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Posted at 05:31 PM ET, 09/30/2009

Hawk One: City's Delay Caused Payment Problems

Hawk One Security, which had trouble this week paying guards who protect the city's public schools, owes the Internal Revenue Service $4.25 million in taxes and penalties for matters dating from 1998 to 2003, according to an IRS document sent to D.C. Public Schools in September.

Hawk One representatives sent out a statement Tuesday, blaming the city's untimely payments over the "last several months" for the company's failure to pay employees on time.

The IRS document shows that the company's financial problems go beyond the city and beyond "several months."

But Hawk One is still blaming the city, issuing this statement on its IRS debt:

"Hawk One Security, Inc. has contributed monthly payments to the IRS in order to reconcile outstanding taxes owed. This is a legacy issue that was previously inherited by the responsible officers. When the D.C. government failed to pay Hawk One for several months, the firm missed its tax payments, which triggered the response from the IRS to temporarily freeze its assets on Friday, September 25th. The temporary freeze interrupted their payroll cycle, in which 10 percent of their working staff was not able to collect funds for services rendered. Hawk One has met with IRS officials and is currently taking steps to reconcile the tax bill. "

By Anne Bartlett  |  05:31 PM ET, 09/30/2009

Categories:  Nikita Stewart

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