Contracting and Tax Accountability Act of 2008

CONTRACTING AND TAX ACCOUNTABILITY ACT OF 2008 -- (House of Representatives - April 14, 2008)

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Ms. FOXX. Mr. Speaker, I yield myself such time as I may consume.

Mr. Speaker, I rise today in support of H.R. 4881, the Contracting and Tax Accountability Act of 2008.

This legislation would subject any firm that has a seriously delinquent tax debt, defined to mean any time the IRS has filed a tax lien against the company, to a debarment proceeding with the aim of preventing the firm from obtaining a government contract or grant.

Potential contractors and grant recipients must certify that the company does not have any seriously delinquent tax debt in order to be eligible for Federal grants and contracts.

This might sound like a reasonable requirement, and it is. In fact, the administration is currently finalizing a regulation that would require Federal contractors and grantees to certify, among other things, that they have not been notified by the IRS of liability for delinquent taxes. The proposed regulation would also include the failure to pay taxes as a specific cause for a company to be debarred from receiving Federal contracts. Since the issue addressed in this legislation is already being addressed through the regulatory process, it is unclear to us whether this legislation is necessary. Nevertheless, we will not object to it.

Mr. Speaker, I yield back the balance of my time.

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