I 

110TH CONGRESS 

1ST SESSION H. R. 1870 

To amend title 31, United States Code, to prohibit delinquent Federal debtors 

from being eligible to enter into Federal contracts, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

APRIL 17, 2007 

Mr. TOWNS (for himself, Mr. WAXMAN, Mrs. MALONEY of New York, Mr. 

KUCINICH, and Mr. MURPHY of Connecticut) introduced the following 

bill; which was referred to the Committee on Oversight and Government 

Reform, and in addition to the Committee on Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned 

A BILL 

To amend title 31, United States Code, to prohibit delinquent Federal debtors from being eligible to enter into 

Federal contracts, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Contractor Tax En5 forcement Act’’. 


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1 SEC. 2. AMENDMENTS TO PROVISION REGARDING DELIN2 QUENT FEDERAL DEBTORS. 

3 Section 3720B of title 31, United States Code, is 

4 amended— 

5 (1) in the section heading, by adding at the end 

6 ‘‘OR CONTRACTS’’; 

7 (2) in subsection (a)— 

8 (A) by inserting ‘‘or be eligible to enter 

9 into a Federal contract with the agency’’ after 

10 ‘‘administered by the agency’’; 

11 (B) by inserting ‘‘, including’’ after ‘‘debt’’ 

12 the first place such term appears; 

13 (C) by striking ‘‘(other than’’ the second 

14 place such words appear; 

15 (D) by striking the closing parenthesis 

16 after ‘‘1986’’; and 

17 (E) by inserting ‘‘and be eligible to enter 

18 into Federal contracts’’ after ‘‘loan guaran19 tees’’; and 

20 (3) by adding at the end the following: 

21 ‘‘(c)(1) The head of any Federal agency that admin22 isters a Federal loan or loan guarantee program or that 

23 issues a request for proposals for a Federal contract shall 

24 require each applicant for a Federal loan or loan guar25 antee and each entity that submits a proposal to enter 

26 into a contract with the agency to submit with the loan 


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1 or loan guarantee application or the contract proposal a 

2 form authorizing the Secretary of the Treasury to disclose 

3 to the head of the agency information limited to describing 

4 whether the applicant or prospective contractor has an 

5 outstanding debt under the Internal Revenue Code of 

6 1986 in delinquent status (as defined in this section). 

7 ‘‘(2) Not later than 30 days after the date of the en8 actment of this subsection, the Secretary shall develop and 

9 make available to all Federal agencies a standard form, 

10 the purpose which shall be to authorize the disclosure de11 scribed in paragraph (1). 

12 ‘‘(d) For purposes of this section: 

13 ‘‘(1) The term ‘contract’ means a binding 

14 agreement entered into by a Federal agency for the 

15 purpose of obtaining supplies, materials, equipment, 

16 or services, but does not include— 

17 ‘‘(A) a contract to assist the agency in the 

18 performance of disaster relief authorities, as 

19 designated in standards prescribed by the Sec20 retary of the Treasury; or 

21 ‘‘(B) a contract designated by the head of 

22 the agency as necessary to the national security 

23 of the United States. 

24 ‘‘(2) The term ‘person’ includes— 


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1 ‘‘(A) any partnership with a partner who 

2 has been assessed a penalty under section 6672 

3 of the Internal Revenue Code of 1986 with re4 spect to a debt which is in delinquent status as 

5 described in paragraph (3); and 

6 ‘‘(B) any corporation with an officer or a 

7 shareholder who holds 25 percent or more of 

8 the outstanding shares of corporate stock in 

9 that corporation who has been assessed a pen10 alty under section 6672 of the Internal Revenue 

11 Code of 1986 with respect to a debt that is in 

12 delinquent status as described in paragraph (3). 

13 ‘‘(3) A debt under the Internal Revenue Code 

14 of 1986 shall be considered to be in delinquent sta15 tus if it has not been paid within 180 days of an as16 sessment of a tax, penalty, or interest under the In17 ternal Revenue Code of 1986. Such a debt does not 

18 include a debt that is being paid in a timely manner 

19 pursuant to an agreement under section 6159 or 

20 section 7122 of the Internal Revenue Code of 

21 1986.’’. 

Æ 


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