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Taxes – we pilfer from them but we won’t pay them & other news

Meanwhile, the owners and officers of some contractors that weren’t paying federal taxes had significant personal assets, including a sports team, a high-performance airplane, commercial properties, multimillion-dollar homes and luxury vehicles, the GAO said in its 2007 report. ~ Tom Shean – Virginian-Pilot~

History Facts for May 22

  • 1455 – King Henry VI was taken prisoner by the Yorkists at the Battle of St. Albans, during the War of the Roses.
  • 1900 – The Associated Press was incorporated as a non-profit news cooperative in New York.
  • 1977 – Janet Guthrie set the fastest time of the second weekend of qualifying, becoming the first woman to earn a starting spot in the Indianapolis 500 since its inception in 1911.
  • 1995 – Mr. and Ms Sparky were married
  • illustration by Jacob Thomas (Bloomberg)

    Tax requirement delayed, to the relief of companies
    Tom Shean – (The Virginian-Pilot) – May 22, 2011 – Companies doing business with the federal government have a bit more breathing room from what some say is an onerous tax provision.

    Earlier this month, the IRS delayed for another year a government plan for holding back 3 percent of the amounts paid to federal contractors.

    The program, designed to cover contractors’ tax liabilities, originally was scheduled to take effect at the beginning of 2011. The date was pushed back two years ago to 2012. Now it’s Jan. 1, 2013.

    Still, “it will be a cash-flow nightmare” for smaller defense contractors, especially those with modest profit margins, predicted Gregg N. Funkhouser, partner in charge of government contracting for the CPA firm Dixon Hughes Goodman.

    While the average profit margin for his defense-contractor clients is 7 percent, the margins for some are as low as 1 percent, and these companies likely will suffer, Funkhouser said during a presentation in Norfolk last week. (Click HERE for article)

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    Pentagon persists in patronizing perps & other news

    …according to newly available Defense Department data, is that more than half the Pentagon’s total budget obligations for contracting last year were spent without effective competition or with no competition at all. That comes to about $188 billion, according to numbers provided by the Pentagon.
    -John Donnelly – Congressional Quarterly

    Kuwait’s Agility to manage warehouse for U. S.  for 6-months more

  • Agility to manage warehouse services until Aug 31
  • Estimated revenues of $19 mln
  • Case of overcharging U. S. government ongoing
  • DUBAI – (Reuters) – February 20, 2011 – Kuwaiti logistics firm Agility will continue to provide services to a U.S. defence agency until August 2011 after winning a six-month contract extension, with estimated revenues of $19 million.

    In a statement to the bourse, Agility said the Defense Logistics Agency (DLA) had extended its contract for six months, starting March 1, to provide warehouse management services to support operations in the Middle East and Southwest Asia.

    The DLA is part of the U. S. Department of Defence and provides logistics support to military services and to several civilian agencies and foreign countries, its website says. Agility has been embroiled in a long-standing legal dispute with the U.S. government after a criminal case was filed in November 2009 when prosecutors accused it, formerly Public Warehousing Co K.S.C., of overcharging. (Click HERE for article)

    Government Controller Arrested for Embezzlement
    WASHINGTON – /PRNewswire-USNewswire/ – February 18, 2011 – Michael E. Hase, 62, was arrested in Dulles, Virginia yesterday by Federal agents of the Office of Inspector General, U.S. Agency for International Development (USAID). Hase was arrested on an embezzlement charge stemming from his work as a controller for USAID, announced Ike Hendershot, Assistant Inspector General for Investigations.  

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