Labor Smart Inc (LTNC)

[GrowthStocks99]

All this talk of tax liens.

Yes, of course there are tax liens. The IRS does automatic tax liens when the amount due is over a certain figure. I think it is 25,000 maybe? So, yes there are tax liens.

Yes there would have been penalties plus interest. The IRS imposes penalties for failure to file and failure to pay/deposit on time. LTNC filed just had a little problem paying. Those penalties are most likely worked into the payment arrangement.

I agree with kmikesara that the new monies raised will not go towards tax debt. That arrangement is already structured. The IRS interest rate for underpayments of tax is currently 3% per year. I doubt LTNC will be in a hurry to use expensive money to pay off a 3% interest arrangement.

Anyway, this new loan looks better than the others. The stock started moving up after the news. Too bad, because I was only able to buy 25% of the position I want under 18 cents. Maybe it pulls back. Maybe not.