Audit Finds Tax Delinquents Received IRS Contracts

Law360, New York (March 14, 2011, 5:47 PM EDT) -- Eleven companies received more than $356 million in contract payments from the Internal Revenue Service despite owing a combined $4.3 million in back taxes, according to an internal audit released Monday.

The contractors — which received a grand total of $3.7 billion in payments from all federal agencies, including $356 million in IRS awards — did not face enforcement action from the IRS because their accounts were in dispute, according to a report from Treasury Inspector General for Tax Administration J. Russell George.

“All federal contractors,...
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