Tag Archives: tax

QUESTIONS AND WEBS OF SUBTERFUGE

The iaedp Annual Symposium is about four weeks away. All the while, iaedp finds itself in an expanding web of trouble, legal issues, and membership rebellion. And learning the hard way that subterfuge and non-transparency is a pathway to failure.

Dark, lightning-laced storm clouds on the horizon evince a tempestuous future which may very well spell doom for iaedp, the certification process and Bonnie Harken. And not because of the lawsuit.

Alarming issues have been raised regarding iaedp and Bonnie Harken. One can’t help but wonder whether iaedp members and corporate chapters are receiving direct, honest answers to questions which should be asked. Or instead, are they receiving subterfuge in the guise of finger pointing and failed attempts to blame the messenger in a vainglorious attempt to play the misdirection game, the shell game … the con game?

With the belief that iaedp members and chapters may not be receiving direct answers about questions and issues regarding iaedp, let’s attempt to address them here. Let us put out those questions in an open, free forum. Then, it will be up to iaedp members and chapters to demand open, transparent, honest answers … if that is what they choose.

Petition

The online petition calling for the resignation of Ms. Harken is only two (2) months old.  And yet, it already has 258 signatures!

258 persons who demand to see the eating disorder field improve and evolve.

258 people who believe that iaedp is not serving this mission.

For those interested in this petition, some of your questions may be:

Q:       Ms. Harken, have you met with the people who started the petition, respectfully listened to their concerns, and then brought these concerns to the iaedp Board of Directors?  If not, why not?

Q:       At the upcoming Annual Symposium, will you commit to having an open forum about this petition and iaedp in general and open that forum to all interested persons? Again, if not, why not?

Q:       What do you plan to do about the very alarming issues raised in the Petition?

Corporate Chapters

We know at least six (6) chapters who wish to dissolve/disband. They are Baltimore, St. Louis, Phoenix, Denver, Los Angeles and Central Coast. The reasons given by the Baltimore chapter are very alarming.

For those interested in this topic, some of your questions may be:

Q:       Why aren’t iaedp and its Board of Directors concerned about chapters closing and what are iaedp and its Board doing to talk to those chapters trying to keep them in the fold?

Q:       Is it true that Ms. Harken is intentionally dragging her feet and not dissolving those chapters hoping she can find other people in that area who will agree to take over those chapters?

Q:       Is it true that the iaedp national Board of Directors supports that conduct? What discussion was had about that topic? [And be very careful … there may be documents which prove the facts in that question.]

Q:       Is it true that Ms. Harken is demanding that any money left over in those dissolving chapters be paid over to iaedp national? That even though those funds were raised by local people from people in their community who intended their donations to be used in the local community, Ms. Harken is making demand for those amounts? [And be very careful … there may be documents which prove the facts in that question.]

But those are not the only issues surrounding the corporate chapters. According to the Illinois Secretary of State website, the following thirteen (13) chapter are listed as being, “Not in Good Standing:”

Alabama

Baltimore

Central Coast

Denver

Greater Philadelphia

Hawaii

Lubbock

New Haven

Orange County

San Diego

South Florida

St. Louis

West Philadelphia

Additional questions may be:

Q:       Ms. Harken had the duty to maintain the records for those chapters. How could she let so many chapters go into the status of being “Not in Good Standing.”

Q:       When a chapter is listed as not being in good standing, what does that mean in terms of the ability to raise funds … and possible liability?

Ms. Harken’s Employment Status with iaedp

Ms. Harken has been adamant that she, and/or her dissolved (since 2016) corporation, Crossroads Programs, have always been “independent contractors” of iaedp. Her reasons for this flight of fantasy are obvious.

When workers are classified as independent contractors, organizations avoid paying the benefits that most employees are entitled to such as health insurance, paid time off, and the employer’s side of payroll taxes. In some instances, employers deliberately misclassify employees to avoid paying those employee benefits and taxes.

When an employee is misclassified, federal and local government lose out on tax and payroll revenue. Employers may be responsible for paying state and federal payroll taxes as well as Social Security and Medicare taxes for all employees found to be classified incorrectly. Penalties can also be imposed for failing to timely deposit payroll taxes.

If the IRS believes an organization has intentionally misclassified workers, there is also the possibility of criminal and civil penalties and sanctions. Additional penalties and fines can be applied depending on the severity of the misclassification.

So, what is an independent contractor? In essence, you hire independent contractors for very specific jobs. A plumber. An electrician. Your bookkeeper. Your accountant. Your attorney. Your PR person.

But the only person who oversees all aspects of your organization’s operations, including financial matters? The only person on a full-time basis? That person is clearly an employee.

Regarding Ms. Harken and iaedp, she recently filed an affidavit in federal court in Dallas, Texas. In this affidavit, Ms. Harken admitted the following:

  1. She is “very actively involved in the iaedp, particularly with regard to its annual symposium”;
  2. “My duties have included, among other things …”
  3. “to lead the organizations according to the decisions made and strategies developed with the board of directors” [not BY the board of directors];
  4. “protect and grow the organization’s financial health”;
  5. “plan for upcoming initiatives and leadership of the initiatives”;
  6. “mentor new leadership”;
  7. “create policies that ensure new strategies align with the organization’s mission are put into action.”

In that affidavit, Ms. Harken also admitted that she supervises people under her, that “she operates iaedp from my home in Pekin, Illinois;” that she has custody and control over all physical and electronic records of iaedp.

We also know she is not only on the Board of Directors of iaedp national but is Chairman of the Board of Directors for all corporate chapters.

This overwhelming Mt. Everest sized stack of evidence establishes one inescapable conclusion … Ms. Harken is more a Dictator than an independent contractor.

I am confident the IRS, the Department of Labor and the California Franchise Tax Board will agree.  And those three (3) agencies have now been informed of the iaedp situation and evidence forwarded to them.

As such, the questions which could be asked of Ms. Harken could include:

Q:       From 2017 – 2021, why did you falsely state that Crossroad Programs, Inc. was an active corporation on iaedp’s Form 990 tax filings and that iaedp had a contractual relationship with this non-existent entity?

Q:       Couldn’t that be tax fraud?

Q:       Do you plan to plead the Fifth Amendment to any questions asked about your leadership of iaedp?

Q:       Despite the overwhelming amount of evidence, why do you still believe you are an independent contractor?

Q:       If any of those agencies find back taxes, interest and penalties are due, how will iaedp pay those?

Q:       Have you asked for, or received any legal opinions evidencing that you are NOT an independent contractor? If so, why did you ignore them?

Q:       Do you understand that if iaedp financially collapses because of your malfeasance, the certification process could also collapse and that could result in families being hurt?

Final Questions

Lawsuits are filed for different reasons. Uncovering the fundamental truth ranks at the top of the list.

They can also be filed to uncover evidence, evidence that state and federal agencies can utilize to prosecute administrative actions and lawsuits against people and organizations who run afoul of the law.

Evidence like … sworn affidavits. Affidavits which contain crucial information. Information which can be utilized in administrative actions against those people.

Perhaps a few final questions should be …

Q:       How has it come to this?

Q:       How did an entire community fail to come together and replace so called leadership who demonstrates the qualities of narcissism, ego and avarice?

For those who have shown the courage to stand up and be counted, you inspire us all. You dared to be mighty. You are facing slings and arrows but you know, you absolutely know, that through your deeds, you are making a positive difference. You are in the arena. You are the light of hope in a dark room.

And finally, one last question I have …

Q:       For those treatment providers who refuse to ask those questions of iaedp and Ms. Harken, for those treatment providers who have no interest in discovering the truth, for those treatment providers who stand on naïve, blind loyalty instead of pushing for the truth, for those treatment providers who do not dedicate themselves to improving the care and treatment of eating disorders but instead, choose to bury their heads in the sand …

Why should any family trust you to care for their beloved children?

Obstacles, Self-Awareness and our Humanity

When people, organizations, and yes, even nations have strong disagreements, it seems to be human nature to focus on the need to be right. We look at existing problems myopically. It has become ingrained that we must be correct. We listen to reply … not to learn. And somewhere along the way, we lose our humanity.

Our humanity.

The essence of who we are, who we complex, yet fragile people are, becomes secondary if not lost altogether.

Our humanity.

This reality was recently brought home in an unexpected way. While on vacation, I was bobbing around in the Atlantic Ocean on the eastern most island in the Caribbean. I got this feeling of being a speck really, at the mercy of a force far greater than me. The ocean, its deep mysteries, its majestic nature, its unique characteristics, was made manifest as wave after wave pressed its might against me. Unstoppable. Unrelenting. I was in the presence of an overwhelming force, filled with its own living organisms and truth be told, I was helpless and at its mercy.

One individual. One human. Overwhelmed by the reality that the forces around me could take a life, any life, my life, without hesitation or delay. There was no humanity that I could see.

And yet, it is humanity about which we must be keenly aware. Especially in times of conflict, strife and crisis.

By now, most people know or have heard about the lawsuit involving Bonnie Harken, iaedp and the three (3) directors overseeing all of the corporate chapters. People may know the lawsuit alleges and illegal tying agreement involving certification and iaedp membership and mandatory attendance at iaedp’s symposium. This by itself would be a large obstacle.

But that is not the only huge obstacle being faced.  Complaints have also been directed against iaedp regarding BIPOC membership and lack of BIPOC leadership. The petition involving those topics (and certification) and calling for Ms. Harken’s resignation, is now up to 208 signatures. This number is incredibly significant when considering the size of the eating disorder community.

Then there is the issue pertaining to the demands for dissolution from iaedp corporate chapters. Baltimore. New Haven. St. Louis. Denver. Central Coast. Baltimore. Phoenix. All wishing to disassociate from the national chapter.

Any person facing these significant obstacles alone would surely question their own motivations and conduct. Your membership and chapters demanding disassociation and your resignation. The heartache knowing that an organization for whom you toiled for 22 years no longer wants you is shattering to the ego of any person.

And now, the stakes have escalated and exposure is far greater. With this added reality, the pressure must be nearly inconceivable. These added stakes now include complaints and requests for investigation being made to:

The Internal Revenue Service

The U.S. Department of Labor

The California Franchise Tax Board

California Senator Dan Cortese

The same Senator Cortese, the Chair of California’s Senate Labor, Public Employment and Retirement Committee who stated, “An independent contractor is a specific designation for self-employed people or businesses engaged in contract work. It’s not a gimmick for organizations to avoid paying for employee healthcare and other benefits or reducing their tax liability. Any company found breaking the law will be brought to justice, and they would certainly have no business advising other companies on labor law.”

If my reading of the law and its interpretation is correct, the tax issues facing not just Bonnie Harken and iaedp, but iaedp’s national board of directors could be momentous.  And result in draconian measures against one and all.

Ms. Harken believed she could run all operations of iaedp and remain outside the purview of state and federal administrative agencies. Most tax-exempt organizations, such as iaedp, are required to withhold and pay federal income tax with respect to wages of their employees in the same manner as for-profit organizations. These organizations are also required to withhold and pay these taxes, also known as Federal Insurance Contributions Act taxes, in the same manner as for-profit organizations.

California requires employers to withhold state income tax from wages paid to employees. There are also three other state payroll taxes.

Presumably, Ms. Harken believed she could get avoid these taxes by classifying herself as an independent contractor and utilizing her dissolved corporation as a “go between” entity.  If she is wrong, the consequences for not just her but iaedp’s board of directors could be financially, mentally, and emotionally catastrophic.

With all of these issues, I cannot begin to fathom the pain, the fear, the uncertainty, the anguish experienced every day by a person facing those insurmountable objects. As the twilight of our existence on this plain overtakes us, most of us hope to be able to look back upon a life well lived and filled with happiness, purpose and love. To be thrust into numerous battles against state and federal agencies would test the resolve and strength of any person. In the twilight of our life and career though? Devastation.

We are all but specks of living tissue. Fragile bodies. Throughout our lives, we face forces so much greater than us. What we are left with as we fight our on-going and dying battles is our humanity.

Humanity.

And grace that must be extended to those in such pain. For in extending grace, we embrace our own humanity. Accountability? Yes, absolutely. But that should never color or diminish extending grace and embracing our humanity.

And the humanity of others.