Kid-Care founders settle debt with IRS
Lawyer News
The Internal Revenue Service has settled a claim against the founders of Houston's Kid-Care for about $1,000 — a tiny fraction of the hundreds of thousands that Texas Attorney General Greg Abbott claimed the couple had stolen from the charity.
The agreement, dated Nov. 7, says Carol Porter owes $938.93 in unpaid taxes from 2001 and 2002, while her husband, Hurt Porter, owes $37 from 2002. The document stipulates that the Porters have not acknowledged any improper expenditures.
In a lawsuit filed in April 2003, Abbott said the Porters had used some of the charity's funds for personal expenses such as airline trips and lavish meals.
Abbott settled the case with the Porters' insurance company for $495,000 in August 2004.
Abbott's investigation identified almost $500,000 in questionable expenses the Porters billed to Kid-Care's credit cards from 1999 through 2002. The IRS case involves the Porters' tax returns from 2001, 2002 and 2003.
"The expenses laid out by the attorney general seemed to be the same expenses that the IRS was questioning," said Juan Vasquez, a tax attorney who represented the Porters.
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