Bullotta asks about Emma Bell and Derrick miller and if Kwame is receiving bribes or kickbacks is that taxable income for him. Yes it is says Sauer.
Bullotta asks Sauer if Kilpatrick went into debt for the $840,962.33. Did he go into bankruptcy for it? He did not says Sauer.
12:22PM Thomas crosses again.
Thomas says what if Emma Bell, Derrick Miller and Karl Kado did not pay kickbacks or bribes, would that be taxable. no says Sauer.
Thomas says you recognize that Carlita and Kwame may have shared expenses. Sure says Sauer.
Thomas says Carlita's U.N.I.T.E. account not included in your calculations. No says Sauer.
Thomas says the approximately $17 k from the U.N.I.T.E. and the more than $26k from the Comerica account not included in computations and thus they are not accurate. Sauer says computations are accurate.
Thomas says didn't you say in my cross examination of you that you are not an expert in 501c4 corporations. Yes says Sauer.
12:26PM Bullotta redirects. If you included that $17k and that $26K would that even come close to denting the more than $840k. no says Sauer.
12:27PM Thomas aks if there is any indication of cash gifts or loans in that $840k. No says Sauer.
12:28PM New witness Carl Selz is an IRS agent revenue agent. He does tax investigations. Been with IRS for 23 years. Before working with the IRS, he worked with the Detroit Police Department for 11 years.
Training in investigative techniques and certified fraud examiner.
Has testified 2 before in criminal tax cases.
Says he has been brought in as a summary witness, an independent witness for the government. Says he only reviewed the indictment and the tax returns on this particular case.
Judge asks witness to slow down.
Selz says again he is an independent arm of the government. Say he has limited his views to tax returns and indictment. He makes summaries and tax comps.
Selz says summary witnesses are not an automatic extension of the prosecution. Witness says he doesn't automatically accept everything placed in front of him.
Selz explains that tax comps are the adjustments to particular tax return.
Witness looked at Carlita and Kwame's tax returns for 2003 through 2008. Yes says witness.
He has drawn a conclusion on whether they are correct.
Bullota asks if he formed an opinion on tax returns' accuracy. Witness says yes.
Looking at summary of 2003 through 2008 for criminal tax due and owing.
Witness takes numbers off tax returns and includes adjustments to income which includes cash transactions and deposits in Kwame's multiple accounts, corrected taxable income, corrected tax liability and tax reported per return. Uses the specific item method.
Witness goes over the numbers in painstaking detail. Really painstaking.
Tax due and owing which is the difference between what Kwame actually paid in taxes and what he should have paid: in 2003 it's $23,857.48, in 2004 it's $17,701.42, in 2005 it's $22,969.18, in 2006 it's $29,933.58, in 2007 it's $28,440.63 and in 2008 it's $75,501.33.