White Collar and Financial Crimes Unit 4 Grp Prjct Rough Draft (1)
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CJUS380
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Law
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Feb 20, 2024
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Uploaded by CountTitanium11689
Shamonigue Thompson
The case of Nick Kikalos and Helen Kikalos (Plaintiffs) v. United States of America
(Defendant)
During the year 1988 and 1989 the plaintiffs owned three liquor stores in Indiana. Nearly all the purchases made in the store were made via cash payments. In addition, the plaintiffs paid their payroll and other purchases such as beer and other goods with cash. Nick Kikalos oversaw the books of all three of the stores, meaning he was responsible for paying taxes as well. When it
came time to collect the data from each store, he did so, however, he discarded all proof of income once it was collected. This left them with no proof of income for the years in question. The IRS began to investigate the plaintiffs’ tax returns for the years 1988 and 1989 and discovered the books and ax records did not corelate. Since the plaintiff did not keep proper data of their income, the IRS was forced to use an indirect method, which in this case was the percentage markup method to estimate the plaintiff’s income for the years in question. The plaintiffs paid the assessment done by the IRS in full and now are suing for a refund. Unfortunately for the Plaintiffs a judge by the name of James T. Moody did not rule in their favor. Moody found that the plaintiffs had not kept adequate record of their books to determine the accurate income earned. However, even though the defendant was negligent in not keeping proper documentation of their books they would still be allowed to establish their income by any indirect method of their choice, otherwise the government could be defrauded with impunity. "Other indirect methods tend only to show that the Plaintiffs' income could have been estimated in different ways with different results. It does not tend to prove or disprove that the assessment
resulting from the method the government chose is wrong and wrong by some amount."(United States District Court, N.D. Indiana, Hammond Division, 2003) Since the court says that any proof of the Kikaloses income under other indirect methods are irrelevant, the defendant’s motion to sue for a refund was granted.
COLEMAN (plaintiff) v. DONAHOE (defendant) (2012) United States Court of Appeals,
Seventh Circuit
In the year 2006, the plaintiff Denise Coleman was fired from her job where she worked as a mail processing clerk for 32 years. She was fired because she had a discussion with her psychiatrist which entailed her having dark thoughts of killing her supervisor. In addition, they believed she was a danger to the other employees as well. Coleman stated she believed she was being discriminated against due to her race. Furthermore, she felt as if this was a retaliation for past complaints that she made. Supporting her claims under Title 7 of the Civil Rights Act of 1964, Coleman provided evidence that two employees (white males) threatened another employee recently at knife point. These employees only received a punishment of one- week suspension. The punishment had been issued by the same manager who fired Coleman. Upon reviewing the evidence presented, the district court found that these to instances were not like Colemans situation since they had two different supervisors and worked in different positions. With that being said, Coleman failed, according to the district court, in establishing a prima facie case of discriminatory act under the indirect method of proof. The postal service
alleged that the reason for terminating Coleman was simply because she violated the rules which prohibit violence and threats in the workplace. The district ultimately granted the Postal Services
motion to dismiss all claims. References
Kikalos v. United States, 313 F. Supp. 2d 876 (N.D. Ind. 2003) :: Justia
COLEMAN v. DONAHOE (2012) | FindLaw
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