Replies to post #17546 on Labor Smart Inc (LTNC)

[sobe4life]

Interesting fact....

1337trades

This is assuming no penalties are applied. The last Q disclosed abatement of penalties paid in 2012 so it's reasonable to assume they may pay no penalties. Rather odd to see a large abatement like that with the company in a $1m installment agreement.

Labor SMART was well represented in the handling of their payroll tax issue. Because certain conditions were met, the IRS abated the penalties AND took a subordinate position on their lien.

Some would view that as significant and a positive for Labor SMART. Other's will squeeze every bit of negativity they can in order to make a point.

The fact is the company was experiencing hyper-growth and fell behind one quarter in their payroll taxes. They addressed the situation and fixed the problem. Fact is, they got very favorable terms that actually work to their benefit.

Normally, not a big deal unless it is constantly being sensationalized by doomsday prepper's on a DAILY BASIS.

[DD2Gain]

The payroll taxes for 2012 were

payroll taxes payable of $553,709

The payroll tax expense was

payroll tax expense of $602,825

That means total penalties and interest of $49,116.

The $37,227 returned in 2014 was likely due to satisfying the delinquency in a timely manner (before even the 10K was released). It took over a year to get it and we have no indication that there is any such early payment with the current $1 million arrangement.