Iowa’s largest casino, Prairie Meadows Racetrack & Casino in Altoona, is being audited by the Internal Revenue Service which is questioning the operation’s nonprofit status. The IRS has been reviewing the casino’s financial records for at least 18 months, said Prairie Meadows attorney Tom Flynn. “We were bewildered by that, and as we look at the facts and at the law, we are confident we should have that tax status. And it should not be revoked,” he said.
Tax records indicate in 2013 Prairie Meadows took in $2.1 billion, or $190 million after payouts to winners. Flynn said in 2012 through gaming tax revenue, Prairie Meadows gave Polk County $26 million, Des Moines received $5 million, Altoona got $1 million, Polk County schools received $800,000 and various charities received $4 million. Flynn denied Prairie Meadows Chief Executive Officer Gary Palmer’s $650,000 annual salary triggered the IRS audit.
Prairie Meadows pays more than $14 million annually in construction debt to the Iowa Events Center. Polk County Supervisor Tom Hockensmith said if the IRS revokes the casino’s tax-exempt status, that facility could no longer exist.
