SHERIFF DAVID SHOAR's POSSIBLE TAX FRAUD DEMANDS FBI CRIMINAL TAX FRAUD INVESTIGATION

HISTORIC CITY NEWS and MICHAEL GOLD deserve accolades and awards for their analysis of St. Johns County Sheriff DAVID SHOAR's and WILLIAM HARRISS's apparent tax fraud. Congresswoman CORINNE BROWN was convicted of tax fraud in federal court for abusing a phony charity. 

SHERIFF SHOAR's phony "charity," the ST. JOHNS COUNTY SHERIFF'S OFFICE FOUR STAR ASSOCIATION, INC., is SHOAR's alter ego, his cat's paw.

This is not a charity.

It is a secretive slush fund, run by controversial former City Manager WILLIAM BARRY HARRISS, et pals.

Read all about it, from HISTORIC CITY NEWS:

Sheriff’s Four Star Association fails charitable organization test

July 28, 2017 Community

Organizations described in section 501(c)(3) are commonly referred to as charitable organizations. Just because an organization is formed as not-for-profit, does not mean it meets the exemption requirements to accept tax deductible contributions.

Such a controversial not-for-profit organization would be St Johns County Sheriff David Shoar’s “Four Star Association, Inc.” tax identification number 20-2416222.

To be tax-exempt under section 501(c)(3) of the Internal Revenue Code, an organization must be organized and operated exclusively for exempt purposes set forth in section 501(c)(3).

Mark E. Simpson, who obtained his credentials to become a certified public accountant while on the sheriff’s office payroll, is an officer (secretary) of Four Star Association, according to a recent FORM 990-EZ obtained from the Internal Revenue Service. No part of a section 501(c)(3) organization’s net earnings may inure to the benefit of any private shareholder or individual. Simpson, however, was reportedly paid $4,761.

When asked to describe what was achieved in carrying out the organization’s exempt purposes, in a clear and concise manner, describing the services provided, the number of persons who benefited, and other relevant information for each program, CPA Simpson, now in private practice for himself, made the following responses for the following payments:

Spent $64,215.00 –

• “Provided financial support for the Sheriff’s Office for things such as an awards banquet, employee picnic and retiree luncheons. The Sheriff’s Office employs over 600 people.”

A section 501(c)(3) organization must not be organized or operated for the benefit of private interests, such as the creator or the creator’s family, shareholders of the organization, other designated individuals, or persons controlled directly or indirectly by such private interests.

Spent $7,843.00 –

• “Lessened the burden of government by donating to other not-for-profits in St Johns County. If these agencies didn’t exist, then the services would need to be provided by government.”

Simpson did not indicate which or how many “not-for-profits” benefited from this money or if they were also “tax exempt”. Without disclosing their identities, there is no way to know what activities they are engaged in or if they are eligible to receive tax-deductible contributions in accordance with Code section 170.

Spent $512.00 –

• “Funded a trip to Washington DC for several members of the agency and its honor guard to attend the annual national law enforcement memorial ceremony.”

Is this “charitable” spending? This event is sponsored by Concerns of Police Survivors, Police Unity Tour, the Grand Lodge Fraternal Order of Police and the Grand Lodge Fraternal Order of Police Auxiliary. Section 501(c)(3) organizations may not be “action organizations”. They are restricted in how much political and lobbying activity they may conduct and they may not attempt to influence legislation.

If the organization engages in an excess benefit transaction with a person having substantial influence over the organization, an excise tax may be imposed on the person and any organization managers agreeing to the transaction.