Lawmakers, GAO Target Contractors' Tax Debt

Law360, New York (May 24, 2011, 7:06 PM EDT) -- Lawmakers on Tuesday called for better safeguards against awarding taxpayer money to contractors that owe back taxes, following a report by the U.S. Government Accountability Office showing some contractors that received stimulus funds dodged $757 million in taxes.

In a Senate investigations subcommittee hearing, Sen. Carl Levin, D-Mich., said the Obama administration should beef up procedures for debarring contractors with egregious tax violations and prohibit subcontractors with tax debt from receiving taxpayer dollars.

The hearing came alongside the release of a GAO report requested by Levin...
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