The Internal Revenue Service awarded millions of dollars in contracts to corporations with substantial federal tax debt, says a March 26 Treasury Inspector General for Tax Administration, or TIGTA, report that was released last week.
Beginning in fiscal 2012, federal law was enacted prohibiting the IRS from doing business with companies who had federal tax debt.
“Federal tax debt conveys a contradictory message in relation to the IRS’s mission to ensure compliance with the tax laws,” the report says.
But TIGTA found that the IRS awarded 57 contracts valued at nearly $19 million to 17 corporations who owed federal taxes during fiscal 2012 and fiscal 2013, the report says.
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