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.

Summary: Contracting and Tax Accountability Act of 2008 - Establishes a policy that no U.S. government contracts or grants should be awarded to individuals or companies with seriously delinquent tax debts.

Requires a person who has such a debt to be proposed for debarment from any federal government contract unless such requirement is waived by a federal agency head.

Requires an agency head that issues an invitation for bids or a request for proposals for a contract in an amount greater than the simplified acquisition threshold to require prospective contractors to: (1) certify that they do not have such a debt; and (2) authorize the Secretary of the Treasury to disclose information describing whether they have such a debt. Exempts contracts designated by agency heads as assisting the agency in the performance of disaster relief authorities or as necessary to national security.

Prohibits the head of an agency offering a grant exceeding such threshold from awarding it to a person who does not submit such certification and authorization. Requires the Federal Acquisition Regulation and regulations governing grants to be revised to require such certification and authorization.

Defines "seriously delinquent tax debt" as an outstanding tax debt for which a notice of lien has been filed in public records. Excludes a tax debt: (1) that is being paid in a timely manner pursuant to an installment agreement; or (2) for which a collection due process hearing, or for which relief from liability for a tax deficiency applicable to joint filers, is requested or pending.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Contracting and Tax Accountability 
Act of 2008''.

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 4(11) 
of the Office of Federal Procurement Policy Act (41 U.S.C. 401(11)) 
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--
                    ``(I) an individual;
                    ``(II) a partnership; and
                    ``(III) a corporation.
            ``(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 4(11) of the Office of Federal 
Procurement Policy Act (41 U.S.C. 401(11)) 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:
            (1) Person.--
                    (A) In general.--The term ``person'' includes--
                            (i) an individual;
                            (ii) a partnership; and
                            (iii) a corporation.
                    (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 4 of the Office of 
        Federal Procurement Policy Act (41 U.S.C. 403).
            (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.

            Passed the House of Representatives April 14, 2008.

            Attest:

                                            LORRAINE C. MILLER,

                                                                 Clerk.