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CNN has obtained the 990 Income Tax Return from the NRA, which is intended for organizations that are exempt from income tax, in which the organization states that it “has identified what it believes to be benefit transactions excess amounts it committed to in 2019 and previous calendar years that it became aware of but was not reported on its earlier 990 forms. ”
“The National Rifle Association became aware in 2019 of a significant misappropriation of its assets in 2019 and in previous calendar years,” the filing said.
Charles Cotton, senior vice president of the NRA and chairman of the audit committee, commented on the 990 filing with CNN in a statement.
“As demonstrated by its tax record, the NRA is committed to strictly adhering to its accounting controls and good governance practices,” Cotton said in the statement.
The form names eight current and former NRA executives who it says have received “excess benefits,” including its current executive vice president and CEO, Wayne LaPierre. Much of the disputed expenses involve travel and personal expenses, and the NRA says in the filing that it is examining whether board members “may have used first class or business class travel without l authorization required under NRA travel policy. ”
The file indicates that the NRA estimates it paid nearly $ 300,000 in travel expenses on behalf of LaPierre between 2015 and 2019.
“The NRA has decided to treat the payments as automatic excess benefits under Article 53.4959-4 (C) of the Treasury regulations,” the filing said. “Mr. LaPierre repaid this excess benefit to the National Rifle Association, plus interest, and therefore the excess benefit has been corrected.”
Andrew Arulanandam, chief public affairs officer for the NRA and spokesperson for LaPierre, said in a statement to CNN that the vast majority of LaPierre’s trips were made in strict compliance with the NRA policy, which reimburses travel only to advance the interests of the NRA and its members. “
“To the extent that there were questions about certain travel expenses, Mr. LaPierre reimbursed the NRA,” Arulanandam said in the statement. “These transactions are fully disclosed in the 2019 Tax File, in accordance with all regulations. The Association’s finances are audited, they comply with all applicable regulations, and the Board has an Independent Audit Committee.”
The record indicates that there are other transactions from 2019 and other years that are “still under review” and are currently part of four different lawsuits.
In a statement to CNN, James said LaPierre’s repayment shows that the NRA “was not vetted” under his leadership.
“For years, Wayne LaPierre and his lieutenants have sidestepped the law and pocketed millions from NRA coffers to fund lavish lifestyles that included private jets, expensive vacations, expensive meals and no-show deals. “James said in the statement. “Mr. LaPierre’s repayment of just a fraction of the millions he personally benefited from indicates how the NRA has remained out of control under his leadership. There is no doubt that the rot is deep, which is why our lawsuit will continue. justice is served. “
At the time of James’ prosecution, LaPierre said in a statement that the investigation was “an unconstitutional and premeditated attack aimed at dismantling and destroying the NRA.” The NRA counterattacked in federal court. Both lawsuits are still ongoing.
The 2019 tax return also states that the NRA operated with a deficit of $ 12.2 million in 2019, according to the statement.
When CNN asked the IRS to say whether the NRA could face penalties for the “excess benefits transactions” noted on the record, spokesman Raphael Tulino told CNN in a statement that “the law The federal government prohibits the IRS from confirming or denying any correspondence with taxpayers. The IRS also does not comment on specific taxpayers or cases. “
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