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striped bass poaching and tax evasion

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todobien View Drop Down
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    Posted: 10 August 2017 at 3:53pm
https://www.justice.gov/usao-ednc/pr/commercial-fisherman-pleads-guilty-illegally-harvesting-and-selling-atlantic-sriped
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themoose View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote themoose Quote  Post ReplyReply Direct Link To This Post Posted: 10 August 2017 at 4:41pm
Always good to see people getting what they deserve.
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penfish2 View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote penfish2 Quote  Post ReplyReply Direct Link To This Post Posted: 10 August 2017 at 5:08pm
Why did it take so long to prosecute Saunders and his buddies? I guess he was the largest criminal in this bunch, but does NOAA, DMF, et al expect anyone to believe other illegal striper poaching has not occurred in the seven years since this huge crime against natural resources was observed and documented?

Anyone notice Saunders' poaching operation was HQed in Wanchese, N.C., the "hope of the N.C. coast" for commercial anglers, according to a story in Our State magazine (you'd think the magazine would know better, but it's run by a lady from Asheboro who "just loves the beach.").

BTW, if you want to know what Saunders' boat, the Lady Samaira, is doing right now or where it's at, you can't know because its Class B AIS signal apparently was turned off Aug. 9 after last registering at 35.33956°/-75.86987°, west of Buxton in Pamlico Sound.  At that time it's speed and course was 2.8kn / 53°.


Edited by penfish2 - 12 August 2017 at 9:07am
Many go fishing all their lives without knowing it is not fish they are after.
* Henry David Thoreau
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TomM View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote TomM Quote  Post ReplyReply Direct Link To This Post Posted: 10 August 2017 at 7:05pm
You would think all liscence revoked including boat.
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Rick View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Rick Quote  Post ReplyReply Direct Link To This Post Posted: 10 August 2017 at 7:09pm
Originally posted by TomM TomM wrote:

You would think all liscence revoked including boat.


Exactly!
fiogf49gjkf0d
NC Fisheries Management- Motto: Too Little, Too Late, Too Bad   Slogan: Shrimp On! Mission Statement: Enable Commercial Fishing At Any and All Cost, Regardless of Impact to the Resource.
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Glacierbaze View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Glacierbaze Quote  Post ReplyReply Direct Link To This Post Posted: 10 August 2017 at 8:26pm

Lady Samaira — WDD6376 — position and weather — sailwx.info

www.sailwx.info/shiptrack/shipposition.phtml?call=WDD6376
Lady Samaira. Owner: WILLIAMS, SAMMIE E, SWAN QUARTER, NC. More information available from US FCC via Universal Licensing System and Coast Guard ...

Who was the owner of record when Gaston L. Saunders was captain?
"You can never elevate your own character by stepping on someone else's."

"Never argue with a man who loves the sound of his own voice."
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Post Options Post Options   Thanks (0) Thanks(0)   Quote carolinashooter Quote  Post ReplyReply Direct Link To This Post Posted: 11 August 2017 at 8:59am
Until they make the hurt worse than the possible reward this will continue. It looks like this one has the possibility of some real hurt. I am a little surprised they did not charge the wife if she was helping hide the income.
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cnaff View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote cnaff Quote  Post ReplyReply Direct Link To This Post Posted: 11 August 2017 at 10:10am
She appears to be complicit of "structuring"at minimum. At least two people, the US attorney, and the special agent are not held in thrall to the normally all encompassing regulatory capture we enjoy here. I wonder what would be possible if the agents that are likewise unencumbered deigned to pay attention to the litany of abuses chronicalled on this board?
V/H Dog
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Glacierbaze Quote  Post ReplyReply Direct Link To This Post Posted: 11 August 2017 at 8:36pm
No penalty for the dealers who bought, sold, and profited from 90,000 pounds of illegally caught fish?

Any boats and equipment confiscated? Lady Samaira gets around. She was captained by another of NC's finest in this bust.  Remember the boat that was boarded, and allowed to proceed to the dock with only the fishing crew aboard, and they dumped all but 99 of the fish enroute? That's her.

https://outerbanksvoice.com/2017/01/24/two-more-plead-guilty-to-poaching-of-striped-bass-7-years-ago/


Let someone get stopped on I95 with a pound of weed, and some sheriff's department is going to own their vehicle, and maybe auction it off before they even go to court.

I guess striped bass is not considered a gateway taste, that might lead to a life of petty crime to feed a tuna addiction.
"You can never elevate your own character by stepping on someone else's."

"Never argue with a man who loves the sound of his own voice."
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TomM View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote TomM Quote  Post ReplyReply Direct Link To This Post Posted: 11 August 2017 at 10:00pm
Friendly judge
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Rick Quote  Post ReplyReply Direct Link To This Post Posted: 12 August 2017 at 9:01am
Please tell me how this gentleman evaded paying any taxes for so many years. It would seem that if the fish dealers were providing 1099s as required by IRS rules that an audit would have been triggered at some point.

What's the deal-
Complete IRS failure?
Dealers complicit in tax evasion?
        - Structuring payments to be less than $600?
        - Not reporting on 1099s at all?

https://www.irs.gov/businesses/small-businesses-self-employed/buying-and-selling-fish-with-cash

http://seagrant.oregonstate.edu/sites/seagrant.oregonstate.edu/files/sgpubs/onlinepubs/g05006.pdf

Edited by Rick - 12 August 2017 at 9:30am
fiogf49gjkf0d
NC Fisheries Management- Motto: Too Little, Too Late, Too Bad   Slogan: Shrimp On! Mission Statement: Enable Commercial Fishing At Any and All Cost, Regardless of Impact to the Resource.
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Post Options Post Options   Thanks (0) Thanks(0)   Quote hghcpa Quote  Post ReplyReply Direct Link To This Post Posted: 12 August 2017 at 9:42am
1099's not required when you are selling tangible property....only required for when services are rendered. For instance if you purchase new HVAC system, 5000 materials 1000 labor.....only the labor is subject to 1099 reporting
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Rick View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Rick Quote  Post ReplyReply Direct Link To This Post Posted: 12 August 2017 at 1:16pm
A lot of cash changes hands in the fish business. It looks like cash transactions at $600 or higher require 1099s...am I reading this wrong?

The gentleman in question was depositing checks...so this "cash" transaction wouldn't apply in his case. Are there not similar requirements for non-cash transactions?

Internal Revenue Code Section 6050R Returns Relating to Certain Purchases of Fish requires that if you purchase fish from a person who is in the business of catching fish and you pay $600 in cash during the course of the calendar year to this person, you must report this information to the IRS.
Definitions
Fish includes fish, shellfish (including clams and mussels), and crustacean (such as lobster, crab, shrimp, sponge, seaweed, marine worms, or other aquatic forms of animal or vegetable life).
Person includes an individual, a trust, an estate, a partnership, an association, a company, and a corporation.
Cash is currency, cashiers' checks, bank drafts, travelers' checks and money orders. (Cash does not include personal checks and business checks).
In order to comply with information reporting provisions, you are required to obtain or maintain the following:
Complete name, addresses, and tax identification number of each person to whom you pay cash for the product. The information should be captured on Form W-9, Request for Taxpayer Identification Number and Certification, at the time of the initial cash transaction.
Maintain records of each payment to these persons. Form 1099- MISC, Miscellaneous Income, is required to be filed with the IRS for each person to whom you paid more than $600 in cash for the purchase of fish. The total amount paid to the person is reflected in item 7, "Nonemployee Compensation".

Selling Fish for Cash
In the reverse, if you are in the trade or business of selling fish, any "cash" buyers purchasing fish from you should be issuing you Form 1099-MISC for “cash” payments of $600 or more that they paid to you during the year. Since the “cash” buyer was only required to report total "cash" sales, only the "cash" sales will be reflected on Form 1099-MISC. “Non-cash” payments that you received for fish will not (generally) be included on Form 1099-MISC. These “non-cash” payments for which no Form 1099-MISC was received are still taxable to you. Your return must report total gross fish sales received from all sources and in all formats (i.e. all “cash” and “non-cash” sales proceeds must be reported).
If you have received a Form 1099-MISC from one or more "cash" buyers and all the transactions you had with these buyers were in the form of "cash" sales, you should reconcile your fish tickets with the Forms 1099-MISC and report the correct amount of total gross fish sales from all sources on your return.
If you have received Form 1099-MISC from a "cash" buyer and there were other transactions you had with this buyer, such as your cannery account was credited with fish deliveries and you later received a settlement check(s), you should reconcile your fish tickets and Form 1099-MISC with year-end cannery statement(s) and report the correct amount of total gross fish sales from all sources on your return.
When reconciling, keep in mind that if you provided services to a fish buyer (other than as an employee) and received payments of $600 or more during the year for these services, you should also receive Form 1099-MISC for this income. If completed properly, the payer will designate these payments as “nonemployee compensation” in box 7 of Form 1099-MISC. Nonemployee compensation is reportable on Schedule C, Profit or Loss from Business, and is subject to self-employment tax.
If you only reported the amounts reflected on Forms 1099-MISC for “cash” sales of fish and also had “non-cash” sales of fish, you must file an amended return to correct the error and fully report your fish sale income.



Edited by Rick - 12 August 2017 at 1:34pm
fiogf49gjkf0d
NC Fisheries Management- Motto: Too Little, Too Late, Too Bad   Slogan: Shrimp On! Mission Statement: Enable Commercial Fishing At Any and All Cost, Regardless of Impact to the Resource.
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cnaff View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote cnaff Quote  Post ReplyReply Direct Link To This Post Posted: 15 August 2017 at 2:25pm
That document would appear to double as an how-to for structuring within the fish dealing world. I can imagine that those several forbidden actions proscribed therein are taken in the inverse as advice on how to carry out one's fishery transactions. The accounting DON'TS, become industry DO'S, and, best of all, one need not pay an accountant for such advice about these practices- the advice comes free from the guy in the next boat! The pity here, though, isn't that the IRS misses its take, but that the corrupted state has no intention of enforcing and observing laws designed to conserve fisheries so that all stakeholders have a shot at a thriving fishery.
V/H Dog
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