By Yepoka Yeebo
MANHATTAN — Rev. Al Sharpton's National Action Network is in financial disarray and might not survive after an internal audit revealed that the organization owed more than $1.3 million in back taxes and penalties, the New York Post reported.
"The organization has suffered recurring decreases in net assets - and has been dependent upon advances from related parties and the nonpayment of payroll tax obligations - to maintain continuity," the audit said, according to the Post. "These circumstances create substantial doubt about the organization's ability to continue."
A criminal probe into the finances of the National Action Network was dropped in 2008, and Sharpton agreed to pay more than $2 million in overdue taxes.
"We determined not to file bankruptcy but to make NAN solvent, which we clearly have done and will be reflected in [upcoming reports]," NAN spokeswoman Rachael Noerdlinger told the Post.
"By the end of the calendar year 2010, there will be no tax liabilities as per our agreement in '08 with tax authorities," she added.