Yesterday, President Obama issued a presidential memorandum that directs federal agencies to block government contractors delinquent in their taxes from receiving new contracts. In addition, the memorandum would require the Commissioner of Internal Revenue to conduct a review of the accuracy of certifications of non-delinquency in taxes that companies bidding for federal contracts are required to submit. The President's goal is to ensure that tax delinquent contractors are not awarded further federal contracts.
The President is also calling on Congress to ensure that tax dollars are not used to boost the profits of companies who refuse to pay their taxes. The presidential memorandum is part of a larger strategy of streamlining the federal contracting process which includes evaluating contract type feasibility, eliminating no-bid and sole source contracts where possible, scrutinizing payments and strengthening the federal workforce.
The text of the memorandum is available here.
The text of President Obama's prepared remarks is available here.
The text of a White House press release on the subject is available here.
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