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Re: The IRS and NHRA, you gotta see this.

Ed there is the question, who know but some back taxes are going to be coughed up, they could go bankrupt.

Re: The IRS and NHRA, you gotta see this.

Quote:

Originally Posted by Jason Oldfield (Post 234436)

This is very interesting indeed. But, this may be a case of cutting off our noses to spite our faces. Sure, I would LOVE to have a voice in how this organization is run. But, let's assume that the IRS revokes the NHRA not-for-profit status. Then what? NHRA simply becomes a private corporation, we become "customers" rather than "members", and Compton et. al continue to receive their inordinate amounts of pay, and we continue to have no say in how the organization is run. What other company do you have a say in how it is run, simply as a customer? Chrysler? Nope. Cargill? Nope. Mars (M&Ms)? Nope. These are some of the largest private companies in the U.S.

How, you ask, will NHRA be able to continue to afford to pay these ridiculous wages once they have to pay income tax as well? You guessed it, more sportsman racing "enhancements". NHRA will just raise the prices of everything to compensate for their lost revenue. They've done it before and we've never done anything about it. Why would we now?

So, though I want to have a voice, and I want to see these a-holes held accountable, it still may not be in my best interests as a drag racer to see this happen (though it WILL be in my best interests as a tax-paying citizen).

Should be interesting to say the least...

It may so go to a "for profit" structure, but not under the current administration. Can you say FRAUD???? Prison is not uncommon for such practices. They have breached the trust of members. Plain and simple.

Re: The IRS and NHRA, you gotta see this.

Who knows what is going to happen with the IRS complaint? I don't really care myself. I haven't been to a National event since 2008 and have no plans to do so. NHRA brought all of this on themselves. They are arrogant, greedy, only driven by how much money they take in and care nothing about racers. They not only don't care about racers they don't know anything about us. Does anyone on this site think NHRA doesn't operate like a for profit business?

Re: The IRS and NHRA, you gotta see this.

Quote:

Originally Posted by Greg Hill (Post 234480)

. Does anyone on this site think NHRA doesn't operate like a for profit business?

I guess I don't understand this question. What is wrong about operating like a "for profit" business? The goal of any business or organization is to generate profits in order to continue in business and/or buy capital assets needed in the operation of a business.

The term "non profit" does not mean the organization is not allowed to make a profit. It is a generic term that has developed over the years for a tax-exempt organization. If NHRA, or any other tax-exempt organization, doesn't make profits on a consistent basis, they would no longer exist. They rarely have the ability to borrow funds and can't generate money from stock offerings, they can only exist and grow if they are making money.

Re: The IRS and NHRA, you gotta see this.

Oh and a few other things. In the last three years they have doubled the price on chassis certification, raised the price on membership and liscenses, and raised entry fees, all in the worst economy in my lifetime.

Re: The IRS and NHRA, you gotta see this.

I agree with Julie. I doubt anything will change.

Re: The IRS and NHRA, you gotta see this.

Quote:

Originally Posted by Julie Jordan (Post 234485)

Julie the 501-C6 IRS rules say that you cannot operate like a for profit business. Non profits are held to completely different standards than for profits. I suggest you go on the IRS site and read the rules for a 501-C6. Also take a look at the complaint that was filed by Marcus Owens,who for 10 years was the director of the non profit division of the IRS. According to Senator Chuck Grassely's office bogus non profits cost the Federal government over 90 billion dollars per year.

Re: The IRS and NHRA, you gotta see this.

The salary posted for DG is pretty good.
Equals out to 6136.019 per hour.

Re: The IRS and NHRA, you gotta see this.

My two cents on this is what happens if
they loose in an audit and go to a for profit "normal" type business ,you really dont think the glendora 5 will start working for less do you???pros make up the difference??? i f'ing doubt it,they will rock our world with price increases of every shape fashion and form,they will most likely make it impractical for sportsman racers to participate,only the the most well to do will continue
they go bankrupt after paying insane fines and penalties
ihra may actually get a chance but would they be ready as a business to handle such a windfall of opportunity,while that is figured out we could possibly be without a national racing venue ,no points races; opens etc etc etc???!!!!!!?????!!!!!!!!!!???????????!!!!!!!!!!!? ????????

Re: The IRS and NHRA, you gotta see this.

Quote:

Originally Posted by Greg Hill (Post 234491)

Greg ~ I guess you and I aren't thinking the same thing when you state "operate like a for-profit". There are things that 501(c)(6) organizations are not allowed to do. These include ownership (inurement) by individuals or entities, not engaging in any regular business typically carried on by for-profits. They typically exist to promote the advancement of a particular trade or community. Whether the sanctioning and promoting of drag racing meets this test is not for me to decide. The NFL is a 501(c)(6) so I'm not sure that isn't much different than what NHRA does.
.
However, when I think "operate like a for-profit", I'm thinking the paying of bills, receipt of money, managment decisions to make the organization more profitable, salaries, capital asset acquisitions, etc. All of which a tax exempt organization does the same as a normal business.

"Bogus" non profits cost the Federal government money...tax dollars. So, assuming this letter triggers an investigation and NHRA loses its tax exempt status then it would become a tax paying entity. Like someone said before, taxes are an expense of the organization and would surely not be absorbed but would be passed along in further fee increases.