Fannie Mae under scrutiny from the IRS - BusinessWeek
NEW YORK, March 22 (Reuters) - Fannie Mae (FNM.N), the largest U.S. home funding company, is having its charitable work and related tax deductions being scrutinized by the Internal Revenue Service, BusinessWeek reported in its April 2 edition.
The IRS is trying to determine whether the company used its charities to win favor with politicians and whether it improperly wrote off those costs, said BusinessWeek, citing former executives at Fannie Mae and certain documents it had reviewed.
Fannie Mae is in the process of reforming itself after being rocked by an accounting scandal. Last month it announced the closure of its charitable foundation.
About a year ago, the U.S. Senate Finance Committee announced it would examine whether Fannie Mae abused the tax status of its charitable foundations by using them to skirt campaign finance and lobbying laws.
Fannie Mae and the IRS were not immediately available for comment.
