The IRS and NHRA, you gotta see this.

[Jason Oldfield]

Originally Posted by X-TECH MAN

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????????????????????????.

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...

[Bob Pagano]

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

[Greg Hill]

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?

[Julie Jordan]

Originally Posted by Greg Hill

. 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.

[Greg Hill]

Originally Posted by Julie Jordan

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.

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.

[smracer2002]

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

[jim powers]

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???!!!!!!?????!!!!!!!!!!???????????!!!!!!!!!!!? ????????

[X-TECH MAN]

Greg.....Drag racing is a non profit buisness (for most)......LOL.

[Julie Jordan]

Originally Posted by Greg Hill

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.

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.

[RacingRicki]

Originally Posted by Julie Jordan

"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.

I agree and as much as I hate to see these huge salaries come at our expense, it can only get worse.