An inspector general charged with reviewing the Internal Revenue Service’s use of $208 million in funds from the American Recovery and Reinvestment Act of 2009 estimates that the IRS may have “erroneously paid” almost $1 million to contractors.
“Our review of a statistically valid sample of $1 million in labor charges identified that the IRS did not have documentation supporting $394,430 of the invoiced labor hours that were procedures, plans to review the labor charges paid,” said the audit.
“Applying the results of our analysis to the $5.3 million in labor charges for the procurement in which unsupported payments were identified,” said the audit, “TIGTA estimates a total of $927,992 may have been erroneously paid. IRS Contracting Officer’s Technical Representatives (COTR) did not obtain required documentation supporting all billed labor charges. The unsupported labor charges relate to work performed by contractor and subcontractor employees.”