The Defense Department’s current procedures for deciding whether to crack down on contractors that owe back taxes is working as intended, Frank Kendall, acting Defense undersecretary for acquisitions, logistics and technology, said in a newly released response to inquiries from lawmakers.
Sens. Tom Carper, D-Del., and Tom Coburn, R-Okla., wrote to Kendall asking if the Pentagon was withholding any payments from Leonie Industries — the largest U.S. contractor working in Afghanistan- – after USAToday reported in February that the firm owed about $4 million in back taxes.
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