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Team 4: PNC, Mellon Receive Billions In Bailout, But Still Owe Taxes

POSTED: 6:53 pm EDT March 20, 2009
UPDATED: 7:21 pm EDT March 20, 2009

Team 4 has learned PNC Financial, Bank of New York Mellon and their subsidiaries have active federal tax liens totaling more than $500,000.

Nearly all of the liens were filed by the IRS before the banks received a combined $10 billion in taxpayer bailout money.

Congressman John Lewis expressed outrage Thursday after reporting 13 companies receiving federal bailout money had failed to pay more than $220 million in federal taxes.

Lewis did not reveal their names, but Team 4 obtained copies of active tax liens against PNC Financial and Bank of New York Mellon dating back to 2005.

There is an IRS lien against a PNC subsidiary for $7,700.

There are also three liens against National City Bank, which PNC bought with bailout money, totaling $223,000.

PNC disputes the liens.

A spokesman told Channel 4 Action News Investigative Reporter Paul Van Osdol that, 'In each case, we've had correspondence with the IRS that no taxes, interest or penalties are due and PNC is in the process of asking the IRS to remove those tax liens."

Mellon has two IRS liens that were filed in 2007 and 2008, totaling $377,000.

A Mellon spokesman said one lien "has been resolved" and the other "is in the final stages of being reconciled."

Those responses do not satisfy a local housing activist who has been fighting banks foreclosing on others who have not paid their bills.

"They should be paying their taxes and if they don't pay their taxes then somebody should get punished for that," said Maryellen Hayden of Acorn.

In addition to getting bailout money of its own, Mellon also has a contract with the U.S. Treasury to help manage the bailout despite the fact that federal law states companies can be prevented from getting federal contracts if they have not paid their taxes.

Team 4's revelations came as a surprise to Congressman Mike Doyle, D-Pa.

"I don't know the particulars of Mellon or any other companies. This is the first time I'm hearing about this. I think if people owe taxes or companies owe taxes they should pay them," said Doyle.

Even though PNC and Mellon said they have paid some or all of the taxes owed, all of the liens against them are still active.

The IRS does not comment on specific taxpayers.

However an IRS spokesman said that the 13 companies cited by Lewis have paid some of $220 million in back taxes.

PNC received $7.6 billion in bailout money.

Bank of New York Mellon got $3 billion.

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