The IRS has filed paperwork with the courts detailing millions in unpaid taxes, penalties and interest
BK Racing has just been allowed to continue racing by the court system. They were under fire from a host of creditors who all-together represent nearly $10 million in debt for the team.
Ahead of the Daytona 500, they filed for Chapter 11 bankruptcy. Before that, banks requested the teams assets to be seized. The chapter 11 filing delayed that hearing until after the Daytona 500.
The 20th place finish in the Daytona 500 has brought a significant amount of funds to the team. The team earned $450,000 in Daytona. They then earned $92,000 for finishing last in Atlanta.
The judge approves. He has elected to allow the team to continue racing through the next 3 rounds of the Monster Energy NASCAR Cup Series. After that, he will be re-evaluating the receiver scenario.
The IRS has just submitted paperwork detailing the NASCAR team owes $2.53 million in unpaid taxes.
In total, they have unpaid taxes of $1.54 million according to ESPN. On top of that, the late payments and interest have begun to stack up. An additional $829K in penalties and $172K in interest bring the total due to the IRS to $2.53 million.
When a business shows no profits, they pay little in taxes. The majority of these unpaid taxes stem from a payroll tax.
BK Racing and Union Bank & Trust have been in an out of the court system for the last several months. The bank states that the NASCAR team owes them $8 million in unpaid loans.
In the course of that hearing process the teams losses have been details. From the 2014-2016 season, the team lost $28.5 million.
Several months ago, the team had several trailers seized as a result of unpaid taxes. The N.C. Department of Revenue collected 3 semi trucks, 4 haulers and a Corvette totaling $200k in assets.
The team is owned by Ron Devine.
Click here to view a detailed list of BK Racing debt amounts owed to various organizations within the NASCAR industry.
Related: Bank opens lawsuit, seeking charters