HR 829
112th CONGRESS
1st Session
H. R. 829
To prohibit the awarding of a contract or grant in excess of the
simplified acquisition threshold unless the prospective contractor or grantee
certifies in writing to the agency awarding the contract or grant that the
contractor or grantee has no seriously delinquent tax debts, and for other
purposes.
IN THE HOUSE OF REPRESENTATIVES
February 28, 2011
Mr. CHAFFETZ introduced the following bill; which was referred to the Committee
on Oversight and Government Reform
A BILL
To prohibit the awarding of a contract or grant in excess of the
simplified acquisition threshold unless the prospective contractor or grantee
certifies in writing to the agency awarding the contract or grant that the
contractor or grantee has no seriously delinquent tax debts, and for other
purposes.
Be it enacted by the Senate and House of Representatives of the United
States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the `Contracting and Tax Accountability Act of 2011'.
SEC. 2. GOVERNMENTAL POLICY.
It is the policy of the United States Government that no Government contracts
or grants should be awarded to individuals or companies with seriously delinquent
Federal tax debts.
SEC. 3. PROHIBITION ON AWARDING OF CONTRACTS TO DELINQUENT FEDERAL DEBTORS.
Section 3720B of title 31, United States Code, is amended--
(1) in the section heading, by adding at the end `or contracts';
(2) by adding at the end the following:
`(c)(1) Unless this subsection is waived by the head of a Federal agency,
a person who has a seriously delinquent tax debt shall be proposed for debarment
from any contract awarded by the Federal Government.
`(2) The head of any Federal agency that issues an invitation for bids or
a request for proposals for a contract in an amount greater than the simplified
acquisition threshold (as defined in section 134 of title 41, United States
Code) shall require each person that submits a bid or proposal to submit with
the bid or proposal a form--
`(A) certifying that the person does not have a seriously delinquent tax
debt; and
`(B) authorizing the Secretary of the Treasury to disclose to the head of
the agency information limited to describing whether the person has a seriously
delinquent tax debt.
`(3) The Secretary shall make available to all Federal agencies a standard
form for the certification and authorization described in paragraph (2).
`(4) Not later than 270 days after the date of enactment of this subsection,
the Federal Acquisition Regulation shall be revised to incorporate the requirements
of this subsection.
`(5) For purposes of this subsection:
`(A) The term `contract' means a binding agreement entered into by a Federal
agency for the purpose of obtaining property or services, but does not include--
`(i) a contract designated by the head of the agency as assisting the
agency in the performance of disaster relief authorities; or
`(ii) a contract designated by the head of the agency as necessary to
the national security of the United States.
`(B)(i) The term `person' includes--
`(ii) A partnership shall be treated as a person with a seriously delinquent
tax debt if such partnership has a partner who--
`(I) holds an ownership interest of 50 percent or more in that partnership;
and
`(II) who has a seriously delinquent tax debt.
`(iii) A corporation shall be treated as a person with a seriously delinquent
tax debt if such corporation has an officer or a shareholder who--
`(I) holds 50 percent or more, or a controlling interest that is less
than 50 percent, of the outstanding shares of corporate stock in that
corporation; and
`(II) who has a seriously delinquent tax debt.
`(C)(i) The term `seriously delinquent tax debt' means an outstanding debt
under the Internal Revenue Code of 1986 for which a notice of lien has been
filed in public records pursuant to section 6323 of such Code.
`(ii) Such term does not include--
`(I) a debt that is being paid in a timely manner pursuant to an agreement
under section 6159 or section 7122 of such Code; and
`(II) a debt with respect to which a collection due process hearing under
section 6330 of such Code, or relief under subsection (a), (b), or (f)
of section 6015 of such Code, is requested or pending.'.
SEC. 4. PROHIBITION ON AWARDING OF GRANTS TO DELINQUENT FEDERAL DEBTORS.
(a) In General- The head of any Executive agency that offers a grant in excess
of an amount equal to the simplified acquisition threshold (as defined in
section 134 of title 41, United States Code) may not award such grant to any
person unless such person submits with the application for such grant a form--
(1) certifying that the person does not have a seriously delinquent tax
debt; and
(2) authorizing the Secretary of the Treasury to disclose to the head of
the Executive agency information limited to describing whether the person
has a seriously delinquent tax debt.
(b) Release of Information- The Secretary shall make available to all Executive
agencies a standard form for the certification and authorization described
in subsection (a)(2).
(c) Revision of Regulations- Not later than 270 days after the date of the
enactment of this section, the Director of the Office of Management and Budget
shall revise such regulations as necessary to incorporate the requirements
of this section.
(d) Definitions and Special Rules- For purposes of this section:
(A) IN GENERAL- The term `person' includes--
(B) TREATMENT OF CERTAIN PARTNERSHIPS- A partnership shall be treated
as a person with a seriously delinquent tax debt if such partnership has
a partner who--
(i) holds an ownership interest of 50 percent or more in that partnership;
and
(ii) who has a seriously delinquent tax debt.
(C) TREATMENT OF CERTAIN CORPORATIONS- A corporation shall be treated
as a person with a seriously delinquent tax debt if such corporation has
an officer or a shareholder who--
(i) holds 50 percent or more, or a controlling interest that is less
than 50 percent, of the outstanding shares of corporate stock in that
corporation; and
(ii) who has a seriously delinquent tax debt.
(2) EXECUTIVE AGENCY- The term `executive agency' has the meaning given
such term in section 133 of title 41, United States Code.
(3) SERIOUSLY DELINQUENT TAX DEBT-
(A) IN GENERAL- The term `seriously delinquent tax debt' means an outstanding
debt under the Internal Revenue Code of 1986 for which a notice of lien
has been filed in public records pursuant to section 6323 of such Code.
(B) EXCEPTIONS- Such term does not include--
(i) a debt that is being paid in a timely manner pursuant to an agreement
under section 6159 or section 7122 of such Code; and
(ii) a debt with respect to which a collection due process hearing under
section 6330 of such Code, or relief under subsection (a), (b), or (f)
of section 6015 of such Code, is requested or pending.
END
