Three House Republicans have asked the Internal Revenue Service to review and determine whether the AARP should continue to hold its tax-exempt status.
Lawmakers ask IRS to review AARP tax status
The request comes from Reps. Charles Boustany (R-La.), chairman of the House Ways and Means Oversight Subcommittee; Wally Herger (R-Calif.), chairman of the Committee's Health Subcomittee; and Dave Reichert (R-Wash.). It follows the release of their recent congressional report—Behind the Veil: The AARP America Doesn't Know—that questions AARP's tax status and suggests the seniors' organization could make up to $1 billion over the next decade as a result of the Patient Protection and Affordable Care Act.
“Despite AARP's continued refusal to respond to reasonable requests for information, including any details about the AARP insurance plan that processed $6.8 billion in insurance premiums in 2009, we proceeded with the inquiry using publicly available documents,” the congressmen wrote in their letter. The lawmakers asked the IRS to review information about a range of issues, including whether the operational activities of AARP are primarily motivated by political or profit interests; whether it is appropriate to characterize the revenue AARP generates from insurance products as royalty income that is exempt from unrelated business income tax; and the reasonableness of AARP executive compensation.
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