The math ain't math-ing
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While they worded it terribly,I think in this context the order does matter (sorta)
If the payment is $10 million gross, they owe their "people" $3 million. They are saying still owe taxes on the full $10 million. I said sorta because I would think those expenses would be deductable business expenses if they are doing their taxes correctly, I would assume one of those people is an accountant.
Uncle Sam to refer to all levels of government is fine.
I can't use a machinegun or own a MANPADS because of fucking Uncle Sam, but if I get arrested for having those it'd likely be local police and not the feds.