"Republican Hits Clarence Thomas With Lawsuit Over His Taxes"
Thomas has faced immense scrutiny and calls for his resignation after it was reported that he failed to disclose several transactions, including a $267,230 loan that he received from wealthy friend Anthony Welters. Last year, an investigation from the Senate Finance Committee revealed that Thomas never repaid a "substantial portion" of that loan, raising concerns about whether the justice properly reported it in his tax filings." - Newsweek
How did Clarence Thomas get his luxury motor home? How much is it worth? What other gifts has he received? Who are the billionaires showering Clarence Thomas and other Supreme Court Justices with favors and luxury trips? What are they getting in return? Connect the dots for yourself with this relationship map.
Virginia Fraud Against Taxpayers Act
"He is filing suit against Thomas in a Virginia court under the Virginia Fraud Against Taxpayers Act (VFATA). Although he mailed the complaint to the court on Friday, he expects it to take two business days for the court to process and file the case. The complaint, which was shared with Newsweek, alleges that in violation of VFATA, "Clarence Thomas knowingly presented or caused to be presented a false and fraudulent claim (i.e., his 2005 Virginia State Income Tax Return) to the Virginia Department of Taxation on or about April 15, 2016, that failed to report income from discharge of indebtedness." - Newsweek
Castro is suing Thomas under VFATA
"Under Section 108 of the Internal Revenue Code, he would have had a legal obligation to report [the loan] as taxable income and the tax alone would have been, probably $40,000 or $50,000. That's a third of his annual salary," Castro said. "And that's when I was like, 'There's no way he reported that because that'd be financially disastrous for him.'"
Castro is suing Thomas under VFATA, which allows private citizens anywhere in the country to bring a claim against a Virginia resident for making a knowingly false or fraudulent claim to the commonwealth for money or property, essentially empowering regular Americans to take on the role of a de factor agent of the Virginia attorney general. "It basically allows you to bring a tax enforcement action against a taxpayer," Castro said of the law.
Underwritten by Anthony Welters
"Clarence Thomas failed to repay much, perhaps all, of the $267,230 loan. His benefactor wiped the slate clean, with ethical and potential tax consequences "Assuming that the loan was entered into genuinely, and not intended from the start as an outright gift, the I.R.S. would treat the forgiven $267,230 — as well as any missed interest payments — as income to Justice Thomas..." - NY Times
"Thomas' Prevost Marathon cost $267,230, according to title history records obtained by The New York Times. And Justice Thomas, who in the ensuing years would tell friends how he had scrimped and saved to afford the motor coach, did not buy it on his own. In fact, the purchase was underwritten, at least in part, by Anthony Welters, a close friend who made his fortune in the health care industry."
The title history documents reviewed by The Times show that when the motor coach was sold for $267,230 to the Thomases in 1999, it had only 93,618 miles on it, relatively few for a vehicle that experts say can easily log a million miles in its lifetime. It came equipped with plush leather seating, a kitchen, a bathroom and a bedroom in the back. In addition to its orange flame motif, it had a large Pegasus painted on the back, according to Jason Mang, the step-grandson of the previous owner, Bonnie Owenby. “It was superluxury, really bougie,” he recalled. - NY Times
TakeAway: No one is above the law. Not even Supreme Court Justices. Restore faith in the American Justice system: Vote for President Biden and Democrats.
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