Federal Employee Tax Accountability Act of 2015

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Federal Employee Tax Accountability 
Act of 2015''.

SEC. 2. 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), any individual 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 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(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 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).
    ``(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.
``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 fail to file or underreport 
                            taxes.''.

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.
                                                  

Summary: Federal Employee Tax Accountability Act of 2015 Makes any individual 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 anbsp. Federal tax liability assessed by the Internal Revenue Service and collectible by levy or court proceeding, except 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 continuous levy has been issued or agreed to by an applicant for employment, or (4) with respect to which such a levy is released because it has been 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 for federal employment is discovered in a public record, to: (1) request such employee or applicant to execute and submit a form authorizing the Department of the Treasury to disclose to an agency head information describing whether the employee or applicant has a seriously delinquent tax debt, has willfully failed to file a required tax return, or has understated tax liability, and (2) request that Treasury disclose information authorized to be disclosed. Authorizes the head of an agency to take personnel actions against an agency employee who willfully failed to file a required tax return or willfully understated federal tax liability. Requires the Office of Personnel Management to: (1) promulgate regulations to carry out this Act that provide federal employees and applicants for employment with all due process rights and that allow, in a situation involving financial hardship, an employee with a seriously delinquent tax debt to continue employment. And (2) report to Congress annually on the number of exemptions granted for financial hardship. Grants federal employees or applicants for federal employment 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 date.