Tax Accountability Act of 2017

Summary: Tax Accountability Act of 2017 This bill declares that no government contracts or grants should be awarded to individuals or companies with seriously delinquent federal tax debts. Agencies offering a grant or issuing a solicitation for bids or a request for proposals for a contract in an amount greater than the simplified acquisition threshold (currently $150,000) shall require each person that submits a grant application, bid, or proposal to: (1) certify whether such person has a seriously delinquent tax debt, and (2) authorize the Department of the Treasury to disclose to the agency whether the person has a seriously delinquent tax debt. Agencies shall consider a person who has a seriously delinquent tax debt not to be a responsible source and thus the person may not be awarded contracts. Agencies must consider a grant applicant who has a seriously delinquent tax debt high risk, shall decline the grant application, and must ensure that the applicant does not receive future grants offered by the agency. Subject to waiver, agencies shall initiate a suspension or debarment proceeding against a person making offers or applying for grants who has a seriously delinquent tax debt or who falsely certified whether the person has a seriously delinquent tax debt.  Individuals with seriously delinquent tax debts are not eligible for federal employment. Agencies must provide for review of public records to determine if a tax lien has been filed on employees or applicants for employment. Agencies may take certain personnel action against employees who fail to file a tax return or understate their tax liability. 

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Tax Accountability Act of 2017''.

SEC. 2. PROHIBITION ON AWARD OF CONTRACT OR GRANT IN EXCESS OF 
              SIMPLIFIED ACQUISITION THRESHOLD TO POTENTIAL CONTRACTOR 
              OR GRANT APPLICANT WITH SERIOUSLY DELINQUENT TAX DEBT.

    (a) 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.
    (b) Disclosure and Evaluation of Contract Offers From Delinquent 
Federal Debtors.--
            (1) In general.--The head of any executive agency that 
        issues a solicitation 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--
                    (A) certifying whether such person has 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.
            (2) 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 to be 
        definitive proof that the offeror is not a responsible source 
        as defined in section 113 of title 41, United States Code.
            (3) Debarment.--
                    (A) Requirement.--Except as provided in 
                subparagraph (B), the head of an executive agency shall 
                initiate a suspension or debarment proceeding against a 
                person after receiving an offer for a contract from 
                such person if--
                            (i) such offer contains a certification (as 
                        required under paragraph (1)(A)) that such 
                        person has a seriously delinquent tax debt; or
                            (ii) the head of the agency receives 
                        information from the Secretary of the Treasury 
                        (as authorized under paragraph (1)(B)) 
                        demonstrating that such a certification 
                        submitted by such person is false.
                    (B) Waiver.--The head of an executive agency may 
                waive subparagraph (A) 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 subparagraph (A) for a person, the head of the 
                agency shall submit to the Committee on Oversight and 
                Government Reform of the House of Representatives and 
                the Committee on Homeland Security and Governmental 
                Affairs of the Senate, within 30 days after the waiver 
                is made, a report containing the rationale for the 
                waiver and relevant information supporting the waiver 
                decision.
            (4) Release of information.--The Secretary of the Treasury, 
        in consultation with the Director of the Office of Management 
        and Budget, shall make available to all executive agencies a 
        standard form for the authorization described in paragraph 
        (1)(B).
            (5) Revision of regulations.--Not later than 270 days after 
        the date of the enactment of this Act, the Federal Acquisition 
        Regulation shall be revised to incorporate the requirements of 
        this section.
    (c) Disclosure and Evaluation of Grant Applications From Delinquent 
Federal Debtors.--
            (1) 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 grant applicant to 
        submit with the grant application a form--
                    (A) certifying whether such applicant has 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 applicant has a seriously 
                delinquent tax debt.
            (2) 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 
        under paragraph (1)(A) that the grant applicant has a seriously 
        delinquent tax debt to be definitive proof that the applicant 
        is high-risk and shall--
                    (A) decline the grant application;
                    (B) ensure that the applicant does not receive any 
                future grant offered by the agency; and
                    (C) in the case of an applicant that has, as of the 
                date on which the grant application is denied under 
                subparagraph (A), an existing grant previously awarded 
                by the agency, take appropriate measures under 
                guidelines issued by the Office of Management and 
                Budget pursuant to paragraph (5) for enhanced oversight 
                of the applicant.
            (3) Debarment.--
                    (A) Requirement.--Except as provided in 
                subparagraph (B), the head of an executive agency shall 
                initiate a suspension or debarment proceeding against a 
                grant applicant after receiving a grant application 
                from such applicant if--
                            (i) such application contains a 
                        certification (as required under paragraph 
                        (1)(A)) that such applicant has a seriously 
                        delinquent tax debt; or
                            (ii) the head of the agency receives 
                        information from the Secretary of the Treasury 
                        (as authorized under paragraph (1)(B)) 
                        demonstrating that such a certification 
                        submitted by such applicant is false.
                    (B) Waiver.--The head of an executive agency may 
                waive subparagraph (A) with respect to an applicant 
                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 subparagraph (A) for an applicant, the head of 
                the agency shall submit to the Committee on Oversight 
                and Government Reform of the House of Representatives 
                and the Committee on Homeland Security and Governmental 
                Affairs of the Senate, within 30 days after the waiver 
                is made, a report containing the rationale for the 
                waiver and relevant information supporting the waiver 
                decision.
            (4) Release of information.--The Secretary of the Treasury, 
        in consultation with the Director of the Office of Management 
        and Budget, shall make available to all executive agencies a 
        standard form for the authorization described in paragraph 
        (1)(B).
            (5) Revision of regulations.--Not later than 270 days after 
        the date of the enactment of this Act, 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:
            (1) Executive agency.--The term ``executive agency'' has 
        the meaning given such term in section 133 of title 41, United 
        States Code.
            (2) Seriously delinquent tax debt.--
                    (A) In general.--The term ``seriously delinquent 
                tax debt'' means a Federal tax liability that--
                            (i) has been assessed by the Secretary of 
                        the Treasury under the Internal Revenue Code of 
                        1986; and
                            (ii) may be collected by the Secretary by 
                        levy or by a proceeding in court.
                    (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;
                            (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;
                            (iii) a debt with respect to which a 
                        continuous levy has been issued under section 
                        6331 of such Code (or, in the case of an 
                        applicant for employment, a debt with respect 
                        to which the applicant agrees to be subject to 
                        such a levy); and
                            (iv) a debt with respect to which such a 
                        levy is released under section 6343(a)(1)(D) of 
                        such Code.
    (e) Effective Date.--This section 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.

SEC. 3. INELIGIBILITY OF NONCOMPLIANT TAXPAYERS FOR FEDERAL EMPLOYMENT.

    (a) In General.--Chapter 73 of title 5, United States Code, is 
amended by adding at the end the following:

``SUBCHAPTER VIII--INELIGIBILITY OF NONCOMPLIANT TAXPAYERS FOR FEDERAL 
                               EMPLOYMENT

``Sec. 7381. Definitions
    ``For purposes of this subchapter--
            ``(1) The term `seriously delinquent tax debt' means a 
        Federal tax liability that has been assessed by the Secretary 
        of the Treasury under the Internal Revenue Code of 1986 and may 
        be collected by the Secretary by levy or by a proceeding in 
        court, except that such term does not include--
                    ``(A) a debt that is being paid in a timely manner 
                pursuant to an agreement under section 6159 or section 
                7122 of such Code;
                    ``(B) 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;
                    ``(C) a debt with respect to which a continuous 
                levy has been issued under section 6331 of such Code 
                (or, in the case of an applicant for employment, a debt 
                with respect to which the applicant agrees to be 
                subject to such a levy); and
                    ``(D) a debt with respect to which such a levy is 
                released under section 6343(a)(1)(D) of such Code;
            ``(2) the term `employee' means an employee in or under an 
        agency, including an individual described in sections 2104(b) 
        and 2105(e); and
            ``(3) the term `agency' means--
                    ``(A) an Executive agency;
                    ``(B) the United States Postal Service;
                    ``(C) the Postal Regulatory Commission; and
                    ``(D) an employing authority in the legislative 
                branch.
``Sec. 7382. Ineligibility for employment
    ``(a) In General.--Subject to subsection (c), an individual is 
ineligible to be appointed or to continue serving as an employee if 
such individual--
            ``(1) has a seriously delinquent tax debt;
            ``(2) does not submit the certification required under 
        subsection (b); or
            ``(3) does not submit an authorization form requested under 
        section 7383(b)(1).
    ``(b) Disclosure Requirement.--The head of each agency shall take 
appropriate measures to ensure that each individual applying for 
employment with such agency shall be required to submit (as part of the 
application for employment) certification that such individual does not 
have any seriously delinquent tax debt.
    ``(c) Regulations.--The Office of Personnel Management, in 
consultation with the Internal Revenue Service, shall, for purposes of 
carrying out this section with respect to the executive branch, 
promulgate any regulations which the Office considers necessary, except 
that such regulations shall provide for the following:
            ``(1) All applicable due process rights, afforded by 
        chapter 75 and any other provision of law, shall apply with 
        respect to a determination under this section that an applicant 
        is ineligible to be appointed or that an employee is ineligible 
        to continue serving.
            ``(2) Before any such determination is given effect with 
        respect to an individual, the individual shall be afforded 180 
        days to demonstrate that such individual's debt is one 
        described in subparagraph (A), (B), (C), or (D) of section 
        7381(1).
            ``(3) An employee may continue to serve, in a situation 
        involving financial hardship, if the continued service of such 
        employee is in the best interests of the United States, as 
        determined on a case-by-case basis and certified as such by the 
        head of the agency.
    ``(d) Reports to Congress.--The Director of the Office of Personnel 
Management shall report annually to the Committee on Oversight and 
Government Reform of the House of Representatives and the Committee on 
Homeland Security and Governmental Affairs of the Senate on the number 
of exemptions requested and the number of exemptions granted under 
subsection (c)(3).
``Sec. 7383. Review of public records
    ``(a) In General.--Each agency shall provide for such reviews of 
public records as the head of such agency considers appropriate to 
determine if a notice of lien has been filed pursuant to section 6323 
of the Internal Revenue Code of 1986 with respect to an employee of or 
an applicant for employment with such agency.
    ``(b) Additional Requests.--If a notice of lien is discovered under 
subsection (a) with respect to an employee or applicant for employment, 
the agency may--
            ``(1) request that the employee or applicant execute and 
        submit a form authorizing the Secretary of the Treasury to 
        disclose to the head of the agency information limited to 
        describing whether--
                    ``(A) the employee or applicant has a seriously 
                delinquent tax debt; or
                    ``(B) there is a final administrative or judicial 
                determination that such employee or applicant committed 
                any act described under section 7385(b); and
            ``(2) request that the Secretary of the Treasury disclose 
        any information so authorized to be disclosed.
    ``(c) Authorization Form.--The Secretary of the Treasury shall make 
available to all agencies a standard form for the authorization 
described in subsection (b)(1).
``Sec. 7384. Confidentiality
    ``Neither the head nor any other employee of an agency may--
            ``(1) use any information furnished under the provisions of 
        this subchapter for any purpose other than the administration 
        of this subchapter;
            ``(2) make any publication whereby the information 
        furnished by or with respect to any particular individual under 
        this subchapter can be identified; or
            ``(3) permit anyone who is not an employee of such agency 
        to examine or otherwise have access to any such information.
``Sec. 7385. Adverse actions for employees who understate taxes or fail 
              to file
    ``(a) In General.--
            ``(1) In general.--Subject to subsection (c) and paragraph 
        (2) of this subsection, the head of an agency may take any 
        personnel action against an employee of such agency if there is 
        a final administrative or judicial determination that such 
        employee committed any act described under subsection (b).
            ``(2) Personnel actions.--In paragraph (1), the term 
        `personnel action' includes separation but does not include 
        administrative leave or any other type of paid leave without 
        duty or charge to leave.
    ``(b) Acts.--The acts referred to under subsection (a)(1) are--
            ``(1) willful failure to file any return of tax required 
        under the Internal Revenue Code of 1986, unless such failure is 
        due to reasonable cause and not to willful neglect; or
            ``(2) willful understatement of Federal tax liability, 
        unless such understatement is due to reasonable cause and not 
        to willful neglect.
    ``(c) Procedure.--Under regulations prescribed by the Office of 
Personnel Management, an employee subject to a personnel action under 
this section shall be entitled to the procedures provided under 
sections 7513 or 7543, as applicable.''.
    (b) Clerical Amendment.--The analysis for chapter 73 of title 5, 
United States Code, is amended by adding at the end the following:

``SUBCHAPTER VIII--INELIGIBILITY OF NONCOMPLIANT TAXPAYERS FOR FEDERAL 
                               EMPLOYMENT

``7381. Definitions.
``7382. Ineligibility for employment.
``7383. Review of public records.
``7384. Confidentiality.
``7385. Adverse actions for employees who understate taxes or fail to 
                            file.''.
    (c) Effective Date.--This section, and the amendments made by this 
section, shall take effect 270 days after the date of the enactment of 
this Act.