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GAO Report Reveals US Contractors' Failure To Pay $3.3 Billion In Taxes

by Glen Shapiro, LawAndTax-News.com, New York

05 July 2005

According to reports in the national media this week, non-defense contractors engaged in US government business owe around $3.3 billion in taxes.

A recently published report compiled by the Government Accountability Office revealed that the back taxes were owed by around 33,000 civilian contractors. A similar report published in 2004 revealed that 27,000 defense contractors owed some $3 billion in unpaid taxes to the Treasury.

Speaking to the NewsEdge Corporation with regard to the figures, Senator Norm Coleman (R-Minn) urged the government to cut the contractors off until they have repaid their debts, arguing that:

"When individuals or companies demonstrate flagrant disregard for the tax system through a pattern of repeated and continued abuse, it is appropriate to publish their names and bar their receipt of federal contracts."

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