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NHRA being Investigated by the IRS
- Thread starter SundayNiagara
- Start date
I am a Certified Public Accountant. With the current economic climate in this country, the IRS is looking a lot harder to compliance issues and I believe this will be investigated by the IRS.
If you read the complaint letter filed with the IRS referenced in the acticle Darr posted, it goes into a lot of detail, has a lot of material to back up allegations and probably would not have been filed by a law firm unless it had some merit. Given that they had a copy of the prospectus made to HD Partners, the complaint is probably being filed by someone other than a fan who felt he was wronged.
Although this would not impact personal tax liabilities of the powers that be in GLendora, the NHRA itself could be saddled with a liability and I would think it would be the end of the tenure of the head honchos. If the organization could withstand the hit, maybe a new board could right the ship. Sorry for the long read.
If you read the complaint letter filed with the IRS referenced in the acticle Darr posted, it goes into a lot of detail, has a lot of material to back up allegations and probably would not have been filed by a law firm unless it had some merit. Given that they had a copy of the prospectus made to HD Partners, the complaint is probably being filed by someone other than a fan who felt he was wronged.
Although this would not impact personal tax liabilities of the powers that be in GLendora, the NHRA itself could be saddled with a liability and I would think it would be the end of the tenure of the head honchos. If the organization could withstand the hit, maybe a new board could right the ship. Sorry for the long read.
Bobby Bennett
Nitro Member
An NHRA statement and interview with the attorney responsible for the letter.
LETTER TO IRS QUESTIONS NHRA TAX STATUS
At CompetitionPlus.com presented by Attitude Apparel
LETTER TO IRS QUESTIONS NHRA TAX STATUS
At CompetitionPlus.com presented by Attitude Apparel
TR
Nitro Member
Passing along a link for more complete information on the potential IRS investigation into the 501 C (6) rules and the NHRA...
In Drag Racing Online.
After reading that article and the papers filed (of which I understood only the letterhead and the guys signature), somebody is definitely ticked off at NHRA for sure. I just wonder if it would be someone, like a sponsor that was booted after they were not allowed to sell their energy drinks at NHRA events or something along those lines. The writer of the article is right, the members will end up paying for this one way or the other.
Rick
NHRA brass has always been a bunch of crooks anyway, what about there jobs let's them take home a 1/2 to a million dollars. It's a dream job to work for the nhra so what's wrong with taking home 100 or 200 grand as opposed to a half a mil to a mil. There is always some scandle about someone or something and enough is enough. There crooks and this may just be an investigation, wait until this develops, it will.
clwill
Nitro Member
And after reading Bobby's excellent article I believe the NHRA is in for a bumpy ride. I'm not exactly delighted to say that I have more than a little experience suing and being sued. I would be worried.
Completely aside from the details of the case, let's assume you are a racer with sufficient funds (and sufficient frustration) to want to pursue this issue. You take this to your own attorney. If they are good, they would say "I am not an expert on this, let's find someone who is". And they'd research to find the most appropriate attorney in the country.
They would search out someone who had been at the IRS and with extensive knowledge of what the law is in this area. They found just such a person. In fact, the person they found held the very job that determines such things at the IRS. He sent the letter we've read to his replacement.
I find it difficult to believe he would have even bothered to take on the case if he didn't feel that, in his prior position he would've found the case had at least some merit. He would have, instead, simply informed his client that this was a lost cause and to save their money.
This alone, aside from the details, means that there are at least two people with deep pockets (the client and the lawyer) who feel that there is meat on this bone. This spells trouble for the NHRA.
Completely aside from the details of the case, let's assume you are a racer with sufficient funds (and sufficient frustration) to want to pursue this issue. You take this to your own attorney. If they are good, they would say "I am not an expert on this, let's find someone who is". And they'd research to find the most appropriate attorney in the country.
They would search out someone who had been at the IRS and with extensive knowledge of what the law is in this area. They found just such a person. In fact, the person they found held the very job that determines such things at the IRS. He sent the letter we've read to his replacement.
I find it difficult to believe he would have even bothered to take on the case if he didn't feel that, in his prior position he would've found the case had at least some merit. He would have, instead, simply informed his client that this was a lost cause and to save their money.
This alone, aside from the details, means that there are at least two people with deep pockets (the client and the lawyer) who feel that there is meat on this bone. This spells trouble for the NHRA.
Von Halen
Nitro Member
Uh oh.
How about Dallas Gardner making over $600.00 an hour at 10 hours a week in 2008, and over $6,365.00 an hour in 2007? I'm glad he decided to work a few more hours in 2008. $600.00 an hour is much more respectable to the common man attending the NHRA events, than over $6,000.00 an hour.
How about Dallas Gardner making over $600.00 an hour at 10 hours a week in 2008, and over $6,365.00 an hour in 2007? I'm glad he decided to work a few more hours in 2008. $600.00 an hour is much more respectable to the common man attending the NHRA events, than over $6,000.00 an hour.
see none of this would have happen if they hadn't started the countdown
sorry couldn't resist.
It will be interesting to see how this plays out. While some changes would be good, I wouldn't want them to happen at the expense of damaging NHRA
sorry couldn't resist.
It will be interesting to see how this plays out. While some changes would be good, I wouldn't want them to happen at the expense of damaging NHRA
Draw 3D
Nitro Member
Interesting that the client is an "amateur racer", I take it that it's a Sportsman racer, and, it's not a Pro or dejected sponsor.
Raconteur
Nitro Member
Mike, it is kinda like "dropping a dime" on an accused Mafia Made Man, you then go into the Witness Protection Program.
There is NO court proceeding nor accusations before a court, nothing that could have been asked by any member or non-member of the NHRA.
The difference is that the letter to the IRS is written in IRS/Legal-speak.
As Arlo Guthrie said a long time ago: "They was taking plaster tire tracks, foot prints, dog smelling prints, and they took twenty seven eight-by-ten color glossy photographs with circles and arrows and a paragraph on the back of each one explaining what each one was to be used as evidence against us."
Sean D, shondoo
Nitro Member
Nice how this "accuser" can remain anonymous. I certainly would take issue with some of the stuff NHRA does, but making these accusations and then hiding behind your lawyer seems maybe a little, shall we say, chicken sh*t.
Amen brother! That sh!t's weak.......
Sean D
Nitrosnoopy
Nitro Member
Well who knows what will happen.I do not agree with everything the NHRA does,for the most part they get "it" right.However in the end who will it hurt then most?Fans and racers.We shall see if they are doing stuff that is unbecoming of a non profit organization in the eyes of the IRS.I think it is a fine line that is not well defined in the eyes of law otherwise there would be no question.IMO the brass of the NHRA overpaid.If they take 50% of salaries away from those who are overpaid ,they could update their facilities they own or run that are currently dumps (for example Atlanta).
JF
Nitro Member
Nows your chance to voice any concerns: Attorneys
Washington Examiner article http://washingtonexaminer.com/...-duck-and-talks-duck
Dragzine Article http://www.dragzine.com/news/n...-under-irs-scrutiny/
Forbes Magazine
http://blogs.forbes.com/willia...ociation-tax-exempt/
Actual copy of letter sent to IRS
http://www.capdale.com/files/upload/NHRAcomplaint.pdf
So I guess if want to voice your concerns contact,
Atty: Marcus S. Owens
Member, Washington, D.C.
(202) 862-5020
[email protected]
Washington Examiner article http://washingtonexaminer.com/...-duck-and-talks-duck
Dragzine Article http://www.dragzine.com/news/n...-under-irs-scrutiny/
Forbes Magazine
http://blogs.forbes.com/willia...ociation-tax-exempt/
Actual copy of letter sent to IRS
http://www.capdale.com/files/upload/NHRAcomplaint.pdf
So I guess if want to voice your concerns contact,
Atty: Marcus S. Owens
Member, Washington, D.C.
(202) 862-5020
[email protected]
flapjack
Nitro Member
Paul has spoken at great lengths about the NHRA's 501c(6) tax exempt status and so forth and I thought he might have something to add to the conversation. Not sure what he does for a living.
Tim5636sc
Nitro Member
JF
Nitro Member
Maybe he is an "AMATEUR RACER"?Just kiddin' Paul...
He did stay at a Holiday Inn Express
clwill
Nitro Member
Nice how this "accuser" can remain anonymous. I certainly would take issue with some of the stuff NHRA does, but making these accusations and then hiding behind your lawyer seems maybe a little, shall we say, chicken sh*t.
Maybe so, but as was noted in one of the articles, the NHRA has covenants in the rules preventing you from suing them. And also retains "the right to refuse service to anyone" (as they say in restaurants). If you were a racer, and wanted to continue doing so, you probably need to remain anonymous while this plays out.
I wonder if the person may fit into more than one category.....choosing sportsman racer leaves more potential suspects, which would be harder for NHRA to figure out.
