DOD Contractors that Cheat on their Taxes and What Should Be Done About It

Permanent Subcommittee on Investigations

Thursday, February 12, 2004
09:30 AM - 12:00 PM

[view archive webcast]

The Permanent Subcommittee on Investigations’ hearing will examine Department of Defense (DOD) contractors who are abusing the federal tax system by either failing to file tax returns or not paying their taxes. A recently completed General Accounting Office (GAO) review of DOD contractors found that 27,100 contractors owed $3 billion in back taxes. The purpose of the hearing is to identify the corrective actions that can be taken to ensure that DOD contractors pay the taxes they owe the federal government.

Supplemental Material: GAO Report 04-95 "Some DoD Contractors Abuse the Federal Tax System with Little Consequence" can be found on the webpage of the Permanent Subcommittee on Investigations.

Witnesses

Panel 1

• Gregory D. Kutz [view testimony]
  Managing Director, Forensic Audits and Special Investigations
  U. S. Government Accountability Office
• Mr. Steve Sebastian
  Director, Financial Management and Assurance
  U.S. Government Accountability Office
• Mr. John J. Ryan
  Assistant Director, Office of Special Investigations
  U.S. Government Accountability Office

Panel 2

• The Honorable Mark W. Everson [view testimony]
  Commissioner
  Internal Revenue Service
• Lawrence J. Lanzillotta [view testimony]
  Principal Deputy and the Deputy Under Secretary of Defense for Management Reform
  U. S. Department of Defense
• Mr. Richard L. Gregg [view testimony]
  Commissioner, Financial Management Service
  U.S. Department of Treasury