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NRA says it is aware of a 'significant diversion of its assets'

2020-11-27T20:50:06.137Z


The National Rifle Association says in a tax return that it noticed a "significant diversion" of its assets.


In this Feb. 24, 2017 file photo, Wayne LaPierre, executive vice president of the National Rifle Association, speaks at the Conservative Political Action Conference.

(CNN) -

The National Rifle Association (NRA) says in a tax return that it realized a "significant diversion" of its assets in 2019 and prior years, and that its current president has paid nearly $ 300,000 plus interest on spending funds, according to the documents.

CNN obtained the 990 tax return from the NRA, which is intended for organizations that are exempt from income tax, in which the organization states that it "has identified what it believes are excess profit transactions in which it engaged in 2019 and in previous calendar years of which you became aware but not reported on your previous 990 forms ».

"The National Rifle Association learned during 2019 of a significant diversion of its assets during 2019 and prior calendar years," the document states.

The Washington Post and The Trace reported the story early Wednesday.

Charles Cotton, First Vice President of the NRA and Chairman of the Audit Committee, commented on the 990's presentation to CNN in a statement.

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"As your tax return demonstrates, the NRA is committed to strict adherence to its accounting controls and good governance practices," Cotton said in the statement.

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The form names eight current and former NRA executives who it believes received "excess benefits," including its current executive vice president and chief executive officer, Wayne LaPierre.

Much of the disputed expenses involve travel and personal expenses, and the NRA states in the filing that it is reviewing whether board members' may have used first or business class travel without the authorization required by the travel policy of the NRA '.

The filing states that the NRA estimates it paid nearly $ 300,000 in travel expenses on LaPierre's behalf between 2015 and 2019.

"The NRA has determined to treat the payments as automatic excess benefits under section 53.4959-4 (C) of the Treasury Regulations," the document states.

"Mr. LaPierre has reimbursed this excess benefit to the National Rifle Association, plus interest, and therefore the excess benefit has been corrected."

Andrew Arulanandam, managing director of Public Affairs for the NRA and a spokesman for LaPierre, said in a statement to CNN that the vast majority of LaPierre's trips were made in "strict compliance with the NRA's policy, which reimburses travel only for promote the interests of the NRA and its members. "

"To the extent that there were doubts about certain travel costs, Mr. LaPierre reimbursed the NRA," Arulanandam said in the statement.

These transactions are fully disclosed on the 2019 tax return, in accordance with all regulations.

The Association's finances are audited, it complies with all applicable regulations and the Board has an independent Audit Committee.

The filing states that there are other transactions from 2019 and other years that are "still under review" and that are currently part of four different lawsuits.

One of those lawsuits, filed in August by New York State Attorney General Letitia James, seeks to dissolve the NRA, alleging that her top leadership violated laws governing nonprofits and used millions of the NRA's reserves. the organization for personal use and tax fraud.

In a statement to CNN, James claimed that LaPierre's reimbursement shows that the NRA "was not controlled" under his leadership.

"For years, Wayne LaPierre and his lieutenants circumvented the law and pocketed millions from the NRA's coffers to fund lavish lifestyles that included private jets, expensive vacations, expensive meals and no-show contracts," James said in the statement. .

“Mr. LaPierre's reimbursement of only a fraction of the millions that he personally benefited indicates how the NRA was not controlled under his leadership.

There is no doubt that the decomposition is deep, so our demand will continue.

We will not stop fighting until justice is done.

William Brewer, an attorney for the NRA, told CNN in a statement: "The NRA's presentation underscores the Association's commitment to good governance and transparency."

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"Includes disclosures for 2019, all items that were addressed long before NYAG filed its case," he stated.

"The NRA acted decisively and thoroughly in its self-assessment, and voluntarily took necessary action long before it became part of a politically motivated lawsuit."

At the time of James' lawsuit, LaPierre said in a statement that the investigation is "a premeditated and unconstitutional attack with the goal of dismantling and destroying the NRA."

The NRA countersuit in federal court.

Both trials are still pending.

The 2019 tax return also states that the NRA operated with a deficit of $ 12.2 million in 2019, according to the statement.

When CNN asked the Internal Revenue Service (IRS) to comment on whether the NRA could face penalties for the "excess benefit transactions" noted in the filing, spokesman Raphael Tulino told CNN in a They reported that “Federal law prohibits the IRS from confirming or denying any correspondence with taxpayers.

The IRS also does not comment on specific taxpayers or cases.

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Source: cnnespanol

All news articles on 2020-11-27

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