Replies to post #16034 on Labor Smart Inc (LTNC)

[sobe4life]

Turning lemons into lemonade needs only a matter of perception....

Should Labor SMART have used Payroll tax money to fund their growth?

Hmmm... No, they should not have done that.

However, every successful company goes through their share of making mistakes. It's ridiculous to think that a growth company runs perfectly and never makes mistakes. What's important is how they deal with their mistakes and ideally what they learn from them.

At the very least, we can now take solace in knowing that the IRS now considers LTNC currrent, and with the Agreement in place, they now have to maintain a current status, so we no longer have to worry about IRS delinquincies.

Of course, we could always ignore these facts and continue beatng a dead horse, but why bother?

[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.