Virginia AG Accuses IRS of Withholding $125M Owed His State

Maybe they could skip a convention or two


RICHMOND — Attorney General Ken Cuccinelli II (R) seemed to be spoiling for his next big fight with the federal government, announcing Wednesday morning that the Internal Revenue Service was refusing to pay $125 million owed to Virginia, possibly in retaliation for his legal battles with the Obama administration.

By afternoon, the Treasury Department had acknowledged in a letter that it owed more than $100 million to the commonwealth, that it was ready to turn over the first $10 million and that it would provide the rest once Cuccinelli's office had answered a few questions about how it would be spent.