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Obama to Federal Contractors: Tax Cheats Beware

President Obama released a memorandum to federal agencies today, stating that he will hold accountable federal contractors that have been delinquent in paying taxes. The memo points out that a recent Government Accountability Office (GAO) study found that government contractors owe an estimated $5 billion in unpaid taxes.

Penalties could include preventing those delinquent contractors from being awarded new contracts.  The President’s move follows years of legislative failures on this issue.

We welcome the President’s action, which provides another tool to prevent companies with questionable track records from receiving federal contracts. With tax season upon us, it’s nice to know that contractors will be paying their fair share and answer to Uncle Sam. It’s unfortunate that previous tax cheat laws languished in Congress.

By: Scott H. Amey, J.D.
General Counsel, POGO

scott amey Scott Amey is General Counsel for the Project On Government Oversight. Some of Scott's investigations center on contract oversight, human trafficking, the revolving door, and ethics issues.

Topics: Contract Oversight

Authors: Scott H. Amey, J.D.

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