AIG Suing U.S. Government

And by extension, the taxpayers that are bailing them out:

In Twist, AIG Sues Its Benefactor Over Taxes

In the midst of its negotiation with the federal government over revised terms of its bailout, American International Group Inc. sued the U.S. on Friday over a disputed $306 million in taxes, interest and penalties.

The suit steps up a battle with the Internal Revenue Service largely over AIG’s use of a controversial type of “tax arbitrage” transaction that authorities are challenging across the world.

With the company essentially suing its owner, the suit highlights the awkwardness of national control of AIG, which the government rescued from potential bankruptcy in September. If through litigation “you’re moving money from one pocket to another, why should we be paying lawyers to do that?” says David Weisbach, a tax law professor at the University of Chicago.

“AIG is taking this action to ensure that it is not required to pay more than its fair share of taxes,” said a company spokeswoman. An IRS spokesman declined to comment.

That may qualify as the most tonedeaf moment since Citigroup announced they were going to take delivery on their new jet. They later canceled.

Earlier today I had the news that AIG had lost another $62 billion and would need billions more in your taxdollars. Maybe now we can just let them fail.