Newman's Own Threatened By Rare Tax Situation

WESTPORT, CT — Newman's Own Foundation may be forced to sell its food product business due to a complicated tax situation with no immediate relief.

Newman's Own food products gives all its profits away to the Newman's Own Foundation, which has given $512 million to dozens of noble causes over the years, according to the Connecticut Mirror.

Actor and Westport resident Paul Newman gave his food company to his foundation at the time of his death. Tax law penalizes foundations that fully own for-profit companies with a 200 percent tax, according to Politico. Only 20 or 30 other foundations have a similar arrangement to the Newman's situation.

Things were going smoothly and there was bipartisan support for an exemption in the law, but the change violated the "Byrd rule," which limits what items could be passed under the budget reconciliation process.

Newman's Own was previously given an extension by the IRS that is due to expire in November.

Read the full Mirror report here.

Read the full Politico report here.

Image via Shutterstock