Labor Smart Inc (LTNC)

[DD2Gain]

The IRS= lender like the Mafia= charitable organization.

A CEO is a damned fool if he thinks abusing his IRS obligations is any kind of intelligent business decision. How much does Schadel owe the IRS? $240,000 in delinquent payroll taxes for the first 2+ years? How much after that when $15,000 per month in payments kick in? Is it one year, two years, three years or more of payments? Seems like that would have been an incredibly simple arrangement to describe in full detail. I am totally baffled with how disclosing the details of expensive convertible loans is so easy, but disclosing the supposedly cheap arrangement with the IRS is so difficult. The arrangement must be embarrassingly expensive to hide it from the financials!

Let's see: 15% late penalty, interest, PLUS 100% penalty because he treated his tax obligations as "funding" for growth.

What is the interest?

Generally, interest is charged on any unpaid tax from the original due date of the return until the date of payment. The interest rate on unpaid Federal tax is determined and posted every three months. It is the federal short–term interest rate plus 3 percent. Interest is compounded daily.

Compounded DAILY! Oh, that is VERY bad. I didn't even know that.

http://www.4nannytaxes.com/index.cfm/resources/news-and-updates/irs-calculations/

but it is easy to see why he went with the IRS for "funding" rather than more convertible debt - - much cheaper.

lol...and wait until he has to pay medical coverage for employees injured under his so-called "self-insured" status. Can't wait to see who he snubs for money when that happens.