Contracting and Tax Accountability Act of 2014

Summary: Contracting and Tax Accountability Act of 2014 - Requires the head of any executive agency that issues an invitation for bids or a request for proposals for a contract, or that offers a grant, in an amount greater than the simplified acquisition threshold, to require each person submitting a bid or proposal or grant application to submit a form: (1) certifying whether the person has a seriously delinquent tax debt, and (2) authorizing the Secretary of the Treasury to disclose information limited to describing whether such person has such a debt.  Subjects a person who submits a certification that he or she has a seriously delinquent tax debt, or whose certification that he or she does not have such a debt is demonstrated to be false, to a negative responsibility determination when applying for a federal contract or grant. Provides for: (1) the suspension from the federal procurement process of a person who certifies that he or she has such a debt, and (2) debarment of a person whose certification that he or she does not have such a debt is demonstrated to be false. Defines "seriously delinquent tax debt" as an outstanding tax debt for which a notice of lien has been filed in public records. Exempts from such definition: (1) tax debts that are being paid in a timely manner under an approved installment agreement, and (2) debts for which a collection due process hearing has been requested or is pending. 

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Contracting and Tax Accountability 
Act of 2014''.

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. DISCLOSURE AND EVALUATION OF CONTRACT OFFERS FROM DELINQUENT 
              FEDERAL DEBTORS.

    (a) In General.--The head of any executive agency that issues an 
invitation for bids or a request for proposals for a contract in an 
amount greater than the simplified acquisition threshold shall require 
each person that submits a bid or proposal to submit with the bid or 
proposal a form--
            (1) certifying whether the person has a seriously 
        delinquent tax debt; and
            (2) 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.
    (b) Impact on Responsibility Determination.--The head of any 
executive agency, in evaluating any offer received in response to a 
solicitation issued by the agency for bids or proposals for a contract, 
shall consider a certification that the offeror has a seriously 
delinquent tax debt, or a certification that the offeror does not have 
a seriously delinquent tax debt that is demonstrated to be false by 
information received from the Secretary of the Treasury (as authorized 
under subsection (a)(2)), to be definitive proof that the offeror is 
not a responsible source as defined in section 113 of title 41, United 
States Code.
    (c) Suspension.--
            (1) Requirement.--Except as provided in paragraph (2), the 
        head of an executive agency shall propose a person for 
        suspension under subpart 9.4 of the Federal Acquisition 
        Regulation after receiving an offer for a contract from such 
        person if such offer contains a certification (as required 
        under subsection (a)(1)) that such person has a seriously 
        delinquent tax debt.
            (2) Waiver.--The head of an executive agency may waive 
        paragraph (1) with respect to a person based upon a written 
        finding of urgent and compelling circumstances significantly 
        affecting the interests of the United States. If the head of an 
        executive agency waives paragraph (1) for a person, the head of 
        the agency shall submit to Congress, within 30 days after the 
        waiver is made, a report containing the rationale for the 
        waiver and relevant information supporting the waiver decision.
    (d) Debarment.--
            (1) Requirement.--Except as provided in paragraph (2), the 
        head of an executive agency shall propose a person for 
        debarment after receiving an offer for a contract from such 
        person if--
                    (A) such offer contains a certification (as 
                required under subsection (a)(1)) that such person does 
                not have a seriously delinquent tax debt; and
                    (B) the head of the agency receives information 
                from the Secretary of the Treasury (as authorized under 
                subsection (a)(2)) demonstrating that the certification 
                submitted by such person is false.
            (2) Waiver.--The head of an executive agency may waive 
        paragraph (1) with respect to a person based upon a written 
        finding of urgent and compelling circumstances significantly 
        affecting the interests of the United States. If the head of an 
        executive agency waives paragraph (1) for a person, the head of 
        the agency shall submit to Congress, within 30 days after the 
        waiver is made, a report containing the rationale for the 
        waiver and relevant information supporting the waiver decision.
    (e) Release of Information.--The Secretary of the Treasury shall 
make available to all executive agencies a standard form for the 
authorization described in subsection (a).
    (f) Revision of Regulations.--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 
section.

SEC. 4. DISCLOSURE AND EVALUATION OF GRANT APPLICATIONS FROM 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 shall require each person applying for a grant to submit with 
the grant application a form--
            (1) certifying whether the person has 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) Impact on Determination of Financial Stability.--The head of 
any executive agency, in evaluating any application for a grant offered 
by the agency, shall consider a certification that the grant applicant 
has a seriously delinquent tax debt, or a certification that the 
offeror does not have a seriously delinquent tax debt that is 
demonstrated to be false by information received from the Secretary of 
the Treasury (as authorized under subsection (a)(2)), to be definitive 
proof that the applicant is high-risk and, if the applicant is awarded 
the grant, shall take appropriate measures under guidelines issued by 
the Office of Management and Budget for enhanced oversight of high-risk 
grantees.
    (c) Suspension.--
            (1) Requirement.--Except as provided in paragraph (2), the 
        head of an executive agency shall propose a person for 
        suspension under part 180 of title 2, Code of Federal 
        Regulations, after receiving an offer for a grant from such 
        person if such offer contains a certification (as required 
        under subsection (a)(1)) that such person has a seriously 
        delinquent tax debt.
            (2) Waiver.--The head of an executive agency may waive 
        paragraph (1) with respect to a person based upon a written 
        finding of urgent and compelling circumstances significantly 
        affecting the interests of the United States. If the head of an 
        executive agency waives paragraph (1) for a person, the head of 
        the agency shall submit to Congress, within 30 days after the 
        waiver is made, a report containing the rationale for the 
        waiver and relevant information supporting the waiver decision.
    (d) Debarment.--
            (1) Requirement.--Except as provided in paragraph (2), the 
        head of an executive agency shall propose a person for 
        debarment under part 180 of title 2, Code of Federal 
        Regulations, after receiving a grant application from such 
        person if--
                    (A) such application contains a certification (as 
                required under subsection (a)(1)) that such person does 
                not have a seriously delinquent tax debt; and
                    (B) the head of the agency receives information 
                from the Secretary of the Treasury (as authorized under 
                subsection (a)(2)) demonstrating that the certification 
                submitted by such person is false.
            (2) Waiver.--The head of an executive agency may waive 
        paragraph (1) with respect to a person based upon a written 
        finding of urgent and compelling circumstances significantly 
        affecting the interests of the United States. If the head of an 
        executive agency waives paragraph (1) for a person, the head of 
        the agency shall submit to the appropriate congressional 
        committees, within 30 days after the waiver is made, a report 
        containing the rationale for the waiver and relevant 
        information supporting the waiver decision.
    (e) Release of Information.--The Secretary of the Treasury shall 
make available to all executive agencies a standard form for the 
authorization described in subsection (a).
    (f) 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.

SEC. 5. DEFINITIONS AND SPECIAL RULES.

    For purposes of this Act:
            (1) Appropriate congressional committees.--The term 
        ``appropriate congressional committees'' means--
                    (A) the Committee on Homeland Security and 
                Governmental Affairs of the Senate;
                    (B) the Committee on Oversight and Government 
                Reform of the House of Representatives; and
                    (C) the committees of the Senate and the House of 
                Representatives with jurisdiction over the agency 
                granting the waiver under section 4(c)(2).
            (2) Executive agency.--The term ``executive agency'' has 
        the meaning given such term in section 133 of title 41, United 
        States Code.
            (3) Person.--
                    (A) In general.--The term ``person'' includes--
                            (i) an individual;
                            (ii) a partnership; and
                            (iii) a corporation.
                    (B) Exclusion.--The term ``person'' does not 
                include an individual seeking assistance through a 
                grant entitlement program.
                    (C) 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) has a seriously delinquent tax debt.
                    (D) 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) has a seriously delinquent tax debt.
            (4) 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.

SEC. 6. EFFECTIVE DATE.

    This Act shall apply with respect to contracts and grants awarded 
on or after the date occurring 270 days after the date of the enactment 
of this Act.