The federal government quietly agreed to forgo billions of dollars in potential tax payments from Citigroup as part of the deal announced this week to wean the company from the massive taxpayer bailout that helped it survive the financial crisis.Must be nice to have the government just hand you billions of dollars. Heck, I'm a tax attorney and I'm completely flummoxed by this. I wish I knew how to wave a magic wand and make my clients' taxes magically disappear.
The Internal Revenue Service on Friday issued an exception to long-standing tax rules for the benefit of Citigroup and a few other companies partially owned by the government. As a result, Citigroup will be allowed to retain billions of dollars worth of tax breaks that otherwise would decline in value when the government sells its stake to private investors.
Wednesday, December 16, 2009
Another huge corporate giveaway for Citigroup