Clinton charities will refile tax returns, audit for other errors

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A Reuters investigation uncovered errors in tax returns filed by the Clinton Foundation and the Clinton Health Access Initiative
For 3 years, the Clinton Foundation reported it had received nothing from foreign and U.S. governments - despite receiving millions previously
It will now refile its tax returns from 2010, 2011 and 2012 but has not ruled out reviewing tax returns extending back as many as 15 years
The Clinton Health Access Initiative is refiling forms from at least 2 years
Experts said it was not uncommon for charities to have to re-file but said it was unusual that a global charity would have to re-file for multiple years
Republican presidential candidate Ted Cruz called on the non-profit to return all of the money it received from foreign governments

By Reuters and Francesca Chambers For Dailymail.com

Published: 00:00 EST, 23 April 2015 | Updated: 16:21 EST, 23 April 2015

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Hillary Clinton's family's charities are refiling at least five years of tax returns after an investigation revealed they had misreported tens of millions of dollars in donations from governments.

The charities' errors generally took the form of under-reporting or over-reporting donations from foreign governments, or in other instances, omitted to break out government donations entirely when reporting revenue, the charities confirmed to Reuters, which uncovered the mistakes.

Following the discovery, the Clinton Foundation and the Clinton Health Access Initiative said they will be refiling multiple annual tax returns and may audit returns extending as far back as 15 years in case there have been other errors.

The foundation and its donors have been under intense scrutiny in recent weeks.

Republican critics say the foundation makes Clinton, who is seeking the 2016 Democratic presidential nomination, vulnerable to undue influence. Her campaign team calls these claims 'absurd conspiracy theories'.

Following Reuters' report Republican presidential candidate Ted Cruz called on the non-profit to return all of the money it received from foreign governments.

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Under scrutiny: Charities run by the family of Hillary Clinton (seen at Georgetown University on Wednesday) under- or over-reported millions of dollars in donations from foreign governments in their tax returns

The errors, which have not been previously reported, appear on the form 990s that all non-profit organizations must file annually with the Internal Revenue Service to maintain their tax-exempt status. A charity must show copies of the forms to anyone who wants to see them to understand how the charity raises and spends money.

The unsettled numbers on the tax returns are not evidence of wrongdoing but tend to undermine the 990s role as a form of public accountability, experts in charity law and transparency advocates told Reuters.

'If those numbers keep changing - well, actually, we spent this on this, not that on that - it really defeats the purpose,' said Bill Allison, a senior fellow at the Sunlight Foundation, a government transparency advocacy group.

For three years in a row beginning in 2010, the Clinton Foundation reported to the IRS that it received zero in funds from foreign and U.S. governments, a dramatic fall-off from the tens of millions of dollars in foreign government contributions reported in preceding years.

Those entries were errors, according to the foundation: several foreign governments continued to give tens of millions of dollars toward the foundation's work on climate change and economic development through this three-year period.

Those governments were identified on the foundation's annually updated donor list, along with broad indications of how much each had cumulatively given since they began donating.

'We are prioritizing an external review to ensure the accuracy of the 990s from 2010, 2011 and 2012 and expect to refile when the review is completed,' Craig Minassian, a foundation spokesman, said in an email.

The Clinton Foundation erroneously reported it had received no funds from governments for three years - even though it previously received millions. Pictured, Bill and Hillary speak about the charity last September

Questions over Clinton Foundation donations during time at State

The decision to review the returns was made last month following inquiries from Reuters, and the foundation has not ruled out extending the review to tax returns extending back 15 or so years.

Minassian declined to comment on why the foundation had not included the necessary break-down of government funding in its 990 forms. He said it was rare to find an organization as transparent as the foundation.

'No charity is required to disclose their donors,' he said. 'However, we voluntarily disclose our more than 300,000 donors and post our audited financial statements on our website along with the 990s for anyone to see.'

Separately, the Clinton Health Access Initiative (CHAI), the foundation's flagship program, is refiling its form 990s for at least two years, 2012 and 2013, CHAI spokeswoman Maura Daley said, describing the incorrect government grant break-outs for those two years as typographical errors.

CHAI, which is best known for providing cheaper drugs for tens of thousands of people with HIV around the world, began filing separate tax returns in 2010, and has previously refiled at least once both its 2010 and 2011 form 990s.

Changes: In light of Hillary seeking the 2016 Democratic presidential nomination, the foundation said it would only continue to receive donations from six countries that are already supporting ongoing projects

'I’m #ReadyforHillary to return all the money she raised from foreign nations,' Republican presidential candidate Ted Cruz said on Twitter. 'Add your name if you are too,' he added, including a link to a Cruz for President petition asking for supporters' email addresses and zip codes

For both those years, CHAI said its initial filings had over-reported government grants by more than $100 million.

Some experts in charity law and taxes said it was not remarkable for a charity to refile an erroneous return once in a while, but for a large, global charity to refile three or four years in a row was highly unusual.

'I've never seen amendment activity like that,' said Bruce Hopkins, a Kansas City lawyer who has specialized in charity law for more than four decades, referring to the CHAI filings.

Clinton stepped down from the foundation's board of directors this month but her husband, Bill Clinton, and their daughter, Chelsea Clinton, remain directors.

The foundation said last week after Hillary Clinton became a candidate that it would continue to accept funding from foreign governments, but only from six countries that are already supporting ongoing projects. CHAI will also continue to receive foreign government funding, again with additional restrictions.

Nick Merrill, Clinton's spokesman, has declined to answer inquiries about the foundation and CHAI.

Though Mrs. Clinton has abdicated her board seat, GOP rival Cruz has zeroed in on the Democratic presidential candidate in a tweets about the Clinton Foundation's tax headaches.

'I’m #ReadyforHillary to return all the money she raised from foreign nations,' he said, referencing a pro-Clinton organization that spent more than a year laying the groundwork for her eventual announcement.

'Add your name if you are too,' he added, including a link to a Cruz for President petition asking for supporters' email addresses and zip codes.