At least 13 companies who received some of the $300 billion in TARP (Troubled Asset Relief Program) funds owe hundreds of million of dollars in delinquent federal taxes but still received federal bailout money.

As a condition of receiving TARP funds, these companies signed statements indicating they owned no back federal taxes.

According to House Ways and Means Oversight Subcommittee Chairman John Lewis, D-Ga, the Treasury Department relied on company statements, rather than actual tax returns. And two of the companies owe over $100 million each.

Lewis said he is unable to release the names of the corporations that owed back taxes. However, the investigation focused on the top 23 firms receiving the most TARP funding, including the American Insurance Group and the automakers.

Lewis said that an investigation into the entire list of 470 recipients might turn up many more firms with delinquent federal taxes.

Neil Barofsky, special inspector general of the Troubled Asset Relief Program, indicated during his testimony before the subcommittee that a deeper investigation is needed. Barofsky said it could be a federal crime if corporations accepted TARP funding while knowing they owed back taxes.

“If a businessman in Alabama is behind on his taxes, he will be rejected for a small business loan,” Davis said. “How can we have a lower standard for multimillion dollar banks who can’t be bothered to pay their taxes?”

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