Pentagon to collect unpaid taxes.

• Author: Fein, Geoff S.
• Position: Washington Pulse - Brief Article

The Department of Defense is moving forward on several proposals to collect unpaid federal taxes owed by, more than 27,000 defense contractors, said Larry J. Lanzillotta, principal deputy under secretary of defense (comptroller) and deputy under secretary of defense for management reform.

Delinquent defense contractors listed in the Defense Department's Central Contractor Registration system owe nearly $3 billion in unpaid federal taxes as of September 30, 2002, according to a General Accounting Office study.

Many of the companies owing back taxes still continue to be paid for contracts. Although the government does have a mechanism for withholding a portion oft contractor's payment, it has, in many cases, failed to do so, according to the report.

Testifying before the Senate Committee on Government Affairs, Lanzillotta said the Pentagon would begin refining procedures for federal levies. "The primary challenge is to better...