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  [Ron] Johnson $10M Payday Could Raise Red Flags For IRS
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ContributorHomegrown Democrat 
Last EditedHomegrown Democrat  Jul 06, 2011 12:08am
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AuthorSusan Crabtree
News DateThursday, June 30, 2011 02:25:00 PM UTC0:0
DescriptionSen. Ron Johnson's $10 million post-election windfall from his former company not only raises eyebrows among election lawyers, but the lump-sum payout also could raise serious red flags for the IRS, according to legal experts and accountants.

The Wisconsin Republican, a Tea Party favorite who defeated Sen. Russ Feingold (D-WI) last year, received a $10 million payment in deferred compensation from his former plastics company, Pacur, weeks after his $9 million self-financed 2010 campaign for Senate came to an end.

Election lawyers and reporters have raised questions about the similar amounts and whether the company, not Johnson, was underwriting his campaign. The apparent lack of a written deferred compensation agreement signed and dated before the election is problematic, experts tell TPM.

The Supreme Court's Citizens United ruling opened up the floodgates for companies to spend unlimited funds on independent campaign expenditures benefiting candidates, but corporations still cannot give directly from their treasuries to federal candidates' campaigns.

Aside from election law violations, Johnson's $10 million payday also may violate the Internal Revenue Code's requirements that any deferred compensation agreement must be in writing - even if it's between the top executive and the company he owns.
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