Olde Hornet
Well-Known Member
Texas Senator Ted Cruz may face scrutiny from the Internal Revenue Service (IRS) over payments linked to his podcast, according to tax experts.
Questions have previously been raised about a $630,000 donation that iHeartMedia, the broadcaster of the Verdict With Ted Cruz podcast, made to the Truth and Courage Super PAC, which supports the Republican's reelection campaign.
Cruz's office and iHeartMedia have denied that the money amounts to direct payment for Cruz, as the senator is not paid to host the show, and denied any legal or ethical violations.
A Cruz campaign spokesperson told Newsweek: "Senator Cruz does not receive any income in connection with the podcast, nor did he direct revenues to be paid to anyone."
Tax experts have suggested that even if Cruz was not paid directly by iHeartMedia, he may still need to declare it as income to prevent the IRS from flagging it.
"It's still going to be his income, because he's the one who 'earned it,'" Brian Galle, a tax law professor at Georgetown University and former federal prosecutor in the Department of Justice's tax division, told The Houston Chronicle.