GOP lawmakers are questioning how senior citizen nonprofit concern AARP can bypass millions in tax levies despite the group's control over, and approval of, products sold by private firms.
Rep. David Reichert, R-Wash., one of several GOP members of the House Ways and Means Committee, claimed that companies that use the AARP brand to sell products such as insurance are helping the organization reap big profits and has sent a letter to the IRS calling the service's attention to the matter.
Advertisement
Critics have pointed out that AARP's income from United HealthCare alone rose from $284 million to $427 million between 2007 and 2009.
Appearing on Fox News, Reichert labeled those increases "dramatic."
In the letter to the IRS, lawmakers cited a number of examples of AARP's influence over United HealthCare, including its authority over United's operating plan and the direction it provides the carrier.
In a written statement to Fox, a representative for AARP said that the primary goal of the group was to uphold its standards and a make a detailed commitment to quality control on products offered in its name.
6 Comments
Give the GOP credit. As an AARP member it is quite obvious to me that the group is slanted to the left and clearly supports the Democrat agenda--not something the GOP should stir up. It is also quite clear that AARP exists at the present time to sell, sell, sell and perpetuate itself. I believe it clearly crosses the line and because it is carrying on a trade or business it should pay its fair share of tax. It can have any agenda it wants but taxpayers should not support it. The new call should be to occupy AARP!
Posted by: bob from elgin | January 3, 2012 5:43 PM
Report this Comment
I think AARP is a major concern and there is plenty of evidence for this investigation to be going on. Maybe the AARP has grown too big to care for its members and only cares about how much more it can grow. It's just another big business.
Posted by: JohnE | January 3, 2012 1:45 PM
Report this Comment
They can't have it both ways: Nonprofit status + Large proportion of income from royalties Most of the REAL nonprofits are struggling for donations.
If AARP is truly nonprofit then United HealthCare shouldn't get a deduction for royalties paid but rather have it classified as charitable contributions for tax purposes.
It should also be pointed out that their primary function is to be advocates for the elderly and retirees and yet the heads of the organization have taken positions that oppose the benefit of their members. This should raise the question of whether or not their views are actually taken from a profit perspective.
Posted by: marcv | December 29, 2011 10:33 AM
Report this Comment
While any nonprofit organization should be examined when necessary, I don't think AARP should be a major concern unless proven otherwise. irshelpftlauderdale.com
Posted by: Ray | December 28, 2011 5:14 PM
Report this Comment
Sorry,
Thought the system would post a name.
Democratic Accountant in Illinois.
Posted by: Unknown | December 28, 2011 3:31 PM
Report this Comment
It would seem that AARP may be interfering in Rep Reichert's Plans. Didn't we just find out the net worth of members of Congress has increased in "Dramatic" proportions to the rest of the country.
Sounds like typical "Dog in the Manger" to me.
Posted by: Unknown | December 28, 2011 3:30 PM
Report this Comment
Add Your Comments...
Already Registered?
If you have already registered to Accounting Today, please use the form below to login. When completed you will immeditely be directed to post a comment.
Not Registered?
You must be registered to post a comment.