Jun 19, 2008

Goverment Continues Typical Operation-SNAFU

Well, our wonderful government continues to operate in typical fashion-SNAFU.

What I am writing about in this post is nothing new about our highly efficient and performance driven government. But considering the tough economic period we are in, that has resulted in an increase in the cost of living in all aspects and subsequently increased IRS enforcement to help pay for our government's obligations, this is icing on the cake...

In an article that I was recently reading in the News of the Weird 6/15/2008, normally my source of quick stress relieving humor, I learned that our government is awarding contracts and grants to people and business who actually owe the IRS!

Here is what the brief article stated:

"The Government Accountability Office revealed in April that more than 60,000 of the federal government's contractors owe a total of about $7.7 billion in unpaid federal taxes, and that health care providers who take Medicare payments owe an additional $1 billion in late taxes. One unnamed company owes $10 million in back taxes, yet the Pentagon did $1 million worth of business with it. (One activist on tax issues pointed out that firms might find it easy to win low-bid contracts if they don't have the tax expense that their competitors have.) [USA Today, 4-24-08] "

Continuing with the FUBAR reference in our most recent article on IRSmind.com, this is simply outrageous. You would think that some diligence would be used when considering who is awarded these lucrative contracts.

In one particular case, a business that provided Health-care-related services for Departments of Veterans Affairs and Health and Human Services owed over $18 million in back payroll taxes which covered over 80 tax periods! This business was consistently provided federal payments of over $100,000 while the owner of the business purchased multi-million dollar properties, multiple luxury automobiles and owned many residential and commercial properties valued in the tens of millions of dollars.

Unfortunately, the GAO study does not provide any information as to whether the IRS enforced any collection of these taxes, but it does provide safeguards and policy changes to remove and prevent these business from receiving federal payments and/or awarded contracts in the future.

Situation Normal: All F%*ked Up!

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