Often, when talking about why Recovery Act transparency provisions are important, we have to talk vaguely about the unseen. With more than one level of recipient reporting (prime recipients, and their sub-recipients and vendors), which is true under the Recovery Act, we can see who is lurking behind the initial recipients of federal contracts and grants.

Often, when talking about why Recovery Act transparency provisions are important, we have to talk vaguely about the unseen. With more than one level of recipient reporting (prime recipients, and their sub-recipients and vendors), which is true under the Recovery Act, we can see who is lurking behind the initial recipients of federal contracts and grants.

This testimony discusses the results of our most recent report, which we are releasing today, on American Recovery and Reinvestment Act of 2009 (Recovery Act) contract and grant recipients that owe federal taxes. Collectively, individuals, businesses, and other entities owed the U.S. government about $330 billion in known unpaid taxes, including interest and penalties, as of September 30, 2010, according to the Internal Revenue Service (IRS). IRS enforcement of the nation's tax laws continues to be on our High-Risk List.