What Has Happened With Bernhoft?

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Doktor Avalanche
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What Has Happened With Bernhoft?

Post by Doktor Avalanche »

August 19 has come and gone. Did he answer the court?

In case anyone forgot:
Bernhoft has been ordered to appear in court on August 19 to show cause as to why he should not comply with the IRS summons. According to the government, the IRS "is conducting a 26 U.S.C. [section] 6700 tax scheme investigation of Joseph Banister to determine whether Banister promotes abusive tax schemes that would subject him to penalties under 26 U.S.C. [section] 6700 or subject him to injunction under 26 U.S.C. [section] 7408.
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Demosthenes
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Re: What Has Happened With Bernhoft?

Post by Demosthenes »

08/05/2008 6 Joint MOTION to Continue Show Cause Hearing by United States of America. (Fay, Robert)
08/06/2008 7 MARGIN ORDER approving 6 Joint MOTION to Continue Show Cause Hearing filed by United States of America. Show Cause Hearing re-set for 10/9/2008 10:30
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Doktor Avalanche
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Re: What Has Happened With Bernhoft?

Post by Doktor Avalanche »

Now why do you suppose that is?
The laissez-faire argument relies on the same tacit appeal to perfection as does communism. - George Soros
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Re: What Has Happened With Bernhoft?

Post by ASITStands »

The "Joint Motion to Continue Hearing" states:
The United States filed a petition to enforce an IRS summons issued to Robert Bernhoft
on June 13,2008. (Dkt. No. 1.) This Court issued an Order on June 17,2008 setting a show
cause hearing for August 19,2008 at 9:30 a.m. (Dkt. No.5.) Under the Court's Order, Mr.
Bernhoft's response, if any, is due to be filed two weeks prior to the show cause hearing. In the intervening time, the parties have attempted to resolve this dispute without the Court's involvement. The parties are optimistic that with a few more weeks to negotiate, they may achieve an out-of-court resolution satisfactory to both parties.
Emphasis added.
Demosthenes
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Re: What Has Happened With Bernhoft?

Post by Demosthenes »

From: Joseph Banister [mailto:jbanister@freedomabovefortune.com]
Sent: Monday, October 13, 2008 1:46 PM
Subject: FORMER IRS SPECIAL AGENT REQUESTING YOUR HELP

Dear Friends,

It is hard to believe it has been over three years since I was vindicated in connection with IRS allegations that my efforts on behalf of a client amounted to a conspiracy to defraud the United States . It appears that everyone but tax enforcement apparatus officials, including the jury who heard all of the evidence, recognized that my conduct consisted of diligent efforts performed in good faith rather than the sinister motives propagated by the tax police.

It would have been nice if my vindication three years ago lead to some peace and quiet but that has not been the case. I purposely minimized my appeals for assistance during these last three years partly to encourage help for others (such as former IRS Revenue Agent Sherry Jackson) and partly out of recognition of the sustained and generous support that had already been shared with me as I defended myself against those horrendously unjust charges three years ago. Unfortunately, but not all that surprisingly, the tax enforcement apparatus did not let up one bit, as documents recently obtained from that apparatus (some of which I will be sharing with you in the future) reveal.

Since my IRS resignation in 1999, but especially over these last three years, I have been blessed with access to knowledgeable and courageous people who have helped me fight various battles for either significantly discounted compensation or no compensation. Some of the work I have performed myself with occasional assistance from those knowledgeable and courageous people and some of the work has been done directly by those knowledgeable and courageous people. However, there are four current “battlefronts”, briefly described below not necessarily in order of importance, that are necessitating this appeal for help.

The first “battlefront” is a refund lawsuit I initiated against the California Franchise Tax Board. For those who have not lived in California or another state that has a state income tax system, you may not be aware that states like California have their own “tax enforcement apparatus”. In California , the “Franchise Tax Board” administers the state version of the personal income tax system. Given the close relationship between the IRS and state taxing agencies, it will come as no surprise that after my IRS resignation I began having disputes not only with the IRS but with the California Franchise Tax Board as well. Back in 2006, I initiated a suit against the Franchise Tax Board (“FTB”) to address some of the egregious conduct perpetrated by that agency against me in particular for the year 2002, but no doubt perpetrated against any Californian questioning the FTB’s practices, including arbitrary and capricious proposed assessments and bogus administrative due process hearings.

The second “battlefront” involves appeals relating to my “disbarment” from “practice” before the Internal Revenue Service. My long-time friends may recall that the IRS “railroaded” me into a situation whereby I am prohibited from formally representing clients who have IRS problems. I use the term “railroaded” because, as some of you may recall, I was prevented from having a hearing to confront my accusers, had no access to a jury, was prevented from offering my own testimony in my defense, was prevented from calling witnesses and presenting documents in my defense, was prevented from confronting and cross-examining my accusers, etc. The federal tax enforcement apparatus violated numerous statutory and constitutional provisions in achieving this “disbarment” and appeals are underway to obtain redress for these violations. Believe me, given the plethora of administrative procedures available to state and federal authorities for use in attacking whistleblowers, the tactics that were used against me could be used against virtually any licensed professional in virtually unlimited circumstances to destroy them. It is almost as if this process had been created long ago and placed on a shelf ready to implement if ever a professional came along and focused scrutiny on the very legitimacy of the tax liability in the first place rather than simply negotiating an inflated tax bill, which is what I had done on behalf of various clients prior to being attacked by the IRS.

The third “battlefront” is an attack against one of my attorneys Robert Bernhoft, of Milwaukee , Wisconsin . As some of you may know Mr. Bernhoft founded the Bernhoft Law Firm ( http://www.bernhoftlaw.com ). Mr. Bernhoft and his firm have collaboratively or exclusively achieved vindication for many clients, including myself, FedEx pilot Vernice Kuglin, actor Wesley Snipes and many others. Obviously, the existence of lawyers not only unafraid of, but successful in, defending citizens against the heavy hand of the income tax enforcement apparatus makes that apparatus very unhappy and vindictive. The income tax enforcement apparatus has targeted Robert Bernhoft personally in order to attempt to breach the attorney-client privilege that exists between us and for any counsel he has provided to me in the past.
The fourth “battlefront” is a continuing effort to obtain internal IRS documents through the Freedom of Information Act (FOIA). Thousands of documents accumulated by the IRS in its spying and surveillance campaign against me have already been obtained and thousands more are being sought. I will be sharing some of these documents with you in the future and you will be shocked at their contents!

Given the explanations above, I presume you will agree that my whistleblower’s battle has not subsided in the least but has only evolved into multiple areas of engagement. I have reached the point where I need to call upon you for your help once again. I am extremely grateful to all who helped me up through the summer of 2005 and also to those who have occasionally continued to help me since then. Without your help, there is no way I would have survived. Please consider supporting me in the battles ahead with your frequent prayers.

If, in addition to your prayers, you are able to financially contribute to this cause, even just a little bit, that would also be appreciated. Donations for legal expenses and litigation/logistical expenses can be made payable to “Joseph Banister Legal Defense Fund” and mailed to 1805 N. Carson Street , Carson City , Nevada 89701 . Donations for me personally to help diminish the financial burdens of missed work on account of fighting these battles can be made payable to “Joseph Banister” and mailed to the same address. Whether you choose to donate to me personally or to the legal defense fund, both are sorely needed so I thank you for your consideration but I must alert you that the IRS has targeted not only me but people who support me (see Bernhoft battle paragraph above). Thus, those who would like to help but would prefer to remain anonymous should consider donations using cash or blank money orders.

Whether your donation is to the legal defense fund or to me personally, I would like to give a gift to any donor who donates $25 or more. Attorney Larry Becraft has compiled the most comprehensive, easy to access, history of the federal income tax laws I have ever laid my eyes on and he has synthesized this compilation into one CD-ROM and given permission for me to make copies of this CD as a gift. What better gift could there be than unprecedented access for American to the history and evolution of the federal income tax? The compilation includes more recent information such as a report from a 1975 congressional investigation of the IRS, Title 26 of the Code of Federal Regulations from 1999, the entire Internal Revenue Code from January, 2002, Statutes At Large 111 through 121 (105th Congress through 110th Congress, roughly 1997 through 2007) and earlier information such as the Revenue Acts of 1919, 1921, 1924, 1926, 1928, 1932, 1934, 1936, 1938, tax regulations from some of the aforementioned years, a mind-blowing 31 page “secret” memorandum written in 1945 later declassified regarding the history of the “Bureau of Internal Revenue” (the earlier name of the agency we know as the IRS), the entire 1939 Internal Revenue Code, the entire 1954 Internal Revenue Code and Derivations of the 1939 and 1954 Internal Revenue Codes (prepared by the Joint Committee on Taxation in 1992). Much of these documents were created in word searchable format so you can search for any specific word you can think of. It would take dozens if not hundreds of hours to create such a resource from scratch and Larry has saved us all from having to do so.

It would be helpful if you would put “Donation/Free Gift” on the envelope or enclosed letter so that it is clear you would like the CD-ROM gift. If you do not mention the gift, I will presume you are not interested in receiving it. (I do hope every donor is interested in receiving this valuable research tool.)

Thank you, again, for your continuing support and I will continue to report on developments as they occur.
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Demosthenes
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Re: What Has Happened With Bernhoft?

Post by Demosthenes »

Conde Nast Portfolio just released a cutting profile of Bernhoft and Barnes in their November issue.

http://www.portfolio.com/culture-lifest ... s?tid=true
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Re: What Has Happened With Bernhoft?

Post by Judge Roy Bean »

Demosthenes wrote:
From: Joseph Banister [mailto:jbanister@freedomabovefortune.com] ....

.... The income tax enforcement apparatus has targeted Robert Bernhoft personally in order to attempt to breach the attorney-client privilege that exists between us and for any counsel he has provided to me in the past.
I suppose Mr. Banister and Mr. Bernhoft know that the veil can pierced in some circumstances, but it sounds better to assert that it's some unassailable rule the evil gubment is trying to thwart.
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Demosthenes
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Re: What Has Happened With Bernhoft?

Post by Demosthenes »

So why were the Bobs happy to get the boot? Because they knew that Snipes—who had yet to be sentenced—could still tarnish them. Before getting fired, they’d advised him to make a good-faith offer to defray his tax debt. He declined, a decision they predicted (correctly, it turned out) would guarantee him the maximum prison term of three years. Getting axed protected them from being blamed for that sentence. “We’re absolved,” Bernhoft said—which was critical, because the Bobs had big plans.
If I were Snipes, I wouldn't want my lawyers talking about the advice they gave me in private.
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Re: What Has Happened With Bernhoft?

Post by . »

“We’re absolved,” Bernhoft said—which was critical, because the Bobs had big plans.
I suspect that "the Bobs" and Joe will all eventually have big fun talking at length amongst themselves about how they're all "absolved." Behind bars. Unable to rattle a begging bowl for more money from stupid marks.
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wserra
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Re: What Has Happened With Bernhoft?

Post by wserra »

Demosthenes wrote:If I were Snipes, I wouldn't want my lawyers talking about the advice they gave me in private.
That was certainly what first struck me about the article.

Unless Snipes himself has already said this in public somewhere, I wouldn't call Bernhoft and Barnes "absolved" just yet.
"A wise man proportions belief to the evidence."
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Re: What Has Happened With Bernhoft?

Post by Anti-861 »

In Hollywood, the Bobs don’t want to do the transactional work that many entertainment lawyers specialize in. But as go-to lawyers for the industry elite, they plan to review such deals for clients.

“If you’re an oligarch in Moscow, you need a driver and a bodyguard,” Barnes says. “If you’re a mogul in Hollywood, you need a consigliere. That’s what we will be.”

Alas, their first post-Snipes Hollywood client didn’t pan out. A producer had alleged that one of the major networks had stolen his idea for a series (a common claim and difficult to prove). When the network left the show off its fall schedule, the claim was moot.
HAHA. This makes them sound like the effing tools that they are. It takes a long time to develop relationships in the entertainment business. And the A-List crowd is probably not going to flock to a couple jackasses from Wisconsin who specialize in tax when they need Lavely & Singer.

I'm looking forward to them going home, tails between their legs.
Demosthenes
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Re: What Has Happened With Bernhoft?

Post by Demosthenes »

Then, in 1997, the Justice Department sued him. Bernhoft represented himself while still in law school; in 1999, the case was dismissed with prejudice after he was barred by a court order from selling antitax programs ever again. He was admitted to the bar in 2001 at the age of 41.
In 1999, the court granted the gov's request for summary judgment and permanently enjoined Bernhoft and Robert Raymond.

They appealed the decision, an in 2000, the Seventh Circuit affirmed the district court's decision.

They appealed again, and in 2001, the Supreme Court denied cert on the case.

According to the Seventh Circuit opinion, Bernhoft and Raymond were warned that they were under criminal investigation in 1996, but that charges weren't filed because the tax loss involved was so small.
Criminal charges were not pursued against the appellants because the Government determined that the amount of loss suffered by the United States did not warrant criminal penalties and because the Government was concerned that a criminal prosecution of the appellants would implicate the appellants' rights under the First Amendment.


So what case was dismissed with prejudice?
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Re: What Has Happened With Bernhoft?

Post by . »

the amount of loss suffered by the United States did not warrant criminal penalties
A slippery slope and the dream of every impecunious TP. IRS/DOJ's job will get harder in a slow growth/recession scenario.
All the States incorporated daughter corporations for transaction of business in the 1960s or so. - Some voice in Van Pelt's head, circa 2006.
Demosthenes
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Re: What Has Happened With Bernhoft?

Post by Demosthenes »

http://defamer.com/5140562/evil+genius- ... -furniture
Celeb Jurisprudence
Evil-Genius Lawyers Can't Get Joe Francis Stink Out Of New Furniture
By STV, 2:37 PM on Tue Jan 27 2009, 571 views
Update time! Remember the ambitious Milwaukee lawyers who weirdly namechecked slammer-bound clients Wesley Snipes and Joe Francis en route to swanky new Malibu digs? Yeah — that didn't turn out so well.

Robert Bernhoft and Robert Barnes — the infamous "Two Bobs" of a mildly premature Portfolio magazine profile last year — are defending themselves this week against claims they provided less-than-optimal service to Francis, who faces 10 years in prison when he goes on trial this spring on tax-evasion charges. Not that a Joe Francis endorsement should necessarily attract the the high-powered Hollywood delinquents the Two Bobs had their hearts set on, but his dismissal of them in the LA Daily Journal as "swindlers" and "the Paris Hilton of lawyers — just to be famous, not to do anything" is arguably even less arousing.

The duo fired back Monday to the gang at LA Observed, which passed along a statement accusing the Journal of "lazy" and roundly untrue "ambush journalism," yet stopping short of denying their Hiltonesque status. And why should they? "The Paris Hilton Of Lawyers" may yet have some business-card and TV-spot traction after they've returned to strip-mall practice in Milwaukee. Sorry it didn't work out, fellas.
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fortinbras
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Re: What Has Happened With Bernhoft?

Post by fortinbras »

I am not certain, but their less-than-direct defense of their reputation may be out of an abundance of caution not to accuse their former client of having any negative characteristics. Francis may be a former client but there are still ethical scruples against disparaging him while he awaits his trial.
LPC
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Re: What Has Happened With Bernhoft?

Post by LPC »

There are several exceptions to attorney-client privilege, one of which is "to establish a claim or defense on behalf of the lawyer in a controversy between the lawyer and the client, to establish a defense to a criminal charge or civil claim against the lawyer based upon conduct in which the client was involved, or to respond to allegations in any proceeding concerning the lawyer's representation of the client." (ABA Model Rule of Professional Conduct 1.6(b)(5).)

I believe that all of those exceptions apply to legal proceedings, but not media proceedings, so that defending yourself against trash-talk in the press is not included in the exception.

Which is a convoluted way of saying that the Two Bobs cannot trash their client publicly just because the client has chosen to trash them.

(Even if either trashing would be truthful and justified.)
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Re: What Has Happened With Bernhoft?

Post by LPC »

Robert Bernhoft and Robert Barnes — the infamous "Two Bobs" of a mildly premature Portfolio magazine profile last year — are defending themselves this week against claims they provided less-than-optimal service to Francis, who faces 10 years in prison when he goes on trial this spring on tax-evasion charges. Not that a Joe Francis endorsement should necessarily attract the the high-powered Hollywood delinquents the Two Bobs had their hearts set on, but his dismissal of them in the LA Daily Journal as "swindlers" and "the Paris Hilton of lawyers — just to be famous, not to do anything" is arguably even less arousing.
I saw the tape of Paris Hilton, and she did some things, and it was arousing.

The thought of Bernhoft and Barnes doing the same things is not at all arousing, and probably not what they "had their hearts set on," but money is money (I guess).
Dan Evans
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(And author of the Tax Protester FAQ: evans-legal.com/dan/tpfaq.html)
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Re: What Has Happened With Bernhoft?

Post by LPC »

Doktor Avalanche wrote:August 19 has come and gone. Did he answer the court?

In case anyone forgot:
Bernhoft has been ordered to appear in court on August 19 to show cause as to why he should not comply with the IRS summons. According to the government, the IRS "is conducting a 26 U.S.C. [section] 6700 tax scheme investigation of Joseph Banister to determine whether Banister promotes abusive tax schemes that would subject him to penalties under 26 U.S.C. [section] 6700 or subject him to injunction under 26 U.S.C. [section] 7408.
According to the docket, a joint motion to continue (for one month) was filed on 09/18/2008, and the court approved the joint motion on 09/25/2008.

And that's it.
Dan Evans
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(And author of the Tax Protester FAQ: evans-legal.com/dan/tpfaq.html)
"Nothing is more terrible than ignorance in action." Johann Wolfgang von Goethe.
Demosthenes
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Re: What Has Happened With Bernhoft?

Post by Demosthenes »

LPC wrote:According to the docket, a joint motion to continue (for one month) was filed on 09/18/2008, and the court approved the joint motion on 09/25/2008.

And that's it.
Maybe not.
UNITED STATES DISTRICT COURT, CENTRAL DISTRICT OF CALIFORNIA (Western Division - Los Angeles) CIVIL DOCKET FOR CASE #: 2:09-cv-00172-MMM-JWJ

Joseph R. Banister v. United States of America et al
Assigned to: Judge Margaret M. Morrow
Referred to: Magistrate Judge Jeffrey W. Johnson
Cause: 26:7609 IRS: Petition to Quash IRS Summons
Date Filed: 01/08/2009
Jury Demand: None
Nature of Suit: 870 Taxes
Jurisdiction: U.S. Government


http://www.cheatingfrenzy.com/banistersum1.pdf
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Doktor Avalanche
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Re: What Has Happened With Bernhoft?

Post by Doktor Avalanche »

Hey Joe - you forgot this:

Image
The laissez-faire argument relies on the same tacit appeal to perfection as does communism. - George Soros