To amend title 5, United States Code, to provide that persons having seriously delinquent tax debts shall be ineligible for Federal employment.

Summary: Federal Employee Tax Accountability Act of 2012 - Makes any person who has a seriously delinquent tax debt ineligible for federal employment or to continue serving as a federal employee. Defines "seriously delinquent tax debt" as an outstanding tax debt for which a notice of lien has been filed in public records. Exempts a tax debt: (1) that is being paid in a timely manner under an approved installment payment agreement or an offer-in-compromise, (2) for which a collection due process hearing has been requested or pending, (3) for which a levy has been issued or agreed to by an applicant for employment, or (4) that is determined to be an economic hardship to the taxpayer.

Requires each federal agency to: (1) ensure that applicants for employment certify that they do not have a seriously delinquent tax debt, (2) review public records to determine if a notice of lien has been filed against an employee or applicant, and (3) restrict access to and use of information obtained under this Act.

Authorizes an agency, if a tax lien against a federal employee or applicant is discovered in any public record, to: (1) request such employee or applicant to execute and submit a form authorizing the Secretary of the Treasury to disclose to an agency head information describing whether the employee or applicant has a seriously delinquent tax debt, and (2) contact the Secretary to request tax information about a seriously delinquent tax debt of an employee or applicant.

Requires the Office of Personnel Management (OPM) to promulgate regulations to carry out this Act that provide taxpayers with all due process rights and to report to Congress annually on the number of exemptions granted for financial hardship. Grants federal employees or applicants 180 days to demonstrate that their tax debts are exempt from classification as a seriously delinquent tax debt under this Act.

Makes this Act effective nine months after its enactment.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Federal Employee Tax Accountability 
Act of 2012''.

SEC. 2. INELIGIBILITY OF PERSONS HAVING SERIOUSLY DELINQUENT TAX DEBTS 
              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 PERSONS HAVING SERIOUSLY DELINQUENT 
                    TAX DEBTS FOR FEDERAL EMPLOYMENT

``Sec. 7381. Definitions
    ``For purposes of this subchapter--
            ``(1) 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, 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 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 a levy 
                issued under such section); and
                    ``(D) a debt with respect to which relief under 
                section 6343(a)(1)(D) of such Code is granted;
            ``(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), any person who has a 
seriously delinquent tax debt shall be ineligible to be appointed or to 
continue serving as an employee.
    ``(b) Disclosure Requirement.--The head of each agency shall take 
appropriate measures to ensure that each person applying for employment 
with such agency shall be required to submit (as part of the 
application for employment) certification that such person 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 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(a)(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.
    ``(d) Reports to Congress.--The Director of the Office of Personnel 
Management shall report annually to Congress on the number of 
exemptions made pursuant to 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 (as described in section 7381(1)) has 
been filed 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 the employee or applicant has a seriously 
        delinquent tax debt; and
            ``(2) contact the Secretary of the Treasury to request tax 
        information limited to describing whether the employee or 
        applicant has a seriously delinquent tax debt.
    ``(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).
    ``(d) Negative Consideration.--The head of an agency, in 
considering an individual's application for employment or in making an 
employee appraisal or evaluation, shall give negative consideration to 
a refusal or failure to comply with a request under 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.''.
    (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 PERSONS HAVING SERIOUSLY DELINQUENT 
                    TAX DEBTS FOR FEDERAL EMPLOYMENT

``7381. Definitions.
``7382. Ineligibility for employment.
``7383. Review of public records.
``7384. Confidentiality.''.

SEC. 3. EFFECTIVE DATE.

    This Act and the amendments made by this Act shall take effect 9 
months after the date of enactment of this Act.

            Passed the House of Representatives July 31, 2012.

            Attest:

                                                 KAREN L. HAAS,

                                                                 Clerk.