LA Kabbalah Centre probed by IRS

May 7, 2011 at 12:07 AM
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LOS ANGELES, May 7 (UPI) -- The Kabbalah Centre of Los Angeles acknowledged Friday it is being investigated by the Internal Revenue Service.

Two non-profit groups linked to pop star Madonna are also under investigation, the Los Angeles Times reported. Madonna helped put the center on the map when she became an adherent of Kabbalah, a form of Jewish mysticism.

The center was founded several decades ago by Philip Berg and his wife, Karen, and they still run it with their sons. Sources told the Times the IRS is investigating whether the Berg family is profiting from tax-exempt donations.

Kabbalah has also attracted Ashton Kutcher and Gwyneth Paltrow, and the center's assets may now be more than $260 million, the Times said.

The center said it and a related group, Spirituality for Kids, have received subpoenas.

"The Centre and SFK intend to work closely with the IRS and the government, and are in the process of providing responsive information to the subpoenas," a statement said.

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