The owners of Leonie Industries, the contractor, owed at least $4 million in federal taxes when the contracts were awarded. Because the owners had entered into agreements to pay the overdue taxes with the Internal Revenue Service, they were not required to tell the Pentagon about their tax debt, acting Undersecretary of Defense Frank Kendall wrote in a letter to Sen. Tom Carper.
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The tax problems of the military's top propaganda contractor in Afghanistan would not have prevented the Pentagon from awarding it multimillion-dollar contracts, a top official said in a letter to U.S. senators.
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