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Tax Cheats Got $24B From Obama’s Stash

From a bemused Associated Press:

Tax cheats among recipients of stimulus money

By Jim Abrams, Associated Press Mon May 23, 2011

WASHINGTON – Thousands of companies that cashed in on President Barack Obama’s economic stimulus package owed the government millions in unpaid taxes, congressional investigators have found.

The Government Accountability Office, in a report being released Tuesday, said 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 Sept. 30, 2009, the end of the budget year.

Notice nobody is named.

The report said the tax delinquents accounted for nearly 6 percent of the 63,000 contractors and grantees examined and cautioned that the real number might be higher because the known tax debt does not measure such factors as income underreporting.

Among the examples was an engineering firm that received a $100,000 stimulus act contract but owed $6 million in taxes. The IRS called it "an extreme case of noncompliance." A social services nonprofit that received more than $1 million in stimulus funds owed taxes of $2 million.

A "social services" nonprofit.

The GAO referred those two cases and 13 others to the IRS for further investigation.

Only 13 out of 3,700 are going to get "further investigation"? Still, don’t worry. The government will be much better at controlling health care.

On Tuesday, a Senate Homeland Security and Governmental Affairs subcommittee will hold a hearing on the report.

Federal law does not prohibit tax delinquents from getting government contracts or grants, though there are provisions that enable the government to withhold payments in some cases.

While the federal government requires contractors to present documentation that their taxes are paid, some recipients escaped federal review because the money was disbursed at state or local levels.

Besides, ‘Sherriff Joe’ Biden has a lot on his plate.

Sen. Carl Levin, D-Mich., chairman of the investigations subcommittee holding the hearing, said it’s been known for years that a few federal contractors and grantees don’t pay their taxes

So get over it, you naïve yokels. There are votes to be buy. The administration doesn’t have the time to dot every ‘i’ and cross every ‘t.’

The stimulus package, enacted in February 2009, funneled some $821 billion into the recession-hit economy.

The AP misspelled "into the Democrat Party base."

Of that, about $275 billion was designated for contracts and grants, of which nearly $200 billion had been paid out as of March 25, 2011.

The report noted that about 35 percent of the unpaid taxes were for debts incurred prior to 2003 and that more than half of the apparent violations, $417 million, were from unpaid corporate taxes. Another quarter, $207 million, came from unpaid payroll taxes.

The most serious documented case was a security firm that owed $9 million, mainly in unpaid payroll taxes from the mid-2000s. IRS records indicated that the company paid other creditors while shirking its tax obligations. The company, which received more than $100,000 in stimulus money, had a history of being uncooperative, missing deadlines and repeatedly filing appeals, according to the records

And you can bet it also "had a history" of donating to the Democrat Party.

This article was posted by Steve on Tuesday, May 24th, 2011. Comments are currently closed.

11 Responses to “Tax Cheats Got $24B From Obama’s Stash”

  1. Chase says:

    I am sure it is much more cost-effective to hold hearings, re-write laws, adjust tax codes and the myriad affects tweaks have on forms, publications and mailings, besides the opportunity for optic events when the Won or his cabinet czars can excoriate the rich, corporations, and not have the DoJ go after people that are ripping us off left and right.

    No sense checking up on the flow of money either, as Steve rightly claims, a good proportion is likely right back in politically-motivated social services donator’s hands, or already laundered and back in Obama’s control.

  2. GetBackJack says:

    Mark Rich is strategizing this operation, right?

  3. untrainable says:

    The IRS called it “an extreme case of noncompliance.” Sure is a good thing they hired all those new IRS agents. It never ceases to amaze me how many different euphemisms there are for criminal behavior these days.

  4. Liberals Demise says:

    And this is the same government that wants us to entrust our Health care and medical records to them?
    The Media is to blame for all of this BS!
    For it is they that have cast their pearls before swine and now beds in their residual filth.
    There will come a time soon when this causes a revolution and take over of a non compliant monster in our midst!!

  5. proreason says:

    business as usual.

    One might say that this IS the business of marxism.

  6. tranquil.night says:

    Head meet wall.

  7. Papa Louie says:

    Only 13 out of 3,700 are going to get “further investigation”?

    Those were the ones who didn’t contribute enough to the Democratic Party. How else do you think an unpopular president, like Obama, could expect to raise a Billion dollars for his reelection? You have to single out a few firms for possible prosecution as a warning to others to keep the donations flowing.

  8. Papa Louie says:

    “While the federal government requires contractors to present documentation that their taxes are paid, some recipients escaped federal review because the money was disbursed at state or local levels.”

    It would sure be nice to know the names of these contractors. Wouldn’t it also be interesting to know how many of the lax states that disbursed stimulus money to tax cheats were blue states and how many were red? I bet Illinois had its share. Sheriff Joe sure took his eye off the ball on this one.

    This administration has no problems interfering with Arizona and other states that want to enforce immigration laws. But they won’t question states who give out federal money to tax cheats. That shows where their priorities lie. The waste of taxpayer money does not concern them, but preventing the loss of potential Democratic voters is of the highest priority.

  9. Right of the People says:

    When your Treasury secretary is a notorious tax cheat himself, you actually expect them to go after all the other tax cheats? Well, maybe if they have an (R) after their name or have contributed to the GOP, they we must prostitute (wrong word on purpose) them to the full extent of the law.

  10. Not so fast says:

    MAN, life is GOOD under Barack Hussein Obama! Switzerland better look out though. Won’t need tax havens anymore!

  11. P. Aaron says:

    MI’s D-Carl Levin is still goin’ thru WH dumpsters from the Bush era to look further than 11 referrals? Priorities y’know?

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