Felony Tax Evasion?
Note: The following letter by Dr. Tadros has been updated to account for events that have occurred since it was written. It has also been edited from its original version where appropriate.
Emad G. Tadros, M.D. Ph. 619-291-4808 Diplomate, American Board of Psychiatry and Neurology 3914 3rd Ave. San Diego, CA 92103-3095
Oct. 31, 2009
Internal Revenue Service Whistleblower Office SE:WO 1111 Constitution Ave., NW Washington, DC 20224
Re: “Lacking Family Law FL327 Prevents IRS audit of tens of Millions of Dollars for Family Court Evaluators and Attorneys”
California Child Custody Evaluators so-called “730 Evaluators” are private psychologists, LCSW and MFT executed (by) court order to perform custody Evaluations for family members involved in a custody dispute where divorce
Proceedings take place. To my understanding any and all divorced proceedings and legal expenses are not tax exempt (i.e. to the above named 730 evaluators receiving them).
For procedural and competency reasons starting (in) 2001 the California Judicial Council implemented specific judicial forms. Repeatedly, over the years, this council seconded the motion (Form) FL327 to be signed by the appointing judge … of each and every private evaluator where thereafter FL326 (is) to be filed by the private custody evaluator under the penalty of perjury … (emphasis added) This FL327 form (is) to be “re-filed” for each and every case individually. All FL327 (forms) are to be kept at the Clerk’s Office (not the case file or on the shelves). That is to confirm that all FL327 (forms) are to be “COLLECTIVELY” … kept at … the Clerk’s Office. FL326 (is) to be filed separately with each case file and NOT at the Clerk’s Office. Trying to pursue an IRS audit in the absence of FL327 is a mission impossible.
As of January 2005 the California Judicial Council MANDATED that all California counties must follow CRC section 5.225 by filing FL327 and 326 as a MUST for each and every private custody case performed by any private custody evaluator.
Accordingly, each California local county clerk’s office has become the one and only source for those thousands of FL327 accumulated (forms) over the years in case the IRS needed to perform an audit on those CASH ONLY paid evaluators. Those evaluators are (not) paid by insurance for what they do and do not get the same 1099 (form that) other professionals (receive). And the captive parents (who are) involved in (a) custody action do not … (provide 1099 forms to the IRS for any of the services that they PAY for with CASH, checks or credit cards).
(We have discovered) that each and every county in the state of California had followed the CRC to the T with one exception which is … San Diego county and this has been the case since 2001. … San Diego County has violated CRC and (has) intentionally … (failed to provide form) FL327 … (because THE FAMILY LAW COURTS in San Diego have CONSPIRED with the 730 Custody Evaluators to PREVENT the IRS from having any audit trail to follow — Probably because Family Court Officials are grossly under-reporting their income, and are thus committing Felony Tax Fraud).
(There) are between 12-15 (730 custody evaluators who have been operating in San Diego’s) the Family Court for decades. Since 2001 no FL327 was … filed in any (San Diego) Clerk’s Office, and none was declared under the penalty of perjury (until January of 2010). (It was however required as of January 2005).
The average evaluator completes between 80-150 evaluations (per) year. (The) average cost is between $8,000 – 30,000 (per evaluation). Evaluations and kickback (consultations) on each other’s evaluations are approximately 30-50 % of the workload. … The … overload is basically distributed between individual, couple and reunification therapies, mediations, consultations, lectures, etc. (No) Court Ordered proceedings are paid by insurance companies and therefore, no sizeable 1099 (Forms– IF ANY 1099′s at all are) on file for (any of) those evaluators.
We have parents that will testify that some of those evaluators asked for thousands of dollars in (the) form of money orders of cashier’s checks. … We have calculated that the “730 evaluation annual income” for an average evaluator ranges from $700,000 to $1,500,000 for evaluation work only. As for the total annual income, this is (not) known.
Since 2000, Mr. Michael Roddy, the San Diego Superior Court CEO has attended all California judicial council meetings in 2000, 2004, 2006 and last one in Feb. 2009 “for a reason.” Starting (in) 2006 the San Diego, Kenneth So joined in on 2006 and 2009 (in the) same meetings with Mr. Roddy present. Those meetings were held (at) the same San Francisco address before the public … , Judges, presiding judges and CEO(‘s were) present from all over California, where they discussed in great detail the need and (gave) strong reminder to implement FL327 and FL326. (Emphasis Added) … (Please access these meetings and the reference forms online).
Stephen Doyne, Ph. D.., a prominent San Diego psychologist, is now sued for fraud, breach of contract, negligence and violation of (the) business and professional code. I discovered that Doyne’s curriculum vitae / CV in 2004 lists (him) as a presenter (who educates on or) about CRC section 5.225 (FL327 and FL 326 forms –) informing California lawyers and judges (that) … evaluators (like himself) … must file FL327 and FL326 (just like) the whole State of California. … (And), all (other) California counties have complied by filling out and filing these forms … (except for San Diego).
Stephen Doyne, … is a member of the California Juvenile and Family Court … and (has been) nicknamed the dean of all evaluators, … (Yet he DID NOT) practice what he (supposedly taught) about FL326 and FL327. … This goes … for all (of San Diego’s) judges (as well) who (likewise, did not file) a single FL327 … and this continue(d) … (until January 2010 — AFTER parents discovered the “oversight” and began to ask questions). The (door) … is left open for (unscrupulous evaluators driven by greed to keep) the money churning (by) ripping off … families. (They do this) by overcrowding the San Diego Family (Law) Courts, (in order for them) to justify the annual over funding by the … (Federal Government – via Title IV-D Funding — and by using children to commit extortion).
(For this reason I have filed) the IRS form 211 … to report to your agency the lack of any FL327 (the judges mandated duty) leads to total lack of … ability … to calculate (investigate and/or audit the 730 evaluator’s income).
Since … my lawsuit was filed against Doyne in October 2008, Manta.com recently outlines some of the San Diego (Family Court evaluator’s income, such as) … Stephen Doyne, Ph.D., … Ph.D. (?), … Ph.D. (?), … Ph.D. (?), Ph.D. (?), … Ph.D. (?), … ( names deleted ) all recently updated their numbers individually making between $500,000 to $1,000,000 annually. …
Some of Doyne’s friends … are … Ph.D. (?), … Ph.D. (?), … Ph.D. (?), Ph.D. (?), … $500,000 and … (?) Ph.D., … Ph.D., $190,000 and, … Ph.D. $150,000. However, http://www.manta.com/coms2/dnbcompanycn252w says Dunn and Bradstreet … (est(imate their). income (to be) $500,000 to 1 million a year. And (one, apparently reported only to have made) $46,000 … None of these numbers (are accurate). … (If these evaluators are) ever audited, the IRS will be handcuffed ((as they will have nothing to go by since no forms were filed, and because ) …:
1. The mandated Clerk’s Office availability of (form) FL327 (from 2001-2010)
2. Any 1099 (as the divorce industry is not tax deductible and is only Cash paid services)
3. There is no other sizeable reporting alternative by insurance providers as other non-divorce industry professionals have.
This could (a)mount to tens of millions of dollars (of back payment) to the IRS from at least 12 evaluators and (a) minimum of nine years worth of back pay(ment).
In addition lacking (the form) FL327 (there lacks) transparency to expose 3,000 – 5,000 family law attorneys who knew about the mandated … (filing of the form) FL327, and were directly involved with Doyne and his associate violators to continue financial operations without any such forms. Why is that?
Emad G. Tadros, M.D. (Phone number deleted)
Updated Summary: (Despite the revelation of the foregoing violations of law, Courts have continued to cover up the San Diego Family Law Court’s failure to comply. Although Stephen Doyne, Ph.D. has recently been prevented from doing any more 730 custody evaluations in San Diego County as a result of the revelations contained herein, and the lawsuit that was filed by Dr. Emad Tadros against him for fraud was shut down by San Diego judges — and NOT allowed to be transferred to another location. – to date, no one has been held accountable for this gross misfeasance and malfeasance by the CEO, 730 evaluators, lawyers and judges. For this reason Dr. Tadros continues to seek redress to the grievances contained herein and has a case now pending before the California Supreme Court against the California Bar Association and attorney Robert W. Lesh, the former President of the San Diego County Bar Association). It is also important to again state that, in like manner, virtually ALL of the income that Family Court Lawyers receive is also — non-traceable — CASH, Check, and/or Credit Cards: because NONE of it is tax deductible, and because almost no parents take time to fill out a (non-required) 1099 to the IRS: informing them how much their Lawyer received from them — each year. In this regard, it is NOT uncommon for a parent to PAY his or her family law attorney $10,000 to $20,000 per year.