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Medicare payments
Withhold funds of tax delinquents
TUESDAY, JULY 1, 2008

The federal government paid out millions of dollars to thousands of health care providers who owed the government more than $2 billion in back taxes in 2006.

The General Accountability Office said the payments went to 27,000 nursing homes, hospital, doctors and others who were delinquent in their taxes,.

The report did not identify anyone, but among them was a nursing home operator who sought $15 million in Medicare reimbursement while owing $7 million in unpaid taxes. A hospital received $21 million in Medicare payments but owed $15 million in taxes, mainly payroll taxes withheld from employees.

In some case, the GAO said executives "accumulated substantial wealth and assets, including million-dollar houses and luxury vehicles."

Sen. Carl Levin, chairman of the Permanent Subcommittee on Investigations, said, "These tax deadbeats are guilty of shortchanging the government and forcing honest American citizens to shoulder the taxes they are shirking."

The Centers for Medicare and Medicaid is joining an Internal Revenue Service system that withholds payments to contractors who are delinquent in their taxes. The government is right to hold back funds from those who owe it money.

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