CBS/Paramount sues to stop Axanar
- Thread starter Richard Baker
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"I have built 5 companies, the last of which sold for $ 16M. So forgive me if I find the the nonsense here laughable."
"I have built 5 companies, the last of which sold for $ 16M. So forgive me if I find the the nonsense here laughable."
Really? PropWorx sold for 16M?
He should try publishing actual accurate fact, not endless, universe-spanning spin misdirection.
"I have built 5 companies, the last of which sold for $ 16M. So forgive me if I find the the nonsense here laughable."
So why crowdfund? Just make your movie bro.
"First of all, if you actually bothered to read the second Axanar Kickstarter, you would see that they SPECIFICALLY outlined what they would spend their money on."
And this in my opinion is where they really went off the tracks with donors. They made no effort to call out the unique nature of their choice to spend money on permanent material assets and salaries, or of CBS objections to same, over the entire course of that Kickstarter. From campaign start, to the contents of the 'campaign' page even today, the "Risks" section said the same thing:
"There are always risks and challenges when making a film - actors dropping out, locations and/or sets not available, unforeseen costs, equipment trouble, etc. In addition, "Star Trek" is a licensed property of CBS and so they have the final say in any Star Trek venture. However, the Axanar team has dealt with CBS and knows the landscape that must be navigated. Every member of the Axanar team is a professional who has proven their skills on other projects and films."
Certainly Axanar staff knew CBS was objecting to the project because of public statements of CBS while the "studio" Kickstarter was going on. Certainly Axanar staff knew that paying salaries and buying permanent for-profit assets was different from other fan films, and that Axanar's spin on "make no money" to mean "have no cash left" would present some additional risk with CBS over and above that faced by other fan films. But there is not a peep about this unusual exposure presented to the donors on Kickstarter, ever.
"And as has been clearly said many times, Axanar actualy PAYS people, because it is a professional production, and doesn't use volunteers for the daily labor (sure volunteers help out, but full tiem employees, are paid."
Exactly. It is a professional independent Star Trek feature film, not a fan film. Hence why they were singled out.
I know the famous "we object to commercial ventures trading off our property" line from CBS came during the Indiegogo campaign, but did they make a similar statement during the Kickstarter? Can you point me to it? Thanks!
Doing some research regarding Axanar's proclaimed intention to become a 501(c)(3) nonprofit organization, I realized that the IRS scrutiny they would fall under becomes significantly smaller if they are able to pass themselves off as a very small nonprofit organization.
As far as I know, the IRS does not conduct an audit of the books of applicants for tax-exempt non-profit status. They review the materials submitted in the application then issue a temporary decision, often retroactive, pending filing of a Form 990, an informational tax form most tax-exempt organizations must file each year giving the IRS an overview of the organization's activities, governance and detailed financial information.
Form 990 also includes a section for the organization to outline its accomplishments in the previous year to justify maintaining its tax-exempt status. In collecting this information, the IRS wants to ensure that organizations continue to qualify for tax exemption after the status is granted. If the 990 raises any red flags, then the IRS may do a full audit.
But note: Tax-exempt organizations with gross receipts less than $200,000 or assets worth less than $500,000 don't have to file Form 990. Instead, they would file the the Form 990-EZ — the "short form" of the 990 — or even the Form 990-N, filed by organizations with gross receipts of $50,000 or less. These forms require far less stringent reporting. The 990-N is so short it is done online and nicknamed the "e-postcard."
Once Axanar Productions divests itself of Ares Studios, the value of its assets go down considerably, meaning that it may qualify for the relatively low level of scrutiny from the less detailed reports required by the IRS.
As far as I know, the IRS does not conduct an audit of the books of applicants for tax-exempt non-profit status. They review the materials submitted in the application then issue a temporary decision, often retroactive, pending filing of a Form 990, an informational tax form most tax-exempt organizations must file each year giving the IRS an overview of the organization's activities, governance and detailed financial information.
Form 990 also includes a section for the organization to outline its accomplishments in the previous year to justify maintaining its tax-exempt status. In collecting this information, the IRS wants to ensure that organizations continue to qualify for tax exemption after the status is granted. If the 990 raises any red flags, then the IRS may do a full audit.
But note: Tax-exempt organizations with gross receipts less than $200,000 or assets worth less than $500,000 don't have to file Form 990. Instead, they would file the the Form 990-EZ — the "short form" of the 990 — or even the Form 990-N, filed by organizations with gross receipts of $50,000 or less. These forms require far less stringent reporting. The 990-N is so short it is done online and nicknamed the "e-postcard."
Once Axanar Productions divests itself of Ares Studios, the value of its assets go down considerably, meaning that it may qualify for the relatively low level of scrutiny from the less detailed reports required by the IRS.
What if they are reported the IRS as a scam?'
Is a space you rent considered an asset?
Improvements performed on a leased property, such as additions, alterations, remodeling, or renovations.
For accounting purposes, all leasehold improvements are capitalized (recorded as an asset with a corresponding liability) and amortized over the remaining life of the lease term or the life of the improvement (whichever is shorter). Upon termination of the lease, such improvements normally become the property of the owner (lessor) without any cost or obligation.
— (Source: Business Dictionary)
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Then someone would be using this helpful form.
https://www.irs.gov/Individuals/How-Do-You-Report-Suspected-Tax-Fraud-Activity?
The Best person to talk to or people are the Continues lot theyll be able to tell you exactly what Axa will ave to do like they did.
It's really a pretty straightforward process. I'll probably do a flow chart and checklist of it for Axanar.
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