IRS Revokes Nonprofit Status of Iowa Casino

Federal officials notified Prairie Meadows Thursday that they are revoking the Altoona, Iowa, casino’s nonprofit status, setting it up to lose an estimated $30 million a year in federal tax breaks. The decision ends an 18-month audit.

The specific reasons the IRS yanked the nonprofit status remained unclear Thursday. Tom Flynn, the casino’s attorney, said the casino expected to receive the full audit by mail and have 30 days to appeal, which it will do.

“They are consistent with what they told us before,” Flynn said. "In effect, they think we are more of a commercial enterprise than what they think should be a 501(c)(4) nonprofit."