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February 16, 2010
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Obama to Crack Down on Tax Evaders through Contracts
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Obama to Crack Down on Tax Evaders through Contracts
February 16, 2010
Topic: New Legislation and Your Taxes
President Obama, in a January 21, 2010 press conference at the White House, announced that the Federal government would no longer award contracts to companies that did not pay their taxes.
Further, Obama has urged Congress to pass legislation that would allow the IRS to share information about businesses that do not pay their taxes. Studies conducted through the Government Accountability Office show that tens of thousands of companies owe the government, collectively, more than $5 billion in back taxes. As stated by Mr. Obama in the press conference, "All across this country, there are people who meet their obligations each and every day. You do your jobs. You support your families. You pay the taxes you owe-because it's a fundamental responsibility of citizenship. And yet, somehow, it's become standard practice in Washington to give contracts to companies that don't pay their taxes."
The presidential memorandum that Mr. Obama enacted on January 21st allows the budget office, the Treasury Department and the IRS to block contractors with serious tax delinquencies from doing business with the government. In addition to the above mentioned stipulations, President Obama also directed the IRS to initiate a review of the way it evaluates companies' claims that they are not delinquent. They are to report their findings in 90 days to prove and insure the IRS's accuracy in these claims against businesses.
