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Patricia Driscoll, the ex-girlfriend of NASCAR’s Kurt Busch, is under investigation by the IRS and FBI over alleged misuse of funds at the Armed Forces Foundation where she serves as executive director.
The questionable practices include using foundation funds for personal expenses, mismatched information between audit reports and tax returns and a Washington, D.C. zoning violation involving foundation rent payments to Driscoll on a building that is co-owned by both parties. According to the FBI, the personal expenses allegedly covered by foundation money were $15,000 in legal fees incurred in a child custody case, a $6,315.22 infared camera and fundraising bonuses that were not reported to the IRS. Other expenses include vacations to Morocco and Paris and credit card payments for Driscoll’s private security company, which charged $100,000 worth of groceries, toys, medical care, massages, tax bills and airline tickets over the course of 17 months.
Washington tax attornery Marc Owens stated that the failure to disclose all income for the foundation is a way to reduce an income payment to the IRS and is problematic at the state tax level as well. He added the IRS takes a dim view of non-profit directors receiving commissions on fundraising because it is essentially the same as sharing in the foundation’s revenue.
Kurt Busch was known as a “celebrity ambassador” for the foundation while he and Driscoll dated. He made several non-cash contributions and is linked to Driscoll through numerous tax documents. The couple ended their relationship last November.
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