AIG Files Lawsuit Against IRS Seeking $30.2M in Tax Interest

American International Group, the insurance giant saved by a massive federal bailout, wants some tax money back — from 1991.

AIG is suing the Internal Revenue Service (IRS) in Federal Claims Court in Washington, D.C. for $30.2 million. It says that’s how much interest is owed from an overpayment 21 years ago.

AIG said it underpaid taxes for 1997, 1998, and 1999. But it said the government owes it interest for an overpayment in 1991. It said the two claims work out to $30.2 million in the company’s favor.

New York-based AIG said it filed the lawsuit last Thursday because the statute of limitations on its claims was about to run out. The statute of limitations runs for six years on the amounts, which AIG said were determined in July and August 2006.

The Internal Revenue Service is run by the Treasury Department, which also owns about 60 percent of AIG common stock, which it has been selling in pieces.

AIG’s $182.5 billion bailout was the largest of the financial crisis.

Last month, the Federal Reserve Bank of New York said the insurer had completed repaying loans it made as part of the bailout.

AIG shares, which dropped to single digits during the financial crisis, has traded between $19.18 and $35.05 in the past 52 weeks.

Latest Comments

• July 9, 2012 at 9:46 pm

  Former Status Quo says:

  All loans to AIG have been repaid and in the cases of Maiden Lane II and III, the taxpayers made money. The remaining money that AIG is supposed to payback were already paid i... read more
• July 9, 2012 at 5:33 pm

  Agent says:

  Simple math. $80 Billion less $30 Million = $79 Billion, 970 million still owed to the taxpayer. When can we expect full payment AIG?
• July 9, 2012 at 5:27 pm

  ExciteBiker says:

  So if AIG wins, does that mean the proceeds of the suit go back to the majority owner (the taxpayers)? If so, isn't the suit inherently moot? Someone with some JD experience c... read more