Recent Local News
Related Photos
-
Staff photo by C.E. Branham
-
Discussion
Valentine’s nonprofit in tax hole
Local school board member’s organization owes thousands in back federal taxes
A Greater Clark County Schools board member is at the center of a federal tax lien totaling $38,476.10.
Robbie Valentine Sports Club Inc., named after the owner, is one of two entities in Clark County that The Evening News found via a public records search that have recent federal tax liens against them. The nonprofit has two liens against it, dating back to 2006. Both were filed in 2009.
The other, Lancaster Enterprises Inc., which has a Greenwood address on its records, owes $5,487 on one lien, filed in 2009.
Valentine, reached via e-mail, said he didn’t have a comment for this story. Jodie Reynolds, an IRS spokeswoman, said federal law prohibits the agency from commenting on a specific entity’s tax situation.
James Tamke, an Indiana lawyer who specializes in tax law and bankruptcy out of South Bend, said a federal tax lien is what the IRS does when a person, a company or a nonprofit owes back taxes to the IRS.
“It’s notice to the world that there is a lien against all the real estate that they own in the county and all personal property that they own anywhere in the country that the lien will attach to it,” said Tamke, who has been a CPA since 1976 and tax attorney since 1985.
Tamke said liens expire in 10 years, unless something happens, such as the person leaves the country, then it is extended.
“You can’t just say that I’m going to wait for the 10 years to expire and I won’t owe the taxes,” he explained. “That happens in certain cases, but if you’re collectable in any way, you’re going to have to work something out.”
The lien against Lancaster has two codes listed: 6721 and 940. The two against Valentine include two codes: 941 and 990.
Tamke said the one the IRS will take the most seriously is the 941.
“That’s a situation where the IRS is saying that [the company] withheld money, but didn’t pay the IRS ... Those employees will get money back from their tax refund, but that money was never paid in,” he explained.
Tamke said sometimes the total due can be negotiated, but added that funds not paid as part of the 941 are the most difficult to negotiate. In addition, he said the IRS can go after the company’s owner, including any property that person owns, when a business hasn’t paid the money the owner withheld.
“That’s the last resort for the government,” Tamke said of the government taking property. “Unless they can come up with the money to pay those back taxes for the withholding ... they could levy the assets and force them to go out of business.”
Tamke said he’d recommend that a business facing these issues talk to a tax attorney to see if bankruptcy would be a viable plan. He said filing chapter 11 bankruptcy, or business reorganization, would give a nonprofit business an additional five years to catch up on its taxes.
Tamke said he’s noticed a slight increase of businesses falling behind in federal taxes. He said business owners who are struggling to make ends meet are forced to choose between paying rent or getting evicted, paying employees or ending up with no workers and paying their taxes. He said sometimes businesses use that withholding money to pay their bills in the meantime.
However, with this down economy, Tamke said he’s noticed the IRS stepping up more.
“I have noticed that they seem to be getting much more aggressive in pursuing these back taxes,” he said, referring to the past 12 months. “I think it has something to do with the economy and the wars we’re fighting.”
Attempts were made to reach Lancaster Enterprises Inc. No local address or phone number could be found. The Indiana Secretary of State’s Office said the only company by that name is listed as having an address in Avon, which, like Greenwood, is an Indianapolis suburb.
No business could be found at that location. A business with the same name was found at another location in Avon, but the number listed was disconnected.
The Clark County Recorder’s Office maintains the list of tax liens, which are searchable by name in that office.
BREAKING THE TAX CODE
• 990: Return of an organization exempt from income tax
— Form 990 is an annual information return required to be filed with the IRS by most organizations exempt from income tax under Internal Revenue Code section 501(a), and certain political organizations and nonexempt charitable trusts.
• 940: Employer’s annual federal unemployment tax return
— Use Form 940 to report your annual federal unemployment tax act (FUTA) tax. Together with state unemployment tax, the FUTA tax provides funds for paying unemployment compensation to workers who have lost their jobs. Most employers pay both a federal and a state unemployment tax. Only employers pay FUTA tax.
• 941: Employer’s quarterly federal tax return
— Each quarter, all employers who pay wages subject to income tax withholding — including withholding on sick pay and supplemental unemployment benefits — or Social Security and Medicare taxes must file Form 941, employer’s quarterly federal tax return, unless the employer is required to file Form 944 or the following exceptions apply. Form 941 must be filed by the last day of the month that follows the end of the quarter.
• 6721: Failure to file correct information on returns
— IRS.GOV
SO YOU KNOW
• Every employer, including a tax-exempt organization, who pays wages to employees is responsible for withholding, depositing, paying and reporting federal income tax, Social Security taxes (FICA) and federal unemployment tax (FUTA) for such wage payments, unless that employer is specifically excepted by statute from such requirements or if the taxes are clearly inapplicable.
— IRS.GOV
- Recent Local News
-
-
Borden principal to return to school
In a short school board meeting Thursday afternoon, the West Clark Community Schools board approved an addendum to an employment contract that would allow Borden High School Principal Lisa Nale back on the job as early as Oct. 7.
-
IUS announces enrollment figures, goals during annual chancellor's address
During the annual State of the Campus address Thursday afternoon, Chancellor Sandra Patterson-Randles told the audience that filled the Stem Concert Hall at the Paul W. Ogle Cultural and Community Center that the campus set a new record this fall with 7,178 students, which is an increase of 4.9 percentage points from 2009.
-
Jeffersonville residents challenge IDEM on Mac plant
Questions and concerns gushed Thursday night from an audience upset with the living conditions in their neighborhood brought on by odor, soot and dust they attribute to the nearby Mac Construction and Excavating asphalt plant.
-
Bridges Authority adopts strategy as deadline approaches
The Louisville and Southern Indiana Bridges Authority adopted strategic objectives at its public meeting in Jeffersonville on Thursday while rejecting calls to alter the Ohio River Bridges Project to avoid possible tolling.
-
Messer served suspension from New Albany Police Department for running tags for private property owner
New Albany City Councilman and police officer Jack Messer served a one-day suspension from work after an internal investigation showed he violated the department’s policy for revealing information, records obtained by The Tribune this week substantiated.
-
Despite salaries remaining stagnant, New Albany City Council votes down 2011 pay
Aside from the one percent longevity pay increases given to some public safety workers, the salaries requested by the administration for the New Albany City Council to set for 2011 were the same as the past three years.
-
Ex-employee of Sportsdrome charged in beer-theft scheme at track
A Memphis woman has been charged with class D felony theft in an alleged scam to defraud Sportsdrome Speedway in Clarksville out of more than $20,000 in beer sales.
-
$47.5 million in marijuana plants eradicated by ISP
Within about a week, Indiana State Police eradicated approximately 19,000 marijuana plants with an estimated street value of $47.5 million across the state.
-
Setting out for a stroll
-
Moving on: Students, teachers get used to new schools at NA-FC
“You have to get to know people. You have to learn all these new names. It’s kind of scary at first. You don’t know them and they don’t know you.”
-
Zombie flick to be shot in downtown New Albany Sept. 19
The extras will be needed from 2 to 4 p.m. as filming winds down.
-
Burglary suspect leads police on chase
Crotchett said he knows the owner of the house, so he called him to ask if anyone should be there.
-
Straight ‘A’ educator: St. Anthony teacher makes top 10 list
She also wrote about how teaching is more than a career. It’s a vocation.
-
Questions arise over fairness of New Albany’s insurance replacement plan
Officials are hopeful that 75 percent of city workers will sign-up for an HSA plan for 2011 and 85 percent in 2012 as a way to balance the general fund which has been in the negative since 2003.
-
Facelift planned for part of Market Street in Jeffersonville
Crouch said the entire road is being redone from sidewalk to sidewalk and local traffic can use rear-alley to access their homes.
- More Recent Local News Headlines
-
Borden principal to return to school
