TIGTA: IRS Vendors Owe $589 Million in Back Taxes, Yet IRS Refuses to do Annual Tax Check of All Contractors

The Treasury Inspector General for Tax Administration yesterday released Vendors Had Millions of Dollars of Federal Tax Debt (2013-10-116):

The vast majority of vendors that conduct business with the IRS meet their Federal tax obligations. However, TIGTA found that 1,168 (7%) IRS vendors had a combined $589 million of Federal tax debt. ... TIGTA previously recommended that the IRS establish procedures requiring an annual tax check for all IRS contractors. The IRS disagreed with this recommendation and did not implement it. TIGTA continues to believe that the IRS should establish procedures requiring periodic (annual) tax compliance checks for all contractors. Because TIGTA has already recommended expanded tax checks for IRS contractors, no additional recommendations regarding IRS vendor tax compliance are being made at this time.

• Wall Street Journal
• Washington Post