Anaheim Insider here.
Since its formation in 2013, the local gadfly group Coalition of Anaheim Taxpayers for Economic Responsibility has slammed Anaheim city government for what it claims is a lack of transparency and failure to follow the rules. It’s M.O. is file suit against city actions it opposes over alleged failures to cross Ts and dot Is. For example, it filed a lawsuit after the City Council approved the non-binding Angels negotiations MOU, claiming meaningless differences in two versions of the CSL report that amounted to minor proofreading errors constituted violations of the Brown Act.
CATER isn’t so conscientious about its own responsibility to follow the rules. Dan Chmielewski of The LiberalOC.com looked into the matter and discovered that CATER hasn’t filed any of the annual disclosures required by the Internal Revenue Service.
According to its website, CATER is a 501(c)4 non-profit organization; a “social welfare organization” in IRS parlance. There are filing requirements such organizations must comply with as a condition of their non-profit status, such as the annual Form 990 disclosures. Which type of Form 990 must be filed depends on the amount of a non-profit’s annual revenues. If that is less than $50,000, a non-profit can file the Form 990-N, which is an e-postcard.
Apparently, these litigious sticklers for the rules couldn’t even manage to do that. Dan Chmeliewski filed a request with the IRS for CATER Form 990s filed since the group was formed in 2013 by Cynthia Ward, Greg Diamond and Brian Chuchua (Joanna Sosa, former “Take Back Anaheim,” has identified herself as a CATER board member as well). He published the response from the IRS yesterday: as it turns out, CATER has never filed the required annual disclosures that thousands upon thousands of non-profits manage to do every year:
CATER (Coalition of Anaheim Taxpayers for Economic Responsibility), which identifies itself as a 501(c)(4) public benefit non-profit organization focused on transparency and accountability in government, has either not filed a form 990 from September 2013 through the end of July 2015 or has asked the IRS for an extension in filing which the IRS has not yet received.
Since CATER was formed almost two years ago and regularly professes poverty, there’s no reason Ward or Diamond would need to file an extension to complete an e-postcard. They’re so busy getting into everyone else’s business that they aren’t taking care of their own.
As Chmielewski notes in his post, Diamond arrogantly shrugged off multiple questions about CATER’s compliance with IRS disclosure and reporting rules. The question is whether or not he and Ward were aware of their noncompliance. His consistent and uncharacteristic refusal to answer easy yes-or-no questions about CATER’s (non-existent) Form 990s stoke suspicious he was aware. In a comment on TheLiberalOC, Diamond shifts the blame:
I am not sure what’s going on here — ,y understanding had been exactly what I stated to the anonymous person grilling me on AnaheimBlog — but I will check with our attorney handling our incorporation (who is currently on vacation), determine the basis for the problem, and fix it.
It’s not this mysterious attorney’s job (we all thought Diamond was the CATER attorney) to fill out and file the Form 990s. That should have been easy-peasy for research wunderkind Cynthia Ward.
Later in the LOC post’s comments, Diamond retreats into the no-further-comment zone:
I see no reason for us to elaborate on the initial response I posted above.
CATER President Cynthia Ward’s response was to tell Dan to shut up about it because he doesn’t live in Anaheim (a standard Ward only applies to her critics):
Dan, did you notice the actual language of the response? The IRS did not say they have no form 990 as you claim, they have told you they are “unable to provide a copy” and “return unavailable.” Now there are a whole mess of reasons for why you might not have access to our (private) information, regarding a private organization that is funded with private dollars and thus frankly none of your business, but the point is, why do you care?
Well, we did notice the actual language of Ward’s response, and nowhere here nor in the longer comment does she say, “CATER filed its required Form 990s. I don’t know why the IRS doesn’t have them. Here are copies.” That’s how someone who wasn’t guilty-as-charged would respond. Instead, Ward attacks Chmielewski and prattles about how wonderful and indipsensable CATER is. At least Diamond basically admits the omission. Ward tries to blame the IRS.
Furthermore, it is “private” information Chmielewski was requesting. CATER is a tax-exempt organization, and it is required to provide certain “private” information to the public as a condition of that status. It’s strange that Ward, the self-proclaimed research wizard and policy wonk, seems not to understand that. If that is how she really feels about it, then CATER should relinquish the tax advantages of its 501(c)(4) status.
As to Ward’s question about why does Dan – or anyone else — care: because Ward and her CATER colleagues have set themselves up as judges of the ethics and morals of Anaheim elected and non-elected officials, activists, donors, businesses, and the moral worth of various policies and programs and their advocates. They love to pass judgement, and are quick to do so. They’ll zero in on minutia and claim conspiracy, misfeasance, conspiracy and moral turpitude. So there’s justice in seeing Ward, Diamond fail to comply with the law, minimize the transgression and then attack those pointing it out. Very Clintonian.
If this was an oversight by the City staff or a Councilmember, Ward and Diamond would call for a criminal investigation!
When I spoke with the IRS yesterday, they said if they had CATER’s form 990, they would give it to me. They don’t have it
The Corskies ate it!
CATER is a joke.
Someone should file a complaint against CATER with the IRS.
The more interesting issues is whether they filed a IRS nonprofit application form for tax exemption status. That is something they must disclose on request too. And they say they are a c4 so they should be one. Otherwise they are lying about that too.
Seems like those who like to file baseless lawsuits, Cynthia Ward and Greg Diamond, might need to get an attorney who specializes in tax fraud.
Clintonian? No, Rovian. As in Karl Rove….
Thank you to Dan for getting an answer to the question I put repeatedly to Greg Diamond. It would have been simple for Diamond to get the answer himself, but he was too busy being smug.
And “What’s the big deal” raises an excellent point. Since CATER hasn’t filed Form 990s, it’s not stretch to suppose the IRS hasn’t approved their tax exempt status, or that they haven’t even applied for it.
There is a rumor out there that if Diamonds re districting map isn’t chosen, he’ll sue. Does he really expect votes from anyone other than Tait?
No comment from the CATER crew?
Food for thought – My take is that if this were any organization in Anaheim other than CATER, Voice of OC would have a 6 part series reporting no facts but heavy on insinuation that corruption is involved.
There is no joy in Caterville.
The Voice Of OC suffers from the hypocrisy and lack of self awareness.
Word went out at CATER that after this week they need to bunker down. Wont be hearing much from them for awhile
Who wants to file a complaint with the State AG’s office that this is a sham organization without standing to sue anyone.
It’s as if CATER disapeared from the internet after being exposed for what they are. I suspect it’s full damage control in the colony and the kitchen…err law office with no walls because once it comes out that the sitting mayor financially supports a guerilla organization that sues the city and has questionable tax practices the sh!t will hit the fan.