Speaking of Tax Cheats, A New GAO Report Highlights Billion Dollar Tax Debts on the Part of Government Contractors

The Daily Caveat loves the GAO. Time Magazine has details on one the government auditor's latest reports detailing rampant tax chicanery on the part of vovernment contractorys. A snippit:

" ...according to prepared testimony being given to the Senate Governmental Affairs Committee Tuesday by the Government Accountability Office (GAO), the auditing arm of Congress...more than 3,800 contractors that do business with the General Services Administration have tax debts totaling about $1.4 billion...

The GAO review of Internal Revenue Service records and GSA contracts for 2004 and 2005 found that about 10% of the vendors under contract with the agency, or over 3,800, had cheated on their taxes. In most cases, the scofflaws didn't pay their corporate income tax or company owners lined their pockets with the IRS payroll taxes they'd collected from their employees for Social Security, Medicare and individual income taxes...

More here.

-- MDT