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Congressman: Blackwater Evaded Federal Income Taxes The congressman leading an investigation into Blackwater said Monday that the embattled security company may have evaded tens of millions of dollars in federal taxes and was seeking to hide its tax practices. Rep. Henry Waxman, a California Democrat, said that Blackwater has avoided paying Social Security, Medicare and unemployment taxes by treating its armed guards as independent contractors and not employees.

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Congressman: Blackwater Evaded Federal Income Taxes

The congressman leading an investigation into Blackwater said Monday that the embattled security company may have evaded tens of millions of dollars in federal taxes and was seeking to hide its tax practices.

Rep. Henry Waxman, a California Democrat, said that Blackwater has avoided paying Social Security, Medicare and unemployment taxes by treating its armed guards as independent contractors and not employees.