Sharpton's Organization Faces Tax Problems
The Washington Post reports:
The Rev. Al Sharpton's civil rights organization, the National Action Network, said Tuesday that it is putting its deep financial difficulties behind it.
The statement came in response to a news report providing more details about the organization's shaky financial footing at the end of 2008. Tax records show it was constantly in debt and owed nearly $2 million in back taxes.
Those liabilities are being settled, said Rachel Noerdlinger, Sharpton's spokeswoman.
"The organization's tax liabilities were reduced in 2009 by over 50 percent and will be probably reduced to zero by the end of the calendar year 2010," Noerdlinger said. "In fact, Rev. Sharpton himself has loaned a lot of resources to the organization to lead the way toward its present health."
Noerdlinger's comments came in response to an article in the New York Post that quotes a critical audit by the firm KBL of National Action Network's 2008 financial status. Auditors found that the organization had "suffered recurring decreases in net assets" and "been dependent upon advances from related parties and the nonpayment of payroll tax obligations to maintain continuity."
The organization also released a letter from KBL on Tuesday saying that since 2008 there have "been significant improvements in their financial reporting and record keeping" and that National Action Network put payroll company ADP in place to keep it current on payroll taxes.
An IRS spokesman declined comment.
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