Wednesday, May 25, 2011

Stimulus Contract Money - #2928 - Stimulus Recipients Found to be Tax Cheats - Washington Times (2) Tax Cheats Among Recipients of Stimulus Money - Yahoo

One construction company that won multiple awards of money under President Obama’s 2009 stimulus program was delinquent on its federal tax bill to the tune of $700,000, even as a company executive was blowing hundreds of thousands of dollars at casinos. Yet another company failed to pay taxes, entered into a payment plan with the Internal Revenue Service, and then repeatedly defaulted on that agreement - and still won stimulus contracts worth more than $1 million, according to a Government Accountability Office report released Tuesday. All told, government investigators found that during the period they examined, one out of every six stimulus contract or grant dollars went to a known tax cheat, according to Sen. Tom Coburn, an Oklahoma Republican who, along with several colleagues, requested the GAO review. The review found that at least 3,700 stimulus recipients owed a total of more than $757 million in taxes, but were awarded $24 billion in stimulus money. “Average Americans are likely wondering why we gave such a huge amount of federal money to tax cheats when our national debt is more than $14 trillion,” Mr. Coburn said. “That $24 billion went to such people looks like we are rewarding people for potentially criminal behavior.”.....The government investigators took a closer look at 15 stimulus recipients whose histories raised red flags. The 15 were responsible for $40 million in unpaid taxes, and had all engaged in potentially criminal activities, including withholding payroll taxes from employees but never sending the money to the IRS.  Read more........

Tax Cheats Among Recipients of Stimulus Money - Yahoo News - Thousands of companies that cashed in on President Barack Obama's economic stimulus package owed the government millions in unpaid taxes, congressional investigators have found.  The Government Accountability Office, in a report being released Tuesday, said at least 3,700 government contractors and nonprofit organizations that received more than $24 billion from the stimulus effort owed $757 million in back taxes as of Sept. 30, 2009, the end of the budget year.  The report said the tax delinquents accounted for nearly 6 percent of the 63,000 contractors and grantees examined and cautioned that the real number might be higher because the known tax debt does not measure such factors as income underreporting.  Among the examples was an engineering firm that received a $100,000 stimulus act contract but owed $6 million in taxes. The IRS called it "an extreme case of noncompliance." A social services nonprofit that received more than $1 million in stimulus funds owed taxes of $2 million.  Read more.......

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