}

Friday, May 1, 2015

MORE THINGS I'D LIKE TO KNOW: Did The Grand Traverse Academy Officially "Cancel" Steven Ingersoll's Nearly $1.7 Million Dollar Debt When It Was Deemed "Non-Recoverable"?

Tax consequences?

After dithering publicly for months about its supposed "plan" to collect nearly $1.7 million owed to the Grand Traverse Academy by Steven Ingersoll's Smart Schools Management, Inc., the Traverse City charter school's 2014 fiscal audit revealed its Board decided to "write it off".

According to the IRS, if your debt is canceled, forgiven, or discharged you will receive a Form 1099-C, Cancellation of Debt, and must include the canceled amount in gross income unless you meet an exclusion or exception. If you receive a Form 1099-C but the creditor is continuing to try to collect the debt, the creditor may not have canceled the debt. 

Miss Fortune wonders if Ingersoll received a formal cancellation of debt...and if he's paid the tax on that amount

And if the Grand Traverse Academy has not "cancelled" Ingersoll's debt, what steps are being taken to recover the money?

Ingersoll’s personal criminal tax obligation for the three years at issue (2009-2011) is $2,699,673.48, per a recent IRS affidavit, although he is "jointly and severally liable" for restitution totaling $3,788,797.18, plus the costs of prosecution.

Should have filed that civil suit against Ingersoll before he was indicted. 

Oh, wait...there's that pesky cover-up!

Hmmm?


17 comments:

  1. Is Ingersoll still spouting off that he is going to walk with the appeals?

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  2. As a member of the public, the legal process seems terribly long and frustrating. The easiest money to recover is IRS. The feds have access to resources the general public and charters schools does not have. In the order of priority to recover debt, the feds and state get paid first. You have to rate the chance of recovery with the costs of the loss. How much more money gets thrown away? Has there been a release of the value of the assets? It would not make any sense to proceed until the Ingersoll resources are spelled out.

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    1. My point was that the GTA board fired Ingersoll before he was indicted, and could have filed a civil suit to recover the remaining $1.7 million dollars.

      The board missed its opportunity, however, when Ingersoll was indicted. Now that he's been convicted, but filed for a new trial, sentencing has been pushed back until September 24.

      However, it's still a mystery why no legal action was taken to recover the money.

      It's too late now...but maybe that was the point.

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    2. Why is it to late now? Do not gve the board that out. The cost of filing the debt is minimal. I would look at timing. Ingersoll should have some legal conservator during his prison sentence who should not want to put their reputation nor a conspiracy charge for fraud. LSSU should require the collection of the debt as a requirement to maintain the charter. Independent board would do so. Judge Ludington should look at the debt to the school still outstanding and give Ingersoll full 15 to make it less pleasant to steal from kids. LSSU and those board members and current crooks should get adjoining cells.

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    3. The GTA missed its opportunity to sue--Ingersoll's eventual fines/fees resulting from the federal fraud trial are hovering around $4.0 million dollars. The IRS has estimated Ingersoll's real estate holdings at $3.0 million.

      Add the dough stuffed in various mattresses, furniture squirreled away in to-be-opened B&B locations, and any money as yet to be discovered and there may not be anything left for the GTA to get.

      But, the public posturing about "what to do about" the remaining money was just that--posturing.

      It appears that there never was any real effort to recover that money--not after Ingersoll reminded the GTA board of the "symbiotic relationship between Smart Schools Management" and the school.

      In other words, keep my secrets and I'll keep yours!

      http://glisteningquiveringunderbelly.blogspot.com/2015/01/money-menage-trois-part-3-robbing-peter.html

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    4. Ingersoll is just the tip of the ice berg. Charter school authorizers should be required to run the finances for all schools. Verifying all expenses.

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    5. These taxes are not going to touch the Ingersoll assets. When you get yo the trusts and other "hidden" assets. His value is five times what is expected.

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    6. Are we talking "Cayman Islands" banking, or just cash money stuffed in the safe?

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    7. Both. He is a crook who has had years to hide assets. Months after convictions. Has anyone noticed the Ingersoll spending slowing down? NO. The attorney would not keep plugging away without a pay check. These are taxes owed on the money earned. Non-crooks pay the tax bill just fine. Ingsy will do just fine dipping into the fraud bank.

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  3. If GTA is using his course materials ~ how much does GTA pay? Why not stop payment for materials and pay it against the receivable? Not a penny would go Ingersoll if he still owed the school a dime. If the school is paying Ingersoll or any of these companies - the board is an idiot. Let Ingersoll sue them from prison to collect.

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    1. Those questions are best posed to the GTA and Full Spectrum Management.

      And why should more taxpayer money go to pay off Ingersoll's debts anyway? That's the con the GTA tried when it allowed Ingersoll to "work off" his $2.3 million dollar prepayment debt?

      We all know how well THAT turned out!

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    2. It is better to put it towards the Ingersoll debt instead of Ingersoll receiving any cash. No more Money.

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  4. I do not think it is a mystery. I think the IRS investigation had some assistance behind the scene from MDE and accounting firms. I would like to believe Ingersoll has more Taxes due coming to him. You have to taKe a stab at the moving target in steps. They need to get them in prison. GET THE TAX LIABILITIES ALREADY LEGALLY ESTABLISHED. Let Mi treasury grab the state tax due. Let the IRS establish his assets. There should be plenty of assets for GTA to grab.

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  5. I have hear rumors that Ingersoll believes he is going to walk after the July hearings? Any information on those transcripts and motions?

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    1. The motion dates are fluid and haven't been established; Judge Ludington's April 17 order directed Ingersoll and Bradley to file their supplemental briefing within fourteen days after the select trial transcripts they've requested are completed and filed on the docket.

      In other words, TBD.

      As for Ingersoll "walking" after the July hearing: he will be walking...back to his car. Ingersoll will have to wait for Judge Ludington to issue his decisions on the motion for acquittal and the restraining order.

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    2. Ingersoll has no intention of going to prison. If he thinks he will be sentenced he will run.

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  6. Will these peaky little tax liability issues even tap into his bank balance? He is still spending on attorneys. He thinks putting separate little LLC will protect his assets with the various Ingersoll trusts funds. Let's hope he leaves prison a much older and poorer man than he entered it. When all of his public debts are paid and publicly backed debt is paid - he should do what he wants. LSSU should make it a charter requirement that no Ingersoll based materials are used at either school. Stop this money train. Do it beyond the GTA board to end the tax dollars supporting Ingersoll outside a prison cell. I wonder how much he will enjoy a federal prison.

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