The NHRA is getting sued
#909458
01/20/11 04:37 PM
01/20/11 04:37 PM
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Joined: Oct 2003
Posts: 1,561 yarnell,az
mopacltd
OP
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OP
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yarnell,az
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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.
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Re: The NHRA is getting sued
[Re: mopacltd]
#909459
01/20/11 04:45 PM
01/20/11 04:45 PM
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Joined: Jul 2008
Posts: 30,493 Florida STAYcation
dOc …
The village idiot's idiot
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The village idiot's idiot
Joined: Jul 2008
Posts: 30,493
Florida STAYcation
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Compton and Gardner ....must be nice ... Is Wally's wife still getting a check tooooo ? BTW ...what ever happened to that suit filed by the Pro Stock truck racers ?
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Re: The NHRA is getting sued
[Re: dOc …]
#909465
01/20/11 05:19 PM
01/20/11 05:19 PM
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Joined: Jan 2010
Posts: 588 Franklin, TN
23T Hemmee
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mopar
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Franklin, TN
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Quote:
Is Wally's wife still getting a check tooooo ?
Since she died in 2006, she doesn't cash as many checks as she used to......
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Re: The NHRA is getting sued
[Re: Jeepmon]
#909466
01/20/11 05:21 PM
01/20/11 05:21 PM
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Joined: Oct 2009
Posts: 1,288 Oregon
sg66mopar
pro stock
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pro stock
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Posts: 1,288
Oregon
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Quote:
No matter what changes will take place as a result of the law suit.. you know it wont benefit us racers..
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Re: The NHRA is getting sued
[Re: 23T Hemmee]
#909467
01/20/11 05:26 PM
01/20/11 05:26 PM
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Joined: Jul 2008
Posts: 30,493 Florida STAYcation
dOc …
The village idiot's idiot
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The village idiot's idiot
Joined: Jul 2008
Posts: 30,493
Florida STAYcation
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Quote:
Quote:
Is Wally's wife still getting a check tooooo ?
Since she died in 2006, she doesn't cash as many checks as she used to......
How about any checks going to Wally's/Barb's DIRECT family members ?
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Re: The NHRA is getting sued
[Re: mopardamo]
#909470
01/20/11 06:01 PM
01/20/11 06:01 PM
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Joined: Nov 2009
Posts: 2,177 ill
dennismopar73
top fuel
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top fuel
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ill
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well this could be a very very bad deal, on 3 fronts 1 off they should have been taxable,, 2 look at the rate of pay these guys get 3 this could ultimatly end drag racing as we know it !! they should never have been tax exempt the fines will most likely put nhra out of busness as we know just thinking long term here
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Re: The NHRA is getting sued
[Re: CHAPPER]
#909472
01/20/11 06:18 PM
01/20/11 06:18 PM
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Joined: Jan 2003
Posts: 6,314 The Swamp
MegaDart
master
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master
Joined: Jan 2003
Posts: 6,314
The Swamp
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Quote:
About time this happened......
x 2
I am done with NHRA...
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Re: The NHRA is getting sued
[Re: dOc …]
#909473
01/20/11 07:22 PM
01/20/11 07:22 PM
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Joined: Feb 2005
Posts: 28,312 Cincinnati, Ohio
Challenger 1
Too Many Posts
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Too Many Posts
Joined: Feb 2005
Posts: 28,312
Cincinnati, Ohio
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Quote:
Quote:
Quote:
Is Wally's wife still getting a check tooooo ?
Since she died in 2006, she doesn't cash as many checks as she used to......
How about any checks going to Wally's/Barb's DIRECT family members ?
...
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