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Federal Contractor Misconduct Database (FCMD)

The federal government routinely awards contracts to companies with histories of misconduct, including contract fraud and other violations. POGO believes that providing this website will help to improve contracting decisions and increase public knowledge of how the government spends billions of taxpayer dollars each year. Read more…

IRS Challenge of Accounting Practices

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.”

Misconduct Type
Tax
Enforcement Agency
Treasury – IRS
Contracting Party
None
Court Type
Administrative
Disposition
Settlement
Date of Financial Statement
8/6/2002
Contractors Involved Penalty
Total
SRA International, Inc. $0
Further Information Released
SRA Press Release (p. 3 of 5) 10/13/2006

Federal Contractor Misconduct Database