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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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    Trials, tribulations, deviants on duty & other news

    Pentagon destroys thousands of copies of Army officer’s memoir
    Chris Lawrence and Padma Rama, CNN – September 25, 2010 – Washington (CNN) — The Department of Defense recently purchased and destroyed thousands of copies of an Army Reserve officer’s memoir in an effort to safeguard state secrets, a spokeswoman said Saturday.

    “DoD decided to purchase copies of the first printing because they contained information which could cause damage to national security,” Pentagon spokeswoman Lt. Col. April Cunningham said.

    In a statement to CNN, Cunningham said defense officials observed the September 20 destruction of about 9,500 copies of Army Reserve Lt. Col. Anthony Shaffer’s new memoir “Operation Dark Heart.”

    Shaffer says he was notified Friday about the Pentagon’s purchase.

    “The whole premise smacks of retaliation,” Shaffer told CNN on Saturday. “Someone buying 10,000 books to suppress a story in this digital age is ludicrous.” (Click HERE for article)

    Defense contractor confirms indicted Florida businessman sold counterfeit computer chips
    Robert Napper – September 24, 2010 – Federal authorities say Pinellas businessman Shannon Wren for years dealt in counterfeit computer chips, risking the lives of military personnel and potentially endangering national security.

    Authorities say Wren’s dealings in counterfeit “military grade” integrated circuits, or ICs, made him rich, but one alleged victim – a major defense contractor specializing in missile technology – says the company purchased chips that turned out to be fake from a supplier, who bought them from Wren.
    “We quickly determined upon failure-testing they were counterfeit and contacted the FBI,” says Jon Kasle, spokesman for Raytheon, a major defense and aerospace systems supplier.

    Kasle declined to comment on the specifics of the tests, citing security concerns.

    Last week, federal authorities descended on Wren’s Clearwater electronics dealership, VisionTech Components, after a Washington D.C. grand jury came back with indictments for him and his office manager accusing them of mail fraud and trafficking in counterfeit goods. (Click HERE for article)

    Former U.S. Army Staff Sergeant Pleads Guilty to Bribery in Afghanistan Fuel Theft Scheme
    September 24, 2010 – WASHINGTON – A former U.S. Army staff sergeant pleaded guilty today to bribery in connection with a fuel theft scheme to solicit more than $400,000 in bribes from a government contractor in Afghanistan, announced Assistant Attorney General Lanny A. Breuer of the Criminal Division and U.S. Attorney Neil H. MacBride of the Eastern District of Virginia. 

    Stevan Nathan Ringo, 26, of Marrero, La., pleaded guilty today before Judge T.S. Ellis, III in U.S. District Court in Virginia to one count of bribery.   Ringo was originally charged in an indictment filed on Aug. 24, 2010.   Ringo’s sentencing is set for Jan. 7, 2011.  (Click HERE for article)

    Robert Saum, Pentagon Psych Trauma Chief, Reassigned After Sexual Harassment Allegations
    ANNE FLAHERTY and RICHARD LARDNER – September 23, 2010 – WASHINGTON — The Army officer in charge of overseeing treatment for troops suffering from brain injuries and psychological trauma has been reassigned until an internal investigation into his management of the office is completed, a senior Pentagon official said Thursday.

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