SSA and IRS

wrote in message
oups.com...
From the e-news:

"On 10/11/06, using funds loaned from the SSA Foundation, SSA paid
delinquent federal payroll withholding taxes of approximately $208,000,
and state withholding taxes of approximately $56,000. Our outside
accountants are completing the remaining delinquent federal and state
income tax returns (upon which no taxes will be due) for 2004 and 2005.
Once submitted, SSA will be up to date in all respects with state and
federal tax authorities. It is likely the IRS will require the SSA to
pay interest on the overdue taxes, but we are working to mitigate all
penalties. State tax payments will most likely not incur interest or
penalties.

The SSA was unable to secure a commercial loan on terms it could meet,
to pay its delinquent taxes. Had the SSA Foundation not financially
assisted the SSA with this loan, tax authorities could have seized SSA
funds held by the Foundation in a single investment account. The choice
before the Trustees of the Foundation was to either provide a loan to
the SSA with the expectation of repayment (with 8.25% interest - higher
than that presently generated by the Foundation's investment account
as a whole), or risk seizure of assets to cover what the Society owed.
If seizure was required, the amount taken from the Foundation could
total nearly $600,000, since no mitigation of penalties would likely be
possible in this situation, and the funds would be gone forever.

Addendum: Late-Breaking Information Not Appearing in the Printed Letter
to Members:
On 10/9/06, SSA Ex-CFAO Alan Gleason was served with a civil lawsuit
brought by the SSA. On 10/11/06, at the direction of the New Mexico
District Attorney, he was arrested by the Hobbs Police Department."


Frank Whiteley wrote:
Yes, all in tonight's SSA eNews.

Frank Whiteley
Greeley, Colorado

Pete Reinhart wrote:
All,
Does anybody know if IRS got their money on time?
I seem to remember that October 11th was the deadline.
Cheers!

--
Pete Reinhart
Austin, Texas