It's all the VT Dept of Taxes' fault

[Demosthenes]

Jury trial begins on consultant's tax evasion

August 19, 2008

By Thatcher Moats Times Argus Staff

BARRE – A 52-year-old Williston man is scheduled to stand trial today on charges he did not pay his taxes from 2000 to 2006, following jury selection completed Monday in Vermont District Court in Barre.

Peter J. Quist, a partner in the Waterbury consulting firm Grubb, Quist & Associates, was charged in February 2007 with six counts of not filing a tax return and six counts of not paying his taxes.

In 2007, Quist didn't file his taxes again, the state alleges, and he was slapped with another charge of failing to pay taxes or file a tax return. Quist was also charged with violating his conditions of release.

Audits performed by Vermont Tax Department Investigator Frank Chapman found that Quist had a taxable income of $143,463 for tax year 2005. That was the most Quist earned in any of the years he is charged with not paying taxes, and he should have paid $10,189 for that year, the audit found.

According to court records, the total amount in back taxes for the six years in question is $35,155.

Quist has been employed by United Airlines, Sugarbush Resort and Gallagher Flynn & Co. and other companies from 1997 through 2004, according to the affidavit. He has been with Grubb, Quist & Associates since 2005, court records say.

In an earlier motion, Quist claimed that over the past nine years, a rogue Department of Taxes employee has conspired to intercept his tax returns and prevent them from being processed.

At 2 p.m. on Monday, about 75 potential jurors packed into the Barre courtroom. Twenty-four of them were called to the jury area, and after questioning by both the prosecution and the defense, 12 were selected for the jury.

Jeffery R. Schinnerer and David Tarrter of the Vermont Attorney General's office are prosecuting the case on behalf of the state while Quist's defense attorney is Scott Williams. Attorneys for both sides questioned potential jurors. Schinnerer searched for any conflicts of interest among the jurors, including whether they know the defendant or his attorney. One juror said she may have been Williams' neighbor at one time, but no one said they could not be impartial.

Williams asked if anyone ever had been a temporary worker. One woman said she had, and Williams asked her if she thought temporary workers were any less competent than full-time workers. The woman said she didn't.

Williams also mentioned that the Vermont Department of Taxes hires a lot of temporary workers during tax season.

"Does anyone harbor any prejudice against the people charged with accepting tax returns?" Williams asked, to which the answer was no.

[Dezcad]

In an earlier motion, Quist claimed that over the past nine years, a rogue Department of Taxes employee has conspired to intercept his tax returns and prevent them from being processed.

Don't believe I've seen that defense before. Good luck with that.

[Doktor Avalanche]

In an earlier motion, Quist claimed that over the past nine years, a rogue Department of Taxes employee has conspired to intercept his tax returns and prevent them from being processed.

Don't believe I've seen that defense before. Good luck with that.

That is truly inspired tin-foil hat.

[Famspear]

In an earlier motion, Quist claimed that over the past nine years, a rogue Department of Taxes employee has conspired to intercept his tax returns and prevent them from being processed.

I think that's the same rogue employee who comes down to my home in south Texas on a regular basis and hides my reading glasses -- usually late in the evening when I'm tired. Yesterday he hid my car keys. It's very annoying. He's only about 2 mm tall, so he's hard to see, you know.

[Famspear]

In an earlier motion, Quist claimed that over the past nine years, a rogue Department of Taxes employee has conspired to intercept his tax returns and prevent them from being processed.

Come to think of it, this appears to be a variation on the old "a dog at the Vermont Department of Taxes ate my homework" story I used to use in grade school. My teachers never bought it.

The guy really needs to spruce up the excuse.

[Demosthenes]

New evidence against man charged with tax evasion

August 21, 2008

By Thatcher Moats Times Argus Staff

BARRE – A man charged with not paying his Vermont taxes from 2000 to 2006 took the stand in his own defense Wednesday, saying he mailed his taxes and responded to Tax Department inquiries, regardless of what the state says.

But during his testimony, Peter Quist opened the door to some evidence the state had not initially planned to use against him. That evidence showed that for several years the Internal Revenue Service has no records indicating that Quist paid federal taxes, either.
Quist's lawyer, Scott Williams, asked the defendant questions that revealed a bit about who he is. Quist, 52, said he lives in Williston, and first moved to Vermont in December 1996 after living in Georgia.

One reason the Quists moved is that "my wife is a serious French student" and she wanted to be closer to Canada, Quist said. She was also hoping to enroll in a master's program at the University of Vermont, Quist added. He and his wife were divorced in March 2006 after being married for 28 years, Quist said, adding that his wife now lives in Idaho.

Quist said he has two daughters, a teenager and a 24-year-old.

He said when he first moved to Vermont, he worked as a part-time ground support person for United Airlines., though he is currently a human resources consultant. He also worked for Lake Champlain Transportation, he said.

What the former lawyer didn't tell the court is that he was disbarred by the State Bar of Georgia in 1997, according to Supreme Court of Georgia records. Court records say Quist kept money given to him by a client for his personal use, contrary to a court order, and solicited additional fees from that client without getting a court order.

Court records also state that Quist created a bank account in his firm's name without the firm's authorization.

Not only did Quist testify that he "absolutely" sent in his state tax returns, but said for 2000 through 2004 the state should have sent him a tax refund. As he read from notes that he pulled from the inside pocket of his navy blue blazer, Quist said by his calculations, the state should have sent him checks ranging from $155 to $470 for those years.

He conceded that he was required to pay the state in 2005, a year he earned roughly $150,000, but said it was about half of what state witnesses calculated he owed. Quist said he sent the state a check for $5,143 for that tax year. He said that to his knowledge, however, the check never cleared.

Quist said he moved from his first Williston residence to Burlington, then to Bolton and then to another house in Williston, which is why he has had trouble locating records related to this case.

"Whenever you move, there are things that get lost or displaced," Quist said. "Not every record I would have liked to have kept was kept."

Quist claims that two weeks ago he managed to find three letters he sent to the state tax department. He said he sent them in response to tax department letters that told him he owed the state money.

Sylvester Stempel, the lead internal auditor at the Vermont Tax Department, took the stand Wednesday and told the court he had never seen those letters.

Assistant Attorney General Jeffery Schinnerer asked why Quist only found the letters two weeks ago.

"In the one-and-a-half years that this case was pending, you couldn't locate these documents?" Schinnerer asked.

Quist said he thought the letters were lost, adding that he found them in his basement in a box unrelated to tax documents that held miscellaneous family items. Quist's lawyer told him recently to search harder for any records pertaining to the case, Quist said.

"My attorney essentially gave me the riot act and said you have to go back and look at boxes that maybe aren't related to income taxes," Quist said.

Schinnerer objected to the admission of the letters as evidence, questioning their authenticity, but Judge Patricia Zimmerman overruled that objection.

As Quist was under cross examination, he mentioned that he found copies of his tax returns for years 2001 to 2004 at the same time he found the letters. This was the first time the jury had heard about the tax returns.

Zimmerman immediately called the lawyers to the bench and dismissed the jury.

It was then decided that — in response to the state tax returns being entered as evidence – the state would submit documents that say the IRS has no record of Quist filing his federal tax returns from 1998 to 2006.

The state did not want to bring in the federal tax documents, and witnesses had been told not to mention them in front of the jury.

Schinnerer declined to comment on why the state did not want to use the two federal documents – formally titled Certification of Lack of Records — against Quist.

Quist said he did file his federal taxes from 1998 to 2006, despite the fact the IRS has no record of it.

"I know I sent them," said Quist.

[The Observer]

But during his testimony, Peter Quist opened the door to some evidence the state had not initially planned to use against him. That evidence showed that for several years the Internal Revenue Service has no records indicating that Quist paid federal taxes, either.

So now we have evidence that there was a rogue IRS employee who had it in for Mr. Quist for roughly the same time period. What a coincidence!

As he read from notes that he pulled from the inside pocket of his navy blue blazer, Quist said by his calculations, the state should have sent him checks ranging from $155 to $470 for those years.

Really? Not only did the state tear up his returns but also didn't forward his refunds? At what point was he planning to rage against the machine and do something about it?

Quist said he sent the state a check for $5,143 for that tax year. He said that to his knowledge, however, the check never cleared.

Just a quick question - what did you do with that money once you discovered the check didn't clear?

Quist claims that two weeks ago he managed to find three letters he sent to the state tax department. He said he sent them in response to tax department letters that told him he owed the state money.

Wow - not only did he have to put up with outrage of having his returns torn up, his refunds stolen, but then the state has the nerve to tell him that he owes? But here's the thing that bothers me, Mr. Quist: After 6 years of the state abusing you, you could only get around to sending 3 letters? Letters that you later misfiled?

Sylvester Stempel, the lead internal auditor at the Vermont Tax Department, took the stand Wednesday and told the court he had never seen those letters.

Carfeul, Stempel - you might be considered the main supsect in this case.

As Quist was under cross examination, he mentioned that he found copies of his tax returns for years 2001 to 2004 at the same time he found the letters. This was the first time the jury had heard about the tax returns.

Quist, I know this is probably off topic, but another quick question just occurred to me - any possibility that you might have not sent those returns in? I know its a longshot, but Stempel may be relieved to hear that.

Quist said he did file his federal taxes from 1998 to 2006, despite the fact the IRS has no record of it.

"I know I sent them," said Quist.

Let me guess, they didn't send you refunds either and then they sent you letters stating you owed.

[darling]

I think that's the same rogue employee who comes down to my home in south Texas on a regular basis and hides my reading glasses -- usually late in the evening when I'm tired. Yesterday he hid my car keys. It's very annoying. He's only about 2 mm tall, so he's hard to see, you know.

That's why he hides your glasses.

[Famspear]

In the interest of full disclosure, the State Bar website says this jagoff went to UGA law school, same as I did, although he finished many years before I even started.

Ah! A direct connection! Now we realize that all this is your fault!

[grixit]

It's too bad that the courts have consistantly ruled against the Piñata Penalty. I'm sure his bankruptcy clients, former legal colleagues, and everyone who got a bum check from that phony bank account, would love to take a whack.

[jkeeb]

Although Quist acknowledged service of the complaint, he failed to file an answer,

Aha, I bet there is someone who worked at the state bar assn, then worked at IRS, and then later worked at the VT revenoor's. Find that person and Quist will be exonerated.

[Leftcoaster]

Although Quist acknowledged service of the complaint, he failed to file an answer,

Aha, I bet there is someone who worked at the state bar assn, then worked at IRS, and then later worked at the VT revenoor's. Find that person and Quist will be exonerated.

Should be pretty easy.
He's only got one arm!

[Demosthenes]

The jury didnt buy it.

Man convicted in rare tax evasion trial
August 22, 2008

BARRE, Vt.—A man accused of tax evasion has been convicted in the first tax case to go to trial in Vermont in 15 years.

A jury in Vermont District Court in Barre found 52-year-old Peter J. Quist guilty Thursday on 14 counts of failing to file his Vermont income taxes between 2000 and 2006.

According to the state, Quist failed to pay $22,833 in income taxes in that period, although the self-employed consultant claimed he filed his taxes and was owed money for certain years. He says the state lost or didn't get his documents.

[The Observer]

Looks like the one-armed state bar employee got on the jury panel as well.