[Alexandria Radio Club Reflector] Status of Club Tax Preparer

Thu Nov 9 13:06:36 EST 2023

My understanding for being fired from preparing the Alexandria Radio
Club’s tax returns is based on previous actions by club leadership
relieving me of other positions in the club and an email from one of
the club leaders containing misstatements directed at me
professionally and personally.

I was removed as the trailer custodian by an announcement via email
sent by Don Lewis on February 10, 2023 (Exhibit 1).  This came with no
notification to me ahead of the announcement.

On May 12, 2023, I received a phone call from the Volunteer Examiner
Coordinator office at ARRL asking when they could expect the rest of
our paperwork for our recent exam session.  I informed them there was
no other paperwork and they have all the testing materials.  The
representative informed me that ARRL received an email from Don Lewis
informing them that Richard Morani was now the co-lead of the club’s
exam team and ARRL was expecting him to submit the paperwork.  Again,
this was without advance notice and a complete surprise.

Club leadership decided to pursue non-profit tax status for the club.
This idea has been discussed previously but was set aside when the
requirements to apply for and maintain non-profit status were brought
to light.  This past summer, club leadership decided to look outside
the organization for guidance on applying for tax exempt status.  This
was done behind closed doors and I was never given the opportunity to
provide input.  An announcement was made in the August 31, 2023 board
meeting that Elizabeth Quist, CPA would file the paperwork and
included her fees for filing the annual non-profit tax return (Exhibit
2).

At the September 8, 2023 meeting of the Alexandria Radio Club, Sean
Gallagher passed out a revised Articles of Incorporation required to
apply for non-profit status.   The revised Articles listed Heath Wells
as the registered agent.  Again, no prior communication to me that a
change was planned.  I had been performing that function for the past
five years.

On September 12, 2023, an email from Sean Gallagher to Ian Keith
through the club’s leadership group made the potentially libelous
statement “Moving on to the club's tax filing basis, a lot of work, in
terms of time and research have gone into this topic.  Rich has been
approached at least annually for more than three years and encouraged
to move the club to a 501(c)(3) status and in each dialog, Rich
fabricated or distorted the facts to support all the reasons that we
should absolutely not shift to a 501(c)(3) standing.  Realizing that
once again, we would get no support or clear facts from Rich, a group
of us began looking at the issue over the past three months.  While
none of us looking at this problem were CPAs, many had fiscal
management backgrounds and Rich's previous responses on 501(c)(3)
status didn't really pass the smell test” (Exhibit 3).

As a licensed professional, I take allegations of malfeasance directed
at my profession and me very seriously.   Fabricating or distorting
facts is not what CPAs do.  Any reasonable person would take such a
statement as the client is not satisfied with the professional’s
services and plans to seek another professional to provide those
services.

I told the leadership on multiple occasions during the past three
years that the current Articles of Incorporation would not qualify to
apply for non-profit status.  This is clearly an attempt to cast blame
where it does not belong and avoid accountability for their actions.
I do not understand how I am to blame for not pursuing non-profit
status for the club when the current Articles of Incorporation are not
in compliance with the Internal Revenue Service code or the
Commonwealth of Virginia statutes on non-profit corporations.
Amending the Articles of Incorporation is a club leadership
responsibility.

In an email to the club members on October 8, 2023, Don Lewis stated
“Over the years, the club has lost thousands of dollars from
membership dues to the IRS and Virginia while doing work that
qualifies for tax-exempt status.”  Until the 2016 tax year, the club
had not filed a tax return.  No one knows why the club did not file
its tax returns.  After discussions with the club leadership at the
time, it was decided the club should do the correct thing and file a
tax return.  The club leadership asked me to prepare the return, which
I did.  Between 2016 and 2022, the club lost money in most years and
has only earned $4,887 in total and paid $1,034 in taxes across the
seven years it has been filing its tax returns (Exhibit 4).

The reason the club paid as much as it did in 2020 is that leadership
allowed the use of PayPal to pay for purchases in the Silent Key
equipment auctions.  I recommended against allowing that option
because it would have generated a taxable event (Exhibit 5).

I will admit I did leave the September meeting abruptly.  I could have
left early for any number of reasons, but Don is implying that I am to
blame for prospective members not returning after attending a club
meeting.  There are any number of reasons prospective members do not
return, my leaving a meeting is not one of them.    The quality of the
programs is most likely the cause.

Over the past year, I have been the favorite target of Don and Sean.
Until this email, the attacks have been limited to the club leadership
group.  This latest email to the entire membership is clearly an
attempt to derail my standing with the club.  I have been a dedicated
member of the Alexandria Radio Club for 37 years.  Don has been around
for 12 years and Sean has been around for 3 years.  I have never done
anything to discredit the club and have always had the club’s best
interest in any of my actions.  This is not how leaders of social
organizations should be treating members.

Rich Adamy, KA4GFY

At the last club meeting Rich (KA4GFY)) announced to club membership
that he was fired as the club’s tax preparer.  This came as a response
to attorney Heath Wells (WE3B), making an example of the club’s use of
the IRS “reasonable compensation for services” exception rule for
annual tax return preparation services.  His main point was that this
is not a case of officer or board compensation.

As club president, the firing announcement was a complete surprise to
me, as well as others I have spoken with about it.  At least three
issues are raised by the firing announcement, as I see it.

The first and most important issue is what to do about tax preparation
services in 2024.  We need a tax preparer because we won’t achieve tax
exempt status for 2023.  Also, for the 2024 budget approval due at the
November meeting will need an estimate for external tax return
preparation services for the club. Normally, we budget $250.00 per
year to compensate Rich; but this year, we need to verify the
estimated costs for 2024.  As a tax-exempt club in the future, the
treasurer can on-line file the club tax return as a “postcard” given
our low level of annual income.

The second issue is a veracity issue.  As club president, at least I
should have known that the tax preparer was fired.  In that regard, if
anyone knows the “who, what, when or/and where” about the firing of
Rich as the club tax preparer, I need to know and the Leadership Group
needs to know; help with this would be appreciated and helpful.
Answers and accountability to club membership could be at issue.

This entire matter is brought to the Club Leadership Group because we
are the stewards for the health and welfare of the club.  When
first-time attendees to an Alexandria Radio Club business meeting are
greeted with an outburst about a firing -- even before members of the
club Leadership Group knows about it, things are not going in the
right direction to attract new members to the club.  After the
September meeting I overheard a relatively new member of the club
asking about someone who abruptly left that meeting early, after
angrily saying a few words.  I later learned he was talking about
Rich.

As Mike (WA8AHZ) said at the last meeting, the effort to bring folks
back to ham radio as a hobby, and to activity with clubs, has
challenges. If our club meetings have drama or unpleasantness, the
efforts he is seeking will not succeed.  People have better options
for Friday evening activities than drama or unpleasantness at a club
meeting.

As club elected leaders and other members of the club Leadership
Group, we are called upon by club membership for the betterment of
this club; and we should do that.

Over the next week, I will be working with Sean and Erik to secure a
tax preparer estimate for the November budget approval.

Thanks for your cooperation.

73

Don, KI4D
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