The IRS and NHRA, you gotta see this.
 

Check out the web site capdale.com for this bombshell. You will see the link to the press release, click on it and in the press release there is the complaint in blue click that to see what went to the IRS. This could shake the foundations.

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

Greg

Just read the release.

Mr. Anonymous is my hero.


Hammer

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

I would like to have a vote on some topics. I think it would benefit alot of racers if the majority could control some things.

Wade O

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

Sounds like it may be the NHRA board members turn to get "enhanced".

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

I'm sure the NHRA "suits" might be squirming just a little but in any event an investigation of this magnitude might take quite awhile to determine anything---in any event it should prove interesting---maybe Miss Jordan the tax/accounting lady who frequents this site could explain what is/will be going to happen and what the IRS is specifically looking at---Comp

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

Be sure and go to the home page for Caplan and Drysdale the law firm that filed this to check out the press release. www.capdale.com The lawyer that filed this is one of the preeminent non profit lawyers in the US. He was director of the IRS non profit division for 10 years.

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

Wells Fargo Motorsports division of Wells Fargo Insurance currently handles the liability portion of NHRA 's insurance---who they lay it off on is anybody's-- guess you would hafta contact WF and I'm sure they are not gonna share that info with you--

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

No insurance is going to protect them from the IRS.

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

sorry posted the ins info on the wrong thread---comp

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

The whole press release is posted on Moparts site. "non-profit" right. I would like to have a amount of money shown on there that Graham light received for "1-hour of work". This is not going to end good at all.

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

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...

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

Get the popcorn ready this is going to be a party!

Lets start a pool as to when the IRS will show up in Glendora with the black Chevy Suburbans (not the offical truck of NHRA), to load file cabinets, computers, and bank records. That would make a good You Tube video.

As "Deep Throat" said 'Follow The Money'!!!

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

Yeah, Light gets over $6,000 an hour! I would do his job AND wash the windows for that amount! How do you defend that kind of pay? Jim

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

Part of the complaint says that the NHRA compensation arrangements may be excessive.

As an example they use the 2006 compensation of Mr. Thomas Compton. In 2006 Mr. Compton was paid $712,317. They say the average compensation paid to CEOs at the ten largest trade associations was $642,447. So, Mr. Compton was paid 9.8% more than the average.

I don't know if the NHRA operates like a for-profit business or not, but Mr. Compton's salary doesn't seem that excessive to me when compared with the others. If he were making 30-50% more than the average I would say yes, that's excessive, but less than 10%?

Also, could it be possible that the anonymous client has the initials BN? :)


-Toby

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

This complaint should trigger a detailed audit. I think the bunch in charge might have a tough time surviving a thorough IRS audit. I don't think there is any way that Compton,et.al will be allowed to steal the company. They are only employees not owners. They don't have any money invested in NHRA and don't own any stock in the company. I do know also there has been a complaint filed with the CA attorney General and they may be waiting to see what happens with the IRS. It's going to be really interesting to see where all the expense money goes [$120 million in 2008].

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

Toby I would guess NHRA is no where close to one of the top ten trade associations in the US. The US chamber of commerce is one of the larger ones. How about Dallas Gardner , 10hrs. a week for $317,000 per year. The big money is in their expenses and where all that goes will be interesting.

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

Well, in the same paragraph it says:

"... we evaluated the comparable compensation data detailed in the American Society of Association Executives compensation report."


-Toby

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

Haven't heard this one used in a while,
"Here Come Da Judge!"

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

Dallas Gardener is the one who worked 1 hr.I'm sure Graham Light,like himor not,puts in a weeks work.
This crew has no one but themselves to blame.I'm sure things will change as far as who will pay fees.The pros will have to share a bit more of the burden.

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

Toby,

The complaint says that Compton made 10% more than the average of the TOP 10 LARGEST trade organizations...not 10% more than the average. It went on to say that the 75th percentile, or the average salary of the top 24 LARGEST trade organizations, was $621,750, meaning that Compton's total compensation was 24% above that average. It doesn't say what the absolute average of all not-for-profit trade organizations is, but my guess is that it is much less, probably in the $400,000 range. The complaint also does not say where NHRA ranks size-wise among all not-for-profit trade organizations.

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

The NHRA "suits" are paid a lot more than they should be.My opinion.

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

Should make for a lot of good reading to go with the popcorn and soft drinks. Might find going to a alcoholic beverage more fitting to watch the dancing here. !

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

Jason,

As I posted above:


Also, Compton made 12.7% more than the 75th percentile not 24%.


-Toby

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

What difference does it make ? You (The Members) have no say already and the entries, Insurance, and enhancements just keep going up anyway and the potential for a return just keeps coming down !
Show me and others on this forum what would be different????????????????????????.

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

Toby, it's not just Compton compensation which in 2008 was $771,632. Check out the rest of these, Peter Clifford $427,274, Graham Light $353,782, Dallas Gardner $319,073, Gary Darcy $393,774, John Siragusa $356,950, Linda Louie $285,703, Jerry Archmbeault $229,135, Dan Olson $230,255, and Glen Cromwell $202,368. Also for 2009 Glen Gray made $295,948.

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

And you guys and girls just keep shoving the $$$$$$$$$$$$$$$ at them every year, every race, and dont even get kissed ! LOL I love it.

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

In the end, how does anybody think NHRA loosing it's not for profit status (providing that's how it turns out) will have any effect at all on us?

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

Actually, we were both wrong Toby, it was 14.5%. But, in the end, it doesn't matter. Unless NHRA is in top 10 not-for-profit trade organizations in the U.S., they can't possibly justify that his salary isn't excessive. If you want to operate as a not-for-profit, that's fine, but you also have to show some restraint when it comes to your expenditures, which NHRA clearly has not done over the years.

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

That was just my point. It probably won't be any different, and might actually be WORSE for us racers. And don't lump me in with all the NHRA fanboys...I haven't been to an NHRA national event as a competitor for some time, nor do I intend to return anytime soon with all their recent enhancements. I'll gladly run the TNT series that is close to home and where I'm treated well...

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

I agree 100% on this post as no truer words have ever been spoken! I cant wait to hear the rest of this story as it unfolds. Looks like the "players" get "played" I meant soon to be the PAYERS giggity giggity.

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.
 

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.
 

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.
 

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.
 

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.