IRS Does Business with Delinquent Taxpayers


In a report by the Treasury Inspector General for Tax Administration (TIGTA), it was discovered that the IRS has been engaging 20 companies over the years that have cumulative unpaid taxes of about $5.2 million. These 20 companies are IRS contractors engaged to carry out various contracts.

The TIGTA report revealed that IRS procurement offcers often do not check on the tax standing of these contractors to fnd out if they have paid their own business or payroll taxes. And even when they do check and discover the contractors’ taxes are not current, there is a loophole in the federal acquisition law that prohibits the IRS from terminating the contract.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Darrin Mish, Tampa Tax Attorney, The Law Offices of Darrin Mish, P.A. | Attorney Advertising

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