• Get involved.
    We want your input!
    Apply for Membership and join the conversations about everything related to broadcasting.

    After we receive your registration, a moderator will review it. After your registration is approved, you will be permitted to post.
    If you use a disposable or false email address, your registration will be rejected.

    After your membership is approved, please take a minute to tell us a little bit about yourself.
    https://www.radiodiscussions.com/forums/introduce-yourself.1088/

    Thanks in advance and have fun!
    RadioDiscussions Administrators

Question: When the IRS seizes a radio station....

5

590buddy

Guest
Question: When the IRS seizes a business/ radio station and comes in and puts a padlock on the door, they seize the physical assets. Does/ can the IRS seize the license also and resell it??? If so, how does it get sold, sealed bid????

Thanks

590buddy ???
 
auction - usually on the courthouse steps (depending on fed/state laws)
 
Thanks Beave...will they auction the license also or will the FCC take it back???

Thanks for the help in advance!!!

590buddy ;D
 
This situ. had happened at a station I worked for back some 10 yrs ago...If I'm still correct the whole deal goes to the highest bidder.. BUT... the winning bidder must show that they CAN afford to operate the station for a period of 3 or more years. (similar to the process of purchasing / licensing any other operating station.)

If a buyer cannot operate the station/group they must satisfy the lein before that bidder will receive any property. The license will be re-issued when it gets sold to an entity who can satisfy the operations costs requirement.
 
Greetings from the Northern New England board. Interesting scenario you've got going there. Personally, I think if the IRS were to seize a station they should be forced to run it themselves.

Come to think of it, IRS field agents telling horror stories about investigating the Mob or throwing old ladies out of their homes at Christmas time would make for some pretty compelling programming. A lot more interesting than the battle of the Classic Rock/Hits crap we have to endure here in Greater Portland.

Peace out! ;D
 
590buddy said:
Thanks Beave...will they auction the license also or will the FCC take it back???
Click to expand...

Can't say I hear about this happening very often, but what I believe would happen:

- The FCC won't do anything just because the IRS seized the station.

- *Someone* will have to put the station back on the air within a year, or the license will be cancelled. (Congress has ordered the FCC to do so)

- The station will continue to be licensed to the original owner.

- Presumably once the IRS sells the seized physical assets, the new owners will ask the FCC for an "involuntary assignment of license". Assuming the new owners don't have any problems on their record this will presumably be granted.
 
Thanks for all the info; this gives us a direction to go.....


warm590/ 590buddy ;D
 
You might also track down some stations that became involved in bankruptcy. A lot of the mechanisms may be parallel. If the IRS seizes a station, and it is incorporated, they may have siezed anything that belongs to the corporation: station, cars, airplanes, land, accounts receivable, equipment.

If the owner of the corportion is one or two people, each of these people may be thrown in bankruptcy and there is a court appointed administrator who disposes of the assets on behalf of the creditors.

You may have noticed that some stations in North Carolina are being transferred to a new owner upon the authority of the trustee of the bankruptcy. An application was recently filed with the FCC to approve the transfer.

The new owners had to satisfy the trustee that they would come up with the money, and now the new owners must satisfy the FCC that they will be worthy broadcasters.
 
Status
This thread has been closed due to inactivity. You can create a new thread to discuss this topic.


Back
Top Bottom