Contracting and Tax Accountability Act of 2014

Bill: 113-s-2247
Sponsor: full_name: Sen. McCaskill, Claire [D-MO]
Introduced: 2014-04-10
Policy area: Taxation
Subjects: Congressional oversight

Debt collection

Public contracts and procurement

Tax administration and collection, taxpayers
Latest action: action_date: 2014-04-10
text: Read twice and referred to the Committee on Homeland Security and Governmental Affairs.

Summaries:
action_date: 2014-04-10
action_desc: Introduced in Senate
text: <p>Contracting and Tax Accountability Act of 2014 - Requires the head of any executive agency that issues an invitation for bids or a request for proposals for a contract, or that offers a grant, in an amount greater than the simplified acquisition threshold, to require each person submitting a bid or proposal or grant application to submit a form: (1) certifying whether the person has a seriously delinquent tax debt, and (2) authorizing the Secretary of the Treasury to disclose information limited to describing whether such person has such a debt. </p> <p>Subjects a person who submits a certification that he or she has a seriously delinquent tax debt, or whose certification that he or she does not have such a debt is demonstrated to be false, to a negative responsibility determination when applying for a federal contract or grant. Provides for: (1) the suspension from the federal procurement process of a person who certifies that he or she has such a debt, and (2) debarment of a person whose certification that he or she does not have such a debt is demonstrated to be false.</p> <p>Defines "seriously delinquent tax debt" as an outstanding tax debt for which a notice of lien has been filed in public records. Exempts from such definition: (1) tax debts that are being paid in a timely manner under an approved installment agreement, and (2) debts for which a collection due process hearing has been requested or is pending. </p>

tv_txt: II 113th CONGRESS 2d Session S. 2247 IN THE SENATE OF THE UNITED STATES April 10, 2014 Mrs. McCaskill introduced the following bill; which was read twice and referred to the Committee on Homeland Security and Governmental Affairs 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.

1. Short title This Act may be cited as the Contracting and Tax Accountability Act of 2014 . 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. 3. Disclosure and evaluation of contract offers from delinquent Federal debtors (a) In general The head of any executive agency that issues an invitation for bids or a request for proposals for a contract in an amount greater than the simplified acquisition threshold shall require each person that submits a bid or proposal to submit with the bid or proposal a form— (1) certifying whether the person has a seriously delinquent tax debt; and (2) authorizing the Secretary of the Treasury to disclose to the head of the agency information limited to describing whether the person has a seriously delinquent tax debt. (b) Impact on responsibility determination The head of any executive agency, in evaluating any offer received in response to a solicitation issued by the agency for bids or proposals for a contract, shall consider a certification that the offeror has a seriously delinquent tax debt, or a certification that the offeror does not have a seriously delinquent tax debt that is demonstrated to be false by information received from the Secretary of the Treasury (as authorized under subsection (a)(2)), to be definitive proof that the offeror is not a responsible source as defined in section 113 of title 41, United States Code. (c) Suspension (1) Requirement Except as provided in paragraph (2), the head of an executive agency shall propose a person for suspension under subpart 9.4 of the Federal Acquisition Regulation after receiving an offer for a contract from such person if such offer contains a certification (as required under subsection (a)(1)) that such person has a seriously delinquent tax debt. (2) Waiver The head of an executive agency may waive paragraph (1) with respect to a person based upon a written finding of urgent and compelling circumstances significantly affecting the interests of the United States. If the head of an executive agency waives paragraph (1) for a person, the head of the agency shall submit to Congress, within 30 days after the waiver is made, a report containing the rationale for the waiver and relevant information supporting the waiver decision. (d) Debarment (1) Requirement Except as provided in paragraph (2), the head of an executive agency shall propose a person for debarment after receiving an offer for a contract from such person if— (A) such offer contains a certification (as required under subsection (a)(1)) that such person does not have a seriously delinquent tax debt; and (B) the head of the agency receives information from the Secretary of the Treasury (as authorized under subsection (a)(2)) demonstrating that the certification submitted by such person is false. (2) Waiver The head of an executive agency may waive paragraph (1) with respect to a person based upon a written finding of urgent and compelling circumstances significantly affecting the interests of the United States. If the head of an executive agency waives paragraph (1) for a person, the head of the agency shall submit to Congress, within 30 days after the waiver is made, a report containing the rationale for the waiver and relevant information supporting the waiver decision. (e) Release of information The Secretary of the Treasury shall make available to all executive agencies a standard form for the authorization described in subsection (a). (f) Revision of regulations Not later than 270 days after the date of enactment of this subsection, the Federal Acquisition Regulation shall be revised to incorporate the requirements of this section. 4. Disclosure and evaluation of grant applications from delinquent 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 shall require each person applying for a grant to submit with the grant application a form— (1) certifying whether the person has a seriously delinquent tax debt; and (2) authorizing the Secretary of the Treasury to disclose to the head of the executive agency information limited to describing whether the person has a seriously delinquent tax debt. (b) Impact on determination of financial stability The head of any executive agency, in evaluating any application for a grant offered by the agency, shall consider a certification that the grant applicant has a seriously delinquent tax debt, or a certification that the offeror does not have a seriously delinquent tax debt that is demonstrated to be false by information received from the Secretary of the Treasury (as authorized under subsection (a)(2)), to be definitive proof that the applicant is high-risk and, if the applicant is awarded the grant, shall take appropriate measures under guidelines issued by the Office of Management and Budget for enhanced oversight of high-risk grantees. (c) Suspension (1) Requirement Except as provided in paragraph (2), the head of an executive agency shall propose a person for suspension under part 180 of title 2, Code of Federal Regulations, after receiving an offer for a grant from such person if such offer contains a certification (as required under subsection (a)(1)) that such person has a seriously delinquent tax debt. (2) Waiver The head of an executive agency may waive paragraph (1) with respect to a person based upon a written finding of urgent and compelling circumstances significantly affecting the interests of the United States. If the head of an executive agency waives paragraph (1) for a person, the head of the agency shall submit to Congress, within 30 days after the waiver is made, a report containing the rationale for the waiver and relevant information supporting the waiver decision. (d) Debarment (1) Requirement Except as provided in paragraph (2), the head of an executive agency shall propose a person for debarment under part 180 of title 2, Code of Federal Regulations, after receiving a grant application from such person if— (A) such application contains a certification (as required under subsection (a)(1)) that such person does not have a seriously delinquent tax debt; and (B) the head of the agency receives information from the Secretary of the Treasury (as authorized under subsection (a)(2)) demonstrating that the certification submitted by such person is false. (2) Waiver The head of an executive agency may waive paragraph (1) with respect to a person based upon a written finding of urgent and compelling circumstances significantly affecting the interests of the United States. If the head of an executive agency waives paragraph (1) for a person, the head of the agency shall submit to the appropriate congressional committees, within 30 days after the waiver is made, a report containing the rationale for the waiver and relevant information supporting the waiver decision. (e) Release of information The Secretary of the Treasury shall make available to all executive agencies a standard form for the authorization described in subsection (a). (f) 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 requirements of this section. 5. Definitions and special rules For purposes of this Act: (1) Appropriate congressional committees The term appropriate congressional committees means— (A) the Committee on Homeland Security and Governmental Affairs of the Senate; (B) the Committee on Oversight and Government Reform of the House of Representatives; and (C) the committees of the Senate and the House of Representatives with jurisdiction over the agency granting the waiver under section 4(c)(2). (2) Executive agency The term executive agency has the meaning given such term in section 133 of title 41, United States Code. (3) Person (A) In general The term person includes— (i) an individual; (ii) a partnership; and (iii) a corporation. (B) Exclusion The term person does not include an individual seeking assistance through a grant entitlement program. (C) Treatment of certain partnerships 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) has a seriously delinquent tax debt. (D) Treatment of certain corporations A corporation shall be treated as a 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 controlling interest that is less than 50 percent, of the outstanding shares of corporate stock in that corporation; and (ii) has a seriously delinquent tax debt. (4) Seriously delinquent tax debt (A) In general 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. (B) Exceptions Such term does not include— (i) a debt that is being paid in a timely manner pursuant to an agreement under section 6159 or section 7122 of such Code; and (ii) 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. 6. Effective date This Act shall apply with respect to contracts and grants awarded on or after the date occurring 270 days after the date of the enactment of this Act.