DES MOINES, IOWA (AP) -- The Iowa attorney general's office wants the IRS to review the salaries of board members of the Iowa City-based ACT Incorporated.
The AG's office wants to know if the IRS is aware of the payments to the 13-member board of the standardized testing company, which is exempt from paying federal income taxes.
The request follows an investigation by The Des Moines Register that found the company was paying its board more than 98 percent of nonprofit corporations nationally.
The newspaper found ACT paid its board at least $1.2 million annually, according to its 2005 tax return.
CEO Richard Ferguson, who's also board chairman, was paid at least $508,000. His base salary surpasses those paid by the vast majority of similarly sized nonprofits.
ACT spokesman Scott Gomer declined to comment. Attorney general spokesman Bob Brammer says Ferguson has promised to cooperate with any review.
(Copyright ©2007 by The Associated Press. All Rights Reserved.)
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