Individuals with significant delinquent tax debt would be ineligible for federal civilian employment, contracts and grants under legislation that U.S. Rep. Jason Chaffetz (R-UT) recently introduced.
The Tax Accountability Act, H.R. 396, would require certification of the tax status of those who submit proposals or applications for federal contracts, grants and employment.
“Federal employees, contractors and grant recipients are not above the law,” Chaffetz, the chairman of the House Oversight and Government Reform Committee, said. “In fact, individuals responsible for federal resources should set the standard for upholding their civic responsibility. Yet, year after year their tax delinquency is resulting in more than $1 billion owed to the federal treasury annually. This legislation ensures that these individuals are satisfying their tax obligations.”
More than 100,000 federal civilian employees owed more than $1 billion in unpaid federal income taxes in fiscal year 2015, and approximately 63,800 contractors owed more than $7 billion in back taxes, the Government Accountability Office reports.
Federal contractors and grant recipients found to have seriously delinquent tax debt would be referred for suspension or debasement and ineligible for a new contract or grant under H.R. 396.
Federal employees or applicants working to settle tax disputes would be exempt, and a financial hardship exemption would be provided when an individual’s service is deemed to be in the best interest of the United States.