House Votes to Bar Tax-Delinquent Contractors But Not Individuals

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April 16, 2013

The House unanimously passed a bill to bar contractors who are behind on their taxes from receiving federal funds, according to an article in The Washington Post.

At the same time, they rejected a bill to prohibit the government from employing or hiring workers who are behind on their taxes.

From the article:

In 2011, about 3.6 percent of the nation’s 3 million federal civilian employees owed back-taxes totaling more than $1 billion in 2011, according to data from the Internal Revenue Service.

The bill affecting contractors, similar to one President Obama proposed as a senator, passed Monday without opposition.

In 2008, the Project On Government Oversight’s Scott Amey testified in front of a House committee supporting similar legislation concerning federal contractors. At the time, federal contractors owed six times as much in back taxes as federal employees did in 2011.

From the testimony:

POGO is concerned about contractors that cheat on or are delinquent in paying their taxes. The Senate has held three hearings on federal contractors with unpaid tax debt, identifying at least $6.3 billion in unpaid taxes by defense and civilian contractors.

Read more about the recent actions in the House in The Washington Post.

Topics: Contract Oversight

Related Content: Contractor Accountability, Suspension and Debarment

Authors: Andre Francisco

Project On Government Oversight (POGO)

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