WASHINGTON—Today Senator John Kerry (D-Mass.), pressed for more information about Blackwater USA’s alleged tax evasion. The private security firm has been under fire for hiding behind a Bush Administration business size ruling that classified some of their workers as independent contractors rather than employees to avoid paying at least $31 million in taxes.
As a senior member of the Finance Committee, Kerry sent a letter to the Committee’s leadership requesting an investigation be conducted into Blackwater’s tax filings. Kerry, also Chairman of the Committee on Small Business and Entrepreneurship, called on Blackwater to explain their decision to use the Small Business Administration’s (SBA) classification of their employees for tax purposes. Earlier this week, Kerry asked the SBA to provide documentation on any rulings made on Blackwater.
In a letter to Kerry, SBA Administrator Steven Preston wrote, “SBA’s size determinations are solely for the purposes of ascertaining eligibility for our small business programs and have no applicability to tax liability matters.”
To read the letter that Administrator Preston sent to Senator Kerry, please click here.
To read the letter that Senator Kerry sent to Senators Max Baucus (D-Mont.), and Charles Grassley (R-Iowa), Chairman and Ranking Member of the Committee on Finance, please click here.
To read the letter that Senator Kerry sent to Mr. Erik Prince, Chairman of Prince Group, the parent company of Blackwater USA, please click here.