Federal Contractors Owe $3.3 billion in Taxes, GAO Finds

Thousands of federal civilian contractors owe the government $3.3 billion in unpaid taxes, according to congressional investigators.

The government was faulted for mismanaging a program that withholds payment from delinquent contractors.

“The widespread tax cheating by federal contractors will end,” said Sen. Norm Coleman, R-Minn., who requested the investigation.

In its latest report, the Treasury Department’s Financial Management Service bureau came under criticism. The bureau is responsible for government payments as well as debt collection.

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