Two Democratic congressmen have asked the Internal Revenue Service to investigate whether affirmative action foe Ward Connerly’s pay violates federal tax laws on excessive compensation.
Connerly receives more than $1 million a year from two Sacramento-based nonprofit groups he heads — the American Civil Rights Institute and the American Civil Rights Coalition.
“This compensation package … raises more than a red flag,” says Rep. John Conyers Jr. of Michigan. “IRS rules could not be clearer that a nonprofit’s purpose is not to pad the pockets of its executives.”
Connerly says the request by Conyers and Rep. Charles Rangel, D-N.Y., was a response to his support for a November ballot measure in Michigan that would ban some affirmative action programs.
“This is so transparently political as to be laughable,” Connerly says. “There can be no doubt that this ‘complaint’ is intended to influence the outcome” of the vote.
The lawmakers’ complaint is based on a section of the tax code that prohibits use of nonprofit organizations’ funds to unduly enrich their employees.
Connerly says his pay package was reviewed by his accountants and was “fully reported to the Internal Revenue Service in accordance with all applicable regulations.”
— Associated Press
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