DES MOINES, Iowa — Local 5 news has obtained a copy of the Internal Revenue Service audit and the protest against the audit involving the Prairie Meadows casino.
The audit claims the casino is no longer eligible to classify as a non-profit. As a result, the IRS claims prairie meadows racetrack and casino owes up to $60 million in back taxes and fees.
The casino’s attorney disagrees on several levels and said Prairie Meadows lessens the burden of state government and Polk county.
“On each and every account prairie meadows believes the IRS is wrong and are hopeful that we will prevail,” said Tom Flynn.
Flynn has written a 131 page protest arguing the IRS claims.The lawyer says if the audit is approved, their donations and contributions to the Des Moines community will suffer.
“So it now would start paying taxes. It would enter into a payment plan to pay back the back taxes and go forward paying the current taxes. The result would be the $20 million dollars it gives would be substantially reduced,” explained Flynn.
Flynn said the casino currently donates more than $20 dollars to charities and through grants. That tallies to more than 10% of casino revenue.
If the audit goes through, Flynn says that could drop to 3%.