Top bar

About POGO's Federal Contractor Misconduct Database (FCMD)

The government awards contracts to companies with histories of misconduct such as contract fraud and environmental, ethics, and labor violations. In the absence of a centralized federal database listing instances of misconduct, the Project On Government Oversight (POGO) is providing such data. We believe that it will lead to improved contracting decisions and public access to information about how the government spends hundreds of billions of taxpayer money each year on goods and services. Report an instance of misconduct »

SRA International, Inc.

IRS Challenge of Accounting Practices

Date: 08/06/2002 (Date of Financial Statement)

Misconduct Type: Tax

Enforcement Agency: Treasury – IRS

Contracting Party: None

Court Type: Administrative

Amount: $0

Disposition: Settlement

Synopsis: SRA International settled an IRS challenge of its accounting methods which caused SRA to underreport its tax liability. "In 1998, the Internal Revenue Service challenged our use of the cash method of income tax accounting. We accrued reserves in fiscal 2001 toward probable interest due on income taxes as a result of the IRS challenge ($1.0 million in the fourth quarter of fiscal 2001 and $2.4 million for the full fiscal year). This accrual was reflected as other expense. We settled this matter with the IRS in the third quarter of fiscal 2002 and reversed approximately $1.8 million of the accumulated reserve, representing the amount by which the total reserve exceeded our actual federal and estimated state interest payments. This reversal was reflected as other income."