Permanent Subcommittee on Investigations

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

Date: February 12, 2004
Time: 9:30am
Location: Room 342, Dirksen Senate Office Building

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.


Panel 1

Gregory D.


Director, Forensic Audits and Investigative Services

U. S. Government Accountability Office

Panel 2

The Honorable

Mark W.



Internal Revenue Service

Panel 2

Lawrence J.


Principal Deputy and the Deputy Under Secretary of Defense for Management Reform

U. S. Department of Defense

Panel 2


Richard L.


Commissioner, Financial Management Service

U.S. Department of Treasury

Related Links

Printed Hearing Record