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May 23, 2011 5:27 PM by Jeannette Hynes

Tax cheats among recipients of stimulus money

WASHINGTON (AP) - 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 General Accounting Office report is to be released Tuesday.
It says 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 September 30, 2009,
the end of that budget year.

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

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

(Copyright 2011 by The Associated Press. All Rights Reserved.)

 

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