H.R. 1870 – Reading Mode

110th CONGRESS

1st Session

H. R. 1870

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 period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned

A BILL

To amend title 31, United States Code, to prohibit delinquent Federal debtors from being eligible to enter into Federal contracts, and for other purposes.

Short title

This Act may be cited as the Contractor Tax Enforcement Act.

Amendments to provision regarding 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)

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 guarantees; and

(3)

by adding at the end the following:

(c)

(1)

The head of any Federal agency that administers 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 guarantee and each entity that submits a proposal to enter into a contract with the agency to submit with the loan 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 enactment 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 described 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 Secretary 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—

(A)

any partnership with a partner who has been assessed a penalty under section 6672 of the Internal Revenue Code of 1986 with respect 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 penalty 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 status if it has not been paid within 180 days of an assessment of a tax, penalty, or interest under the Internal 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.