Howard Kaloogian
Wed Aug 13 01:20:51 2003

From: Recall Davis Info


Dear Friends:

There has been so much good news that has poured in
during these past few days as the Recall Gray Davis movement
continues to build momentum.

Today we received terrific news when the California
Third District Court of Appeals ruled in our favor in our
lawsuit ordering the Secretary of State to follow the law
regarding the count, verification and report of recall

This means that it is now more likely than ever that a
special recall election will occur by October!

Please go to our website
to read the press release and also the ruling by the court.
It was a 100% win! Stunning! The court not only agreed to
accept our writ, they then decided to rule without oral
arguments declaring that the law was very clear and reflect-
ed what our arguments have been all along.

Here is the breaking news story from the Associated
Press on our incredible legal victory:

We took so much criticism in the press for our lawsuit,
which many reporters never understood but you stood by me
every step of the way. Thousands of you contributed to the
Recall Gray Davis Legal Defense fund, which paid for our
legal team that is led by former Chief Counsel to the Secre-
tary of States Office, Jim Sweeney.

We still have thousands of dollars in fees weve racked
up that will have to be paid for, so I am asking for your
assistance to help pay these bills that are now arriving.
Simply click the link below to make a contribution to the
Recall Gray Davis Legal Defense Fund:


With our spectacular and complete victory in the
courts, and thanks to the huge surplus of signatures we
collected over and above the 897,158 we needed the recall
election should be called by October.

This means there is little time to wage a strong and
successful "YES on RECALL" campaign, which increases the
importance for a massive crowd to turn out for the Recall
Gray Davis "YES on RECALL" Rally & Faire on Saturday, July
26 from 10:00 AM 2:00 PM at the California State Capitol
Building (north side) in Sacramento.

The RSVPs have been coming in at an incredible rate and
you cannot imagine how excited I am at the prospect of such
a giant crowd coming together to celebrate the successes
weve had thus far and rallying together to build momentum
for the campaign to come.

Just today I have learned that Mark Williams of KFBK in
Sacramento had agreed to attend and address the crowd as
well as KFI Los Angeles. We are hoping popular hosts John
and Ken will be able to personally attend as well and are
awaiting word on their schedule.

These early recall supporters will be joining a growing
list of radio station personalities including Melanie Morgan
of KSFO San Francisco, Eric Hogue of KTKZ Sacramento, Roger
Hedgecock of KOGO San Diego, Craig Roberts of KFAX San
Francisco, Steve Wampler of KCBC Stockton, Joe Pursch of
KFIA Sacramento and Martha Montelongo of KION Monterey.

KSFO will even be doing a live broadcast from the rally
and we are told other radio stations are exploring this
option as well!

This rally has received national attention as well
famed radio personality Dr. Laura is urging her listeners to
attend and has put a "call to action" on her website  telling people to attend.

In Sacramento we were fortunate to receive television
promotion for the rally from Libertarian supporters of the
recall on the political television show, Libertarian Coun-

And California Political Review magazine included a
write up on the rally in their "Capitol Watch" section.

The list of speakers as well as organizations support-
ing the recall that will be in attendance with a booth is
growing by the minute. I will be sending out a list of
speakers next week and posting it to our website  as well.

So please if you have not already RSVPd do so by send-
ing an email to:

Also please note that rooms are starting to run low at
the Best Western Sutter House/Ponderosa Inn which will be
the central hub for recall supporters. Theyve agreed to
mark down the room price and offer a special rate to anyone
who asks for the special "Recall Gray Davis Discount."

To book a room please call: (916) 441-1314

Congratulations to us all for a wonderful week in the
recall effort. I look forward to seeing thousands of you in
Sacramento on July 26. Remember to RSVP for the rally:


Howard Kaloogian
New York Times Reports On Vernie Kuglin

"Equal access David."

Jury Acquits Pilot Who Questioned Liability for Income Tax

A federal jury in Memphis has acquitted a FedEx pilot on six counts of tax evasion after she testified that she wrote letters asking the Internal Revenue Service what law required her to pay taxes but never received a response.

The verdict, reached on Friday, brings into question the I.R.S. practice of ignoring such questions, which it regards as frivolous because the first words of the Internal Revenue Code are "a tax is hereby imposed."

The pilot, Vernice Kuglin, 58, filed a withholding statement on Dec. 30, 1995, directing that no taxes be withheld from her pay. From 1996 through 2001 she earned $920,000 as a pilot for FedEx, but no taxes were withheld, she said yesterday. Normal withholding for the period would have been about $250,000.

FedEx would not say yesterday how many other employees had submitted W-4 forms requesting that little or no tax be withheld. Sandra Munoz, a company spokeswoman, also declined to say whether the company had reviewed its payroll to identify employees who were having no taxes withheld. She did say that FedEx was complying with all I.R.S. regulations on withholding.

The acquittal does not relieve Ms. Kuglin of the obligation to pay the taxes. Joe Murphy, the federal prosecutor in the case, indicated in court that the government intended to pursue collection in a civil action. Mr. Murphy said yesterday that he was not allowed to comment on the case outside of court.

The lead defense lawyer, Lowell H. Becraft Jr. of Huntsville, Ala., said he built the defense around the absence of response by the I.R.S. to Ms. Kuglin's letters.

He said the letters showed that his client lacked a criminal intent to evade the tax laws and was instead operating from a sincere belief that her conduct was proper.

Mr. Becraft, who 12 years ago was part of a team that won acquittals for 17 defendants in another Memphis tax trial, said that jurors told him they had voted 7 to 5 for conviction on Thursday. They then told Judge Jon P. McCalla of Federal District Court that they were deadlocked. He ordered further deliberations, and the jury voted to acquit on Friday.

"The whole thing could have been resolved if the government had simply answered her questions," Mr. Becraft said. "It didn't happen. I made an argument to the jury that an American has a right to ask the government for answers. A lot of people in the tax movement do not hide, they are in the face of the I.R.S. and they write letters that set forth their position. And while a lot of them are not articulate or well grounded in legal positions, they have some things they want answered" about their tax liability. But their questions are usually ignored, he said.

Mr. Becraft said during an hour he spent with jurors after the verdict their most focused comments were about the absence of a response from the I.R.S. to Ms. Kuglin's letters.

The I.R.S. was unable to state yesterday what policy it has on responding to letters asking it to specify the law that makes people liable for income taxes. Nancy Mathis, an I.R.S. spokeswoman, noted that the I.R.S. had posted various items on its Web site stating that taxes are mandatory and that it had issued press releases making the same point.

Scores of people who contend that they are not required to pay taxes have said, in interviews over the last nine years, that they had sent letters to the I.R.S. asking what law makes them liable for taxes and had received no response. Promoters of tax evasion schemes often cite the absence of a response as evidence for their claims that taxes are voluntary.

Ms. Kuglin said yesterday, "I believe the 16th Amendment is constitutional and the Internal Revenue Code is constitutional, but I also feel there is a gross misapplication of the individual income tax laws by the I.R.S."

"The questions I have asked are what section of the Internal Revenue Code makes me liable for the individual income tax and what law requires me to fill out the Form 1040" tax return, she said.

Ms. Kuglin said she was also troubled by how the "tax honesty movement" had seized on her acquittal, saying she was upset with a remark attributed to Judge McCalla. Both she and Mr. Becraft described the quotation as untrue and misleading.

The quotation, widely distributed over the weekend by people who deny the legitimacy of the tax laws or of the federal government, came from the Web site of the We the People Foundation for Constitutional Education, the chief organizer of the "tax honesty movement." It quoted the judge as refusing to require Ms. Kuglin to file tax returns, saying, "Sir, I don't work for the I.R.S."

Ms. Kuglin said: "I am concerned that some of the tax honesty people are exploiting this and making it look like the judge was being flip. He didn't say that. The judge was very gracious to Mr. Murphy and very fair in my trial. We had a good, clean case and I would have been pleased because of that if the jury had gone either way, though I am obviously more pleased with the way they decided."

She said the judge simply indicated that it was not within his jurisdiction to take any civil actions requiring payment of the taxes.

Ms. Kuglin said she hoped to resume flying as soon as the government returns her passport, which was seized after her indictment early this year.
In February 2002, a Tax Court judge dismissed Ms. Kuglin's claims of I.R.S. irregularities in determining she owed taxes for 1994 and 1995, but declined an I.R.S. request to impose penalties on her for filing frivolous actions to delay collection.
posted by IRS Cases at 6:58 PM

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