Income Taxes

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Income Taxes 20 - MANCHESTKR HERALD. Tuesday, Apnl 9. 19H5 MANCHESTER FOCUS U.S./WORLD WEATHER BUSINESS Hockanum is low, Recipes rate a ‘D’ — Publicity big worry Clouding up tonight; i but race will go on that’s ‘D’ as in dirty in von Bulow trial milder on Thursday < ... page 2 [ Tax shelters mean billion dollar disappearing act ... page 3 ... page 13 ... page 4 right to be wrong" cost them Editor's Note: Sheltering in­ for Walter Moorhouse and asso­ thousands of dollars. Dan McMor­ come from taxation is virtually a ciates. explained the trust would ris met a Patriot organizer on a time honored tradition in America, hold title to all of Ernst's property, construction job The couple joineq and not one the Internal Revenue paying house exp<‘nses and shield­ the Patriots and allowed Sugar- Service necessarily disagrees ing both the father and his seven man and an associate to fill out with. In today's era of tax children from income taxes. They their lax forms. protesters, however, new ques­ would receive a draw to cover When the Patriots were done, the, tions are arising over what is a personal expenses. McMorrises claimed to owe onlj^ legal tax shelter and what is an Ernst paid the fee and set up the $59. When the court proceedings, illegal tax scam. plan, transferring the titles of ended, their liability jumped to, M m th tB U r Mrralft some of his property to the trust $4,711 and at least $1,660 in; Bv Joe Rutchick But later, Ernst said, hi.s intuition penalties. Joyce McMorris- ........ " \A/oHnoQHA\/Wednesday, Ann April 10, 1985 — Single copy: 25<t United Press International told him something was w rong and slopped counting the damage, Manchester, Conn. — A City of Village Charm he refused to transfer deeds on "1 think if 1 really knew I would; There is a little red tape, but other equipment and land. sit down and cry, " she said. - what it comes down to is this; On "I started to smell a rat." he paper you're poor as a pauper but said. "I'm not a stupid person. I'm THE MCMORRISES, WH(^ you live like a king. not a .smart one either, but 1 cun TE STIFIED for the government a t You own nothing, so there is sense they're underhanded. Be­ last fall's injunction hearing, were; nothing to assess. You make tween those guys, they were going Glenney’s won’t close Its doors after all not alone. The activities of the; nothing, so you pay no taxes. The to take this farm away from me. " Virginia Patriots led the IRS to; projects, he explained. "trust" you set up collects all your It cost him another $1,800 to assess penalties on 237 people —. 1920 by W. George Glenney. Its salary. The expenses of the trust — dissolve the trust. By Susan Vaughn The store remodeling involves many workers at Newport News' Herald Reporter North Main Street store occupies your mortgage, your groceries, Authorities say that Noske. who Shipbuilding. building complete kitchen and your gas, your vacation — are all promoted the plan to Ernst and about 3.4 acres. bathroom models and spaces for deductible. others, had been named in a The key tax principle in the The W.G. Glenney Co. is alive The Glenney family made a Virginia Patriots plan argues that^ displaying many kinds of doors, The people who sold it say it is lawsuit in Kandiyohi County. and well and will continue to do decision to re-establish its busi­ Ellison said. Displays will in­ Minn., tor recruiting a man to join receiving a salary from an em-. perfectly legal. business in Manchester as it has ness after a slow period of clude garage doors and special The IRS says it's a scam Posse Comitatus - the militant ployer is simply an exchange of several years, Ellison said. property — labor for wages. for the past 65 years — but with a types of windows, such as The promoters say it is as tax protest group whose leader, slightly different focus, a spokes­ Edward Glenney and his honorable as the Boston Tea Party. Gordon Kahl, was killed in a greenhouse and sun bow win­ "Something like this, it's too, man for the company said brother, William, who will not be The government has jailed 723 shootout two years ago with dows which fit into existing good to be true," said Meuwissen. Tuesday. active in the store operation, people who agreed. authorities Noske denies the " I f you stop and thought about it- window openings, Ellison said. The large lumber and home decided to consolidate all the The backers say they are just connection you'd realize that no one would pay The store will also stock a The Justice Department and IRS supply store at 336 N. Main St. company's operations in the trying to help the little guy save income taxes and that can't be “ fairly complete line of supp­ some money, but the government credit Ernst with helping them will not be sold, as previous Manchester store. They have rig h t" lies,” such as plywood and sheet says it is losing $5 billion a year in obtain a preliminary injunction reports from local realtor sold three branch stores in rock, but it will not sell as much taxes. And, it says, it is going to gel halting the marketing of the But David White, an Avon, Warren E. Howland had Glastonbury, West Willington Minn., man slopped from distri­ hardware and will not sell lawn its money back. Moorhouse trusts. Government indicated. and Ellington during the past buting tax plan packets last year, mowers as it has in the past, said At issue are trust plans that attorney Larry Meuwissen says Rather, the store wili remain year, Ellison said. shelter income and property from the secrecy of the scam helped argues that most Americans in under the ownership of the Ellison said that the lumber Ellison. taxation. They are sold out of store convince him that Moorhouse and fact do not "o w e" taxes. White Herald photo by Tarquinlo business was in “ terrible shape" fronts, at town hall meetings or in a Associates was part of the lux argues that only bankers, corpo­ Glenney family, with Edward The basic retail area will neighbor's living room, but behind protest movement — a charge rate officers and others who Glenney continuing as president from 1979 to 1982, improved remain the same size, adding the them are organizations that be­ Moorhouse denies. receive privileges from govern­ and chief operating officer, said somewhat in 1983, and then got a The W.G. Glenney Co. will not be sold, family members say. use of the large shed attached to lieve the government is commit­ "When the trust can be set up so ment owe income tax. He says Edward Ellison, president of lot better in 1984. the main building, Ellison said. ting a crime by collecting taxes. it can work for the everyday man. most Americans merely get “ re­ 'HOCAG Co., a consulting firm in Although the Manchester store Eventually, some of the office contractors toward homeowners the businessman. I think this ceipts" or "compensation" from New York City. Ellison has been has been open for irregular hours retail and office space is now completed, he said. space may be converted to more their labor. and small contractors, Ellison EVERY YEAR HUNDREDS probably bothers the IRS. " Moor­ hired by the Glenneys to help and has been operating on a being remodeled and the inven­ The remodeling should be retail space, he said. said. More emphasis will be MORE people buy the trust plans house told UPI. "They haven't People attending meetings of with merchandising, pricing and limited basis since last No­ tory is being replenished, Ellison completed in about 45 days, he and more tax protest groups spring proved anything other than their placed on the home-center con­ There is also a 23,000-square- UPI photo White's “ Minnesota Society for vember, Ellison said it "never said. The store will be open said. up to sell them. And every year the famous statement, ‘looks funny, a new store layout, he said foot warehouse on the Glenney Educated Citizens" were urged tO really closed." Monday through Friday from 10 Glenney’s will direct its orien­ cept, such as kitchens and government gets tougher in going smells funny or whatever They Tuesday. property. David White, shown posing with some of the government claims advocates tax send the IRS letters modeled after The nearly 12,000 square feet of a.m. to 4 p.m. until the work is tation away from large building bathrooms and “ do-it-yourself” after both the sellers, with crimi­ can take that statement and shove ones contained in the "Patriots The company was formed in nal charges, and the buyers with it because they haven't proved his tax literature, is one of several protest. One of White's tenets is that Pursuit of Happiness" packet civil suits. Waller Moorhouse has done a promoters the Internal Revenue Service wages are not taxable income. White distributed. The kit showed "These are organizations that stinking thing. " has prevented from distributing material how to eliminate taxable income preach a gospel of heresy as far as The business trusts sold by by listing occupations as “ contrac­ the tax statues are concerned, " Moorhouse and associates are not tors" and fraudulently reporting a GOP revives says Larry Batdorf, a spokesman the first to be targets of IRS POINTS out the IRS does not which means they would be in a injunctions to mop up free speech business loss, the IRS claimed.
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