The Hill
Sunday, July 05, 2009
SEARCH
Home
HillTube
Mobile
White Papers Portal
New Member Guide
BLOGS
Pundits Blog
Congress Blog
Blog Briefing Room
Twitter Room Blog
NEWS
Leading The News
Business & Lobbying
K Street Insiders
John Breaux
John Engler
Vin Weber
Dave Wenhold
The Executive
Campaign
Obama Cabinet
COLUMNISTS
Dick Morris
A.B. Stoddard
Brent Budowsky
Ben Goddard
David Hill
David Keene
Josh Marshall
Mark Mellman
Jim Mills
Markos Moulitsas (Kos)
Cheri Jacobus
John Del Cecato
COMMENT
Editorial
Letters
Op-eds
Weyant's World
CAPITAL LIVING
Today's Stories
50 Most Beautiful 2008
Other Features
In The Know
Bookshelf
Announcements
Food & Drink
Onward and Upward
RESOURCES
Classifieds
Subscribe
Order Reprints
Aerospace
Energy Special Report
Telecom Special Report
Transport Special Report
Earth Day Special Report
Consumer Safety Report
Useful Links
RSS


Home arrow Leading The News arrow Waxman: Blackwater may have engaged in tax evasion
Leading The News PDF Print E-mail
Waxman: Blackwater may have engaged in tax evasion
Posted: 10/22/07 11:31 AM [ET]

The chairman of the House Oversight and Government Reform Committee asserted Monday that Iraq security contractor Blackwater USA “may have engaged in significant tax evasion.”

In a letter to Blackwater Chairman Erik Prince, panel Chairman Henry Waxman (D-Calif.) noted that the IRS earlier this year ruled that the company “violated federal tax laws by treating an armed guard as an ‘independent contractor,’ ” Waxman said. “The implication of this ruling is that Blackwater may have avoided paying millions of dollars in Social Security, Medicare, unemployment and related taxes for which it is legally responsible.”

The lawmaker noted that the issue came up when Prince testified before his panel earlier this month. At the time, Prince said that guards like the “flexibility” of the independent contractor status and that it is a “model that works.” The IRS ruling was not mentioned and Waxman said there is “evidence that Blackwater has tried to conceal the IRS ruling and the evasion of taxes from Congress and law enforcement officials.”

The lawmaker stated that his panel has found out that “Blackwater required this employee to sign a non-disclosure agreement before it agreed to pay the back pay and other compensation that he was owed. The terms of this agreement explicitly prohibited the guard from disclosing any information about Blackwater to ‘any politician’ or ‘public official.’ ”

Waxman charges that “it now appears that Blackwater used this illegal scheme to avoid millions of dollars in taxes and then prevented the security guard who discovered the tax evasion from contacting members of Congress or law enforcement officials.”

Waxman is calling on Prince to provide the committee with documents regarding the issue, including all communications between the government and Blackwater with regard to the classification of the company’s employees, non-disclosure agreements and documents related to the security guard who requested the IRS ruling.

The panel also set up a tipline to allow people with knowledge of Blackwater’s potential tax evasion to come forward.

Blackwater officials could not be reached for comment.

 
 
 
BLOGS
TheHill.com Blogs Briefing Room Pundits Room Congress Blog Twitter Room
ADVERTISER
Home | Privacy Policy | Terms And Conditions
The Hill
1625 K Street, NW Suite 900
Washington, DC 20006
202-628-8500 tel | 202-628-8503 fax

The contents of this site are © 2009 Capitol Hill Publishing Corp., a subsidiary of News Communications, Inc.