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[Artiste]

We have noted on another thread information from a couple of our members stating that evidence seems to indicate to them that the IRS investigations of 3ABN's and Danny Shelton's financial affairs have not ended.

Of interest are the following:

1.)  What about offshore accounts, presumably established by Danny Shelton?

2.)  What about eBay accounts, with the profits of 3ABN-donated materials going to other entities or individuals rather than to 3ABN itself?

3.)  Were Danny Shelton's publishing companies used as conduits to funnel 3ABN funds to himself?

4.)  What do  Remnant Publications and DLS Publishing have to do with royalties received by Danny Shelton? 

3ABN has stated concerning the IRS investigation:  "Contrary to statements being made by enemies of 3ABN and Danny Shelton's ministry, no adverse actions either civil or otherwise have resulted from the inquiry."

Is 3ABN's statement true?  Does their information need to be updated?

[Bob Pickle]

Regarding "royalties" from Remnant, look at http://www.save-3abn.com/danny-shelton-remnant-hides-royalties.htm. Go down the page to "Donations, Sales, Printing, Shipping, and Royalties." Now look at how the royalties paid out by Remnant in 2004 were $26,178, while the royalties paid out in 2005 and 2006 were $116,556 and $508,767.

Do the math. Subtract the 2004 figure from both the 2005 and 2006 figures, and you get the approximate amounts Danny may have gotten from Remnant, since one of our sources said that royalty payments to others than Danny don't amount to much.

Now since 3ABN funds paid for the about $3 million worth of Ten Commandments books in 2006, then whatever Danny got in royalties from Remnant was 3ABN funds.

The other question concerns the possible 10% to 32% kickbacks Danny got on sales of his booklets to 3ABN.

[Artiste]

This e-mail quoted on save-3abn is most interesting:

-------- Original Message --------
From:  ******
To:  G. Arthur Joy
Subject:  RE: MAP
Date:  Tue, 19 Sep 2006 17:02:39 -0700

Hello Gailon,

...

I have wondered about the numbers. When I spoke with Danny about a month or so ago, he insisted that numbers were up by a couple of million. But when I spoke with a board member he indicated that the finances were not doing well, in part relating to a tremendous amount of money 3ABN put into the "Ten Commandments Twice Removed Book" which was distributed by the millions during the spring. I am quite certain that Danny received royalties on this, probably to the tune of several hundred thousand dollars, although he is refusing to disclose the amount to his own board members. This is a gross conflict of interest and also an improper personal inurement that could cause the ministry to lose its tax exempt status if it came to light. ...

...

[Artiste]

A proposed timeline, also from save-3abn, seems informative:

What was the timeline? From what we can piece together from our sources:

1.  Danny reportedly first asked Dwight to hide his royalties in June 2006.
2.  At that point Dwight allegedly stopped running his typical quarterly royalty report on Danny's book.
3.  A sizable amount of royalties had allegedly already been calculated prior to that point, but Dwight held on to it at Remnant.
4.  Sources claim that at year's end that same amount still sat on Remnant's books, and that by some point in 2007 that fund had grown to nearly $300,000.

[Snoopy]

Based on my professional experience and my knowledge of this case, it is very unlikely that the IRS investigation is truly concluded with no adverse actions, excise taxes, fines or penalties.  I think it would be interesting to take a look at the Remnant Form 990s just to see what interesting tidbits I can come up with!  Sounds like great Sunday afternoon entertainment! along with a good football game!  If I find anything noteworthy, I'll post it here.

[Snoopy]

Well, how interesting!  Neither 3ABN or Remnant Publications has a 2007 Form 990 published on Guidestar yet!  I know there is a time lag between the filing date and when the filing becomes available on Guidestar, but I think it is time to start asking some questions.  Guess some phone calls are in order tomorrow, as a second filing extension would have expired on November 15th.

[Artiste]

Phone calls...let us know what you find out, Snoopy!

[childoftheking]

http://en.wikipedia.org/wiki/IRS_Form_990

They are supposed to provide their latest 3 990s for public inspection upon request. Will they comply and provide the 2007 990 if someone requests it? If they only provide the 2006, 2005 and 2004 990s maybe that says they haven't filed yet.

You can request them from the Irs
 
http://www.irs.gov/pub/irs-pdf/f4506a.pdf

Corrected typo

[Artiste]

Based on my professional experience and my knowledge of this case, it is very unlikely that the IRS investigation is truly concluded with no adverse actions, excise taxes, fines or penalties. 

I wonder what is going on inside the 3ABN hierarchy in regards to this.

[Johann]

Might they rather pay the penalty than deposit too soon for them?

[childoftheking]

Johann, I wondered the same thing. Would they rather pay a penalty than disclose?

[Snoopy]

I thought the timing of their voluntary dismissal was quite suspect with regard to the timing of their disclosure of the 2007 financial results.

[Snoopy]

Thank you for those links, childoftheking!  Very helpful.

Here is another interesting option, where one can complain to the IRS if the exempt organization refuses to provide their 990s:

http://www.irs.gov/charities/article/0,,id=135032,00.html

I also found this interesting - the penalties for noncompliance:

http://www.irs.gov/charities/article/0,,id=135028,00.html

http://en.wikipedia.org/wiki/IRS_Form_990

They are supposed to provide their latest 3 990s for public inspection upon request. Will they comply and provide the 2007 990 if someone requests it? If they only provide the 2006, 2005 and 2004 990s maybe that says they haven't filed yet.

You can request them from the Irs
 
http://www.irs.gov/pub/irs-pdf/f4506a.pdf

Corrected typo

[Bob Pickle]

http://en.wikipedia.org/wiki/IRS_Form_990

They are supposed to provide their latest 3 990s for public inspection upon request. Will they comply and provide the 2007 990 if someone requests it? If they only provide the 2006, 2005 and 2004 990s maybe that says they haven't filed yet.

You can request them from the Irs
 
http://www.irs.gov/pub/irs-pdf/f4506a.pdf

Corrected typo

Ask the IRS and you'll wait a month or two to get a reply. Try asking them directly.

I'd love to get a copy of whatever you get.

[Snoopy]

I just made two telephone calls - one to Remnant Publications and one to 3ABN asking for their 2007 Form 990s.

At Remnant, I told the lady who answered the phone what I wanted.  "Who's calling?"  I told her.  "From where?"  I told her I was just a person asking for the form!!  "Just a minute."  So I waited and finally someone named Dan answered.  I told him I wanted to speak with whomever could get me the form.  He said, "I guess that would be me."  I gave him my fax # and he said he would get it to me, probably not today but sometime this week.

Then I called 3ABN and asked to speak with whoever could get me the form.  She said that Brian Hamilton is out of town, so she transferred me to David Carson.  I told him what I wanted.  “Oh – why don’t you call back next week and talk to Brian Hamilton.”  I asked why he couldn’t just send it to me, as it is open to the public.  “Well, yes, you’re right.  OK, why don’t you fax me a request and I’ll fax it back to you.”  I asked why I needed to fax a request, as I was calling to ask for it.  “OK.  Give me your fax number.”  I told him what it was and asked when he would be getting it out to me.  “Sometime this afternoon.”

So, we'll see what happens!  If anyone else wants to call and make the same request please do so!!