TARP Firms Have Unpaid Tax Bills

By Chris Good

Financial firms who received Troubled Asset Relief Fund (TARP) money from the Treasury owe hundreds of millions of dollars in taxes according to the House Ways and Means Oversight Subcommittee, CongressDaily reports this morning. Two individual firms owe a over $100 million each, and a total of 13 firms owe a total of $220 million to the IRS, according to the subcommittee.

As quoted by CongressDaily, subcommittee Chairman John Lewis (D-GA) isn't happy about it, and he doesn't think the American people will be, either. We'll have to wait and see whether this fans the outrage over AIG, but if it does, it could mean more criticism for the Treasury in particular: TARP firms were required to be current on taxes in order to receive bailout funds, but the Treasury didn't ask them to turn over their tax info. Instead, the Treasury relied on signed statements from the firms. This may have been a Paulson issue more than a Geithner issue, but a lot of people aren't too interested in such details these days.

This article available online at:

http://www.theatlantic.com/politics/archive/2009/03/tarp-firms-have-unpaid-tax-bills/1647/