NHRA's Non-Profit Status Could Soon Be Under Review by the IRS

[cjforumadmin]

http://www.bangshift.com/blog/NHRA-s-Non-Profit-Status-Could-Soon-Be-Under-Review-by-the-IRS.html

[457Brodix]

Re: NHRA's Non-Profit Status Could Soon Be Under Review by the IRS


NHRA + Not for Profit = Best laugh I've had in years!

[Guest]

Re: NHRA's Non-Profit Status Could Soon Be Under Review by the IRS

That's the work of a vindictive person............ :

The only thing that could come of this are higher ticket prices at the gate, which will only lower attendance numbers even lower than they already are. Not good for the sport of Drag Racing no matter how you look at it.

[marcus69]

Re: NHRA's Non-Profit Status Could Soon Be Under Review by the IRS

The anonymous complainant may just be some individual located by the law firm for such a purpose...that person will receive part of the "prize money" once the tax-exempt status is revoked, as will the law firm. No one's salary is going to go down, we are not all going to get voting rights, nothing will happen except all fees and costs associated with NHRA will go up enough to cover the taxes, figure a rise of 40% should cover it nicely. Net benefit to the average drag racing fan: zero.

[htrdharley]

Re: NHRA's Non-Profit Status Could Soon Be Under Review by the IRS

We have way too many lawyers in this country...this is clearly some ones personal vendeta that the average race fan and competitor will end up paying for. >

[Podium Finish]

Re: NHRA's Non-Profit Status Could Soon Be Under Review by the IRS

Wow, just saw this on Drag Racing online!

http://www.dragracingonline.com/anal...i_1-irs-1.html

[Grady_724]

Re: NHRA's Non-Profit Status Could Soon Be Under Review by the IRS

Non-Profit Organizations are defined as "a business organization that serves some public purpose and therefore enjoys special treatment under the law. Nonprofit corporations, contrary to their name, can make a profit but can't be designed primarily for profit-making." The question here is whether or not the NHRA serves a public service as it is defined.

Another major difference between a profit and nonprofit business deals with the treatment of the profits. With a for-profit business, the owners and shareholders generally receive the profits. With a nonprofit, any money that's left after the organization has paid its bills is put back into the organization. If the NHRA can show that any profits made are put directly back into the organzation then there should be no concern with this.

To receive federal tax-exempt status, the organization must apply with the IRS. If they are in fact non-profit, then someone at the IRS approved it somewhere along the way. The only concern here is whether or not they have altered their business practices since being granted the non-profit status with the IRS.

Since it is a non-profit it can not have any private ownership, and it has no shares of stock. Its thus a stand alone entity that owns assets and has to abide by 501(c)(6) rules. Which begs to question the "near sale" of the NHRA to HD Partners Acquistions Company in 2007. Can you sell a non-profit organization?

Granted, this is probably a vendetta of sorts by a former employee, race team or alternate sanctioning body, but it does raise some serious questions about the non-profit status of the organization and some of their "practices" in recent years.

[Tazracing]

Re: NHRA's Non-Profit Status Could Soon Be Under Review by the IRS

maybe sportsman racers are sick of being walked on.

[Tazracing]

Re: NHRA's Non-Profit Status Could Soon Be Under Review by the IRS

does the "right to know act/law"
allow the NHRA to be told, whom has the complaint?

[Podium Finish]

Re: NHRA's Non-Profit Status Could Soon Be Under Review by the IRS

does the "right to know act/law"
allow the NHRA to be told, whom has the complaint?

Who cares?

The person complaining is Marcus S. Owens at the firm of Caplin & Drysdale Attorneys, Washington DC (202) 862-5020.

[SpiderGearsMan]

Re: NHRA's Non-Profit Status Could Soon Be Under Review by the IRS

oh , more lawyers

[38P]

Re: NHRA's Non-Profit Status Could Soon Be Under Review by the IRS

Non-Profit Organizations are defined as "a business organization that serves some public purpose and therefore enjoys special treatment under the law. Nonprofit corporations, contrary to their name, can make a profit but can't be designed primarily for profit-making." The question here is whether or not the NHRA serves a public service as it is defined.

Another major difference between a profit and nonprofit business deals with the treatment of the profits. With a for-profit business, the owners and shareholders generally receive the profits. With a nonprofit, any money that's left after the organization has paid its bills is put back into the organization. If the NHRA can show that any profits made are put directly back into the organzation then there should be no concern with this.

To receive federal tax-exempt status, the organization must apply with the IRS. If they are in fact non-profit, then someone at the IRS approved it somewhere along the way. The only concern here is whether or not they have altered their business practices since being granted the non-profit status with the IRS.

Since it is a non-profit it can not have any private ownership, and it has no shares of stock. Its thus a stand alone entity that owns assets and has to abide by 501(c)(6) rules. Which begs to question the "near sale" of the NHRA to HD Partners Acquistions Company in 2007. Can you sell a non-profit organization?

Granted, this is probably a vendetta of sorts by a former employee, race team or alternate sanctioning body, but it does raise some serious questions about the non-profit status of the organization and some of their "practices" in recent years.

Good post. The N.H.R.A. isn't the first non-profit that's faced such challenges (nor will it be the last). And they might have left themselves vulnerable.

Drag racing is bigger than the N.H.R.A. So this isn't the end o' the world.

[Wideglid80]

Re: NHRA's Non-Profit Status Could Soon Be Under Review by the IRS

Oh great, thats the last thing the sport needs. It will no doubt result in higher costs for racers and spectators! And of course, some damn lawyer collecting a pile of cash for a minimal amount of effort. And then the government can have a little more money to waste on something unnecessary!