UPDATED, 3:46 PM: The Hollywood Foreign Press Association said Tuesday that it has reached out to the staffs of two House lawmakers who are calling for an IRS investigation of the organization’s non-profit status.
The HFPA said that the letter does not take into account new ethics and conduct rules as well and guidelines banning all gifts.
An HFPA spokesperson said, “The Hollywood Foreign Press Association is extremely disappointed to have read about the concerns from Representatives Beatty and Lawrence in the media. Though the Association still hasn’t received any letter or other forms of communication, it has reached out to their offices to discuss their concerns, provide answers to their questions and make them aware of the significant changes and reforms the Association has already undertaken.
“Unfortunately, it seems their letter is taken largely from previous news accounts that have misrepresented or omitted the significant and thorough progress made in bringing on diverse members at all levels and the imposition of strict new guidelines banning all gifts and implementation new ethics and conduct rules. We look forward to the opportunity to sharing our progress with the Representatives and their staff soon.”
The IRS had no comment.
PREVIOUSLY: Two House lawmakers are calling on the Internal Revenue Service to investigate the nonprofit status of the Hollywood Foreign Press Association, citing reports of “longstanding and questionable business practices” by its leadership.
“For more than a year, entertainment and national media outlets have detailed the seemingly corrupt and unacceptable deal making patterns of HFPA raising questions whether the organization solely responsible for awarding the once coveted Golden Globe Award is meeting its IRS section 501(C)(3) demands,” Rep. Joyce Beatty (D-OH) and Rep. Brenda Lawrence (D-MI), wrote in a letter to the IRS on Tuesday. (Read it here.)
Beatty is the chair of the Congressional Black Caucus and Lawrence is one of the vice chairs. Lawrence also is vice chair of the House Appropriations Committee.
The lawmakers cited reporting on the HFPA over the past year, including a Los Angeles Times exposé on the organization’s lack of diversity. That led to NBC canceling its broadcast this year as the HFPA implemented a series of reforms.
But the letter singles out allegations that the HFPA’s “current leadership has colluded to benefit themselves, either directly or indirectly.” Beatty and Lawrence cited IRS statute against directing earnings from a 501(c)3 to “the benefit of any private shareholder or individual.” The lawmakers also cited a report from The Wrap, which first reported on the IRS letter, that chronicled accounts of self-dealing and conflicts of interest.
The HFPA, which has not received the lawmakers’ letter, did not have an immediate comment.
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