IB 

Union Calendar No. 356 

110TH CONGRESS 

2D SESSION H. R. 4881 

[Report No. 110–578] 

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. 

IN THE HOUSE OF REPRESENTATIVES 

DECEMBER 19, 2007 

Mr. ELLSWORTH (for himself and Mr. TOWNS) introduced the following bill; 

which was referred to the Committee on Oversight and Government Reform 

APRIL 10, 2008 

Reported with an amendment, committed to the Committee of the Whole 

House on the State of the Union, and ordered to be printed 

[Strike out all after the enacting clause and insert the part printed in italic] 

[For text of introduced bill, see copy of bill as introduced on December 19, 2007] 

A BILL 

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. 


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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 ‘‘Contracting and Tax 

5 Accountability Act of 2008’’. 

6 SEC. 2. GOVERNMENTAL POLICY. 

7 It is the policy of the United States Government that 

8 no Government contracts or grants should be awarded to 

9 individuals or companies with seriously delinquent Federal 

10 tax debts. 

11 SEC. 3. PROHIBITION ON AWARDING OF CONTRACTS TO DE12 LINQUENT FEDERAL DEBTORS. 

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

14 amended— 

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

16 ‘‘OR CONTRACTS’’; 

17 (2) by adding at the end the following: 

18 ‘‘(c)(1) Unless this subsection is waived by the head 

19 of a Federal agency, a person who has a seriously delin20 quent tax debt shall be proposed for debarment from any 

21 contract awarded by the Federal Government. 

22 ‘‘(2) The head of any Federal agency that issues an 

23 invitation for bids or a request for proposals for a contract 

24 in an amount greater than the simplified acquisition 

25 threshold (as defined in section 4(11) of the Office of Federal 


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1 Procurement Policy Act (41 U.S.C. 401(11)) shall require 

2 each person that submits a bid or proposal to submit with 

3 the bid or proposal a form— 

4 ‘‘(A) certifying that the person does not have a 

5 seriously delinquent tax debt; and 

6 ‘‘(B) authorizing the Secretary of the Treasury 

7 to disclose to the head of the agency information lim8 ited to describing whether the person has a seriously 

9 delinquent tax debt. 

10 ‘‘(3) The Secretary shall make available to all Federal 

11 agencies a standard form for the certification and author12 ization described in paragraph (2). 

13 ‘‘(4) Not later than 270 days after the date of enact14 ment of this subsection, the Federal Acquisition Regulation 

15 shall be revised to incorporate the requirements of this sub16 section. 

17 ‘‘(5) For purposes of this subsection: 

18 ‘‘(A) The term ‘contract’ means a binding agree19 ment entered into by a Federal agency for the purpose 

20 of obtaining property or services, but does not in21 clude— 

22 ‘‘(i) a contract designated by the head of the 

23 agency as assisting the agency in the perform24 ance of disaster relief authorities; or 


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1 ‘‘(ii) a contract designated by the head of 

2 the agency as necessary to the national security 

3 of the United States. 

4 ‘‘(B)(i) The term ‘person’ includes— 

5 ‘‘(I) an individual; 

6 ‘‘(II) a partnership; and 

7 ‘‘(III) a corporation. 

8 ‘‘(ii) A partnership shall be treated as a person 

9 with a seriously delinquent tax debt if such partner10 ship has a partner who— 

11 ‘‘(I) holds an ownership interest of 50 per12 cent or more in that partnership; and 

13 ‘‘(II) who has a seriously delinquent tax 

14 debt. 

15 ‘‘(iii) A corporation shall be treated as a person 

16 with a seriously delinquent tax debt if such corpora17 tion has an officer or a shareholder who— 

18 ‘‘(I) holds 50 percent or more, or a control19 ling interest that is less than 50 percent, of the 

20 outstanding shares of corporate stock in that cor21 poration; and 

22 ‘‘(II) who has a seriously delinquent tax 

23 debt. 

24 ‘‘(C)(i) The term ‘seriously delinquent tax debt’ 

25 means an outstanding debt under the Internal RevVerDate Aug 31 2005 23:26 Apr 10, 2008 Jkt 069200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6203 E:\BILLS\H4881.RH H4881

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1 enue Code of 1986 for which a notice of lien has been 

2 filed in public records pursuant to section 6323 of 

3 such Code. 

4 ‘‘(ii) Such term does not include— 

5 ‘‘(I) a debt that is being paid in a timely 

6 manner pursuant to an agreement under section 

7 6159 or section 7122 of such Code; and 

8 ‘‘(II) a debt with respect to which a collec9 tion due process hearing under section 6330 of 

10 such Code, or relief under subsections (a), (b), or 

11 (f) of section 6015 of such Code, is requested or 

12 pending.’’. 

13 SEC. 4. PROHIBITION ON AWARDING OF GRANTS TO DELIN14 QUENT FEDERAL DEBTORS. 

15 (a) IN GENERAL.—The head of any Executive agency 

16 that offers a grant in excess of an amount equal to the sim17 plified acquisition threshold (as defined in section 4(11) of 

18 the Office of Federal Procurement Policy Act (41 U.S.C. 

19 401(11)) may not award such grant to any person unless 

20 such person submits with the application for such grant a 

21 form— 

22 (1) certifying that the person does not have a se23 riously delinquent tax debt; and 

24 (2) authorizing the Secretary of the Treasury to 

25 disclose to the head of the Executive agency informaVerDate Aug 31 2005 23:26 Apr 10, 2008 Jkt 069200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6203 E:\BILLS\H4881.RH H4881

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1 tion limited to describing whether the person has a se2 riously delinquent tax debt. 

3 (b) RELEASE OF INFORMATION.—The Secretary shall 

4 make available to all Executive agencies a standard form 

5 for the certification and authorization described in sub6 section (a)(2). 

7 (c) REVISION OF REGULATIONS.—Not later than 270 

8 days after the date of the enactment of this section, the Di9 rector of the Office of Management and Budget shall revise 

10 such regulations as necessary to incorporate the require11 ments of this section. 

12 (d) DEFINITIONS AND SPECIAL RULES.—For purposes 

13 of this section: 

14 (1) PERSON.— 

15 (A) IN GENERAL.—The term ‘‘person’’ in16 cludes— 

17 (i) an individual; 

18 (ii) a partnership; and 

19 (iii) a corporation. 

20 (B) TREATMENT OF CERTAIN PARTNER21 SHIPS.—A partnership shall be treated as a per22 son with a seriously delinquent tax debt if such 

23 partnership has a partner who— 

24 (i) holds an ownership interest of 50 

25 percent or more in that partnership; and 


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1 (ii) who has a seriously delinquent tax 

2 debt. 

3 (C) TREATMENT OF CERTAIN CORPORA4 TIONS.—A corporation shall be treated as a per5 son with a seriously delinquent tax debt if such 

6 corporation has an officer or a shareholder 

7 who— 

8 (i) holds 50 percent or more, or a con9 trolling interest that is less than 50 percent, 

10 of the outstanding shares of corporate stock 

11 in that corporation; and 

12 (ii) who has a seriously delinquent tax 

13 debt. 

14 (2) EXECUTIVE AGENCY.—The term ‘‘executive 

15 agency’’ has the meaning given such term in section 

16 4 of the Office of Federal Procurement Policy Act (41 

17 U.S.C. 403). 

18 (3) SERIOUSLY DELINQUENT TAX DEBT.— 

19 (A) IN GENERAL.—The term ‘‘seriously de20 linquent tax debt’’ means an outstanding debt 

21 under the Internal Revenue Code of 1986 for 

22 which a notice of lien has been filed in public 

23 records pursuant to section 6323 of such Code. 

24 (B) EXCEPTIONS.—Such term does not in25 clude— 


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1 (i) a debt that is being paid in a time2 ly manner pursuant to an agreement under 

3 section 6159 or section 7122 of such Code; 

4 and 

5 (ii) a debt with respect to which a col6 lection due process hearing under section 

7 6330 of such Code, or relief under sub8 sections (a), (b), or (f) of section 6015 of 

9 such Code, is requested or pending. 


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Union Calendar No. 356 

110TH CONGRESS 

2D SESSION H. R. 4881 

[Report No. 110

–578] 

A BILL 

To prohibit the awarding of a contract or grant in 

purposes. no seriously delinquent tax debts, and for other tract or grant that the contractor or grantee has tifies in writing to the agency awarding the conless the prospective contractor or grantee cerexcess of the simplified acquisition threshold unAPRIL 10, 2008 

Reported with an amendment, committed to the Comand ordered to be printed mittee of the Whole House on the State of the Union, 


pwalker on PROD1PC71 with BILLS