Bobby N. Harmon, CPCU, ARM




Honolulu, Hawaii 96818


April 18, 2001


Steve Guttman, Esq.

Attorney at Law

1132 Bishop St., Ste 1404

Honolulu, HI 96813

 

RE:    In re Harmon: Ch. 7 BK Case No. 99-04339 - Settlement as Wage Income


Dear Mr. Guttman:


This acknowledges receipt of Form 1099-MISC for the year 2000, which was mailed to Springfield, Kentucky.


As I previously explained in a letter dated March 4, 2001 to Mr. Matt Tsukazaki, with a copy to your office, in our settlement negotiations it was agreed that the entire settlement amount was to be treated as wage income. As such, this payment should have been reported on IRS Form W-2, with proper withholdings for federal and state income tax, Social Security and medical and health benefits. It is incorrect to report wage income on Form 1099-MISC.


As I explained in previous correspondence with Mr. Tsukazaki, this improper reporting of wage income prevents me from receiving my full entitlements to Social Security benefits as well as income under my Kamehameha Schools’ Pension Plan.


The failure to report wage income to the Internal Revenue Service also deprives the government of tax revenues and is illegal. I have no wish to be accused by the IRS at some later date that I illegally avoided paying all appropriate taxes on this settlement.


I have not received a response from Mr. Tsukazaki to my letter of March 4th, so I am addressing this letter to your attention for resolution of this matter.


Thank you for your assistance.


Very truly yours,




Bobby N. Harmon

   

cc:      Mary Lou Woo

          Interim Trustee

          91-590 Farrington Hwy, #210 Unit 303

          Kapolei, HI 96707


          Gayle Lau, Esq.

          Curtis Ching, Esq.

          Office of the U.S. Trustee

          1132 Bishop St., Ste 602

          Honolulu, HI 96813


          Mr. Matt A. Tsukazaki

          Torkildson, Katz, Fonseca, Jaffe, Moore & Hetherington

          700 Bishop Street, 15th Floor

          Honolulu, HI 96813-4187


          Janet S. Hughes, Mgr.

          Employee Plans & Exempt Organizations

          Internal Revenue Service

          1244 Speer Blvd., Ste 442

          Denver, CO 80204-3583


          Mr. Billy Beaver

          U.S. Department of Labor

          PWBA Los Angeles Regional Office

          790 E. Colorado Blvd, Ste 514

          Pasadena, CA 91101




This is a leaf from

The Harmon Arbitration

~ ~ ~

To fly to the top of the tree

The Catbird Seat