The Guam Daily Post

12 23Mon11302015


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Tax case filed by vet under negotiation

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THE tax case filed by a military veteran against the Guam government and the Department of Revenue and Taxation has been scheduled for a settlement conference.

District Court of Guam Magistrate Judge Joaquin Manibusan scheduled the conference for Oct. 30 at 1:30 p.m. between Newton “Buzz” Passauer and Timothy J. McLaughlin, DRT legal representative.

The 78-year-old Santa Rita resident and his wife complained of alleged intimidation, dereliction of duty, and violation of privacy. The Passauers have outstanding tax deficiencies of $66,686 with corresponding penalties of $32,818.

Passauer filed the complaint on July 11 and the defendants were summoned on July 12.

“Defendants are neither infants nor incompetent persons and are not believed to be serving on active duty in the United States military service,” Passauer said in his filing.

He added that his action became public knowledge through a news article published in the Marianas Variety on July 12.

Passauer said the court should grant him relief which includes an explanation of the legal authority by which DRT makes assessments and collects voluntary taxes.

According to Passauer, when he retired from his employment in 2003, he consulted with the Social Security Administration, the Office of Personnel Management, the Government of Guam Retirement Fund, and the Church of Jesus Christ of Latter Day Saints Retirement Plan.

Passauer asked if he had to have tax deducted from the Social Security annuity that he started paying since 1951 and the military/civil service retirement plan that he started paying in 1953. He said each agency told him, "No."

On July 25, 2005, Passauer told the court that he met with two Rev and Tax agents for a review of tax years 2002, 2003 and 2004 and asked if paying income tax was voluntary. The agents replied that it was and he told them he was no longer volunteering to pay income tax.

He wants DRT to return $8,000 of the $9,000 charged to him as interest for 18 months.

The Passauers claim DRT failed to notify them for 10 years and thus the court should direct DRT to expunge the Passauers’ tax records and start all over on Jan. 1, 2014.

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