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Medicare Doctors Who Cheat On Their Taxes And What Should Be Done About It

Permanent Subcommittee on Investigations

Location: Room 342, Dirksen Senate Office Building

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Agenda

The Permanent Subcommittee on Investigations held a hearing entitled, "Medicare Doctors Who Cheat on Their Taxes and What Should Be Done About It." This is the fourth hearing to result from a three year investigation conducted by the Subcommittee into federal contractors that provide goods or services to the federal government, but fail to pay their taxes. A 2004 hearing determined that 27,000 contractors with the Department of Defense had a tax debt totaling roughly $3 billion. A 2005 hearing determined that 33,000 contractors doing business with civilian federal agencies had unpaid taxes totaling $3.3 billion. In addition to examining contractors for DOD and civilian agencies, the Subcommittee has examined similar misconduct by contractors for the General Services Administration (GSA). A Subcommittee hearing in March 2006 determined that 3,800 GSA contractors collectively owed $1.4 billion in unpaid taxes. The March 20th hearing further explored the problem, focusing specifically on Medicare physicians and related suppliers that receive substantial income from the Federal government but do not pay the taxes that they owe.

Witnesses

Panel 1

  • MR. GREGORY D. KUTZ
    Managing Director , Forensic Audits and Special Investigations Unit
    U.S. Government Accountability Office
    Washington, DC
    Download Testimony (715.7 KB)
  • MR. JOHN J. RYAN
    Assistant Director, Forensic Audits and Special Investigations Unit
    U. S. Government Accountability Office
    Washington, D.C.
    GAO Testimony (715.7 KB)

Panel 2

  • THE HONORABLE MARK EVERSON
    Commissioner, Internal Revenue Service
    U.S. Department of the Treasury
    Washington, D.C.
    Download Testimony (39k)
  • THE HONORABLE KENNETH R. PAPAJ
    Commissioner, Financial Management Service
    U.S. Department of the Treasury
    Washington, D.C.
    Download Testimony (60k)
  • MS. LESLIE V. NORWALK
    Acting Administrator, Centers for Medicare & Medicaid Services
    U.S. Department of Health and Human Services
    Washington, D.C.
    Download Testimony (81k)
  • Accompanied by: MR. TIMOTHY B. HILL
    Chief Financial Officer & Director, Office of Financial Management, Centers for Medicare & Medicaid Services
    U.S. Department of Health and Human Services
    Washington, D.C.