Did they expense the money spent on Proud Boy uniforms and flags? (is that what they are called?)

Um, we didn't file 1099's to protect our sources from white supremacists in the IRS. Yeah, that's what we did.

Not filing 1099s is not equivalent to tax fraud.

Could they have missed filing 1099s or reported the wrong amounts on W-2s? Sure. Is it tax fraud? No. A public charity is tax exempt, so they are only subject to certain excise and non-income taxes. If the recipients didn't report income because it wasn't included on a 1099 or W-2, the government could go after the recipient for that or they may make the case that SPLC didn't pay the correct payroll taxes because W-2s were short. With a lack of people at IRS, it makes the most sense to go after missing income for recipients since taxability is not dependent on whether you got a 1099 for something.

Gap said:

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Or did they 1099 or W-2 the people they paid in the KKK and other extremist groups? I'm not a big fan of people and groups thinking they can cheat the US Treasury if they feel like it.

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Cash is best for under the table payments, or so I am told.

In the future the KKK will work only on a tip basis.

doubledog said:

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Gap said:

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Or did they 1099 or W-2 the people they paid in the KKK and other extremist groups? I'm not a big fan of people and groups thinking they can cheat the US Treasury if they feel like it.

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Cash is best for under the table payments, or so I am told.

In the future the KKK will work only on a tip basis.

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I don't think tips are deductible in the "racist POS" industry.

Just getting ahead of the obvious question.

That sounds like a conspiracy if they issued them to other individuals in other situations correctly. The SPLC is a sophisticated entity not some mom and pop shop. And additionally being a non-profit has 0% to do with following or not following these laws, so you don't get to hide behind that.

https://www.sapling.com/12118647/nonprofit-organizations-issue-w2s-employees

Pinochet said:

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Not filing 1099s is not equivalent to tax fraud.

Could they have missed filing 1099s or reported the wrong amounts on W-2s? Sure. Is it tax fraud? No. A public charity is tax exempt, so they are only subject to certain excise and non-income taxes. If the recipients didn't report income because it wasn't included on a 1099 or W-2, the government could go after the recipient for that or they may make the case that SPLC didn't pay the correct payroll taxes because W-2s were short. With a lack of people at IRS, it makes the most sense to go after missing income for recipients since taxability is not dependent on whether you got a 1099 for something.

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There are penalties for not filing 1099s, even if you are a charity.

The point is that not filing the 1099s is more evidence that what they were doing was under the table.

The penalty is probably $680 per contractor per year, which is peanuts compared to the sizes of the payments, etc. But, it shows that these were being hidden under the table on purpose.

As for the individuals, if they didn't report the income, that is an expensive bill.

Class action lawsuit from defrauded donors ftw.

Pinochet said:

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Not filing 1099s is not equivalent to tax fraud.

Could they have missed filing 1099s or reported the wrong amounts on W-2s? Sure. Is it tax fraud? No. A public charity is tax exempt, so they are only subject to certain excise and non-income taxes. If the recipients didn't report income because it wasn't included on a 1099 or W-2, the government could go after the recipient for that or they may make the case that SPLC didn't pay the correct payroll taxes because W-2s were short. With a lack of people at IRS, it makes the most sense to go after missing income for recipients since taxability is not dependent on whether you got a 1099 for something.

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I disagree. Charities don't pay income taxes themselves but if they pay an employee or contractor they are subject to the same filing requirements and penalties

Fightin_Aggie said:

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Pinochet said:

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Not filing 1099s is not equivalent to tax fraud.

Could they have missed filing 1099s or reported the wrong amounts on W-2s? Sure. Is it tax fraud? No. A public charity is tax exempt, so they are only subject to certain excise and non-income taxes. If the recipients didn't report income because it wasn't included on a 1099 or W-2, the government could go after the recipient for that or they may make the case that SPLC didn't pay the correct payroll taxes because W-2s were short. With a lack of people at IRS, it makes the most sense to go after missing income for recipients since taxability is not dependent on whether you got a 1099 for something.

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I disagree. Charities don't pay income taxes themselves but if they pay an employee or contractor they are subject to the same filing requirements and penalties

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You can disagree but you'd be wrong. That's not tax fraud committed by not filing an information return. It may subject an entity to a 6721 penalty, but that's a different issue. The charity isn't avoiding any taxes by not filing an information return.

And charities do pay some income taxes. If you could articulate how they avoided those then maybe you would have a point, but I'm guessing you don't understand those taxes either.

Gap said:

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Or did they 1099 or W-2 the people they paid in the KKK and other extremist groups? I'm not a big fan of people and groups thinking they can cheat the US Treasury if they feel like it.

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They were paid in untraceable graybacks. Democrat party has stacks and stacks of those still layin' around.

Sid Farkas said:

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Class action lawsuit from defrauded donors ftw.

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Next time there is a protest on A&M campus and someone sets up a GoFundMe for bail money, I would love to see about 100 people donate $5 each. And then when no one goes to jail and the money vanishes, I would love someone like Ty Clevenger file a class action suit to find out where that money went.