Online Update: Obama Takes Aim at Tax Scofflaws President Obama is moving to block contract awards to companies owing back taxes. The president said federal contractors owe more than $5 billion in delinquent taxes, enough to provide health care for 2.5 million children. “It is simply wrong for companies to take taxpayer dollars and not be taxpayers themselves,” he said in a statement. Contractors are already required to certify that they owe no delinquent taxes. The president’s Jan. 20 memorandum directs the Internal Revenue Service to confirm that those certifications are true. In addition, Obama ordered the Treasury Department and the Office of Management and Budget to evaluate suspension and debarment practices and to submit a plan to ensure that delinquent contractors do not receive new awards. He said contractor certifications must be shared throughout the government. “Too often, Federal contracting officials do not have the most basic information they need to make informed judgments about whether a company trying to win a Federal contract is delinquent in paying its taxes,” the president wrote. “We need to give our contracting officials the tools they need to protect taxpayer dollars.” President Obama said his 2011 budget will ask for legislation requiring that payments to delinquent contractors be diverted to the IRS until their taxes are paid up. Similar legislation failed to pass last year.