Friday, May 27, 2011

What Came First - The Fox or the Hen House

Business, nonprofit tax cheats got more than $24B in stimulus funds

      Can we at least re-name the Government Accountability Office?  It is still true, ya get what ya pay for.

A new study found that 3,700 businesses and nonprofit organizations that owed back taxes to the federal government received more than $24 billion in economic stimulus funds.
The number of tax-delinquent stimulus bill beneficiaries could be higher: The Government Accountability Office examined only 63,000 of the 80,000 recipients of stimulus contracts and grants. The 3,700 organizations it identified owed $757 million in back taxes.
Fifteen cases involve “abusive or potentially criminal activity,” said the GAO, which referred these cases to the Internal Revenue Service.
One construction firm owed $400,000 in back taxes, but received a contract worth more than $1 million. A nonprofit organization that owned more than $2 million in unpaid payroll taxes got more than $1 million in stimulus funds.

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