m4388 BC-MN-TaxesContractors 04-24 0174
Contractors will be required to disclose tax debt
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WASHINGTON (AP) — A new federal rule will require government contractors to disclose whether they owe federal taxes — following congressional investigations which revealed that companies owing millions of dollars were still getting government contracts.
The rule published this week is in response to a request by the Senate Permanent Subcommittee on Investigations in 2006, which was led at the time by Minnesota Republican Norm Coleman.
Back then, the Government Accountability Office determined that one in 10 companies contracting with the General Services Administration owed unpaid federal taxes. The total came to $1.4 billion.
The new rule comes from the Civilian Agency Acquisition Council and the Defense Acquisition Regulations Council, which develop and review changes to federal acquisition regulations.