Pryor Cashman's Nonprofit + Tax-Exempt Organizations Group co-chair Daniel Kurtz recently discussed an ongoing tax investigation into CORE Services Group, a nonprofit shelter organization based in New York City. A New York Post investigation revealed significant discrepancies in CORE's tax returns and other related filings. According to the Post:
What I've seen is that there are lots of flags in these filings, and there may be a perfectly good explanation, but somebody ought to be looking at this," said Daniel Kurtz, the former head of the state attorney general's Charities Bureau.
"There are too many transactions where there are more questions than answers," he added.
For instance, on one part of CORE's annual filings with the IRS, the organization certifies that its board is provided with copies of its tax returns before they are submitted to the feds, Kurtz said. But buried in a disclosure toward the end of the document, CORE clarifies that its "president" — Brown — "reviews [tax return] before it is filed."
"They tick the box saying the board is checking the tax returns before they are filed, but further back they acknowledge that it's the president [Jack Brown] doing the review," Kurtz said. "You can't have the president reviewing his own conflicts of interest — and both statements can't be true."
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