ALTOONA, Iowa (AP) — An IRS report says that a central Iowa casino owes up to $60 million in back taxes and penalties.
The Des Moines Register reports that Prairie Meadows Racetrack and Casino’s board of directors released a 93-page IRS report Wednesday that threatens to revoke its tax exempt-status and a letter protesting federal agency’s actions.
Prairie Meadows has operated as a tax-exempt nonprofit since 1989. Casino officials learned about the IRS’ plans to take away its tax-exempt status May 12, following a year-and-a-half investigation.
The IRS audit found that Prairie Meadows is operating more like a business than “exclusively for social welfare purposes” and that it lacks Polk County oversight.
The appeal outlines the ways the casino “continues to be a valid social welfare organization.”
