Friday, January 28, 2011

DEVELOPING: NHRA To Have Tax-Exempt Status Challenged...?

An NHRA member ((translation- either a driver or a member of a racing team)) has filed an anonymous complaint with the Internal Revenue Service, claiming it actually operates as a for-profit business and is in violation of its tax-exempt status.

Filed on January 12th by a Washington, D.C., law firm- Caplin and Drysdale- the complaint contends the NHRA is set up to "benefit its management rather than serve the 80,000-or-so members it represents."

Marcus Owens, the attorney of record, claims that the NHRA is run more like NASCAR and the IHRA which are for-profit enterprises. The release from the law firm also details the idea that there are possibly:

"...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."

The NHRA denied it operates as a for-profit business and complies with federal tax laws as a 501c6 corporation- and has for almost 60 years.

Here's the original letter from Owens... it's an interesting read...

And here's what the NHRA does on a weekly basis... with reported revenue, two years ago, of over US$122-million.
((HT: NHRA/LitbyNoonProductions))

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