My friend Cheryl forwarded this article to me:
ACORN Goes for Broke
By Matthew Vadum on 11.16.09 @ 6:08AM
As its financial resources dwindle, radical advocacy group and organized crime syndicate ACORN may have to file for bankruptcy protection before Christmas, ACORN insiders say.
“They may have to file for bankruptcy if they don’t have several big pending grants approved or get emergency loans,” a highly placed ACORN source told me over the weekend. This information bolsters Rep. Darrell Issa’s (R-Calif.) claim last week that ACORN is in turmoil amidst internal power struggles and on the verge of bankruptcy.
Given that ACORN is a network of hundreds of affiliated nonprofits, it’s not exactly clear how a bankruptcy filing would work, but the idea is under serious consideration by ACORN’s leadership. It was discussed at length at the group’s most recent national board meeting, which took place in the suburbs of Washington, D.C., during the Oct. 14-15 weekend, ACORN sources told me.
But even if ACORN were to go bankrupt, that doesn’t mean it would disappear.
Much more at the link. Now, I’m certain that some of our friends on the left will say that this is all a result of us evil reich-wingers attacking this good, community service organization. And ACORN is trying the novel approach of suing in federal court, claiming that the Congress withdrawing federal funding recently, after ACORN workers were caught trying to give assistance to a couple who claimed to want help to set up a brothel, constitutes a Bill of Attainder. Of course, there’s a big difference between a real Bill of Attainder, a legislative act determining that someone is guilty of a crime, and withdrawing funding, but, in the whacky world of the federal courthouse, who knows, they might gain some traction.
But there’s more information in the American Spectator article, information which should give our friends on the left pause:
As of Nov. 11, ACORN and its affiliates owed at least $2,328,596 in long overdue back taxes to all levels of government. Many of the tax liens, which are only issued by creditor tax agencies after a tax debt has become seriously delinquent, do not appear in the Nexis database, so the actual total may be much higher. ACORN has been negotiating with tax collectors to have interest on its tax debts waived and to have some of the debts partially forgiven.
The new tax lien data throw new light on why ACORN can’t sell its former headquarters at 1024 Elysian Fields Ave. in New Orleans. French Quarter Realty is asking $835,000 for the property, which is now weighed down by a whopping $1,278,862 in tax liens.
Of that nearly $1.3 million, $619,271 is owed to the IRS. It’s unclear why the Obama administration’s tax enforcers haven’t seized the property yet. Perhaps the president is extending a courtesy to his former employer.
ACORN’s federal funds have been cut off for a few months now, but you don’t get $1,278,862 in tax debt on a building valued at less than that in a few months. About half of that is owed to the Infernal Revenue Service, and a good chunk of that might be unpaid payroll taxes, taxes supposedly withheld from employees checks, or ACORN’s OASDI and Medicare matching taxes, which were not remitted to the government.
Not paying your taxes is considered serious stuff by the federal government.
One thing is clear, however: ACORN’s tax troubles have been going on for a lot longer than the two months since the stink that got their funds cut off. The Senate voted, 83-7, to cut off federal funds for ACORN on September 14, 2009, and the House of Representatives voted to do the same, 345-75, three days later. Today is November 16th; the funding cut-off was slightly less than two months ago; you don’t get into this kind of tax trouble, including tax liens, in two months.
Some people might just suspect that ACORN was not a wholly honest group all along.