IRS owes United $360M refund By Marilyn Adams, USA TODAY CHICAGO =97 Troubled United Airlines is close to getting a much-needed $360= =20 million tax refund from the IRS, but a federal investigation that has=20 delayed the money is continuing. Lawyers for United's parent, UAL, said in= =20 bankruptcy court here Friday that a tentative deal has been struck with the= =20 government to recoup most of a $388 million tax refund over which the=20 airline sued the government this month. United spokesman Jeff Green said=20 the tax money was delayed in part because of government concerns about=20 allegations regarding maintenance work that United and its contractors did= =20 on military planes at Charleston Air Force Base. The Air Force and the U.S.= =20 Attorney's office in South Carolina are investigating allegations by a=20 current United mechanic and a former one that they were pressured to do=20 substandard work and cover up damaged parts found in C-17 military planes=20 to speed up work. United maintains the troop-transport planes through a=20 government contract. Green said United denies wrongdoing and is cooperating= =20 in the probe, but declined further comment. The mechanics, Larry James and= =20 Doug Niven, both of Charleston, S.C., filed lawsuits in February in South=20 Carolina state court against other contractors involved in the maintenance= =20 work, Pratt & Whitney and AAI Engineering Support. James was fired by=20 United, then reinstated after he filed a union grievance, his complaint=20 says. Niven's lawsuit says United fired him then pressured AAI, his new=20 employer, to fire him last year. Their lawyer says the complaints don't=20 name United because bankruptcy law protects it from lawsuits once a company= =20 seeks court protection from creditors. Assistant U.S. Attorney Scott Schools on Friday confirmed his office in=20 South Carolina is looking into the matter. He wouldn't elaborate. The Air=20 Force referred questions to Schools. Chalmers Johnson, the lawyer for the=20 mechanics, said both clients have been interviewed by the Air Force and=20 U.S. Attorney's office. The contractors named haven't responded in court=20 and couldn't be reached Sunday. United spokesman Green said the government= =20 delayed the tax refund over concern the airline might owe the government=20 money in connection with the C-17 allegations or an unrelated pollution=20 problem in New York. The government will withhold $28 million of the funds,= =20 United's lawyers said. The Justice Department refused comment on the tax=20 dispute. The imminent release of the money was a welcome development for=20 United, which is feeling pressure from reduced bookings because of the war.= =20 United said last week that revenue through June would be off $300 million,= =20 and 2003 fuel costs would be 19% higher, compared with its forecasts. *************************************************** The owner of Roger's Trinbago Site/TnTisland.com Roj (Roger James) escape email mailto:ejames@xxxxxxxxx Trinbago site: www.tntisland.com Carib Brass Ctn site www.tntisland.com/caribbeanbrassconnection/ Steel Expressions www.mts.net/~ejames/se/ Site of the Week: http://www.thehummingbirdonline.com TnT Webdirectory: http://search.co.tt *********************************************************