Since it was revealed that Madonna's Raising Malawi charity is in financial ruin, rumors have been circulating that the I.R.S. is looking into the Kabbalah Centre. Now we have confirmation. The semi-religous, semi-cultlike organization, which counts Gwyneth Paltrow, Ashton Kutcher, and Demi Moore among its followers, is the focus of a federal tax evasion investigation.
We heard this from Showbiz 411's anonymous sources in March, but now the Los Angeles Times has the official story. In addition to two charities connected to the Centre and Madonna, Raising Malawi and Spirituality for Kids, I.R.S. officials are trying to determine if non-profit funds were used to fund the lavish lifestyle of the Bergs, who founded the Kabbalah Centre. (That's what Newsweek suggested in a recent exposé.)