Inspector general will investigate alleged disclosure of taxpayer information

The lawmakers say the statement was made during a press briefing on Aug. 27, regarding the President’s Economic Recovery Board’s (PERAB) report on corporate tax reform. The letter says that officials made comments on the legal structure of Koch Industries and its effect on the group’s tax liability. 

“While Koch’s website indicates some of the Koch companies are limited liability companies (LLC) or limited partnerships, there is no indication that Koch itself is a Subchapter S Corporation, which is one type of flow-through entity, or a Subchapter C corporation,” the letter said. “In addition, an LLC can choose to be taxed as a Subchapter C corporation.”

“The statement that Koch is a pass-through entity implies direct knowledge of Koch’s legal and tax status, which would appear to be a violation of section 6103,” the letter said.