Nhra / irs

Discussion in 'Pit Buzz' started by JBJ, Jan 20, 2011.

  1. JBJ

    JBJ Member

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    Drag Racing Association’s Tax-Exempt Status Under Scrutiny
    Press Release, January 20, 2011
    Marcus S. Owens

    FOR IMMEDIATE RELEASE
    January 20, 2011

    CONTACTS: Heather Maurer: (202) 862-7857
    Ufuoma Otu: (202) 449-9804


    Washington, D.C. – The IRS has recently received an anonymous complaint, challenging the tax-exempt status of the National Hot Rod Association (NHRA). The complaint contends that the drag racing organization’s activities mimic those organized by for-profit automobile entertainment companies.

    “Public information reveals that the NHRA operates like a commercial business by providing specific services to its members – whether in the form of prize money to winners or payments to race track operators or other private groups benefiting from the racing events,“ said Marcus S. Owens, former director of the exempt organizations division at the IRS and now a senior member in the Washington law firm Caplin & Drysdale.

    Owens, who wrote the complaint on behalf of his client that wishes to remain anonymous, also noted that a large portion of NHRA’s revenue, totaling approximately $122 million in 2008, is derived through cash received at drag racing events, activities normally organized by for-profit entities such as NASCAR or the International Hot Rod Association (IHRA).

    The letter further identifies other issues, including questionable governance structures and compensation practices. Though the Association boasts an 80,000 member roster, members do not possess voting rights to elect an independent Board of Directors to approve compensation and other matters pertaining to its Officers and Directors.

    At present, compensation is determined by a “personnel committee”, who are likely to be selected and paid by NHRA officials. Based on NHRA’s 2008 tax filings, two of the Association’s executives received compensation well beyond industry standards. Thomas Compton, the Association’s President and Board Member, received $771,632 in total compensation. Dallas Gardner, Chairman of the NHRA Board, received $319,073 for one single hour of work per week. Comparable data indicates that average total compensation paid to CEOs at the ten largest trade associations in the United States was $642,447 in 2006 for full-time positions*.


    * See ASAE, Association Compensation & Benefits Study (2006) at 27, T.20. Each of these organizations had more than 100 employees.


    About Caplin & Drysdale
    Caplin & Drysdale provides a full range of tax and legal services to companies, organizations, and individuals throughout the United States and around the world. The firm also provides exempt organization counseling, political activity law counseling, complex litigation services, employee benefits counseling, private client services, corporate law counseling, and white collar defense. For more information, visit www.caplindrysdale.com.
     
    #1
  2. Fuel Cars

    Fuel Cars AA/AM

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    Holy crap!!

    How did you get this info?
     
    #2
  3. Kenneth S

    Kenneth S Member

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    The NHRA must have really T'eed somebody off.
     
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  4. Dave Germain

    Dave Germain New Member

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    About Time

    All I can say is that it is about time. Maybe this will expose the NHRA for what it is- A purely for profit entity that is getting rich on the backs of the members and the fans. Dave Germain
     
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  5. Dave Germain

    Dave Germain New Member

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    purely X2

    I didn't really type the word purely twice. Will, whats the story with doubling words at the end of sentences? Dave Germain
     
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  6. ITS IN MY BLOOD

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  7. Randy G.

    Randy G. Top Alcohol

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    "The IRS has recently received an anonymous complaint"

    You don't think the NHRA hasn't had this dance with the IRS before? It's total BS, IMHO.

    With any luck they'll shut down the NHRA. Then we can haul our stuff off to the dump and be done with it.

    RG
     
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  8. suddendebt

    suddendebt Blown Altered

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    Oh you mean like the 79,950 non professional sportsman racer members that pay thousands for entry fees and BS safety renuals just to learn that if NHRA could they would just run the pro classes at the nationals and leave us out of em?
     
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  9. eli

    eli Banned

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    20 Lashes with a wet linguine. ;)
     
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  10. Inspector 12

    Inspector 12 Member

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    Hey if you hauled it to a recycling center maybe you could get enough to buy a nice set of golf clubs and maybe even a cart so you could really have fun in life.
    :rolleyes:

    Kerry J
     
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  11. alt 6153

    alt 6153 Member

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    NHRA had to pay Compton and Gardner and all the other employees that much.......Other wise there would be a "Profit" :eek::eek: Wait.......Why are fees going up? :confused:
     
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  12. Randy G.

    Randy G. Top Alcohol

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    I already have 3 sets of clubs. Every set guaranteed to take strokes off my game. They didn't, and now I know who the stroke is! :eek:

    RG
     
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  13. Will Hanna

    Will Hanna We put the 'inside' in Top Alcohol
    Staff Member

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    understatement

    Shouldn't race teams be able to file for "Not For Profit" Status....LOL
     
    #13
  14. youngtuner

    youngtuner Member

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    Lets be honest we are the only ones non profitable......
     
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  15. NITROBANDIT1

    NITROBANDIT1 LOST IN SPACE

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    Bob meyers titanium shopping cart

    be sure and send all your titanium to bob meyer for his titanium shopping cart ! (he is at THAT age !) sorry,bob i got the overpass at 805 all to myself, go find another one! :cool:
     
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  16. Don Onimus

    Don Onimus New Member

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    Irs

    I got the same info in a e-mail from BOB Auto/ Automan. Like him or not, he still is out there for us. Don
     
    #16
  17. kosky racing

    kosky racing Comp Eliminator

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    Ti

    Hey Bob you need any Ti maybe for a joint replacement I could possible help! How come the lawsuit wants no compensation, you told me that was your retirement fund ? As always your friend Mike If you care to do so please reply asap.
     
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  18. kosky racing

    kosky racing Comp Eliminator

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    Retirement fund

    Bob is this really in retaliation for bieng labeled as a no nothing chassis builder? As allways your friend Mike
     
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  19. eli

    eli Banned

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    never mind
     
    #19
    Last edited: Jan 22, 2011
  20. eli

    eli Banned

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    Are you guys blaming Uncle Bob for this, If you reread the 1st post you will see that this law firm is self promoting itself, ( see last words of post ) There isn't an anonymous person.
    IMHO. :p
     
    #20

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