In the absence of business records, Tax Commission auditors apparently built their tax case around the statements made on the MySpace site, one of several Internet social networking sites the students used to promote their parties, Baroi said.
The former students said they were just having fun. Embellishing on social networking sites by college students is pretty much the norm, they said.
“People thought we were a lot bigger status than we were and we enjoyed people thinking that,” Glover said.
They just don't enjoy tax officials thinking that.
Documents given to the students by tax officials indicate auditors concluded Kegheadz hosted 108 events over a 4.5-year period and that their average paid attendance was 675.
Auditors estimated they had $919,506 in mixed beverage sales, from which they would owe $162,832 in mixed beverage tax, penalties and interest.
The Tax Commission also is trying to assess them $155,294 for sales tax, penalties and interest and $1,856 for tourism tax, penalties and interest.
Baroi said none of that makes any sense.
Kegheadz never received any money from mixed beverage sales, he said. That revenue went to venue operators.
The group only held 22 parties and never had close to 675 people attend any of them, Baroi said. That's counting women, who got in free, he said.
Baroi said Kegheadz stopped hosting parties after some of their later ones lost money.
An April 2007 party planned for the Oklahoma City Farmers Market turned into a disaster when the disc jockey couldn't get the sound system to work, and a November 2006 party at Midsouth Pro Wrestling went south when it was raided by the state Alcoholic Beverage Laws Enforcement Commission and Oklahoma City police, Baroi said.
Businessman Mike Crawford, 38, said all he did was sublease the Midsouth Pro Wrestling building to Kegheadz three times and now the Tax Commission is claiming he was part of Kegheadz and should share in the disputed $320,000 tax liability.
Baroi said Kegheadz was originally scheduled to argue its tax case Sept. 24, but has been given a delay until the last week in October.
“I think common sense will prevail,” Glover said. “But if there's any attorney out there who remembers what it was like in college and wants to give us some free help, we could sure use it.”
Glynda Chu, spokeswoman for the Edmond Police Department, said she didn't specifically remember Kegheadz, but college parties like the ones they hosted used to be a problem in Edmond because they often involved underage drinking. The parties dried up after Edmond adopted a social host ordinance and began arresting adults at parties where underage drinking was found, she said.
Letter from Oklahoma Tax Commission