State regulators move to revoke tax-exempt status of Miss Middle East pageant

By Jeff McDonald | [email protected] | The San Diego Union-Tribune

UPDATED: April 30, 2019 at 8:06 PM PDT

A beauty pageant charity organized by El Cajon City Councilman Bessmon “Ben” Kalasho earlier this year is being recommended for revocation of its tax-exempt status by regulators who say it failed to supply certain required records.

The California Department of Justice told Kalasho in a letter dated Tuesday that it was notifying the Franchise Tax Board to revoke the exempt status of Miss Middle East Beauty Pageant USA, a nonprofit Kalasho established in May.

According to the notice, the El Cajon councilman failed to pay a $25 registration fee. He also did not provide a completed and signed registration form, a complete copy of the organization bylaws or a copy of the IRS determination letter. All were requested twice before by the state.

“It is important that you immediately resolve the remaining deficiencies listed above so that the disallowance of your tax-exempt status may be lifted,” the letter concludes. “The organization may not solicit charitable assets or engage in any activity until registration is completed.”

Kalasho declined to comment about the notice.

U-T Watchdog reported in August that Kalasho staged the beauty pageant for three years under the auspices of a private chamber of commerce, which sells hips to local businesses for up to $2,500 each. He told the U-T that the chamber’s income was reported to the IRS as an attachment to his personal income taxes.

In September, the Watchdog reported that Kalasho voted on tax liens requested by one of his chamber , city trash hauler Waste Management Inc. The council is required to approve any additions to the property tax rolls for trash customers who do not pay their bills.

Following that report, City Attorney Morgan Foley recommended that hundreds of such liens be reconsidered, with Kalasho abstaining due to a conflict of interest. Those votes have been scheduled for Nov. 14.