Tax Compliance Enforcement Act of 1994

Summary: Tax Compliance Enforcement Act of 1994 - Amends the Internal Revenue Code to prohibit a delinquent taxpayer from receiving Federal benefits or from being hired as an officer or employee of the Government of the United States, including the legislative and judicial branches. 
Increases certain tax-related criminal fines.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Tax Compliance Enforcement Act of 
1994''.

SEC. 2. DEFINITIONS.

    In this Act:
            (1) The term ``person'' includes an individual, 
        partnership, corporation, association, or public or private 
        organization.
            (2) The term ``current in payment'' means a person either 
        has no outstanding Federal tax obligation owed to the United 
        States Treasury (including any associated interest and 
        penalties), or is in compliance with a payment schedule 
        established by the Internal Revenue Service with respect to an 
        outstanding Federal tax obligation.
            (3) The term ``current in filing'' means a person is in 
        compliance with all filing requirements under sections 6071, 
        6072, and 6075 of the Internal Revenue Code of 1986.
            (4) The term ``delinquent taxpayer'' means any person who 
        is not current in payment or current in filing with respect to 
        any Federal tax obligation (including any associated interest 
        and penalties).
            (5) The term ``Federal benefit''--
                    (A) means the issuance of any grant, contract, 
                loan, professional license, or commercial license 
                provided by an agency of the United States or as the 
                result of appropriated funds of the United States; and
                    (B) does not include any retirement, welfare, 
                social security, health, disability, veterans, public 
                housing, or other similar benefit, or any other benefit 
                for which payments or services are required for 
                eligibility.
            (6) The term ``Federal tax obligation'' means a tax 
        obligation arising from a tax imposed under the Internal 
        Revenue Code of 1986.
            (7) The term ``Commissioner'' means the Commissioner of the 
        Internal Revenue Service.

SEC. 3. PROHIBITION OF GOVERNMENT EMPLOYMENT OR FEDERAL BENEFITS 
              PROVIDED TO DELINQUENT TAXPAYERS.

    (a) In General.--No person shall receive any Federal benefit, nor 
be hired as an officer or employee of the Government of the United 
States, if that person is a delinquent taxpayer.
    (b) Coverage.--The prohibition in subsection (a) shall apply to any 
department, agency, or office of the Government of the United States, 
including--
            (1) the Legislative Branch of the United States, and
            (2) the Judicial Branch of the United States.
    (c) Subgrantees and Subcontractors Included.--The prohibition in 
subsection (a) shall apply to any subgrantee or subcontractor, subject 
to reasonable limitations to be established by the Administrator of the 
General Services Administration.
    (d) Exceptions.--The prohibition in subsection (a) may be waived by 
the appropriate head of the entity described in subsection (b), if the 
waiver is necessary to meet a critical governmental need.
    (e) Regulations.--The Commissioner shall promulgate such 
regulations as are necessary to carry out this Act.
    (f) Effective Date.--This section shall be effective on and after 
the date which is one year after the date of enactment of this Act.

SEC. 4. INCREASES IN TAX-RELATED CRIMINAL FINES.

    (a) Attempt To Evade or Defeat Tax.--Section 7201 of the Internal 
Revenue Code of 1986 (relating to attempt to evade or defeat tax) is 
amended by striking ``$100,000 ($500,000 in the case of a 
corporation)'' and inserting ``$325,000 ($750,000 in the case of a 
corporation)''.
    (b) Willful Failure To File Return, Supply Information, or Pay 
Tax.--Section 7203 of the Internal Revenue Code of 1986 (relating to 
willful failure to file return, supply information, or pay tax) is 
amended--
            (1) by striking ``$25,000 ($100,000 in the case of a 
        corporation)'' in the first sentence and inserting ``$125,000 
        ($250,000 in the case of a corporation)'', and
            (2) by inserting before the period at the end of the third 
        sentence ``and `$325,000 ($750,000 in the case of a 
        corporation)' for `$125,000 ($250,000 in the case of a 
        corporation)'''.
    (c) Fraud and False Statements.--Section 7206 of the Internal 
Revenue Code of 1986 (relating to fraud and false statements) is 
amended by striking ``$100,000 ($500,000 in the case of a 
corporation)'' and inserting ``$325,000 ($750,000 in the case of a 
corporation)''.
    (d) Fraudulent Returns, Statements, or Other Documents.--Section 
7207 of the Internal Revenue Code of 1986 (relating to fraudulent 
returns statements, or other documents) is amended by striking 
``$10,000 ($50,000 in the case of a corporation)'' both places it 
appears and inserting ``$125,000 ($250,000 in the case of a 
corporation)''.
    (e) Effective Date.--The amendments made by this section shall 
apply to offenses committed after the date of the enactment of this 
Act.