SundayNiagara
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NHRA being Investigated by the IRS
- Thread starter SundayNiagara
- Start date
Tumbleweed
Nitro Member
Doesn't this mean they are under investigation rather than being sued?????
vegasnitro
Nitro Member
First of all, you guys REALLY need to calm down with your thread titles. The NHRA is NOT being sued. A lawyer was asked to file an anonymous complaint with the IRS for the IRS to review whether or not NHRA still qualifies for a tax exempt organization. That is all.
I could do the same thing to any organization if I so chose, whether it is the NHRA, Easter Seals, United Way, Red Cross .... whatever. Sure as hell doesn't mean I am suing them, as I am not entitled to any recompense should the IRS decide they no longer qualify for tax exempt status.
Having said all of that, should the IRS rule in the complainant's favor and strip the NHRA of tax exempt status, you can be sure the lawsuits will come fast and furious.
I could do the same thing to any organization if I so chose, whether it is the NHRA, Easter Seals, United Way, Red Cross .... whatever. Sure as hell doesn't mean I am suing them, as I am not entitled to any recompense should the IRS decide they no longer qualify for tax exempt status.
Having said all of that, should the IRS rule in the complainant's favor and strip the NHRA of tax exempt status, you can be sure the lawsuits will come fast and furious.
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vegasnitro
Nitro Member
They are not even under investigation at this point, the IRS could certainly refuse the complainant's request to review NHRA's status, and this will all be about nothing.
Tumbleweed
Nitro Member
True True, but it's not a lawsuit (which is already established in this thread)
vegasnitro
Nitro Member
True True, but it's not a lawsuit (which is already established in this thread)
As an aside, if this is a one-off complaint and NHRA has not had any challenges/complaints to their status in the past, the IRS is likely to tell them to go pound sand. For the IRS to get serious, there would likely have to be several complaints (or a history of complaints), as to how the NHRA's tax exempt status has either defrauded them or harmed their business.
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Bobby Bennett
Nitro Member
An investigation requested by a nameless client, nonetheless
clwill
Nitro Member
Perhaps he's the anonymous client?
Draw 3D
Nitro Member
Chris, with all due respect, I seriously doubt the IRS is going to tell any individual to "go pound sand" about alleging tax complaint when there is an opportunity to collect more tax moneys, fees, penalties and interest, and, with the current governmental anti-business attitude, and, the government needing more tax revenue to pay its immense debt, they are probably looking for an excuse to investigate any business, non-profit or not.
With the IRS, you are guilty until you overwhelmingly prove otherwise.
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Rajunz
Nitro Member
none
Nitro Member
Or pay the fine because it is cheaper than going through the process to prove your case..........
TR
Nitro Member
There you go, the Gov. needs money and the NHRA brass have really high salaries, so the Gov. wants it. Sounds like a plan.
Is Paul a Tax attorney or Accountant?
I sure will be glad when drag racing season gets going again!
Let's see who else uses the same subsection of IRC 501 that the NHRA uses . . . the first two that come to mind are the NFL and the PGA Tour . . . those executives make NHRA executives look like paupers (ironically I guess that is the complaintant's argument since paupers make their living off of the charity of others).
Let's see who else uses the same subsection of IRC 501 that the NHRA uses . . . the first two that come to mind are the NFL and the PGA Tour . . . those executives make NHRA executives look like paupers (ironically I guess that is the complaintant's argument since paupers make their living off of the charity of others).
vegasnitro
Nitro Member
The reason I think there is a chance they tell this complainant to pound sand is because they do not have the manpower to investigate every single complaint made against every business in America. It just can't be done. Now if there is a history of complaints, then I am sure the IRS will take that more seriously than if this is the first complaint that's ever been filed. Think about it, the NHRA has been around for 60 years, if this is the first complaint, why should the IRS bother, especially when they have all of the NHRA's returns on file and can research any audits, etc?
Then again, this just may be the first domino in a line of many to fall, but in my personal opinion a few more things need to happen before those in Glendora have to start sweating.
EDIT: after reading Darr's link below, there is a lot more information in that complaint than the original one posted here. The complaint was hand-delivered to the IRS director for non-profits, by a prestigious DC law firm. Those things matter, it's ALWAYS who you know. Secondly, whomever filed that complaint has a big problem with Tom Compton. Lastly, don't forget the NHRA has crafty lawyers too ...
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Raconteur
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.
In Drag Racing Online.
clwill
Nitro Member
Note that they just put such a person on the board. Wonder if they had a whiff of this coming??
