Comments on Propriety of Withholding Contract Payment and Applying Amount Against Indebtedness to IRS

B-162526: Published: Oct 9, 1967. Publicly Released: Oct 9, 1967.

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GAO commented on the propriety on withholding contractor payment and applying the amount against the contractor's indebtedness to the Internal Revenue Service. GAO noted that, in view of the release executed by the assignee, there was no reason why the additional amount payable under the supplemental agreement resulting from an Armed Services Board of Contract Appeals decision might not be set off the same as any other amount due under the contract.

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