Labor Smart Inc (LTNC)

[DD2Gain]

That's an interesting viewpoint, but it requires full disclosure of the installment agreement to come to that conclusion. If Schadel provided that disclosure (full term of the loan and total amount due) I would not harp on it. If Schadel had simply been open about being delinquent with $1 million at the beginning of the year (end of last year) there would be even less to harp on. If Schadel had disclosed the January liens in the financial reports he would be squeaky clean on the payroll tax issue aside from the fact he was delinquent to begin with.

As of now, saying the IRS installment agreement on delinquent payroll taxes is cheaper than convertible financing is pure speculation without knowing what the total owed is (penalties included). It's quite sensible to speculate that Schadel continues to fail at full disclosure because the arrangement is, in fact, not any more favorable than a convertible loan would have been and possibly quite worse.