IRS paid $18 million to tax-delinquent firms

Internal Revenue Service officials broke their own rules by handing out dozens of contracts worth more than $18 million to companies with federal tax debt.

One company with a felony conviction even managed to secure nearly $70,000 worth of contracts from the tax agency, according to its inspector general.

The watchdog’s review found 17 corporations, each of which had racked up thousands of dollars in tax debts, won 57 contracts from the IRS between 2012 and 2013 in violation of a 2012 law against the practice.

Leslie Paige, vice president for policy at Citizens Against Government Waste, said the estimates of waste in the inspector general report are actually “conservative” given the parameters that limited the review.


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