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KOLO part 1 http://youtu.be/-lN4YWCZMrc?t=15m41s
KOLO part 2 http://youtu.be/-lN4YWCZMrc?t=12m34s
NBC / KRNV
AG and Carson City Court (Judge James E. Wilson) caught in backdating scandal
Las Vegas Review Journal
Taxation Department losing tens of millions of dollars a year, ex-employees say
CARSON CITY — The state is losing tens of millions of dollars a year in tax revenue because of an inefficient computer system that prevents department auditors from reviewing the tax records of companies in a timely manner, according to two former Nevada Taxation Department employees.
They place the blame primarily on a computer system that, while not antiquated, is slower and not user friendly, saying that a new system is needed.
The department’s annual report, released Jan. 15, shows 1.24 percent of businesses in the state were audited during the past fiscal year, almost half the total in the 2006-07 year, just before a new $40 million tax accounting system went online.
They also said that mismanagement by former Taxation Director Dino DiCianno has contributed to the department’s inability to perform more audits and that he deliberately stopped audits of the mining industry. DiCianno closed the agency’s Elko office in June 2010 as part of a cost-cutting plan by former Gov. Jim Gibbons, though the mining industry was booming and the auditor there could have recovered millions in unpaid mining taxes, they said.
DiCianno, who did not return a phone call seeking comments Tuesday, abruptly retired from state government in March, a day after telling legislators that mining companies had not been audited for two years because he lacked qualified auditors to check their records.
Taxation Department executives told legislators that the mining industry operated on a “self-reporting” tax system.
After DiCianno’s departure, new Gov. Brian Sandoval required the department to undertake mining industry audits.
That work produced $1.2 million in additional revenue from audits in the fiscal year that ended June 30, although the employees said much more could have been secured except for a three-year statute of limitations on unpaid taxes.
Still the employees and their union representative said far more revenue could be secured if the number of audits returned to the total of past years.
“It is our members’ assertion the total number of audits is down because of the computer and software system,” said Vishnu Subramaniam, executive director of the American Federation of State, County and Municipal Employees Local 4041. “Individuals have to pay their fair share of taxes. We should expect the same from Nevada businesses.”
Although no one was critical of his performance, new Taxation Director William Chisel did not return three messages left by the Review-Journal on his office phone over the past week and a half.
Sandoval, however, expressed support Tuesday for Chisel, adding it is the director’s plan to concentrate audits on companies where the returns can be greater.
“I will have a conversation with the director,” Sandoval said. “Mr. Chisel’s background is as an auditor. They are developing systems to go after the higher returning entities.”
Subramaniam arranged for the two former Taxation Department employees to speak with a Review-Journal reporter. They both requested anonymity.
One is still employed in state government. He said he told legislators before the meeting in March that DiCianno was not having the department audit mining companies.
He said he previously worked for a mining company and is proficient in auditing their records. Instead, he was assigned to audit businesses where the return for the state was far less.
This employee said no net proceeds of minerals audits were performed for 10 years.
“We did sales tax audits. We did business tax audits. We did everything but net proceeds of minerals,” he said. “I was stifled by Dino (DiCianno).”
The other source, who said he is familiar with the computer system, said, “It wasn’t right from the beginning. It has been completely dysfunctional.”
The system will not even properly add up numbers, he said.
As an example, he said the system software would show a 990 answer for adding up a group of numbers with an actual sum of 1,000. Replacing it with a new system would cost $100 million, he added.
Auditors for the Taxation Department do not need accounting degrees but can take a couple of night courses to qualify for the job, according to the former taxation auditor. He said pay is too low to attract highly qualified people.
According to the state Personnel Division, tax auditors are paid $39,108 to $69,029 a year, depending on their experience.
A person with a high school degree with previous auditing experience who has completed six credit hours of college accounting classes can be an auditor.
“I would always collect or recover five times or more what I earn,” he said. “The jobs pay for themselves.”
The annual report shows salary expenditures by the Taxation Department increased by about $450,000 to slightly more than $20 million a year in the past fiscal year.
Subramaniam said Sandoval needs to take the leadership to ensure the Taxation Department does more audits and businesses know they are being watched so they will pay their taxes, but with a 1.24 percent audit rate, businesses realize they can fudge their taxes with impunity.
“The least we could be doing is to ensure that Nevada businesses are paying their fair share in taxes — that they are paying what they’re supposed to be paying,” Subramaniam said.
Contact Capital Bureau Chief Ed Vogel at email@example.com or 775-687-3901.
Nevada’s top tax man abruptly retired Friday, a day after he revealed his agency hadn’t audited mining industry tax collections in two years and lacked trained staff to determine if the mining companies were paying proper net proceeds taxes.
In a statement, Gov. Brian Sandoval thanked Dino DiCianno for his years of service and wished him well in his retirement.
“He has been a loyal and dedicated public servant for three decades,” Sandoval said.
The governor said Chris Nielsen, taxation deputy director, will lead the agency until a permanent replacement is found.
Sandoval asked Nielsen to prepare a transition plan and immediate strategy to resume auditing mine operators to ensure the proper payment of the net proceeds of minerals tax. He also directed the state’s Internal Audit Division to assist the tax agency.
In a hearing Thursday before the Senate Revenue Committee, DiCianno told lawmakers that his department only had two-and-a-half people to conduct audits, and that they relied largely on the companies’ revenue projections and reports in calculating taxes.
It prompted a terse exchange with Senate Majority Leader Steven Horsford, D-North Las Vegas, who at one point said he may “need to start taking blood pressure medication.”
DiCianno also said the governor was unaware of the lack of audits, but that he had asked his staff to “dust off the internal audit manual” and get up to speed.
Nevada’s mining industry, with gold prices soaring to record highs, is a shining target in the gloom of the state’s budget battles as the state tries to claw its way out of the Great Recession while leading the nation in joblessness, foreclosures and bankruptcies.
Also revealed during Thursday’s hearing were the business deductions the mining industry is allowed to take before declaring their taxable net income. The deductions include an array of expenses including advertising costs, severance payments, employee or worker bonuses and sales tax.
According to the taxation department, deductions for Barrick Gold Corp. will amount to $1.7 billion this year. These deductions lower the mining company’s taxable income to $1 billion. Were taxation based on gross income instead of net, the tax department’s report shows Barrick would face taxes on almost $2 billion in 2011.
Las Vegas SUN
Protesters rallied with a 4 foot by 150 foot long “CRIME SCENE” banner!
Protesters each have their individual complaints against the Attorney General, NDOC, NHP, the Governor and Reno DA Dick Gammick.
Individual complaints include backdated court filings, withholding evidence, Brady violations, computer problems in NDOC adding false charges to inmates records and deleting “good behavior” credits. Other people complain about being harassed by NHP (pulled over 40+ times) after reporting icy road conditions.
Nevada was recently given a D- grade in transparency and is a top State in the union for CORRUPTION. Essentially a “State of Corruption”.
Protesters are planning to continue these demonstrations in the weeks and months ahead now that the weather is nice and more victimized citizens are learning about the movement.
Q- What the hell is this protest all about?
A- In 2012, Nevada received a D- grade making it one of the worst States in the union for CORRUPTION and Judicial Corruption. Local Nevada citizens in Carson City and Reno networked and joined forces using the Internet and social media and old fashion methods to create a collision. They were inspired to protest and created the Nevada ANTI-Corruption movement. One of the fellas involved in the protest is a professional sign maker who fabricated a massive 140 foot long, 4 foot tall one-of-a-kind CRIME SCENE banner. The banner is unique and has commanded the attention of anyone who sees it as well as local, national and world-wide media attention. The other protest signs are also large and unique targeting specific issues and general anti-corruption messages.
The Nevada ANTI-Corruption movement is working and we are having success for individual causes and bringing public attention to the Rampant Wholesale Corruption here in Nevada. We will report news and information on out main website https://nevadastatepersonnelwatch.wordpress.com
We encourage people to watch out youtube videos at http://www.youtube.com/user/stumpjumpnty/videos
Once you become familiar with what we are doing, please contact us at Nevadawatchdog@rocketmail.com
We are starting to regularly hold demonstrations in Carson City Nevada at the State Capital in front of the Attorney Generals office which is directly across from the Governor’s office on the main street and Musser St.
We will also hold demonstrations at other locations such as the Reno AG office, area courts (Reno, Carson, other) and pinpoint protests at Nevada Department of Taxation offices in Nevada and other State agencies as required. We may expand protests to Las Vegas and bring the CRIME SCENE banner to rural areas of Nevada too. All this brings attention to the judicial corruption happening in Nevada and the rest of the country.
Nevada ANTI-Corruption & Lawless America join forces to gain Nation Nevada ANTI-Corruption & Lawless America join forces to gain Nation Attention to Rampant, Wholesale Judicial Corruption in America.
Kids for Ca$h, Penn State and Nevada’s D- grade are all recent scandals we’ve heard about in the news. There are thousands and tens of thousands we have not heard of.
Corruption is running rampant in America and it is getting worse. Please check out a recent update from Bill Windsor from Lawless America on the Internet talkshow called ‘Talkshoe’ at www.Talkshoe.com
Here is the direct link to the profound information: http://recordings.talkshoe.com/TC-115884/TS-646174.mp3
Listen to time-stamp 57:15 to learn about how to sue the State courts if Federal court using something called section 1983. This “section 1983” is Constitution law and is used for civil rights cases like excessive police force, discrimination, retaliation and other State abuses of power.
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