Tax Cheats Among Recipients of Stimulus Money
May 23, 2011 (Associated Press) WASHINGTON - Thousands of U.S. companies that cashed in on President Barack Obama's economic stimulus package owe the government millions in unpaid taxes, congressional investigators have found.
The General Accounting Office report is to be released Tuesday. It says at least 3,700 government contractors and nonprofit organizations that received more than $24 billion from the stimulus effort owed $757 million in back taxes as of September 30, 2009, the end of that budget year.
The report says the tax delinquents account for nearly 6 percent of the 63,000 contractors and grantees examined and cautions that the real number might be higher because the known tax debt does not measure such factors as income underreporting.
On Tuesday, a Senate Homeland Security and Governmental Affairs subcommittee will hold a hearing on the report.