Replies to post #15561 on Labor Smart Inc (LTNC)

[DD2Gain]

Payroll taxes were delinquent in 2012 per the 10K for that year. They were paid as a subsequent event, but delinquent none-the-less. A few months ago, I asked Ryan Schadel about the current state of taxes because of that Glassdoor review and he responded that all taxes were current. In retrospect, that doesn't mean a whole lot being as taxes are paid quarterly by employers and with the rate of increase for convertible financing it is apparent that paying the bills is getting harder. The other review about "compliance" is also telling. Without a meaningful shakeup at the executive level, I consider this company a penny play now. Personally, I have to now agree with Janey's assessment and won't consider touching this until it drops to around 10.

[DD2Gain]

Interesting note on taxes in the recent Q:

"On March 17, 2014, the Internal Revenue Service agreed not to take collection action against the Company for payroll tax liabilities as long the Company remains current and makes monthly installments against outstanding liabilities. The agreed monthly installments are $5,000 which increase to $10,000 on July 28, 2014 which further increase to $15,000 on July 28, 2016."

Looks like the IRS is going to hold Schadel's feet to the fire. All he has to do is not screw up...again.