A report released Tuesday by the House Oversight and Government Reform Committee accuses an IRS deputy director, Greg Roseman, of inappropriately steering more than $500 million in contracts to Strong Castle, a small business run by his close friend Braulio Castillo. Castillo’s technology firm, founded in 2011, received 99 percent of its revenue in 2012 from the lucrative IRS contracts.

The House panel, chaired by California GOP Rep. Darrell Issa, questioned Roseman on Wednesday about his relationship with Castillo and the contracts awarded to him, but Roseman pleaded the Fifth Amendment and declined to testify. Roseman, who had worked in the IRS’ procurement office, has been transferred to another department.

On the heels of the recent scandal over increased scrutiny of right-wing groups, another controversy seems to be the last thing the IRS needs.

— Posted by Christian Neumeister


A Virginia IT company inappropriately secured $500 million worth of IRS contracts based on false statements and ties to an agency official, according to a congressional staff report released on Tuesday.

The House Oversight and Government Reform Committee released a report accusing an Internal Revenue Service employee of procuring inappropriate contracts for a small business called Strong Castle, which was founded in 2011 by a man named Braulio Castillo.

In 2012, Castillo received more than $500 million in IRS awards for his technology firm and a mere $465,780 from other federal government agencies. The report accuses IRS deputy director Greg Roseman, a close friend of Castillo’s, of “influencing the selection process” to benefit his friend.

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