IRS Reportedly scrutinizing AIG's Tax-Strategies Unit
Thursday, Mar 26,2009, 11:39:46 AM Click:
Copyright 2009 Inc.All rights reserved Marketwatch.com
MarketWatch
24 March 2009 Tuesday, 8:18 am EST
SECTION: NEWS & COMMENTARY; Markets
LENGTH: 278 words
TITLE: Review of IRS tax strategies have AIG unit
Signature: Greg Morcroft, MarketWatch mailto: gmorcroft@marketwatch.com.
Greg Morcroft is MarketWatch's financial editor in New York.
NEW YORK (MarketWatch) - The Internal Revenue Service disputes some tax shelters organized by the American International Group Inc. unit that the company has problems with credit insurance and created a nest of hornets in Congress over retention bonuses, according to a report in the Wall Street Journal.
AIG (AIG) has so far paid $ 61 million in disputed fees for customers and to the IRS for a refund, said the newspaper.
The Journal said that AIG has basically tax shelters and U.S. foreign banks favorable treatment by the structuring of transactions with foreign AIG unit.
AIG claims that the government's position is that the transactions did not qualify for favorable tax treatment. The document said that the IRS has refused to comment on the case.
France Crédit Agricole, Bank of Ireland and Bank of America Corp. (BAC) were all clients of the unit of AIG, said the newspaper.
In another development, New York, the attorney general said Monday that the end of 15 of the 20 recipients of grants for AIG decided to give their controversial retention prices to return, following an outcry.
Attorney General Andrew Cuomo said that of the $ 165 million in bonuses paid by AIG, "We calculated that the employees have agreed to return approximately $ 50 million." News of the large bonuses paid to employees to AIG, a company landed today hampered by government assistance, has raised an outcry angry.
"I want to say to people who have donated money: You've done the right thing," Cuomo said in a statement.
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LOAD-DATE: 25 March 2009
Copyright © 2009 LexisNexis, a division of Reed Elsevier Inc.. All rights reserved
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MarketWatch
24 March 2009 Tuesday, 8:18 am EST
SECTION: NEWS & COMMENTARY; Markets
LENGTH: 278 words
TITLE: Review of IRS tax strategies have AIG unit
Signature: Greg Morcroft, MarketWatch mailto: gmorcroft@marketwatch.com.
Greg Morcroft is MarketWatch's financial editor in New York.
NEW YORK (MarketWatch) - The Internal Revenue Service disputes some tax shelters organized by the American International Group Inc. unit that the company has problems with credit insurance and created a nest of hornets in Congress over retention bonuses, according to a report in the Wall Street Journal.
AIG (AIG) has so far paid $ 61 million in disputed fees for customers and to the IRS for a refund, said the newspaper.
The Journal said that AIG has basically tax shelters and U.S. foreign banks favorable treatment by the structuring of transactions with foreign AIG unit.
AIG claims that the government's position is that the transactions did not qualify for favorable tax treatment. The document said that the IRS has refused to comment on the case.
France Crédit Agricole, Bank of Ireland and Bank of America Corp. (BAC) were all clients of the unit of AIG, said the newspaper.
In another development, New York, the attorney general said Monday that the end of 15 of the 20 recipients of grants for AIG decided to give their controversial retention prices to return, following an outcry.
Attorney General Andrew Cuomo said that of the $ 165 million in bonuses paid by AIG, "We calculated that the employees have agreed to return approximately $ 50 million." News of the large bonuses paid to employees to AIG, a company landed today hampered by government assistance, has raised an outcry angry.
"I want to say to people who have donated money: You've done the right thing," Cuomo said in a statement.
Marketwatch.com © 1997-2002, All rights reserved. See details in http://custom.marketwatch.com/custom/docs/useragreement.asp.
LOAD-DATE: 25 March 2009
Copyright © 2009 LexisNexis, a division of Reed Elsevier Inc.. All rights reserved
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