DOD Contractors that Cheat on their Taxes and What Should Be Done About It

The Permanent Subcommittee on Investigations’ hearing examined Department of Defense (DOD) contractors who are abusing the federal tax system by either failing to file tax returns or not paying their taxes. A General Accounting Office (GAO) review of DOD contractors found that 27,100 contractors owed $3 billion in back taxes. The purpose of the hearing was to identify the corrective actions that can be taken to ensure that DOD contractors pay the taxes they owe the federal government.

THE GAO REPORT entitled “Some DoD Contractors Abuse the Federal Tax System with Little Consequence” (GAO-04-95) is available in the final Printed Hearing Record which can be accessed via the link at top left of this webpage.