Advent Talk
Issues & Concerns Category => 3ABN => Topic started by: Fran on March 16, 2008, 04:32:17 PM
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Go to http://www.revenue.state.il.us/legalinform...s/pt/pt04-1.pdf to read the full document and verify what I have posted.
The words in quotes are not my words. They are words from the 3ABN vs IL State Ptoperty Tax Lawsuit and the 2001 IRS Form 990
STATE OF ILLINOIS
DEPARTMENT OF REVENUE
OFFICE OF ADMINISTRATIVE HEARINGS
SPRINGFIELD, ILLINOIS
3 ANGELS BROADCASTING NETWORK
Vs.
THE DEPARTMENT OF REVENUE
OF THE STATE OF ILLINOIS
Page 17 # 61 Under subtitle Financial Information beginning on page 15
61. The Independent Auditor’s Reports for 2000 and 2001 state:
Dowlink equipment acquired by gift is not recorded in the financial statements. In our opinion, generally accepted accounting principles require that such donated property be recorded at its fair value at the date of receipt. It was not practicable to determine the effects of the unrecorded equipment on the financial statements.
In connection with the recording of real estate revocable trusts, the fair values of the trusts were based on internal estimates performed by the organization. We were unable to obtain sufficient evidential matter in connection with the estimates of fair value.14 (Applicant’s Ex. Nos. 14,15)15
14 The financial report for 2000 contains additional concerns found by the independent auditors.
15 Applicant’s financial reports raise additional questions and concerns. For example, the unrecorded contribution
revenue related to charitable gift annuity agreements were not recorded in conformance with generally accepted
accounting principles. The “related party transactions” were acknowledged without identifying the parties. The notes
refer to “split interest agreements,” where applicant received the assets funding the trusts and applicant is to pay
certain amounts for specified periods of time to the donors. There is nothing in the record to identify the donors or
the assets. None of the trust agreements were supplied. (Applicant’s Ex. Nos. 14, 15)
Foot notes:
(The 2001 Form 990 has 5 pages of notes attached to the return.)
Page 1; Statement 2
Form 990, Part I, Line 20
Other Changes in net Assets or Fund Balances
Record Split Interest Agreements previously
unrecorded------------------------------------------------------------------- $2,451,034
Reclassification of amounts due to Other Ministries previously classified as
Temporarily Restricted-------------------------------------------------------$(14,282)
Net Unrealized Gains on Marketable Securities---------------- ---------$13.862
Total Changes in Net Assets or Fund Balance-------------------------$2,450,614
Money Received for other ministries is NEVER INCOME! It is a Liability.
It is a Liability because it is Income for someone else and is to only be held until forwarded to the other ministries. Once that is done, the Liability is cleared. These Liabilities should appear on the Balance Sheet Statement. It should not appear on the 3ABN Income/Loss Statement as it did
This is exactly what I felt would happen to donations that were sent to 3ABN for ADRA. Funds are posted incorrectly and get lost in 3ABN's funds. The other ministry has no idea a donation has been made. That $14, 282 belonged to someone else. This is the amount that maybe the audit found or the Treasurer of 3ABN found. This is why I suggest you always make your donations directly to the ministry you desire.
Does everyone understand what this means? “Other Changes in net Assets or Fund Balances” is where the auditors have made correction entries for the Balance Sheet.
It is where Tax Accountants make changes in fund balances to reflect what actually was. The above are from the final numbers submitted to the IRS Form 990 for 2001. This Form is a Non-Profit Organizations Financial Statement in the form of a Tax Return that must be filed on a yearly basis. These are audited figures. These are supposed to audited by independent auditors.
Split Interest Agreements are:
The notes refer to “split interest agreements,” where applicant received the assets funding the trusts and applicant is to pay certain amounts for specified periods of time to the donors. There is nothing in the record to identify the donors or the assets. None of the trust agreements were supplied.
These facts stated in the Lawsuit and the Form 990 clearly tell us the financial Statements are not presented accurately. How can I, as an end user, use these reports and have confidence when auditors clearly state that the most basic Generally Accepted Accounting Practices are not being followed by 3ABN.
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The greatest want of the world is the want of men-- men who will not be bought or sold, men who in their inmost souls are true and honest, men who do not fear to call sin by its right name, men whose conscience is as true to duty as the needle to the pole, men who will stand for the right though the heavens fall. {Ed 57.3}
But such a character is not the result of accident; it is not due to special favors or endowments of Providence. A noble character is the result of self-discipline, of the subjection of the lower to the higher nature--the surrender of self for the service of love to God and man. {Ed 57.4}
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Intersting that that link no longer exists! Why? :dunno:
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Intersting that that link no longer exists! Why? :dunno:
I think the link got copied wrong. Try http://www.iltax.com/legalinformation/hearings/pt/pt04-1.pdf (http://www.iltax.com/legalinformation/hearings/pt/pt04-1.pdf).
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The link in the OP was incomplete, therefore, here is the complete link:
http://www.revenue.state.il.us/legalinformation/hearings/pt/pt04-1.pdf
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Looks like Bob and I did the same thing here. :)
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Looks like Bob and I did the same thing here. :)
Great minds think alike?
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Either that, or fools seldom differ. :D
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:o :ROFL:
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Knowing the two of you, I would support the "Great Minds" premise!!!
Although the alternative suggestion, while modest and self-deprivating, was a hoot at the very least!!!
It is the self depricating humor and a reasoned atmosphere that makes this such a joy, pardon the pun!!!
:TY:
Gailon Arthur Joy
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Now, I know why I feel comfortable here. Same sense of humour! :cat:
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So, 3ABN lost the property tax appeal. Hopefully they have an adequate financial reserve set aside to cover the back taxes!!
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Finally! Boy, it has been a long time!
Now that clears the way to discuss the audit reports revealed in that lawsuit. Now there is no reason to keep it out of discussion as it applies to the current lawsuit and the IRS investigation.
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I am certain that there will be many people commenting on the March 31 ruling of the Appeallate Court. Here is my take on it:
On March 31, 2008, the Appellate court for the 5th District of Illinois delivered a ruling that is of interest to people who follow religious liberty issues. To directly reference this ruling see:
Three Angels Broadcasting (Plaintiff/Appellant) v. The Department of Revenue (Defendant/Appellee), case # 5-05-0724.
Brief Summary of the Background: On January 28, 2004, an Administrative Law Judge (ALJ) ruled that the majority of the 3-ABN property failed to qualify for exemption from school district taxes. It limited the exempted property to two pastoral offices. One, and there were other reasons, was that ALJ ruled that the property was not operated exclusively without profit.
This ruling of the ALJ was adopted by the Department of Revenue on April 7, 2004.
On May 11, 2004 3-ABN requested the Circuit Court of Franklin County to review the ruling. On August 20, 2004 this court denied the motion to dismiss.
3-ABN then filed for review on March 8, 2005 with the Circuit Court. This was denied on November 29, 2005.
On December 21, 2005 3-ABN appealed to the Appellate Court, which issued its ruling
on March 31, 2008.
Appellate Court Ruling:
1) The court clearly ruled that it must accept 3-ABNs characterization of its programming as religious instruction. It clearly stated that it did not have the authority to determine the religiosity of 3-ABNs programs. The court could only determine the other issues in this case after it had accepted 3-ABNs characterization of its programs.
While some might characterize this as a victory for religious liberty it is not. That dictum is well established in law. It is grounded in the 1st Amendment to the U.S. Constitution. It is established in case law and it required before the court could deal with the other issues.
2) While the Court considered the several issues that 3-ABN raised in its appeal, the major part of its ruling was based upon one issue only. Under Illinois law and its Constitution, property used for religious use, even if used exclusively for religious use, only qualifies for exemption if that property is NOT used for profit. It does not matter whether the profit inures to an individual or to the organization itself. If it is used for profit, it does not qualify for exemption.
3) The Court found that 3-ABN “. . . failed to meet its burden to prove that its activities on the subject property were. . .” conducted without a view to profit. It then went on to say: “ . . . we find that the fact that property is used with a view to profit defeats a religious-use property tax exemption. . ..”
4) In another interesting statement, the Court said: “ . . . it is abundantly clear from the record that the primary use of TABN’s [sic] property is not to dispense charity to all who need and apply for it.:
5) So, the unanimous decision of the Appellate Court was to affirm the decision that the major part of its property was not exempt from taxes for the period in question.
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Back before I got involved with this whole mess, probably in early 2004, a friend with ties to the inside of 3ABN told me the following:
- Administrative Law Judge Barbara Rowe wanted to decide in 3ABN's favor, but couldn't for some stated reason that I cannot remember.
- So she put some things into her decision that would make it easy to overturn on appeal.
That's what I recall being told.
Once again we find that info coming out of 3ABN has been factually challenged.
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There is already a thread regarding the property tax case. Is it necessary to have two?
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If I had wanted to respond in that other thread I would have done so.
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Thank you for that clarification. However, when the same topic is scattered throughout different threads it detracts from the flow of the discussion, in my opinion. But maybe that's just me...
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Someone pointed out to me that Mollie's cited testimony about the videos not being copyrighted has implications for Barbara Kerr. If they aren't copyrighted, she can use them all she wants to, without having to wait forever for Danny Shelton's permission.
Would that be correct?
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Someone pointed out to me that Mollie's cited testimony about the videos not being copyrighted has implications for Barbara Kerr. If they aren't copyrighted, she can use them all she wants to, without having to wait forever for Danny Shelton's permission.
Would that be correct?
That sounds right. However, the question is whether or not Barbara Kerr has the videos in her possession. My understanding is that she does not have them.
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I came to 3ABN about the time of the first ruling. At that time I was told at 3ABN that this ruling would be appealed, and that there was no question 3ABN would win the case. Now this seems not to be the case.
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Fran, I'm a little confused by your statement - I'm sure it's just me! Was there a reason prior to this loss on appeal that the audit reports could not be discussed?
Also, I'm just curious as to your opinion on how this new development might impact 3ABN's 501(c)(3) status? If the State of Illinois has found 3ABN lacking in their ability to prove that it is not conducting its business with a view "for profit", wouldn't that possibly have some impact on the IRS' view of the organizaton?
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Someone pointed out to me that Mollie's cited testimony about the videos not being copyrighted has implications for Barbara Kerr. If they aren't copyrighted, she can use them all she wants to, without having to wait forever for Danny Shelton's permission.
Would that be correct?
That sounds right. However, the question is whether or not Barbara Kerr has the videos in her possession. My understanding is that she does not have them.
It has been almost a year since I have had any correspondence with Barbara Kerr. It is my recollection that she does not have any of the tapes. She posted I believe at BSDA that she made several requests for them. I seem to recall either she was advised they no longer existed or that may have been speculation. A search at BSDA would reveal more specific information I suspect.
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I came to 3ABN about the time of the first ruling. At that time I was told at 3ABN that this ruling would be appealed, and that there was no question 3ABN would win the case. Now this seems not to be the case.
I suspect this is consistent with they never expected to lose the case in the first place.
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I think, Snoopy, that the attention the tax case brings to particular discrepancies is what might be problematic.
For example, arguing over the "nonsense" of Rowe's penalizing 3ABN for Linda getting $20 royalties in a year coupled with 3ABN's bringing up the royalty issue in the lawsuit against us only highlights the fact that several hundred thousand dollars of royalties paid out by Remnant in 2006 likely went to Danny, and were a direct result of his influence at 3ABN.
That is problematic.
But notice the stupidity of it all to be doing all that simultaneously, ... and while an IRS criminal investigation was going on.
I'm sure glad I'm not in Danny's shoes. Never weighed enough to handle drastic weight loss. Imagine the stress he's under.
And he can't vent at BlackSDA anymore, whether personally or through his brother Ronnie or through Greg Thompson or anyone else. Looks like maybe that BlackSDA subpoena backfired. Venting over there was probably therapy.
But AdventTalk is open. The admin here believe in freedom of speech, though I don't think they want it to get nasty.
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I wonder if those tapes are buried somewhere on 3ABN property??? :dunno:
It has been almost a year since I have had any correspondence with Barbara Kerr. It is my recollection that she does not have any of the tapes. She posted I believe at BSDA that she made several requests for them. I seem to recall either she was advised they no longer existed or that may have been speculation. A search at BSDA would reveal more specific information I suspect.
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I merged the two together and also blended the topic names together.
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Barbara has all her taped programs and could digitally master them, but I am told that quality would be severely impaired. She has simply requested that 3ABN turn over the masters that they clearly do not intend to use and make them available to her to use. I am sure the masters are all carefully cataloged in Tommy's library at 3ABN. But, Barbara spoke against the annointed one and is unworthy of civil consideration...after all, per Gilley, ..."any friend of Linda is not a friend of 3ABN..." and this from a man that is suppose to bring healing and move 3ABN ahead??? I would say that is pretty regressive and demonstrates a hateful deluded side we had hoped did not exist. Just how do they expect the Lord's blessing with all this pent up hatred??? SPLAIN ME!!!
Gailon Arthur Joy
I wonder if those tapes are buried somewhere on 3ABN property??? :dunno:
It has been almost a year since I have had any correspondence with Barbara Kerr. It is my recollection that she does not have any of the tapes. She posted I believe at BSDA that she made several requests for them. I seem to recall either she was advised they no longer existed or that may have been speculation. A search at BSDA would reveal more specific information I suspect.
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Thank you, Daryl!! This is a good compromise. It is easier for me personally to have all the info in one thread.
I merged the two together and also blended the topic names together.
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The OP is now back as a separate thread with plans to later add other obvious posts that also belongs to this thread.
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The OP is now back as a separate thread with plans to later add other obvious posts that also belongs to this thread.
Here, Here!!!
GAJ
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It took a bit of work to accomplish this, however, the two topics have been separated as much as possible with two posts in the other topic that were posted before the OP of this topic, therefore, I wasn't able to move them here.
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As a result of further communication from two different people, with the understanding that the two topics will be focusing on different things, the two merged topics were separated again.
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Thank you, Daryl, for your valiant efforts to try to keep everyone happy!!
As a result of further communication from two different people, with the understanding that the two topics will be focusing on different things, the two merged topics were separated again.
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I copied the following links from another topic in Advent Talk:
http://www.save-3abn.com/3abn-property-tax-appeal-decision-03-31-08.htm
http://www.save-3abn.com/3abn-property-tax-appeal-decision-03-31-08-copyright.htm
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Thank you, Daryl, for your valiant efforts to try to keep everyone happy!!
Come on now Snoopy! Next thing you'll want us to believe is that there are elves down under the trees in the bottom garden. :ROFL: It's impossible to keep all the troops happy! :scratch:
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I see that the entire property tax case, including the transcript, has been posted at www.save-3ABN.com.
Here's the link:
http://www.save-3abn.com/3abn-property-tax-case-entire-public-record.htm
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I see that the entire property tax case, including the transcript, has been posted at www.save-3ABN.com.
Here's the link:
http://www.save-3abn.com/3abn-property-tax-case-entire-public-record.htm
Thanks for posting that Snoopy. Sometimes, I don't get a chance to get over there for a few weeks. Good work.