hugo Posted March 23, 2009 Posted March 23, 2009 By David S. Hilzenrath Washington Post Staff Writer Saturday, March 21, 2009; Page D01 As AIG takes billions of dollars from the federal government to stay afloat, it is suing the government for millions more. This Story AIG Suing To Recover Taxes in IRS Dispute Special Report: AIG The big insurer is trying to recover $306.1 million of taxes, interest and penalties from the Internal Revenue Service. Among other things, AIG is contesting an IRS determination last year that the company improperly claimed $61.9 million of tax credits associated with complex international transactions. AIG has also asked a court to make the government reimburse it for money spent suing the government. Given that the government owns 79.9 percent of AIG and has been using taxpayer money to fill a seemingly bottomless hole at the company, the lawsuit might seem like a case of biting the hand that feeds it. But an AIG spokesman said the company has an obligation to press its case. AIG believes it overpaid the IRS, and it "has a duty to its shareholders, including the government and other shareholders, to insure that it pays the proper amount of taxes," spokesman Mark Herr said by e-mail. Washington tax lawyer Martin Lobel agreed with that assessment. "If in fact they honestly believe that they're entitled to a refund of those taxes, it would be a breach of their fiduciary duty not to" sue, Lobel said. "On the other hand, the sense of entitlement from AIG is awesome," Lobel said. Because the dispute pits the government against a company that has essentially become a ward of the government, the only clear winners are likely to be lawyers, legal experts said. The legal expenses could consume millions of dollars, they said. "You're dealing with yourself, and you're paying a lawyer to do it. It seems kind of bizarre," said an international tax lawyer who spoke on condition of anonymity because he was not authorized to comment publicly. Lawyers at the firm Sutherland Asbill Brennan, which is representing AIG, did not respond to an interview request. The lawsuit was reported previously by the Wall Street Journal. Quote The power to do good is also the power to do harm. - Milton Friedman "I cannot undertake to lay my finger on that article of the Constitution which granted a right to Congress of expending, on objects of benevolence, the money of their constituents." - James Madison
hugo Posted March 23, 2009 Author Posted March 23, 2009 Just when I thought this bailout crap could not get any more annoying. Quote The power to do good is also the power to do harm. - Milton Friedman "I cannot undertake to lay my finger on that article of the Constitution which granted a right to Congress of expending, on objects of benevolence, the money of their constituents." - James Madison
snafu Posted March 23, 2009 Posted March 23, 2009 Lets just pass another bill that says they aren't eligible for tax refunds. Hay one more bill can't hurt. Quote "You can't stop insane people from doing insane things by passing insane laws. That's just insane!" Penn & Teller NEVER FORGOTTEN
eddo Posted March 23, 2009 Posted March 23, 2009 Lets just pass another bill that says they aren't eligible for tax refunds. Hay one more bill can't hurt. Better yet- Give them the money back, and then tax it at 95%!!! Quote I'm trusted by more women.
ImWithStupid Posted March 23, 2009 Posted March 23, 2009 I just love how the Democratically controlled Congress pushes through a bill that the Democratically controlled Administration says is so important that it must be passed so fast it can't wait to be read, and is passed by only 3 Republicans, contains an amendment that the Democratic Administration talks a Democrat Senator to put in the bill, then takes three days to sign (time that the Obama Administration had the luxury to sign that Congress didn't have for reading the bill if they cared, but they didn't), then when that amendment that the Democratic administration knew would have provided for democrats on Wall Street to get their bonuses, the administration pretended to be shocked and outraged at the bonuses that the Democratic administration had known for a long time was coming and even helped to secure, they then said nothing while the House of Representatives attempt to destroy the Constitution to punish the people that the White House and the Democrats just days before supported. I now understand why the Democrats want to criminalize the Bush administration for firing 8 Federal prosecutors over the course of 8 years, while it was perfectly OK for Bill Clinton to fire all 93 federal prosecutors in the first year. Quote
eddo Posted March 23, 2009 Posted March 23, 2009 I just love how the Democratically controlled Congress pushes through a bill that the Democratically controlled Administration says is so important that it must be passed so fast it can't wait to be read, and is passed by only 3 Republicans, contains an amendment that the Democratic Administration talks a Democrat Senator to put in the bill, then takes three days to sign (time that the Obama Administration had the luxury to sign that Congress didn't have for reading the bill if they cared, but they didn't), then when that amendment that the Democratic administration knew would have provided for democrats on Wall Street to get their bonuses, the administration pretended to be shocked and outraged at the bonuses that the Democratic administration had known for a long time was coming and even helped to secure, they then said nothing while the House of Representatives attempt to destroy the Constitution to punish the people that the White House and the Democrats just days before supported. I now understand why the Democrats want to criminalize the Bush administration for firing 8 Federal prosecutors over the course of 8 years, while it was perfectly OK for Bill Clinton to fire all 93 federal prosecutors in the first year. yeah, it's like the Special Olympics or something... Quote I'm trusted by more women.
RoyalOrleans Posted March 23, 2009 Posted March 23, 2009 Whoa! Deja vu all over again. Quote To be the Man, you've got to beat the Man. - Ric Flair Everybody knows I'm known for dropping science.
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