Saturday, November 1, 2008

IRS Approves Exemption of Charity Tied to Union Probe

The Los Angeles Times reports that a union-created charity caught up in an investigation of alleged financial improprieties involving local Service Employees International Union chapters has received retroactive recognition of its tax-exempt, charitable status from the IRS.  We previously blogged about the investigation into whether Tyrone Freeman, the President of the SEIU United Long-Term Care Workers local in L.A., was involved in allegedly improper payments from the charity, identified in today's article as the Long Term Care Housing Corporation.  Today's article also identifies the specific allegations leveled by the SEIU against Mr. Freeman, which involve improper payments from the charity to him of $2,400 per month for six months in 2008, plus a lump sum payment of $14,500.  It is unclear whether the charity ever informed the IRS about the SEIU accusations.  According to the charity's attorney, the organization had applied for IRS recognition of its charitable status in 2004 but IRS approval had been delayed until now because of an IRS request for more information.


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