IRS Awards Billions to Tax Evaders

June 26, 2015 Taxation in USA

WASHINGTON D.C. – The IRS has awarded millions in contracts to businesses who owe taxes or have committed felonies.

In a new report the Treasury Inspector General for Tax Administration (TIGTA) claimed that the US Internal Revenue Service has awarded service contracts to providers who have outstanding debt obligations.

It was found that over the course of 2012 and 2013 the IRS awarded 57 contracts worth USD 18.8 million to 17 contractors who had not met their own federal tax obligations.

Under the details of regulations passed in 2012 the IRS is prohibited from awarding certain contracts to providers who have unpaid tax obligations or have been convicted of selected felonies.

The TIGTA recommended that the IRS updates its own policies regarding obtaining certification from suppliers regarding their tax status and any convictions, and also that the IRS revaluates its own criteria regarding how its own policies comply with the regulations adopted in 2012.

Following the finding in the report the IRS conceded that new training programs should be implemented for staff charged procuring new contractors, but at the same time argued that the USD 18 million of contracts mentioned by the TIGTA were awarded appropriately, and in full compliance with legal requirements.

Photo By: Simon Cunningham