgi-bin/fecimg/?F28039693525

4/17/08 ALIPAC.US filed amended 2007 mid-year report, again with missing contributor information.
http://query.nictusa.com/cgi-bin/fecimg/?F28931176828

4/17/08 ALIPAC.US whines to FEC about how it's donors don't want to comply with federal law!
http://query.nictusa.com/cgi-bin/fecimg/?F28931176869

4/22/08 ALIPAC.US whines to FEC about how it's donors don't want to comply with federal law!
http://query.nictusa.com/cgi-bin/fecimg/?F28990890362

5/16/08 ALIPAC.US whines to FEC about how it's donors don't want to comply with federal law!
http://query.nictusa.com/cgi-bin/fecimg/?F28991012004

7/30/08 Another FEC demand. Again there is missing contributor information and the report was not signed by their designated treasurer (Jane vs. Jo?).
http://query.nictusa.com/cgi-bin/fecimg/?F28039802932

8/12/08 ALIPAC.US filed amended 2007 mid-year and year end reports and 2008 April quarter and mid-year reports, again with missing contributor information.
http://query.nictusa.com/cgi-bin/fecimg/?F28991688433
http://query.nictusa.com/cgi-bin/fecimg/?F28932435482
http://query.nictusa.com/cgi-bin/fecimg/?F28991688468

8/13/08 More ALIPAC.US whining to the FEC about contributor failure to follow the 'rule of law.'
http://query.nictusa.com/cgi-bin/fecimg/?F28932437831

When will these people understand that illegal is illegal?
What part of "illegal" don't they understand?

The Watchman said...

Despite the claim "We are in full compliance with the FEC" the FEC apparently thinks otherwise:
http://query.nictusa.com/cgi-bin/fecimg/?F28039802932
ALIPAC.US has seven days to provide all the missing donor information, at last count for more than 50 donors, or otherwise, the FEC will take enforcement action. So much for "We are in full compliance with the FEC."