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 pe-
riod to be subsequently determined by the Speaker, in each case for con-
sideration of such provisions as fall within the jurisdiction of the com-
mittee concerned 
A BILL 
To amend title 31, United States Code, to prohibit delin-
quent Federal debtors from being eligible to enter into 
Federal contracts, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Contractor Tax En-
forcement Act’’. 
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SEC. 2. AMENDMENTS TO PROVISION REGARDING DELIN-
QUENT 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) in subsection (a)— 
(A) by inserting ‘‘or be eligible to enter 
into a Federal contract with the agency’’ after 
‘‘administered by the agency’’; 
(B) by inserting ‘‘, including’’ after ‘‘debt’’ 
the first place such term appears; 
(C) by striking ‘‘(other than’’ the second 
place such words appear; 
(D) by striking the closing parenthesis 
after ‘‘1986’’; and 
(E) by inserting ‘‘and be eligible to enter 
into Federal contracts’’ after ‘‘loan guaran-
tees’’; and 
(3) by adding at the end the following: 
‘‘(c)(1) The head of any Federal agency that admin-
isters a Federal loan or loan guarantee program or that 
issues a request for proposals for a Federal contract shall 
require each applicant for a Federal loan or loan guar-
antee and each entity that submits a proposal to enter 
into a contract with the agency to submit with the loan 
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or loan guarantee application or the contract proposal a 
form authorizing the Secretary of the Treasury to disclose 
to the head of the agency information limited to describing 
whether the applicant or prospective contractor has an 
outstanding debt under the Internal Revenue Code of 
1986 in delinquent status (as defined in this section). 
‘‘(2) Not later than 30 days after the date of the en-
actment of this subsection, the Secretary shall develop and 
make available to all Federal agencies a standard form, 
the purpose which shall be to authorize the disclosure de-
scribed in paragraph (1). 
‘‘(d) For purposes of this section: 
‘‘(1) The term ‘contract’ means a binding 
agreement entered into by a Federal agency for the 
purpose of obtaining supplies, materials, equipment, 
or services, but does not include— 
‘‘(A) a contract to assist the agency in the 
performance of disaster relief authorities, as 
designated in standards prescribed by the Sec-
retary of the Treasury; or 
‘‘(B) a contract designated by the head of 
the agency as necessary to the national security 
of the United States. 
‘‘(2) The term ‘person’ includes— 
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‘‘(A) any partnership with a partner who 
has been assessed a penalty under section 6672 
of the Internal Revenue Code of 1986 with re-
spect to a debt which is in delinquent status as 
described in paragraph (3); and 
‘‘(B) any corporation with an officer or a 
shareholder who holds 25 percent or more of 
the outstanding shares of corporate stock in 
that corporation who has been assessed a pen-
alty under section 6672 of the Internal Revenue 
Code of 1986 with respect to a debt that is in 
delinquent status as described in paragraph (3). 
‘‘(3) A debt under the Internal Revenue Code 
of 1986 shall be considered to be in delinquent sta-
tus if it has not been paid within 180 days of an as-
sessment of a tax, penalty, or interest under the In-
ternal Revenue Code of 1986. Such a debt does not 
include a debt that is being paid in a timely manner 
pursuant to an agreement under section 6159 or 
section 7122 of the Internal Revenue Code of 
1986.’’. 
Æ 
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