Operation Take Responsibility:
U.S. Secretaries of State
Secretaries of state are responsible for enforcing corporation tax laws in their states, but many are not. Annual reports are only renewed corporation filings, and do not contain any of the information required by generally accepted accounting principles. In North Carolina, the Secretary of State Elaine Marshall allowed the federal tax payer ID Field to be removed from LLC filing forms altogether.
Prior to 2010, the federal tax ID field was on the NC LLC form but the information was redacted to protect FTI. It is critical that the field be added back to the form because without it, they cannot be sure that a corporation is filing federal taxes. As it stands, NC corporations are not even doing annual reports in accordance with generally accepted accounting principles. There is no listing of the management team, meeting minutes, company bylaws, or even a description of how the company generates profit.
The combination of incomplete annual reports and the missing federal tax ID field in NC facilitates tax evasion, and has already substantially impeded and hindered the Charlotte IRS Criminal Investigation unit’s work to prosecute fraudulent corporations. (IRC 7212)
In 2011, The Charlotte IRS CI investigated and prosecuted over 17 fraudulent LLC’s. NC Secretary of State Elaine Marshall and her staff should be proactively reviewing the corporation database for outdated filings, missing information and alert the IRS of suspected fraud using key red flags, such as missing information.
The NC Deputy Secretary of State is not enforcing notary law either, and her letter to me indicated that she either does not understand NC notary law per NCGS 10b or else she willfully chooses to ignore it. Either way, this indicates that potentially every document ever notarized in NC, including mortgages, court documents, judgments and wills are null, void and worthless.
The Florida Secretary of State’s office told me via email, that it is not responsible for ensuring that Florida corporation filings are complete. This contradicts Florida statute 617.0601 which mandates that the Florida Secretary of State enforce corporation filing laws and reject incomplete and/or fraudulent filings.
The Florida Attorney General, Pam Bondi, told me, via email that it is not her office’s responsibility to investigate fraudulent/fictitious corporations, such as @ home healthcare/www.3ghealthcare.com, a fictitious corporation which is headquartered in Florida and is illegally billing elderly victims insurance in many states.
A search of other state corporation databases reveals similar findings. Corporations throughout the United States are not doing annual reports in accordance with generally accepted accounting principles.
In conclusion, highly compensated state leaders are willfully refusing to take responsibility for performing their duties.
It is critical that the IRS enforce statute 6707A, which mandates that non-compliance be fined, to prevent further fraud and to put an end to the tax evasion party happening throughout the United States. I propose that IRS CI and Assistant U.S. Attorneys in every state do a 3-6 month project whereby they review the corporation filing forms in their state’s database, and resolve the issues they can, and prosecute fraudulent corporations.