September 24th, 2009
04:25 PM ET
14 years ago

IRS inspector general joins entities looking into ACORN

WASHINGTON (CNN) - The community organizing group ACORN is under review by a Treasury Department inspector general as part of an investigation into the Internal Revenue Service's oversight of non-profit organizations.

It is one of several steps taken - including an investigation initiated by ACORN itself - since the release of videos - shot by conservative activists with a hidden camera - showing ACORN workers apparently giving advice on how to conduct illegal activity.

The office of the Treasury Inspector General for Tax Administration has confirmed to CNN that it is "initiating a review of ACORN." Office spokeswoman Li-Yun Chien told CNN that the inquiry is related to a non-profit fraud investigation, and how IRS internal processes handle possible fraud issues in organizations that are classified as non-profits, like ACORN.

She said the request for an investigation by the inspector general, J. Russell George, came from the offices of Sen. Susan Collins, R-Maine, and Rep Darrell Issa, R-California. They asked for a multiple-agency review of ACORN and how it uses its tax exempt status

ACORN - the Association of Community Organizations for Reform Now - did not immediately respond to a CNN request for comment.

After the Treasury Department announcement, Collins and Issa responded by issuing a statement in which Collins said, "I am heartened by the agreement of the Treasury Department's inspector general to examine the troubling financial questions that have been raised about ACORN.

"At a time when so many American families are facing difficult economic situations, it is completely unacceptable that even one penny of taxpayer money
be misused. We must bring all agencies and groups that use taxpayer funds into
the spotlight of accountability."

Issa added, "The lack of an appropriate firewall between ACORN's charitable activities and its political arm has raised significant questions regarding the appropriateness of their status as a taxable nonprofit corporation and their management of federal dollars. Cutting ties with ACORN is a good first step for the federal government, but since they have been the recipients of taxpayer dollars, we have an obligation to investigate to discover whether or not those dollars were misused in anyway."

ACORN was in the headlines during the recent presidential campaign after allegations of voter registration fraud. Some of its voter registration workers were prosecuted and some other employees resigned.

Even greater controversy was ignited by the videos, which show some ACORN workers advising two conservative activists - posing as a pimp and a prostitute - how to set up a prostitution business involving underage, foreign girls.

Because ACORN is involved with many community programs that take advantage of government funding, Collins and Issa asked for a review of "grants, contracts, entitlements and other forms of assistance to ACORN and its affiliates."

The Justice Department inspector general already has announced an investigation, the Census Bureau has terminated ACORN's involvement in its public outreach program, and both chambers of Congress have voted to deny federal funding to the organization.

In addition, ACORN suspended tax preparation services it carried out as part of an IRS program. And the group announced that it has retained a former attorney general of Massachusetts to conduct an independent inquiry into its delivery of social services as well as a general review of ACORN's management.

Filed under: ACORN
soundoff (36 Responses)
  1. Jimmy the Greek

    Oh – and in case anyone was wondering.... Barack Obama (who once legally represented ACORN)... didn't realize Government money was going to ACORN.

    "Golly Gee – I didn't have any clue they got Federal dollars, uhhh ummm, who are they again? Not sure I ever heard of them."

    Idiot Obama

    September 24, 2009 05:29 pm at 5:29 pm |
  2. mjm

    I love how liberals bring up investigating Halliburton, the war in Iraq, and 911. It just shows how crazy they are.

    However, catch ACORN teaching people how to set up a prostitution business involving underage, foreign girls and some how Fox news and conservatives are to blame.

    Are they really that dependent on the voter fraud in order to win?

    September 24, 2009 05:29 pm at 5:29 pm |
  3. Enough

    Glad to CNN finally provide ACORN coverage. They are a corrupt organization and have received millions of OUR dollars, we have a right to know where our money went. Where is the transparency and line by line elimination of wasteful spending Obama promised us?

    September 24, 2009 05:32 pm at 5:32 pm |
  4. KG, MN

    ACORN is a very good organization with roots going back to the early 70s. It's a shame the actions of a few have tarnished the whole outfit.

    September 24, 2009 05:40 pm at 5:40 pm |
  5. aproudmemberoftheunpatrioticmob

    This step, unless it is blocked by the Attorney General and the other Obama thugs, should lead directly to SEIU and some of the other unions that have plundered our treasury and destroyed our election process. Love the way the libs keep blaming it on Bush and Fox New, what out of touch idiots.

    September 24, 2009 05:43 pm at 5:43 pm |
  6. BestProfitCompany = WAR

    Catching lies with lies. Good job conservatives, you use lies to get lies.

    September 24, 2009 05:45 pm at 5:45 pm |
  7. Mark

    This is the same organization Obama tried to give tax payer money with his pathetic stimulus plan.

    September 24, 2009 05:49 pm at 5:49 pm |
  8. Mark

    I am Barak Obama and no more special interest! Except ACORN

    September 24, 2009 05:49 pm at 5:49 pm |
  9. Paul Dobro

    THE media needs some perspective here. A group getting $3.5 million per year or the Blackwater getting Billions and killing inocent Iraqis. How about Halliburten overcharging by hundreds of millionsand and doing poor electrical work that has killed more then 10 soldiers. How about Lockheed Martin and Northrup, they have over 20 fraud investigations pending and JUST LAST YEAR ALONE, COLLECTED $35 and $18 BILLION.

    That right boys in girls, lets go after the big fish first, not the minnows.

    Why don't we go after the big fish? They have teeth (lobbiests, ect..) while ACORN helps poor people.

    Yea – Lets go after the MINNOWS. Idiots.

    September 24, 2009 05:50 pm at 5:50 pm |
  10. Helen, NY

    I think they have to investigate Barack Obama as well because he was working for Acorn a few years ago.

    September 24, 2009 05:54 pm at 5:54 pm |
  11. Pam

    You people realize that ACORN got federal funding during Republican administrations too, right?

    September 24, 2009 05:55 pm at 5:55 pm |
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