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.

[Greg Hill]

Oh and a few other things. In the last three years they have doubled the price on chassis certification, raised the price on membership and liscenses, and raised entry fees, all in the worst economy in my lifetime.

[Ed Wright]

I agree with Julie. I doubt anything will change.

[joe176]

Originally Posted by Greg Hill

Oh and a few other things. In the last three years they have doubled the price on chassis certification, raised the price on membership and liscenses, and raised entry fees, all in the worst economy in my lifetime.

I agree 100% Greg..not the right thing to do !!!!!

[tpoh815]

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

I agree 100% on this post as no truer words have ever been spoken! I cant wait to hear the rest of this story as it unfolds. Looks like the "players" get "played" I meant soon to be the PAYERS giggity giggity.

[Gary Smith]

Originally Posted by Jason Oldfield

This is very interesting indeed. But, this may be a case of cutting off our noses to spite our faces. Sure, I would LOVE to have a voice in how this organization is run. But, let's assume that the IRS revokes the NHRA not-for-profit status. Then what? NHRA simply becomes a private corporation, we become "customers" rather than "members", and Compton et. al continue to receive their inordinate amounts of pay, and we continue to have no say in how the organization is run. What other company do you have a say in how it is run, simply as a customer? Chrysler? Nope. Cargill? Nope. Mars (M&Ms)? Nope. These are some of the largest private companies in the U.S.

How, you ask, will NHRA be able to continue to afford to pay these ridiculous wages once they have to pay income tax as well? You guessed it, more sportsman racing "enhancements". NHRA will just raise the prices of everything to compensate for their lost revenue. They've done it before and we've never done anything about it. Why would we now?

So, though I want to have a voice, and I want to see these a-holes held accountable, it still may not be in my best interests as a drag racer to see this happen (though it WILL be in my best interests as a tax-paying citizen).

Should be interesting to say the least...

It may so go to a "for profit" structure, but not under the current administration. Can you say FRAUD???? Prison is not uncommon for such practices. They have breached the trust of members. Plain and simple.