Monday, May 30, 2016

IS ABIM'S TRANSFER OF ASSETS TO OFF-SHORE ACCOUNTS A PROPER OR IMPROPER USE OF TAX AVOIDANCE?


On 26 May 16 we asked why the ABIM Foundation would ship financial assets overseas into off shore non-taxable accounts. We assumed that the purpose was to protect money from IRS scrutiny. We suggested that IRS needed to take a look at ABIM and its Foundation to see if the organizations were sufficiently compliant with 501(c)(3) to continue function with tax exempt privileges. After further consideration we've concluded that ABIM's move was in conformity with likely recommendations of its lawyers and tax consultants and that it can reasonably be alleged that at least $6.5 million dollars in assets if submitted to IRS scrutiny might not meet the standards of 501(c)(3) compliance and is consequently at risk not only for taxation but also for penalties and interest. The ABIM lawyers were not asleep at the switch although the ABIM's BOD, beguiled by years of success, may have been. It also appears that boarded physicians have lost standing and professional privileges enough to warrant FTC investigation for restraint of trade. It was pointed out that ABIM's Dr. Richard Baron was rewarded with $812,000 remuneration last year (no night call required although it's our opinion that there was plenty of night-worry). Likewise, we've pointed out how other board presidents and CEOs have been super-amply rewarded, e.g., IRS Form 990 says that $843,000 was paid in 2012 to the president and CEO of ABPN (American Board of Psychiatry and Neurology). These levels of remuneration may be legal but seem inconsistent with the tax exempt status of the named organizations' stated goals. That is why it's felt by Change Board Recertification et al that IRS and FTC scrutiny are indicated.

4 comments:

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  2. LATE ADDENDUM: See also "Maintenance of Certification: Medicine's House of Cards," Thursday, June 09, 2016, http://drwes.blogspot.ca/2016/06/maintenance-of-certification-medicines.html -- robert L. weinmann, MD, Editor, The Weinmann Report

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