A blog post

Oops! IRS vendor owes $525 million in back taxes.

Posted on the 19 December, 2013 at 6:41 pm Written by in General, News, Taxes

The Internal Revenue Service has been doing business with nearly 1,200 vendors that owe back taxes, including one unnamed contractor that owes a whopping $525 million, the new inspector general’s report says.

 

The IRS’s 1,168 vendors owed back taxes totaling $589 million as of July 2012, according to the report released Tuesday.  Only 50 were in a payment plan to pay off their debt.

 

Apparently the IRS checks whether vendors owe back taxes when the agency awards contracts but it doesn’t continually monitor their tax bills after the contracts have been awarded.

 

The inspector general’s office is prohibited by law from revealing the name of any delinquent vendor, including the one that owed $525 million. The report says most of the back taxes, including the biggest, were delinquent for less than a year.

 

The report also excluded back taxes that were being contested, counting only those that either agreed to by the taxpayer or ordered by the court.

 

The IRS stated, “The vast majority of vendors that conduct business with the IRS meet their federal tax obligations.  We appreciate (the inspector general’s) acknowledgement that IRS has effective controls in place to prevent suspended and debarred vendors’ from receiving IRS contracts.”

 

Huh? What planet are they on?