Three Cups of Tea author Greg Mortenson could owe $23 million in back taxes, John Krakauer reports.
Back in April, 60 Minutes released a report claiming the founder of the Central Asia Institute misused funds and proceeds of his book sales for his own personal gain.
Around the same time, Krakauer released Three Cups of Deceit, a long investigation that supported the findings of the CBS program.
There is a lot of evidence, but here’s the damning part:
Mr. Mortenson could owe CAI up to $7,263,458.13 for excessive benefits received during fiscal years 2007, 2008, and 2009….
If the IRS imposes the 25% penalty tax and the disqualified person fails to “correct” or repay the excess benefit he received “within the taxable period,” the IRS may impose an additional tax equal to 200% of the excess benefit….
In short, if Mr. Mortenson fails to timely pay the correction amount, he could face a total liability ranging from $7,868,746.31 (correction amount + 25% tax + 200% tax for 2009 transaction only) to $23,606,238.62 (correction amount for three years of excess benefits + 25% tax on those benefits + 200% tax on same).
We’ll keep an eye out for any new reports.
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