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 delin-
quent tax debt shall be proposed for debarment from any 
contract awarded by the Federal government pursuant to 
procedures established by regulation by the Administrator 
for Federal Procurement Policy. 
‘‘(2) The head of any Federal agency that issues an 
invitation for bids or a request for proposals for a nego-
tiated acquisition 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 
VerDate Aug 31 2005 
05:07 Dec 27, 2007
Jkt 069200
PO 00000
Frm 00002
Fmt 6652
Sfmt 6201
E:\BILLS\H4881.IH
H4881
cnoel on PRODPC60 with BILLS_CN
‘‘(B) authorizing the Secretary of the Treasury 
to disclose to the head of the agency information 
limited to describing whether the person has a seri-
ously delinquent tax debt. 
‘‘(3) The Secretary shall make available to all Federal 
agencies a standard form for the certification and author-
ization described in paragraph (2). 
‘‘(4) Not later than 270 days after the date of enact-
ment of this subsection, the Administrator for Federal 
Procurement Policy shall issue revised regulations to in-
corporate 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 per-
formance 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 
VerDate Aug 31 2005 
05:07 Dec 27, 2007
Jkt 069200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6201
E:\BILLS\H4881.IH
H4881
cnoel on PRODPC60 with BILLS_CN
‘‘(III) a corporation. 
‘‘(ii) A partnership shall be treated as a person 
with a seriously delinquent tax debt if such partner-
ship has a partner who— 
‘‘(I) holds an ownership interest of 50 per-
cent 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 corpora-
tion has an officer or a shareholder who— 
‘‘(I) holds 50 percent or more, or a con-
trolling 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 Rev-
enue 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— 
VerDate Aug 31 2005 
05:07 Dec 27, 2007
Jkt 069200
PO 00000
Frm 00004
Fmt 6652
Sfmt 6201
E:\BILLS\H4881.IH
H4881
cnoel on PRODPC60 with BILLS_CN
‘‘(I) a debt that is being paid in a timely 
manner pursuant to an agreement under sec-
tion 6159 or section 7122 of such Code; and 
‘‘(II) a debt with respect to which a collec-
tion due process hearing under section 6330 of 
such Code, or relief under subsections (a), (b), 
or (f) of section 6015 of such Code, is re-
quested or pending.’’. 
SEC. 4. PROHIBITION ON AWARDING OF GRANTS TO DELIN-
QUENT 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 infor-
mation 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 
VerDate Aug 31 2005 
05:07 Dec 27, 2007
Jkt 069200
PO 00000
Frm 00005
Fmt 6652
Sfmt 6201
E:\BILLS\H4881.IH
H4881
cnoel on PRODPC60 with BILLS_CN
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 re-
quirements of this section. 
(d) DEFINITIONS AND SPECIAL RULES.—For pur-
poses of this section: 
(1) PERSON.— 
(A) IN GENERAL.—The term ‘‘person’’ in-
cludes— 
(i) an individual; 
(ii) a partnership; and 
(iii) a corporation. 
(B) TREATMENT
OF
CERTAIN
PARTNER-
SHIPS.—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
CORPORA-
TIONS.—A corporation shall be treated as a 
VerDate Aug 31 2005 
05:07 Dec 27, 2007
Jkt 069200
PO 00000
Frm 00006
Fmt 6652
Sfmt 6201
E:\BILLS\H4881.IH
H4881
cnoel on PRODPC60 with BILLS_CN
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 con-
trolling interest that is less than 50 per-
cent, of the outstanding shares of cor-
porate 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 de-
linquent 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 in-
clude— 
(i) a debt that is being paid in a time-
ly manner pursuant to an agreement under 
section 6159 or section 7122 of such Code; 
and 
VerDate Aug 31 2005 
05:07 Dec 27, 2007
Jkt 069200
PO 00000
Frm 00007
Fmt 6652
Sfmt 6201
E:\BILLS\H4881.IH
H4881
cnoel on PRODPC60 with BILLS_CN