The IRS, Madoff and You

from The Chronicle of Philanthropy:

IRS Ponders Levying Tax on Board Members in Madoff Debacle

The Internal Revenue Service has not decided if it will take steps to tax board members of private foundations who placed all or some of their organizations’ assets with Bernard L. Madoff, the investor who ran a $65-billion pyramid scheme, according to Douglas Shulman, the Commissioner of Internal Revenue.

“But I will tell you it is a tool that is available to us that we certainly will consider,” Mr. Shulman today told a Senate Finance Committee hearing looking into the Madoff scandal.

Under federal tax law, foundation officers, directors, and trustees can be liable for tax if the organizations make any investments that would financially jeopardize the carrying out of the foundations’ work.