99–006 

112TH CONGRESS REPORT " ! HOUSE OF REPRESENTATIVES 1st Session 112–115 

FEDERAL EMPLOYEE TAX ACCOUNTABILITY ACT OF 2011 

JUNE 23, 2011.—Committed to the Committee of the Whole House on the State of 

the Union and ordered to be printed 

Mr. ISSA, from the Committee on Oversight and Government 

Reform, submitted the following 

R E P O R T 

together with 

MINORITY VIEWS 

[To accompany H.R. 828] 

[Including cost estimate of the Congressional Budget Office] 

The Committee on Oversight and Government Reform, to whom 

was referred the bill (H.R. 828) to amend title 5, United States 

Code, to provide that persons having seriously delinquent tax debts 

shall be ineligible for Federal employment, having considered the 

same, report favorably thereon with an amendment and recommend that the bill as amended do pass. 

CONTENTS 

Page 

Committee Statement and Views ........................................................................... 3 

Section-by-Section .................................................................................................... 5 

Explanation of Amendments ................................................................................... 6 

Committee Consideration ........................................................................................ 6 

Roll Call Votes ......................................................................................................... 6 

Application of Law to the Legislative Branch ....................................................... 6 

Statement of Oversight Findings and Recommendations of the Committee ...... 7 

Statement of General Performance Goals and Objectives .................................... 7 

Federal Advisory Committee Act ............................................................................ 7 

Unfunded Mandate Statement ............................................................................... 7 

Earmark Identification ............................................................................................ 7 

Committee Estimate ................................................................................................ 7 

Budget Authority and Congressional Budget Office Cost Estimate .................... 7 

Changes in Existing Law Made by the Bill as Reported ...................................... 8 

Minority Views ......................................................................................................... 12 


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The amendment is as follows: 

Strike all after the enacting clause and insert the following: 

SECTION 1. SHORT TITLE. 

This Act may be cited as the ‘‘Federal Employee Tax Accountability Act of 2011’’. 

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 

‘‘§ 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. 

‘‘§ 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 60 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). 

‘‘§ 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 


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1 Internal Revenue Service, Federal Employee/Retiree Delinquency Initiative (FERDI) Annual 

Report, October 2009. 

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). 

‘‘§ 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. 

COMMITTEE STATEMENT AND VIEWS

PURPOSE AND SUMMARY

Most taxpayers file accurate tax returns and pay the taxes they 

owe on time, regardless of their income. Federal employees and individuals applying for federal employment should do the same. At 

the end of fiscal year 2009, the most recent year for which Internal 

Revenue Service (IRS) data is available, 184,000 civilian federal 

employees owed more than $1.5 billion in taxes. The average delinquency rate for federal civilian employees was 3.35 percent, up 

from 2.29 percent in fiscal year 2008.1 The vast majority of federal 

workers who owe taxes owe them from the income they earn. 

Employees who consciously ignore the channels and processes in 

place to fulfill their tax obligations must be held accountable. The 

Federal Employee Tax Accountability Act of 2011 addresses this 

area of non-compliance with our tax laws by prohibiting individuals 

with seriously delinquent tax debt from federal civilian employment. The intent of the bill is simple: If you are a federal employee 

or applicant, you should be making a good faith effort to pay your 

taxes or to dispute them, as all taxpayers have the right to do. 

Holding federal employees who fail to meet their taxpayer obligaVerDate Mar 15 2010 06:06 Jun 24, 2011 Jkt 099006 PO 00000 Frm 00003 Fmt 6659 Sfmt 6602 E:\HR\OC\HR115.XXX HR115

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2 5 CFR 2635.809. 

3Statement of Beth Tucker, Deputy Commissioner, Wage and Investment Division, Internal 

Revenue Service, for hearing entitled, ‘‘H.R. 4735, a bill to amend title 5, United States Code, 

to provide that persons having seriously delinquent tax debts shall be ineligible for federal employment,’’ U.S. House Subcommittee on Federal Workforce, Postal Service and the District of 

Columbia, March 17, 2010, at pp 15–18. 4 26 USC 6331(h). 

tions accountable will foster public confidence in the federal workforce. 

BACKGROUND AND NEED FOR LEGISLATION

Federal employees are called to account for paying taxes by the 

Code of Ethics for the Executive Branch.2 The code of ethics dictates that federal employees must ‘‘satisfy in good faith their obligations as citizens, including all just financial obligations, especially those such as federal, state, or local taxes that are imposed 

by law.’’ 

The IRS urges individuals to resolve their taxpayer obligations. 

Taxpayers who fail to pay all they owe receive a Notice of Tax Due 

and Demand for Payment, a bill including the tax owed plus interest and penalties. If the taxpayer does not respond to the first notice or subsequent notices sent by the IRS, their account becomes 

delinquent. 

Delinquent accounts may be turned over for collection, during 

which time an attempt will be made to reach agreement on a payment plan. Taxpayers who cannot pay their tax on time have a 

number of options, including (1) extension of time to pay; (2) installment agreement; (3) delayed collection; and (4) offer in compromise. Taxpayers who fail to cooperate with payment options 

may be subject to enforced collection action. The IRS affords individuals several avenues for reconsideration, including the right to 

appeal the collection action. 

During the collection process, the IRS may file a Notice of Federal Tax Lien to secure the government’s interest. Once a lien has 

been filed, the IRS cannot issue a Certificate of Release of Federal 

Tax Lien until the taxes, penalties, interest, and associated recording fees are paid in full. 

In 1992, the IRS established the Federal Employee/Retiree Delinquency Initiative (FERDI) to promote federal tax compliance 

among current and retired federal employees. Under FERDI, the 

IRS annually identifies federal employees who are tax delinquent 

for appropriate follow-up action. In addition, the IRS contacts agency Chief Human Capital Officers with general data on delinquency 

rates of their civilian employees. The IRS also provides information 

to support employee communication on tax compliance.3

To help the IRS collect delinquent taxes more effectively, Congress included a provision in the Taxpayer Relief Act of 1997 4 authorizing the establishment of the Federal Payment Levy Program 

(FPLP), which allows the IRS to continuously levy up to 15 percent 

of certain federal payments made to delinquent taxpayers. Federal 

payments that can be levied through the FPLP include federal salaries, federal annuities, and federal employee travel advances or 

reimbursements. 

In March 2011, the Chief Human Capital Officers Council met to 

develop strategies to reduce the number of federal employees with 

delinquent tax liabilities. Agency heads discussed the federal emVerDate Mar 15 2010 06:06 Jun 24, 2011 Jkt 099006 PO 00000 Frm 00004 Fmt 6659 Sfmt 6602 E:\HR\OC\HR115.XXX HR115

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5 Email from John Berry, Director, U.S. Office of Personnel Management, April 15, 2011. 

6 Internal Revenue Service, Federal Employee/Retiree Delinquency Initiative (FERDI) Annual 

Report, October 2009, available at http://msnbcmedia.msn.com/i/CNBC/Sections/ 

NewslAndlAnalysis/lStorylInserts/graphics/lMEDIA/FERDIl2009lREDACTED.pdf 7 U.S. General Accountability Office, Internal Revenue Service: Unpaid Taxes of Federal Workers and Annuitants, GAO–01–195 (Washington, D.C.: June 2001). 

ployee delinquency rate in communications related to the 2010 tax 

filing deadline. For example, Office of Personnel Management Director John Berry sent an email reminding OPM employees of their 

responsibility to pay their taxes.5

Despite these efforts, the percentage of federal employees with 

delinquent tax liabilities has increased. At the end of fiscal year 

2009, the most recent year for which Internal Revenue Service 

(IRS) data is available, 184,240 civilian federal employees owed 

$1,517,030,306 in taxes. Only 85,000 of the 184,240 had entered 

into installment agreements. The average delinquency rate for federal civilian employees was 3.35 percent, up from 2.29 percent in 

fiscal year 2008.6 The Committee agrees with the General Accountability Office that ‘‘voluntary compliance with tax law, the foundation of the U.S. tax system, could be undermined if the public perceives that federal workers and former federal workers successfully 

evade their tax obligations.’’ 7 Since the vast majority of federal 

workers owe taxes stemming from the income they earn, the Committee supports the legislation. 

LEGISLATIVE HISTORY

On March 3, 2010, Representative Chaffetz (R–UT) introduced 

H.R. 4735, a bill to amend title 5, United States Code, to provide 

that persons having seriously delinquent tax debts shall be ineligible for federal employment. H.R. 4735 was offered as an amendment to H.R. 572, the Contracting and Tax Accountability Act of 

2009 during Committee consideration of H.R. 572 on March 4, 

2010. H.R. 572 was not reported by the Committee during the 

111th Congress. The Subcommittee on Federal Workforce, Postal 

Service, and the District of Columbia held a hearing to consider the 

legislation on March 17, 2010. H.R. 4735 was reintroduced for the 

112th Congress on February 28, 2011, as H.R. 828. 

SECTION-BY-SECTION

Section 1. Short Title 

Establishes the short title of the bill as ‘‘Federal Employee Tax 

Accountability Act of 2011.’’ 

Section 2. Ineligibility of Persons Having Seriously Delinquent Tax 

Debts for Federal Employment 

Individuals having seriously delinquent tax debts are ineligible 

for federal employment in the executive and legislative branch. ‘‘Seriously tax delinquent’’ is defined as an outstanding federal tax 

debt for which a notice of lien has been publicly filed. The bill exempts employees who are working to settle tax liabilities by excluding federal tax debts being paid in accordance with an installment 

agreement, offer of compromise, or wage garnishment; for which a 

due process hearing or request for relief from joint and several liability is requested or pending; or for which relief has been granted. 


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The bill prescribes a scheme for conducting the tax reviews necessary to identify individuals who are seriously tax delinquent that 

is based on the July 29, 1977 Treasury Department Order granting 

the IRS Commissioner authority to undertake tax checks. First, 

agencies identify individuals ineligible for employment by requiring 

applicants to certify they are not seriously tax delinquent. Second, 

agencies periodically conduct reviews of public records for liens. If 

a lien is discovered, the individual submits a form to the agency 

authorizing the Secretary of the Treasury to disclose to the agency 

head information on whether or not the individual has a seriously 

delinquent tax debt. Tax information disclosed to the agency head 

is confidential. 

The Office of Personnel Management (OPM), in consultation with 

the Internal Revenue Service, establishes regulations to implement 

the bill. The regulations must give the individual 60 days to demonstrate their debt meets one of the exemptions, provide due process rights, and allow for a financial hardship exemption. OPM reports annually to Congress on the number of financial hardship exemptions granted. 

Section 3. Effective Date 

The bill takes effect 9 months after the date of enactment. 

EXPLANATION OF AMENDMENTS

Rep. Chaffetz offered an amendment in the nature of a substitute 

establishing a scheme for identifying individuals who are seriously 

tax delinquent. The Chaffetz amendment was agreed to by voice 

vote. 

Rep. Lynch offered an amendment to the Chaffetz amendment in 

nature of a substitute exempting federal employees whose wages 

are being garnished, requiring additional due process measures before a personnel action is taken, and providing for a financial hardship exemption. Chairman Issa asked unanimous consent to modify 

the time period for an individual to establish they do not have seriously delinquent tax debt from 90 days to 60 days. There was no 

objection. The Lynch amendment, as modified, was agreed to by 

voice vote. 

COMMITTEE CONSIDERATION

On April 13, 2011, the Committee met in open session and ordered reported favorably the bill, H.R. 828, as amended, by voice 

vote, a quorum being present. 

ROLL CALL VOTES

There were no recorded votes during consideration of H.R. 828. 

APPLICATION OF LAW TO THE LEGISLATIVE BRANCH

Section 102(b)(3) of Public Law 104–1 requires a description of 

the application of this bill to the legislative branch where the bill 

relates to the terms and conditions of employment or access to public services and accommodations. This bill prohibits individuals 

with seriously delinquent tax debt from federal civilian employment, including legislative branch employees. 


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STATEMENT OF OVERSIGHT FINDINGS AND RECOMMENDATIONS OF

THE COMMITTEE

In compliance with clause 3(c)(1) of rule XIII and clause 2(b)(1) 

of rule X of the Rules of the House of Representatives, the Committee’s oversight findings and recommendations are reflected in the 

descriptive portions of this report. 

STATEMENT OF GENERAL PERFORMANCE GOALS AND OBJECTIVES

In accordance with clause 3(c)(4) of rule XIII of the Rules of the 

House of Representatives, the Committee’s performance goals and 

objectives are reflected in the descriptive portions of this report. 

FEDERAL ADVISORY COMMITTEE ACT

The Committee finds that the legislation does not establish or 

authorize the establishment of an advisory committee within the 

definition of 5 U.S.C. App., Section 5(b). 

UNFUNDED MANDATE STATEMENT

Section 423 of the Congressional Budget and Impoundment Control Act (as amended by Section 101(a)(2) of the Unfunded Mandates Reform Act, P.L. 104–4) requires a statement as to whether 

the provisions of the reported include unfunded mandates. In compliance with this requirement the Committee has received a letter 

from the Congressional Budget Office included herein. 

EARMARK IDENTIFICATION

H.R. 828 does not include any congressional earmarks, limited 

tax benefits, or limited tariff benefits as defined in clause 9 of rule 

XXI. 

COMMITTEE ESTIMATE

Clause 3(d)(2) of rule XIII of the Rules of the House of Representatives requires an estimate and a comparison by the Committee of the costs that would be incurred in carrying out H.R. 828. 

However, clause 3(d)(3)(B) of that rule provides that this requirement does not apply when the Committee has included in its report 

a timely submitted cost estimate of the bill prepared by the Director of the Congressional Budget Office under section 402 of the 

Congressional Budget Act. 

BUDGET AUTHORITY AND CONGRESSIONAL BUDGET OFFICE COST

ESTIMATE

With respect to the requirements of clause 3(c)(2) of rule XIII of 

the Rules of the House of Representatives and section 308(a) of the 

Congressional Budget Act of 1974 and with respect to requirements 

of clause 3(c)(3) of rule XIII of the Rules of the House of Representatives and section 402 of the Congressional Budget Act of 1974, the 

Committee has received the following cost estimate for H.R. 828 

from the Director of Congressional Budget Office: 


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MAY 11, 2011. 

Hon. DARRELL ISSA, 

Chairman, Committee on Oversight and Government Reform, 

House of Representatives, Washington, DC. 

DEAR MR. CHAIRMAN: The Congressional Budget Office has prepared the enclosed cost estimate for H.R. 828, the Federal Employee Tax Accountability Act of 2011. 

If you wish further details on this estimate, we will be pleased 

to provide them. The CBO staff contact is Matthew Pickford. 

Sincerely, 

DOUGLAS W. ELMENDORF. 

Enclosure. 

H.R. 828—Federal Employee Tax Accountability Act of 2011 

H.R. 828 would make individuals with federal tax debt that is seriously delinquent ineligible to be appointed, or continue serving, 

as an employee of the federal government. The legislation defines 

seriously delinquent tax debt as outstanding tax debt to the federal 

government for which a public lien has been filed. Tax debt that 

is being paid in a timely manner, or is part of a requested or pending collection-due-process hearing, would not be considered seriously delinquent. Federal agencies would be required to have job 

applicants certify that they do not have such debt. The legislation 

would also allow agencies to review the public records of applicants 

or current employees; if a lien is discovered, agencies would be authorized to ask affected individuals to request that the Secretary 

of the Treasury confidentially disclose the status of that lien. 

Based on information from the Office of Management and Budget, the Internal Revenue Service, and the Joint Committee on Taxation (JCT), CBO estimates that, subject to the availability of appropriated funds, implementing H.R. 828 would cost $1 million in 

2012 and less than $500,000 in subsequent years to create certification forms, develop new regulations, and review records of current and prospective employees. 

Pay-as-you-go procedures apply to the bill because it would affect 

direct spending and revenues. Agencies not funded through annual 

appropriations, such as the Tennessee Valley Authority and Bonneville Power Administration, would face some additional costs, but 

CBO estimates that any net increase in direct spending by such 

agencies would not be significant. JCT estimates that enacting the 

bill would have a negligible effect on revenues. 

H.R. 828 contains no intergovernmental or private-sector mandates as defined in the Unfunded Mandates Reform Act and would 

not affect the budgets of state, local, or tribal governments. 

The CBO staff contact for this estimate is Matthew Pickford. 

This estimate was approved by Theresa Gullo, Deputy Assistant 

Director for Budget Analysis. 

CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED

In compliance with clause 3(e) of rule XIII of the Rules of the 

House of Representatives, changes in existing law made by the bill, 

as reported, are shown as follows (new matter is printed in italic 

and existing law in which no change is proposed is shown in 

roman): 


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TITLE 5, UNITED STATES CODE 

* * * * * * * 

PART III—EMPLOYEES 

* * * * * * * 

SUBPART F—LABOR-MANAGEMENT AND 

EMPLOYEE RELATIONS 

* * * * * * * 

CHAPTER 73—SUITABILITY, SECURITY, AND CONDUCT 

SUBCHAPTER I—REGULATION OF CONDUCT 

Sec. 

7301. Presidential regulations. 

* * * * * * * 

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. 

* * * * * * * 

SUBCHAPTER VIII—INELIGIBILITY OF PERSONS HAVING 

SERIOUSLY DELINQUENT TAX DEBTS FOR FEDERAL EMPLOYMENT 

§ 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 


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(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. 

§ 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 60 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). 

§ 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. 


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(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). 

§ 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. 

* * * * * * * 


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8 House Committee on Oversight and Government Reform, Full Committee Business Meeting, 

p. 87, 112th Cong. (Apr. 13, 2011). 

MINORITY VIEWS 

As the majority notes in this report, ‘‘Most taxpayers file accurate tax returns and pay the taxes they owe on time, regardless of 

their income. Federal employees and individuals applying for federal employment should do the same.’’ By and large, they do. 

The vast majority of federal workers take their income tax obligations seriously, as evidenced by the fact that the tax compliance 

rate in the federal community is much higher than in the general 

public. According to the most recent statistics from the Internal 

Revenue Service, more than 96% of federal workers paid their 

taxes on time and do not owe money to the government. 

Chairman Issa conceded during the Committee’s consideration of 

H.R. 828 that, given the high voluntary compliance rate within the 

federal workforce, H.R. 828 is ‘‘almost pure symbolism.’’ 8 The Joint 

Committee on Taxation agrees. It estimates that H.R. 828 would 

have a ‘‘negligible impact’’ on revenue. 

The minority appreciates that the majority supported an amendment offered by Rep. Lynch to ensure that H.R. 828, in the rare 

circumstances in which it applies, would not hinder the government’s revenue collection efforts or result in unfair treatment of 

federal employees. 

All federal workers should pay their taxes. The Committee’s efforts and energy would be better spent, however, by focusing on 

measures to strengthen the federal civil service and improve the efficiency and effectiveness of the federal government rather than by 

making symbolic gestures intended to perpetuate a negative image 

of the federal workforce. 

ELIJAH E. CUMMINGS. 

Æ 


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