GAO: Up to 3,700 tax cheats among recipients of stimulus money

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    May 24, 2011 2:28 PM GMT
    http://www.google.com/hostednews/ap/article/ALeqM5h_lsGu-CZemZAKDvXZTHp_2pVrQg?docId=198b9a7d2b8744c4b38fb3832bb4026a

    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 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.

    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.

    The GAO referred those two cases and 13 others to the IRS for further investigation.
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    Oct 16, 2012 8:06 PM GMT
    Feds have more than 1,900 investigations open into alleged stimulus wrongdoing.

    http://www.washingtonguardian.com/stimulating-investigation

    With little notice, inspectors generals across federal agencies are piecing together criminal and civil cases into stimulus money that was misspent, wasted or defrauded. . . . The Recovery Board charged with coordinating efforts among than inspectors generals at more than two dozen federal agencies that distributed stimulus money posted an item on its official blog last month claiming the total amount of money lost to fraud from the $840 billion stimulus program was a miniscule $11.1 million so far. Vice President Joe Biden even made reference to the figure as he defended the stimulus program from attacks from Republican Rep. Paul Ryan during the vice presidential debate last Thursday. But that number only identifies money that is considered lost to fraud and does not include funds still under investigation or those recommended for reimbursement after audits identified misspending, officials said. And a senior official familiar with the ongoing investigations by inspectors generals at federal agencies told the Washington Guardian the government expects the loss figure to balloon in coming months.
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    Oct 16, 2012 8:25 PM GMT
    Good, I hope the IRS nails these fucking cheats. Enough auditing the low-hanging fruit.