Why is David Brock hiding money from the IRS?
While getting to the bottom of accounting hijinks in the world of nonprofits can be tricky, one watchdog group uncovered seemingly hard evidence of an effort by Media Matters for America to underreport over a million dollars in income.
Late last year, an organization called the Citizens Audit published a detailed account of exactly how Brock and Co. were able to allegedly sneak one past the Feds. It followed on the heels of a previous exposé revealing how 14 pro-Clinton groups were somehow using the same office space.
That address was known to the District of Columbia as home to only one organization: Media Matters for America.
Since 2010, it found Brock’s operation had failed to report $1,052,500 in sublet income paid by the other outfits.
In 2014, for example, it discovered a discrepancy in what it claimed in its annual Form 990 filing with the IRS, versus its own financial statements:
This report will focus on fiscal year 2014. Media Matters is claiming two separate values for occupancy expenses in 2014.
To the IRS, Media Matters is claiming:
Total occupancy expenses: $924,454
Sublet rental income: $0
In their financial statements, Media Matters is claiming:
Total occupancy expenses: $1,214,454
Sublet rental income: $290,000
Instead, the report claims key players pocketed this money for their own personal use.