3. Exhibit 22a - IRS - Notes - Answers to Questions Raised by Doug, info on income, expenses

Answers to Questions Raised by Doug 

Regarding Tax-relevant materials

Tax-Free Bonds: 
These were given to Craig and his three siblings, $20,000 each from Craig’s parents, Dr. Carl and Mrs. Carolyn Franklin, $10,000 from each thus at the legal limit for gifts, three years running.  These years were 1987, 1988, and 1989.  Of course, the Franklins paid $20,000 for the bonds Craig received each year.  



City of Burbank
Bought for:  $20,000.00
Sold for:  $28,250.00

County of Riverside
Bought for:  $20,000.00
Sold for:  $35,788.00



Craig’s Business Expenses - MIT in 1988 - 1989

Craig did consulting work for MIT, creating a video data-base for the Agah Khan.  This work was done in these two years.  The first trip was in 1988 and the second in early 1989. These were his expenses:


1988
Airline Tickets:  $750.00
Hotel and meals - $500.00
Surface Transport:  $45.00
Telephone:  $150.00

1989
Airline Tickets:  $750.00
Hotel and meals - $550.00
Surface Transport:  $55.00
Telephone:  $130.00

International Meta Systems - Consulting compensation and compensation for serving on Board of Directors.  - Paid in stock - Never knew what it was worth until we sold it.  

1990

Phone costs:  $300.00
Milage for consulting:  7 trips - $210.00
Meals - $120.00
Attending Board Meetings  - $120.00  

1991

Phone costs:  $350.00
Milage for consulting:  4 trips - $120.00
Meals - $70.00
Attending Board Meetings  - $60.00

Cost of IMS Stock:  
Option price was $.10 a share
Paid:  $550.00

Charles Schwab Activity:


Tax-Free Bonds: 
These were given to Craig and his three siblings, $20,000 each from Craig’s parents, Dr. Carl and Mrs. Carolyn Franklin, $10,000 from each thus at the legal limit for gifts, three years running.  These years were 1988, 1989, and 1990.  Of course, the Franklins paid $20,000 for the bonds Craig received each year.  


December 93
City of Burbank
Bought for:  $20,000.00
Sold for:  $28,250.00

County of Riverside
Bought for:  $20,000.00
Sold for:  $35,788.00


April 1994 
- Bought 1000 shares Wind River - $6,000
Sold for $6,004.02
Profit of $4.02 minus commission 
Options: M Long LSYXH 50 PUT SPX Leaps .4375 - $2,187.50
$40 Expires 12/17/94   
           M Long OBXX 50 PUT OEX  100 Leap Index .3750 - $1,875.00 
$35 Expires 12/17/94
M Long XLTXE 150 PUT AMEX LT-20 INDEX .0625 $937.50
$25 Expires 12/17/94

Loses:  $4,998.00

California State Bonds
Bought for $20,000.00 - Tax free gift to Craig from parents
Sold for:  $25,063.00

1995

- Bought Options:

8/01 - Bought 7/31 9 PUT SPX LEAPS .3750 $373.70
$50 Expires 12/16/95
M Long SPXXT 100 PUT S & P 500 Index .4375 $4,375.00
$500 Expires 12/16/95
M Long LSXXJ 9 PUT SPX Leaps .o625 $56.25
$50 Expires 12/16/95
M Long LSZXJ 50 PUT SPX LEAPS .8125 $4,062.50
$50 Expires 12/21/96

Loses: $4,804.95

1996

Loses from Options:  $4,062.50




9547 Burnet Street - Costs and Improvements

1992

Repair of ruptured water line:    $230.00

1993
Getting House ready to sell before Earthquake - 
Painting - $3,450.00
Wallpaper - $450.00
Papering - $1,150.00

Cleaning up Garden and planting - $750.00
Repairs of screens - $340.00
Curtain material - $285.00
Sewing curtains  & drapes- $890.00

1994

Clean-up after Earthquake - $2,850.00
This was just hauling, cleaning and patching so Morgan could live there until we found a contractor)

Replacement of lost dishes, furniture, and sundries - $4,600.00


1995

Finally found a contractor

Diversified Construction - GrandTotal - $105,653.00

Painting (interior)   - $1,900.00
Painting - (exterior) -  $2,300.00
Wall paper - $650.00
Papering - $1,400.00
Garden Clean-up - $970.00
Hauling - $1,500.00

Material for curtains - $540.00
Sewing of Curtains and drapes - $1,120.00

Lost part of the house - a bathroom and one bedroom had to be eliminated in rebuilding.  This should be a reduction in the worth of the house.  Is it deductible?  


Promotion of Album:  The Sounds of Freedom

Craig wanted to sell tapes of his songs to pay for the production of a professionally produced tape he could sell commercially through regular outlets.  

First, we produced a video with a professional singer and back-up musicians.  We staged this at a home for the elderly so there would be an audience.  
Costs:  Film:  $23.00
Dresses for singer and back-ups:  $345.00
Singers fee:  $100
Programs for audience:  $45.00
Total:  $513.00
After producing the tape, Craig managed to get a contract to perform at a mike that would give him national coverage on CNN at the Libertarian National Convention.  

Costs:  
Singers fee:  $200
3 round trip plane fares to Chicago - $1,300.00
Hotel - $870.00
Meals - $430.00

Promotional Materials:  
Production and graphics:  $130.00
Printing:  $45.00
Total:  $2,975.00



Ron Weinstocks’s SS number:  - Am trying to contact him.  

3. Exhibit 21 - IRS - July 16, 1997 - Letter to Arras

Fred Arras

Chief Joint Compliance Branch

Internal Revenue Service

July 16, 1997

Dear Mr. Arras,

            I am contacting you regarding the letter you sent to my husband, Craig Franklin dated June 20, 1997.  The required tax return for 1995 has been filed for Mr. Franklin.   Addressing mail to Mr. Franklin is pointless and may result in delays in response.  I enclose a copy of a letter written regarding Mr. Franklin’s taxes explaining the present situation.  We are presently waiting for a response from the IRS, as you can see. 

            I am sending a copy of your letter to our tax accountant.  When you read the enclosures you will understand why the 1995 return was late.  Please call me if the return has not found its way through the mail to you; it was posted more than three months ago now. 

           

Thanks,

Melinda Pillsbury-Franklin

3. Exhibit 20 - IRS - June 23, 1997 – Letter to Dear G. L. Joly, regarding Craig Tax Non-filing

Dear Sir or Madame,

            In February I wrote a letter to you regarding my husband, Craig Franklin, who had not filed a tax return in 25 years.  I was not aware that Craig was not filing.  In fact, I believed that I had succeeded in bringing him up to date, and had initiated the preparation of tax returns for 83 - 87 and paid the bill to the accountant. 

            I wrote asking for help with a very painful  situation that has almost ruined us financially and come near to killing my husband.  All I received from you were demands for more money - that we don’t have and never owed. 

            Craig is now under the care of a psychologist who is helping him sort out the source of this deep-seated phobia regarding all paper work. - and all authority figures.   I have personally sorted through 29 cartons of papers dating from the late 60’s.  It was in the course of this excavation that I discovered the never-mailed tax returns at the bottom of carton 9 (Saturday night around 11:00 p.m.)   In the cartons were unopened letters from family members, traffic tickets, some over 20 years old, and an astonishing array of stuff that I will not bore you with.  I have no idea how it was possible for him to deceive me, his birth family, and others.  But he is extremely intelligent, his IQ is high enough to qualify him for Sigma, and so his therapist was not actually surprised at his ability to avoid confessing to his problem for so many years.

            As I said in my earlier letter,  Craig was diagnosed with adult on-set diabetes as well and this has necessitated many changes for him  - including my going into the office to organize his work.  Otherwise I still might not know. 

            But now I do know and I understand the emotional burden that Craig has carried all of these years.  He could not file.  He could not admit to his inability because of a condition that has existed since he was a young child.  But the most shocking  thing that I saw was that although he, because of his disability broke the law, he was not charged with non-filing.  Even though it must have been obvious to you, or someone in the IRS that not filing was costing him much, much more than simply hiring an accountant. 

            If you had charged him this condition would have been revealed years ago and he could have not been subjected to the stress and grinding fear that brought on him diabetes and almost forced him to suicide. 

            I was appalled.  I want several things. 

            First, I want to know what you are going to do to repair the damage you have done to this man, and second, I want  to know what you are going to do to prevent this from happening to others in similar situations. 

            it  goes without saying that we would pay no fines, penalties or interest.  I have been unable to find out exactly how much money has been levied over and above that which was lawfully owed, but every penny should be returned immediately. 

            I have no objection to paying what is rightfully due, but the shocking way in which this matter has been handled alarms me both for us and for others caught in similar situations. 

            The Americans with Disabilities Act guarantees that individuals such as my husband will not be treated like this.  He was incapable of filing paperwork - not or not paying what he owed. 

            I have been under treatment for a heart condition. (Both of my sisters died of heart attacks in early middle age, one at 36 the other at 59.)  My younger brother just had open heart surgery.  I want to know what you are going to do to stop this abuse of those who are emotionally disabled. 

            I hope to hear from you as soon as possible. 

           

Sincerely,

3. Exhibit 18 - IRS - May 14, 1997 – Letter to the IRS on why I did not know what Craig was doing

May 14, 1997

Chief of Collections

Internal Revenue Service

Fresno, California 93888

Regarding: Craig Franklin, SS. 554-68-xxxx

Dear Sir,

            I was directed to contact you regarding my husband, Craig Franklin, and his non-filing.  Craig has never filed a tax return.  He is unable to do so even though, with levies and penalties,  he pays much more than he owes, because of an emotional disability.  I enclose a copy of a letter I wrote a few weeks ago that gives a run-down of the situation as I understood it then.  

            Since that time I have learned that the phobia is actually specific to authority figures.  Craig cannot deal with authority figures.  Finding this out explained much of his employment history.  He left company after  company because of conflicts with his employers.  This has also cost him because he was never able to cash out when the company went public - and yet was so valuable an employee that he often received large shares of stock options.  Craig has made many people wealthy. 

            I enclose a letter from Craig’s therapist.  Craig will never be able to file taxes or do many other things that are normal and expected.  But because of his enormous intelligence he has been able to conceal his problem. 

            I have worried from time to time that he was an alcoholic or on drugs - but I had never heard of anything like this and neither had his therapist.  We are considering a conservatorship for him.  But I now handle all  matters relating to his taxes.  It is the only way we can function. 

            You might well ask why I didn’t notice what was happening to our finances.  Craig has proven to be a skilled liar and manipulator willing to do and say anything to conceal his problem. Also, we together have six children and I have always had my hands full with the them and with a series of disasters.  These included the death of my mother to cancer in 1987, my own near death in 1989 and the death of our last child., Abigail.   In 1992 my father died, in 1993 Craig’s mother died, in 1994 we suffered severe losses on our home in North Hills.  The estimate for repairs was $250,000.  It took two years to have it repaired during which time we were paying the costs of both houses.  Then just months after the earthquake  my older sister had a heart-attack in Japan.  I flew over to find that she was brain dead.  And that was only the beginning of that story. 

            I tell you this not to elicit sympathy but to explain how I could have overlooked what was going on. 

            We have four children in college and another in junior high school.  We are still supporting our oldest daughter, Morgan, who has never entirely recovered from an automobile accident in 1991 and who was unable to work at all for four years. She was rear-ended by a school bus at a school crossing.  Craig’s brother handled her claim and consequently she received nothing.  (He filed too late.)  She is now somewhat better and

 trying to find employment. My middle son also had a drug problem in 1993 -  that took an enormous amount of my time for I don’t know how long. 

            So, this is what was happening while Craig’s weight swelled and his health plummeted.  Since he couldn’t deal with the problems his disability raised he escaped into work and eating.  When he was diagnosed he looked terrible.  We re really fortunate that he did not die of the stress.  

            Since I have taken over he had improved enormously.  But this has not been good for me.  Both of my sisters died of heart attacks, Anne, as I mentioned in 1994 and Carol in 1974.  Their ages were 59 and 36.  Two years ago my younger brother had open heart surgery.  I am now under a doctor’s care for my heart. 

            What I want is to resolve this so that we can have a normal life, or as normal as possible given Craig’s condition I really wish that the IRS or the Franchsie  had charged Craig with non-filing.  I thought that was what happened eventually.  If the IRS had charged him he would have received the care he needed years ago - and spared all of us incredible suffering. 

            Craig’s  non-filing arose not from any unwillingness to file but from an inability to file.  If you read Dr. Marquart’s letter this is clear.  Since that is the case we should not have to pay any penalties - or interest..  Most especially since we never owed anything.

            This is what I want.  I want out from under the mountain of debts that Craig’s condition has caused.  A refund of the excess payments would help. 

            People like Craig who are disabled from childhood are unable to do certain things.  Some people have no legs and therefore cannot dance.  Craig cannot deal with authority in any form and so cannot file his taxes. 

            This had been a very difficult letter to write.  Thank you for your prompt attention in this matter. 

Sincerely,

            

3. Exhibit 17 - IRS - May 8, 1997, partial note on garnishment 1985

May 8, 1997

Dear Sir or Madame,

            Today we  received a demand for payment in the amount of $25,361.15 for taxes owning for the year 1985.  I was shocked and disgusted.   Two months ago I submitted tax returns for the years 1984 - 1987 on behalf of my husband, Craig Franklin.  The amount that he earned that year, reflected on – Melinda gets on the phone and calls them and takes the IRS on Mano to Mano.  It was a moment to remember.  

3. Exhibit 16 - IRS - May 1, 1997 - What we owed

What we owe -

as of May 1, 1997

Mortgages: 

Anacapa House

UC Lending

Paid  for April & May - Check No. 5836 - $6,383.13

Bank of America, Oregon

2 payments  @   $900.00 - Overdue

           

Other Loans:

Household Finance:

Account No. 219202-25-861958-3  Bal. $11,957.79 Due Feb.

            Owe around $11,000.00 Will pay $300.00 with second check.

Property Taxes

Anacapa

Due Dec.. 10, 1997 Delinquent - $2,501.01.  Pay $2,761.11

Supplemental Taxes (on School Bonds)

Due:  Jan 23, 1997  Delinquent Feb. 28, 1997 - $528.13

            $590.96 if delinquent

Due:  Jan 23, 1997  Delinquent June 30, 1997 - $528.13

            $590.96 if delinquent

2nd Supplemental Taxes

Due:  Jan 23, 1997  Delinquent Feb. 28, 1997 - $138.24

            $162.06 if delinquent

Due:  Jan 23, 1997  Delinquent June 30, 1997 - $139.24

            $162.06 if delinquent

Cabin

Paid

           

Utilities

Phones

A T & T Long Distance......Due - $400.00, paid $650 which was most of two months before. 

AT&T long Distance WINR - $18.10 (0ne month over due - this is two months charges)

GTE - Overdue (805) 569-0421 - Due Feb 4 - $289.62

Air Touch Cellular - Morgan (Has been turned off for non-payment) $233.92 (three months)

Ait Touch Cellular _ Melinda - (Has not come in yet.)

PacBell - Cabin - Due Feb. 2 - $71.78 (ocerdue three months)

Burnet

TCI of East San Fernando Valley - (overdue) - $40.89

LA Water - (Turn-off notice) - 2/28 - $254.26

Gas Co. - (Overdue) $121.87

Southern CA Edison -  Due Jan.27 - $25.02

Anacapa                                                                                             

Southern Calif. Edison - (overdue three months)  $633.61

City of S.B. Water - (Due Feb.24 - $105.88

Cox Cable - Due Feb. 17 - $53.57

Gas Co. - Due Feb. 5 - $44.08

Insurance

Norgan’s Medical Insurance - (unpaid for a month, maybe cancelled -  $154.00

Prudential  597H920624-2 Full payment $1,091.00, eight installments $274,00 (includes a 25% down payment) Due March 8.

Credit Cards

Melinda’s AmEx - paid $970.00

Melinda’s Corporate Card AC Pillsbury Foundation

CompuServe Gold Visa  4638-4100-0186-1163   Was -  Bal.       $5,553.18        

                              Due May 9 - 134.00 - Paid $200.00  - Bal. $5.229.

                                                                                                                                                                                                                                                              

Citibank - 4128-0022-5042-8682 -   Feb. 1 -  Bal. $3,481.15  - Min. - $141.00                                                                 May 2 -       $3,304.48   Pay $100.00

LST Master & Visa   4336-0065-3126-3220

                                  5393-6465-3126-3220   Feb. 2 - Bal.$5,059.01  - 01

                                                                         May 5   Bal.$4,826.12  Paid $100.00

Chase - 42260-5000-8643-9279   -  Feb. 27 - Bal.$2,061.67  - Min. $42.00

Citibank (Craig) - 4128-0028-7822-  Feb. 21 - Bal.$4,096.89

                                    - Min. $248.00

Wells Fargo 4777-3821-5180-2340

                    4777-3821-5180-2340        (Three months overdue) Bal.$2,241.81

                                     - Min. $91.00

                                                                                               

First USA 4417-1228-7114-6685VISA - Feb. 7 -  Bal.$4,519.47 - Min. $90.00

                                                                May 5            4,546.17             90    pd 100                            

First USA 5417-1224-4266-2274 MCard  - Feb. 10 - Bal. $3,188.76 - Min $63.00

                                                                        5/10            3,152.82              63.00   pd 100                 

Citibank 4128-0024-9058-2934  - Feb. 8 - Bal.$3,305.57 - Min. $128.00

                                                       May 9 - Bal. $3,245.69 - Min $67.00 - Pd $100.00

Ayn’s Cards

First USA 4678 086 428 629 - Jan. 18 - Bal. $149.91  Min. $10.00

Citibank 4128 0031 5935 8186 - Feb. 5 - Bal. $1,348.52 - Min $28.00

Gas & Store Cards

RadioShack  7738 1654 97684 - Feb. 18 - Bal.1,405.34 - Min. None

Mobil -  Jan. 18 - Bal. $80.18 - To be paid in full

Penneys  -Feb. 12 -  Bal. $374.66 - Min. $50.00

Robinson’s May - Feb. 3 - Bal. $718.71 - Min. $90.00

Lane Bryant - Feb. 17 - Bal. $233.97 - Min. $20.00

Macy’s - Feb. 18 - Bal. $612.64 - Min - $31.00

Medical Bills and Insurance

Richard Danson - $619.24

(Insurance has been billed, has not paid)

Morgan’s Blue Cross - (2 months) - $154.00

(Overdue by one month)

Bromberg - $2,070.00

Physicians Clinical Lab. - (Craig, ordered by Danson) - $112.00

Household Upkeep

Anacapa

RMS - Gardener - $115.00 (due now)

Burnet

Omar Chi - Gardener - $75.00 (Due now)

3. Exhibit 15 - IRS - April 30, 1997 - Faxed Letter to Lassiter

Fax Transmission

To the Attention of Mr. Marshall Lassiter

April 30, 1997

To:  Mr. Marshall Lassiter

       California State Franchise Tax Board

(818) 556-2905

(818) 556-2971

Subj.:  Tax Levy, Craig Franklin, SS Number 554-68-xxxx

Demand for payment dated April 23, 1997 and due May 3, 1997

Dear Mr. Lassiter,

I am shocked.  Let me take a moment to review the facts relating to my husband’s situation.

I informed you more than two months ago that Craig has been unable to file returns because of an emotional handicap that has existed his entire life.  This handicap has resulted in his paying not less taxes than he lawfully owes but far more.  The disability not only effects his ability to pay taxes but to accomplish many other seemingly ordinary, everyday, actions including the complete inability to deal with any and all authority figures.  He does not become defiant; he is simply unable to respond.  This has caused him to leave jobs that would  have made him wealthy not once, but many times in the course of his career.  He has been unable to do such routine things as open letters from his father.  (There were 20 unopened letters in the boxes.)

Furthermore, you know from your own long term experience with this situation that Craig’s offense has been to not file.  He has never avoided paying.  

You promised me more than a month ago that as soon as the returns for all years owing were filed you would remove the lien on his pay.  Instead, I received an additional demand for payment last Friday for $5,060.50 for the year 1994, which is one of the years cited in the lien.  You further demand that this amount be paid by May 3rd, threatening further penalties,  although you must know that it is impossible for us to pay this since you have been draining us with the lien that is still in place.  That lien, citing non-payment of an amount of $21,612.07 on 3/15/97 takes 25% of Craigs earnings leaving us unable to even pay our mortgage.  

I have told you that the stress of his inability to deal with this situation has had an extreme impact on Craig’s health, being a factor in his adult-onset diabetes.    I further told you that both myself and his therapist believe that Craig, unable to cope with the continuing need to pretend that this was not happening, had given up on living because he was unable to otherwise resolve that unbearable conflicts his disability has fostered.  

I have sent you evidence in the form of bills which we are unable to pay.  

I have shown every evidence of good faith.  I have done everything in my power to bring Craig into compliance, which is what the State of California states that it wants. I have told you that the therapist sugests that a conservatorship be set up for Craig since he has no confidence that Craig will ever be able to file himself.   But, in less than three months all returns outstanding have been filed.  This was a tremendous feat because Craig has never kept records, another aspect of his disability.  

I cannot understand why the State of California did not arrest Craig for not filing years ago.  If this had happened the situation would have become evident to those of us near Craig long since.   Craig would have received the theraputic treatment  he still so desperately needs long before now if that had happened.  It seems that as long as the Franchise Tax Board was  able to extract more money this way it was content to allow the situation to continue.

I am forced to wonder how many other individuals may be in similar situations, unable to file and bled monthly for their earnings in callous disregard for what emotional disabilities  may be preventing them from filing.  

It seems to me that good faith is necessary on both sides.  We have demonstrated good faith.  All returns cited in the original lien have been filed, hand carried into the office more than three weeks ago.  Instead of dunning us for more money - that we don’t have and can’t get - you should stop the levy.  Immediately.  Craig has never shown any intention of evading his lawful obligation to pay taxes; he has been unable to pay because of an emotional disability that has existed since he was three years old.  It is only because of his extreme intelligence that he has been able to function at all.   I have offered to document Craig’s disability; I have filed all of the returns you asked for.  Instead of keeping your promise to me you have made further demands for payments without even removing the past demands for the same year - or of informing me of what you were about to do.    How can this be?  Would the money you are taking from his paycheck apply to this new demand?  Or is there no end to it until we are absolutely bankrupt - or dead?  Last month I was forced to go to the hospital for an EKG because of blackouts and symptoms of a heart attack.

I have unpaid medical and dental bills for all of the family, therapy bills, overdue mortgage payments, unpaid property taxes, tuition payments, utility payments;  And now you want more money - and will fine us if the demand is not paid by May 3rd (with penalties, let’s not forget the additional penalties.)   And, you haven’t called me as agreed on last week - although you knew then that you were issuing a demand for even more money that we do not have.

I want the name of your supervisor in Sacramento and the name of the attorney you were going to consult.  

Sincerely,

Melinda Franklin

3 EXHIBIT 14 IRS - April 24, 1997 - Letter to Brown & Associates asking for refund

To:   Brown & Associates

        9920 S. La Cienega Blvd.  #501

        Inglewood. CA 90301

From: Melinda Franklin

         

Regarding:  Craig Franklin

April 24, 1997

Dear Mr. Brown,

            I am contacting you regarding your representation of my husband, Craig Franklin, in the matter of bringing up to date his non-filing of taxes for the years 1974 - 1995.  I became aware of the situation in January of this year when Craig’s continuing deterioration resulted in adult-onset diabetes.  At that time I went into his office and went through the twenty-nine boxes (large moving cartons) of papers and other sundry items including trash and never-answered traffic tickets that had accumulated during his life time.  This was not a complete collection; two fires have trimmed the supply, one in 1981 and another in 1990. 

            I had always believed that these boxes contained material related to his interest in various hobbies.  They held those too, but most of the space was taken up by a mish-mash of papers in no order and with no chronological layering.  At the bottom of box nine I found the tax returns my accountant had made out for Craig, at my behest, in 1988.  They were signed and never sent. 

            To make a long story short Craig has a disabling emotional handicap that makes him incapable of dealing with authority figures.  His therapist, who we consulted in February, believes this condition has been in place his entire adult life.   He suggested a conservatorship.  This disability is the reason Craig had never filed.  The disability also explains why Craig has left company after company never benefiting from the work he performed while employed there. 

            You could not have known this when you signed a representation agreement with Craig in July of 1996, but these are the facts. 

            I discussed the matter with my father-in-law,  Dr. Carl Franklin of USC.  Dr. Franklin thought I would apprise you of the facts. 

            You have never been able to proceed with your representation because of Craig’s disability.  This must have been frustrating for you.  But you also never inquired into why this was.   Franklin thought it would be best for all concerned to simple cancel the agreement and for you to return the fees already paid.

            I am sure that, given the circumstances, you will want to help.   Craig’s returns have all been filed as of April 1st.  We filed for an extension on his 1996 returns so that those would not further complicate the present situation. 

            Thank you in advance for your prompt attention in this matter. 

Sincerely,

Melinda Franklin

cc. 

3 EXHIBIT 13 - IRS - April 23, 1997 - Citibank regarding refusal to renew credit card

This document, which has been questioned by blogger, has been read.  It is entirely accurate and needs to be republished. 

April 23, 1997

S. Larson
Customer Service

Regarding:  Citibank card
Account No. 4128 0024 9058 2934


Dear Mr./Ms. Larson, 

Today I received your communication regarding your decision not to issue new a new card for my Ford Citibank account, number cited above.  
I am not writing to ask you to reconsider issuing the card.  I am perfectly satisfied to pay off the balance as soon as possible.  But I would like you to know why it has been impossible for me to keep up the payments - and why I continued to use the card when I was unable to make payments, as I very much wanted to do.  
Last June my husband called me from work and told me that, “he was having a little trouble with the IRS and would need to find an accountant.”  I was naturally very concerned and immediately found him three referrals - and several attorneys.  When we married he had promised me to clean up his own accounting and he had continued to assure me that this had been done, although we filed separately.   He had, as I found out last February, lied to me, continuously and quite successfully.  The truth was that he had not filed for 25 years - even though, and this is where I could not believe the outrageous stupidity of his act, he was employed and his employer was taking enough withholding so that he should have been getting a refund every year.  
Nothing I said or did had any effect.  he paid $6,000 to attorneys; went out for meetings with them, and complained endlessly about taxes, the stupidity of his attorney and everyone he knew or had known - but his pay check continued to dwindle.  I was forced to sell many cherished family heirlooms; spend the small inheritance from my father; my children were forced to take full time jobs while they attended college.  
Last February he came down with adult-onset diabetes.  He was hospitalized and during that time I went into his work and went through his office.
His filing system was remarkable.  Twenty-five years worth of unpaid traffic tickets, jury summons, tax liens, and unopened bills filled 29 boxes (we are talking moving boxes here, not those little filing boxes) that lined two walls from ceiling to floor.  I had been told these were company records.  In box nine I found the tax returns my accountant fad filled out for him ten years ago.  He had signed, but never mailed them.  
It took me six weeks working 18 hours a day to sort the trash.  This included dumping his dirty underwear, quite a collection.  I found more boxes secreted in the garage.  he continued to maintain that ,”it was not his fault.  I spent too much.”  Last year his W-2 read, $650,000.00.  He also has around $100,000 a year in tax free annuities  He could always find money for what he wanted - but not a dime to pay the bills, including the mortgage and loans he had taken out.  
The last tax lien should be off this week.  He no longer touches money.  This will remain the case until our divorce is final.  Then I will hand it back with a sign of relief and wish his accountant luck.  
If we got back everything taken by the IRS and State Franchise Tax Board in just the last 10 years I could retire.  We won’t, but the amount was around half a million.  
Now, having explained what happened to me I have a question for you.  The Ford card which you issued has listed 508 rebate points available.  I would like to redeem these now.  What is the procedure?  
Thank you for prompt attention.  


Sincerely, 

M.P. Foster

3 Exhibit 12 - IRS - April 10, 1997 - Letter to Mr. Marshall Lassiter regarding Tax Lien

Fax Transmission

To the Attention of Mr. Marshall Lassiter

April 10, 1997

To:  Mr. Marshall Lassiter

        California State Franchise Tax Board

            (818) 556-2905

            (818) 556-2971

Subj.:  Tax Levy, Craig Franklin, SS Number 554-68-5888

Dear Mr. Lassiter,

            It is extremely important that the tax levy now on my husband’s pay check be removed since our financial situation is still very unstable.  Last Friday we walked in the tax returns for the years you requested, 1988 - 1995, the 1994 return already being in your possession.  We have filed an extension for 1996 and that will be filed well within that deadline.  Please send a copy of the release form to my husband’s immediately as the lady who computes the checks will do that today. 

            That fax number is:  (805) 965-6343  Please send it to the attention of Cecelia.

            Thank you for your patience and concern. 

Sincerely,

Melinda Franklin