As it pertains to some basic key legal issues regarding this CC fiasco, we need to find out the following as it pertains to the Federal Sarbands Oxley Act which regulates complete governance on a Federal Level of all corporations, taxed and non taxed.
I have been trying to "discover" more about this mans financial dealings, and it is very hard to learn. Because of his ---(c)3 status, it becomes extremely difficult. However this guy still must file a Form 990, according to my accountant which should be discoverable. This may require the services of a Forensics Accountant to accomplish. Although this man may have tax exempt status for his three companies (see a previous thread that I started regarding his EIN (Employer Identification Numbers), he is still required to be held accountable to all laws based on his State of New Jersey Incorporation Papers (assuming that he is registered in the State on NJ).
If we can discover the by-laws of his companies, we will be in a much better position to "pierce" his corporate veil and see what is actually going on "under the hood", so to speak.
So, that means that we have to spend a little bit of money to discover these things. Specifically, we need to get a copy of all his Form 990's from the State of NJ. I think that it will be a lot more rewarding than going after environmental problems that he may introduce here in RT. Surely, there is something interesting going on under the veil of these corporations. It is our duty to discover and reveal them. I believe that once that is done, the cat is out of the bad and this man will be deep trouble with the Feds.
Does anyone know of any accountants, (or better yet Forensicis accountants) who live in Rockaway Township. It is possible that someone with that skill set would be willing to do some pro bono work in behalf of our township to help discover this guys finances and whether or not he is in compliance with Federal Law as brought up in my previous post. I know of one who specializes in Forensics work in Montille, but she would charge for her services. One attorney that I have been chatting with about this situation suggests that this route may be very effective in smoking this guy out. He is the same lawyer who has been recommending that we condemn the property to get this job done. I guess he is suggesting a plan B. He absolutely agrees with my own assessment that the "Protection of the Environment" angle will not work for the same reasons that I have stated before.
Just curious about what provision of Federal Law you think Mr. Ireland has violated and what effect this would have on the application. I have an accounting background and would be happy to help out if I can although forensic accounting is not my area of expertise.
My lawyer has suggested that it is possible that this man is running an illegal non-profit operation there, particularly considering his Impact Ministries and the Community Development Corporation. Nobody really knows, however. The problem is sort of a catch 22 situation for discovery of his compliance with the laws establed under the Federal Sarbands Oxley Act which I am not familiar with but involve the governance of all corporations in the US. The reason we are dealing with a Catch 22 is that since he is a 501(c)3, he is not required by law to file any income tax forms. So, if he is playing any games on the books, it is not discoverable, To break that chain, both my own accountant and one of my lawyers has suggested that there are other hints that forensics accountants can look for pertaining to accounting problem indicators that might be revealed through his required filing of a 990 State Form. I think that this form relates to yearly board meetings, but not sure.
At any rate, the point that was made to me is that if this man is found to be violating any Federal laws pertaining to his non-profit status, the ball game is over for him. Setting up CC in RT will be the least of his concderns. So, it seems to me that it is reasonable to try to discover what is under the hood of his operation.
Using laymans logic, I see it this way. I as a taxpayer, am effectively subsidizing non-profits, whether I am a fan of any particular one or not. Therefore, as a check and balance in the system, there must be a way for us taxpayers to see what is going on inside of a non-profit organization to see if it is operating properly. The demeanour of this man in his public actions makes my very suspicious of the true nature of his business enterprise; but who knows? Does that make any sense?
Unfortunately, I have zero background in accounting and do not know the lingo of the trade. I just applied a little logic to what my accountant and a lawyer have explained to me would be something very interesting to research.
I hope that helps you understand what my thinking is. What do you think?
I'm not a tax expert but my understanding is that non profit organizations are required to annually file Form 990 with the IRS. I believe that this form reports the transactions for the year for the non profit organization. Unfortunately, this document is not available to the public any more than your Form 1040 is. Like your 1040, it is subject to audit by the IRS if selected for examination. There is a separate branch of the IRS that handles examination of non profit organizations however the determination of whether to audit is up to them and is not an option available to any citizen or group. If you are aware of any improprieties, you do have the right to bring it to the attention of the IRS but it's up to them to decide if they want to pursue it further.
What I did not know is that we do not have the right to see such a document. They way I figured it is that non-profits are supposed to serve the public good whereras our personal income tax filings are personal. So, I would expect privacy with respect to our personal filings, but I am surprised that a corporate filing is not discoverable. I wonder if the Freedom of Information Act could be brought into play. Otherwise, there is no way to get from here to there (the catch 22 that I mentioned previously) and that is surprising.
Here is a tangential question. Are public for profit corporations tax statements viewable by the public under the proper legal circumstances? If that, then why not non-profits. Any ideas?
I'm sure that you could get a copy of the Form 990 under the proper legal circumstances. I believe there is a form that allows a taxpayer (or return filer) to authorize another party to get a copy of the return directly from the IRS. This form is sometimes used when you apply for a loan or financial aid to college, etc. I'm also reasonably sure that a court could require the release of this return "under the proper legal circumstances". What those legal circumstances might be is a question for an attorney.
