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.
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