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DOCUMENT TITLE: Department of the Treasury--Internal Revenue Service
Closing Agreement on Final Determination Covering Specific Matters
SUBJECT: IRS Closing Agreement granting tax exemption to the corporation known as "Church of Spiritual Technology" (CST) and other Scientology-related entities; resultant transfer of "Author's Family Trust-B" assets to CST as primary beneficiary
PARTIES: Internal Revenue Service; Norman F. Starkey, Trustee of Author's Family Trust-B; Monique Yingling, Power of Attorney for CST; Commissioner of Internal Revenue Service, by John E. Burke, Assistant Commissioner, and James J. McGovern, Associate Chief Counsel, Employee Benefits and Exempt Organizations; Meade Emory and Sherman Lenske, architects of the probate and corporate restructuring that led to the Closing Agreement; Sherman Lenske, Stephen Lenske, and Lawrence E. Heller, Special Directors of CST at the time of the Closing Agreement, as "consultants" to Starkey (Trustee of both Author's Family Trust-A and Author's Family Trust-B), and as "Trust Protectors"
BACKGROUND AND NOTES
This contains excerpts from the formerly secret 1 October 1993 "Closing Agreement" with IRS in which CST and the other, junior Scientology-related organizations, were granted tax exemption, making CST the richest and most powerful corporation in all of Scientology, and providing IRS with complete control over CST itself, and thereby over all of Scientology.
Was it really a conspiracy by IRS, using former Assistant Commissioner of IRS Meade Emory, that had brought all this about? IRS seemed to think so. In fact, so concerned were they about it being discovered that IRS actually included a "continued conspiracy" clause to protect themselves and their former employees--meaning Meade Emory--from any possible means of revelation of or prosecution over just such a conspiracy. Incredible? Maybe. But IRS wrote it, and believed, when they signed it, that no one in the world would ever find out.
In fact, secrecy was one of the first things they established in the document, right in the "Introduction," to make sure that all that followed would remain a closely-guarded secret known only to the cabal of conspirators who signed.
Many even believe that it was the dramatic and utterly unexpected December 1997 exposure of Meade Emory's involvement that led to a knee-jerk reaction by factions at IRS to leak the Closing Agreement, if only to relieve the sudden pressure that festering boil was building up. They reasoned that the complexity of the "Closing Agreement" itself would defeat most broad public interest or analysis, and would take the heat off of the Emory investigations. They were damned if they did and damned if they didn't, and they reasoned that "did" was better than "didn't." But damned is damned.
And this damning document is the final proof both of their conspiracy and their vain attempts to hide it and to protect the perpetrators. Taken together with all the other documents on this site, it bespeaks a conspiracy of almost incomprehensible scope, and many have suggested that it may well be covering up crimes not yet exposed.
IRS even went so far as to order, in secret of course, that no party to the Closing Agreement could ever assist anyone in any litigation against IRS--or its former employ Meade Emory--that could possibly result in discovery of what had occurred, including ordering that all documents obtained from IRS by anyone connected with Scientology be kept out of discovery in litigation. So not only was there a conspiracy, there was even a knowing, intentional second conspiracy created by IRS against the very foundation of our legal and court system, for no other reason but to cover up their own fraud, conspiracy and crimes.
And the fruit of their fraud? This document proves conclusively that it was IRS who ordered that CST, having been granted exemption in the Closing Agreement, be officially recognized as the primary beneficiary of "Author's Family Trust-B" by its Trustee, Norman F. Starkey, and therefore that the "corpus and income" of Author's Family Trust-B be transferred to CST by Starkey--exactly the way the IRS's own Meade Emory had planned it over a decade before, and had methodically plotted with Sherman Lenske and Norman Starkey and others to make happen.
What this Closing Agreement doesn't say, of course, is that "Author's Family Trust-B" included over 7,000 copyrights (transferred to CST by Starkey two months later, on 29 November 1993). That little secret about CST was so secret that they wouldn't even put it into their secret Closing Agreement. That's why Meade Emory had planned, long before, that the copyrights would be gift-wrapped inside an impregnable Trust. Of course, as is proven on this site, there were other secret and hidden gifts for CST in that package: all reversion rights and options over the Advanced Technology and Trademarks as specified in the fraudulent 10 May 1982 "assignment agreements" for the Advanced Technology and for the marks, as well as the equally fraudulent "Options Agreement" with CST of that same date were hidden in there, plus the full controlling rights and interest in the key trademarks that had been retained for the estate. See our special report on the trademarks for a full discussion of that.
This Closing Agreement also proves that "Author's Family Trust-B" had, at some point, come into ownership of the stock shares of the for-profit corporation known as Author Services, Inc. (ASI), and that IRS ordered that all shares of ASI be transferred into the sole ownership of CST.
And all of it was ordered by IRS to be transfered to CST "without consideration," meaning that CST didn't have to give Starkey any money or thing of value for the entirety of the copyrights, for the rights and interest in the trademarks and Advanced Technology, or for the shares of ASI.
Also herein is the establishment of telephone communications between CST, as the most important party to this Closing Agreement, and top IRS officials, the direct line that the IRS uses for monitoring and controlling CST and all of Scientology.
And IRS can without get away with it, without worrying about messy and inconvenient church/state Constitutional issues. Why? Because, as we have pointed out repeatedly throughout this site: CST is not a church; it is a corporation. Ref. U.S. Claims Court No. 581-88T, Judge Bruggink:
And that completes the fraud.
DEPARTMENT OF THE TREASURY--INTERNAL REVENUE SERVICE
ON FINAL DETERMINATION COVERING SPECIFIC MATTERS
The parties have agreed under section V to keep confidential both this Agreement and all underlying information that is not part of the public record...
II. Resolution of Outstanding Issues.
[T]he Church signatories...agree to relinquish all claims arising out of any action or inaction of the Service [IRS] or current or former Service [IRS] employees that occurred prior to the date of this Agreement, including...any claims of continued conspiracy having a genesis prior to the date of this Agreement. In addition, the Church signatories...certify that no Scientology-related entity or Scientology-related individual shall assist (directly or indirectly) any party in any suit against the United States, the Service [IRS] or current or former Service [IRS] employees based upon any claim arising out of any action or inaction of the Service [IRS] or former or current employees that occurred prior to the date of this Agreement including...any claims of continued conspiracy having its genesis prior to the date of this Agreement.
The [Scientology-related signatories] shall indemnify and hold the United States, the Service or any Service employee (former or present) harmless with respect to any litigation filed or pursued...by or with the assistance of any Scientology-related entity or Scientology-related individual. ...[D]irect or indirect assistance includes...financial aid, litigation support, or the use...of documents obtained from the Service [IRS] by any Scientology-related entity or Scientology-related individual prior to the date of this Agreement... .
III. Service Determinations Regarding Scientology-Related Entities.
B. Individual Determination Letters.
1. The Service hereby issues individual determination letters (copies attached as Exhibits III-1 through III-5, respectively) that the following entities are organizations described in Code sections 501(c) (3), 170(c) (2), 509(a) (1), and 170 (b)(1)(A)(i):
Religious Technology Center ("RTC")
Church of Scientology International ("CSI")
Scientology Missions International ("SMI")
Church of Spiritual Technology ("CST")
IV. Obligations and Undertakings During the Transition Period.
Reporting of any ecclesiastical modification or the restructuring of any entity. The Annual Report shall include any changes to the ownership (e.g., corporate organization) of any Scientology-related entity or to the ecclesiastical management structure of the Church... .
Not withstanding the provisions for written notice...nothing shall prohibit the parties from other, less formal modes of communication, such as the telephone. It is contemplated that there will be regular and frequent informal communications... .
Meetings. i. The CTCC [Church Tax Compliance Committee--includes CST, and, therefore, its tax-attorney Special Directors] and the Assistant Commissioner shall meet no less than once each year during the transition period, such meeting to be held no later than 90 days following the Service's receipt of the CTCC's annual report...
If the CTCC submits a written request for a meeting, then a meeting with the Assistant Commissioner shall be held within 15 working days after the receipt of such written request.
Norman F. Starkey, as Trustee of Author's Family Trust B, shall, no later than December 31, 1993, effectuate the transfer of substantially all of the corpus and income in Author's Family Trust B, including all the shares of Author Services, Inc. ("ASI")...to the Church of Spiritual Technology ("CST") without consideration.
VI. Penalty Provisions During Transition Period and Other Procedural Matters.
A. Introduction: Purpose and Scope of Sanctions.
This section VI sets forth sanctions to provide assurance to the Service that the Church Tax Compliance Committee will ensure that all Scientology-related entities will operate in a manner consistent with Code section 501(c)(3) and will carry out specified obligations under this Agreement during the transition period.
Dated: October 1, 1993
NORMAN F. STARKEY,
Individual Member of CTCC
Dated: October 1, 1993
CHURCH OF SPIRITUAL TECHNOLOGY
By: [Signature: Monique Yingling]
Title: POA [Power of Attorney]
Dated: October 1, 1993
COMMISSIONER OF INTERNAL
John E. Burke, Assistant Commissioner,
Employee Plans and Exempt Organizations
Dated: October 1, 1993
COMMISSIONER OF INTERNAL
James J. McGovern,
Associate Chief Counsel,
Employee Benefits and Exempt Organizations
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