If House Speaker John Boehner wants to level the debt negotiating playing field he should ask Congress to verify whether President Obama is a tax fraud? Last fall President Obama challenged Mitt Romney to come clean and release his tax returns so voters would know whether he paid his fair share. Randall Sorensen, CPA is asking President Obama to come clean regarding the filing of his 1990 tax return when he signed a six-figure contract book deal with Poseidon Press. Failure to do so would be a violation of Title 26-Internal Revenue Code.
Tea Party members will question my sanity for alleging that President Obama committed a felony via tax evasion. My decision is simple… if President Obama wants 310 million Americans to follow mandated federal law then President Obama needs to prove to Americans that he has ALWAYS been in compliance with the US Tax Code as required by every citizen of the United States.
Tom Draper reported in GQ Magazine’s November 2009 issue (www.gq.com) that President Obama signed a six-figure contract with Poseidon Press on November 28, 1990. The exact amount was reported as $150,000 by Christopher Andersen in his book Barack and Michelle: Portrait of an American Marriage. According to Jack Cahill, Barack Obama was advanced $75,000 for the book. It’s not unusual in the publishing business to receive one-third to one-half of the contract value upfront. However, a $75,000 advance would have required a recent law school graduate strapped with heavy student debt to pay the IRS $25,000 four and ½ months later. I have been a CPA for 33 years and I’m Certified in Financial Forensics. In 1988 I was hired by the Arizona House of Representative in the Senate Impeachment Trial of Governor Evan Mecham. My forensic analysis of an improper $80,000 loan from a political fund to a private car dealership justified the Impeachment of Governor Mecham.
Last fall I reviewed the tax returns of both presidential candidates. During my analysis of President Obama’s 2001 Individual Tax Return, I found 10 math errors. All of the errors were simple arithmetic errors that would have been prevented with a computerized program such as Turbo Tax.
President Obama’s 2001 tax return wasn’t signed by a paid preparer and it would appear the tax return was prepared by President or Ms. Obama. I determined that the Obamas prepared three drafts of their 2001 tax return. The first draft calculated an income tax liability of $79,000. This would have required taxable income of $271,000. In contrast, President Obama’s website shows 2001 taxable income of $250,000. President Obama ended up paying income tax on $21,000 of phantom income that resulted in sending Uncle Sam an extra +$7,300. I think Republicans and Democrats will unanimously agree that President Obama is one of the greatest orators of our time. The same can’t be said regarding President Obama’s skill as a tax preparer!
Based on the fact that President Obama used bits and pieces from three different 2001 tax drafts, made 10 errors, overpaid his taxes by $7,300 by claiming $21,000 of phantom income, it would appear that President Obama lackedthe accounting skills to competently prepare his tax return. If President Obama wasn’t proficient at preparing his taxes in 2001 it’s not a stretch to assume that he wouldn’t have been proficient in 1990.
I believe President Obama’s has a massive skeleton in his tax closet as it relates to the mishandling of the est. $75,000 book advance from Poseidon Press in November of 1990. I have determined only three tax scenarios exist: 1) filed correctly and paid the IRS $25,000, 2) reported income as passive, failed to pay social security taxes andowes the IRS $41,000 or 3) failed to properly report the income and currently owes the US Treasury in excess of$123,000. (www.randallsorensencpa.com/obama)
Barack Obama was flush with cash at the end of 1990. However over the next 1 ½ years he failed miserably to deliver a completed manuscript to Poseidon Press in June of 1992. Tom Draper reported that Obama had other things on his mind, namely the impending October 3rd marriage to Michelle. Writer Christopher Anderson wrote “when Barack informed them that he had spent the money and that he and his wife were still chipping away at their massive student loan debt – the publisher agreed not to press the issue”. Draper wrote that Poseidon terminated Obama’s contract on October 20, 1992.
In January of 2007, Barack Obama engaged in some skeleton housekeeping. According to the Somerville News, Barack Obama shelled out $375 to pay 15 parking tickets accumulated at Harvard in the late 80’s. The majority of Americans abide by parking restrictions and if we’re unlucky enough to receive a ticket we stuff money in an envelope and mail it within days. This wasn’t the case for Barack Obama. He waited nearly 20 years before deciding to settle his delinquent ticket balance. The apparent reason was his decision to enter the presidential campaign two months later. Why didn’t Obama come clean earlier after banking millions in book royalties in 2005/06?
Could Barack Obama have decided to clean up any tax obligations from 1990? Absolutely…. but highly unlikelyfor the following reasons: First, failure to file and pay income taxes would be admitting to the commission of afelony. Second, the original $25,000 tax balance had grown to over +$100,000 with interest and penalties. Third and probably a game changer, is the consequences surrounding an ethics violation for failing to accurately complete his United States Senate Financial Disclosure Report. Senator Obama would have been required to list the outstanding tax liability on his 2005 report. Failure to do so is a violation of 5 U.S.C. app. 4 § 104, and 18 U.S.C. § 1001. The fine for filing a false report is up to $50,000 be imprisoned for up to one year. If discovered this would have probably ended his candidacy before it got started.
People have grown tired of the manner in which President Obama talks down to his peers. Former President Ronald Reagan could be tough but according to a Marine friend who served in the White House, he had a heart of gold. If President Obama is able to mandate 310 million Americans to follow the US Tax Code, then I want proof that President Obama complied with the US Tax Code his entire life. The IRS cuts no one slack. The manner in which the IRS aggressively pursues tax evaders should be the same…. even for Presidents. I informed Senator Cruz, Senator Grassley, Congressman Boehner, Congressman Issa and Congressman Gowdy how in 1 minute they can verify whether President Obama committed a felony. If President Obama wants people to buy into Obamacare then he needs to show 310 million Americans that he has ALWAYS been in compliance with the US Tax Code. What is wrong with Congress checking the integrity of our President? Especially if it can be done in 1 minute!
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