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Taxing Matters

Daddy's House isn't in order.

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Along with producing albums, managing a record label, touring, making videos, and operating two restaurants, Sean "Puffy" Combs somehow spends 40 hours a week working for his not-for-profit youth group -- and earns $50,000 for his efforts.

Or at least that's what Daddy's House Social Programs, Inc., has told the Internal Revenue Service. According to its most recent tax return, a copy of which was filed with the New York State Attorney General's Office last year, Daddy's House also borrowed $140,000 from Puffy in 1997, though loan terms, required on tax returns, were not disclosed. The small not-for-profit organization, which is run by controversial "raptivist" Sister Souljah and headquartered in Puffy's Bad Boy Entertainment offices, also reported rent payments totaling $63,775.

Vernon Brown, Combs's business manager and keeper of the Daddy's House books, claims that his client has "never been paid a salary" by the group. The organization's 1997 tax return, though, clearly lists Combs's name (though the CPA misspelled Puffy's surname) and compensation and gives his address as the secret Murray Hill crash pad used by Puffy and his bodyguards.

As for the hefty rent payments, Brown first says that they were "proportionalized, based on the amount of space that's utilized," but then later switches gears, saying the money actually went to Columbia University, where the group held occasional weekend programs. Souljah, however, contradicts this claim, saying that the school did not charge Daddy's House during 1997.

Compared with Puffy, other celebrities don't work nearly so hard on their charitable endeavors. According to IRS records, Danny DeVito (four hours per week), Michael Douglas (one hour), and Stephen King (half an hour) spend considerably less time dealing with their multi-million-dollar foundations. And none of the men, of course, are compensated for their limited efforts.

For more intriguing documents, visit "The Smoking Gun" online at thesmokinggun.com.


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