ALTOONA, Iowa — It’s an early Christmas gift for Prairie Meadows and the local communities and charities that depend on its annual donations.
Today the casino announced that the IRS has reversed course and will not revoke its tax exempt status. Earlier this year the IRS informed the casino it was revoking that status effective January 1st, 2017. That would make the casino responsible for repaying $60 million dollars in back taxes.
Prairie Meadows attorneys argued the casino should keep the exemption because its profits are given to local communities and charities. Millions of dollars in grants and handed out annually by the casino. That argument was apparently strong enough to convince the IRS to change its mind.