Updates to our Terms of Use

We are updating our Terms of Use. Please carefully review the updated Terms before proceeding to our website.

Tuesday, June 18, 2024 | Back issues
Courthouse News Service Courthouse News Service

IRS To Check Federal Contractor Certification

WASHINGTON (CN) - President Obama ordered the Commissioner of Internal Revenue to conduct a review of the tax status of companies bidding for federal contracts, after the Government Accountability Office reported that federal contractors owe more than $5 billion in unpaid taxes.

Companies bidding on government contracts already are required to obtain certifications of non-delinquency from the IRS but the GAO questions the accuracy of the certifications, and Obama gave the commissioner 90 days to report back on any deficiencies in the certification process.

In addition, the Presidential Memorandum directed the Office of Management and Budget to work with all federal agencies to evaluate the practices of contracting officers to make sure that they are giving proper scrutiny to contractors' tax status and to create a new government-wide database to track the tax status and other information of all companies that bid on government contracts.

Categories / Uncategorized

Subscribe to Closing Arguments

Sign up for new weekly newsletter Closing Arguments to get the latest about ongoing trials, major litigation and hot cases and rulings in courthouses around the U.S. and the world.

Loading...