Since 1993, Chesapeake's Founders Well Participation Program (FWPP) has allowed McClendon a 2.5% stake in the company's wells. McClendon collateralized these stakes for loans. When reports first surfaced, the media reported that Chesapeake's Board had full disclosure of these facts. Some board members have recently called this disclosure into question.
There was already an on-going audit of Chesapeake's 2007, 2008 and 2009 tax returns. Big surprise, the IRS has now found a way to bootstrap more snooping with this audit. It's difficult to fathom what could be wrong (from a tax perspective) with these transactions. It's not difficult to fathom that the IRS is swooping in anyway to much fanfare.
If you or your company are being audited by the IRS, don't wait. Call a local, licensed lawyer to protect your interests. Oklahoma City attorney, Travis Watkins, works against the IRS' auditors and revenue officers on a daily basis. It's what we do, and our clients never meet with the IRS. Travis Watkins can be reached at 405-607-1192.