United States Government Publishing Office publisher pbl distributor dst United States Government Accountability Office author aut Government Organization text government publication eng GAOREPORTS Legislative Agency Publications gao legislative 2010-08-12 U.S. Government Printing Office 2007-04-19 monographic deposited born digital 19 p. GA 1.13:GAO-07-742T https://www.govinfo.gov/app/details/GAOREPORTS-GAO-07-742T P0b002ee180375d5e f:d07742t DGPO 2010-08-12 2011-03-24 GAOREPORTS-GAO-07-742T machine generated eng fdlp REPORT GAOREPORTS-GAO-07-742T GAO-07-742T Competitive advantage Contractor violations Contractors Department of Defense contractors Federal law Federal procurement Federal regulations Federal taxes Investigations by federal agencies Noncompliance Tax return audits Tax violations Taxpayers Testimony A68468 Since 1990, GAO has periodically reported on high-risk federal programs that are vulnerable to fraud, waste, and abuse. Two such high-risk areas are managing federal contracts more effectively and assessing the efficiency and effectiveness of federal tax administration. Weaknesses in the tax area continue to expose the federal government to significant losses of tax revenue and increase the burden on compliant taxpayers to fund government activities. Over the last several years, the Senate Permanent Subcommittee on Investigations requested GAO to investigate Department of Defense (DOD), civilian agency, and General Services Administration (GSA) contractors that abused the federal tax system. Based on that work GAO made recommendations to executive agencies including to improve the controls over levying payments to contractors with tax debt--many of which have been implemented--and referred 122 contractors to IRS for further investigation and prosecution. As requested, this testimony will highlight the key findings from prior testimonies and related reports. This testimony will (1) describe the magnitude of tax debt owed by federal contractors, (2) provide examples of federal contractors involved in abusive and potentially criminal activity related to the federal tax system, and (3) describe current law and proposed federal regulations for screening contractors with tax debts prior to the award of a contract. https://www.govinfo.gov/content/pkg/GAOREPORTS-GAO-07-742T/html/GAOREPORTS-GAO-07-742T.htm https://www.govinfo.gov/content/pkg/GAOREPORTS-GAO-07-742T/pdf/GAOREPORTS-GAO-07-742T.pdf GAO-07-742T https://www.govinfo.gov/app/details/GAOREPORTS-GAO-07-742T Testimony GAO-07-742T; Tax Compliance: Thousands of Federal Contractors Abuse the Federal Tax System; Competitive advantage Contractor violations Contractors Department of Defense contractors Federal law Federal procurement Federal regulations Federal taxes Investigations by federal agencies Noncompliance Tax return audits Tax violations Taxpayers