Dec 18 2019
WASHINGTON, D.C. – U.S. Sen. John Kennedy (R-La.), chairman of the Senate Appropriations Subcommittee on Financial Services and General Government, today announced that a provision he authored to prevent tax cheaters from receiving federal contracts was included in the annual spending bill.
Starting in 2015, federal agencies were prohibited from awarding contracts to entities with seriously delinquent tax debts. However, in April 2019, the Government Accountability Office (GAO) reported widespread noncompliance with this law. GAO found that many federal contracting officers did not follow proper procedures or did not bother to ask, and many contractors simply lied.
Sen. Kennedy included a provision that will require entities bidding for federal contracts to secure an authenticated, tamper-proof document from the IRS and to submit it as part of their bid for the federal contract.
“There’s no point in writing laws if the bureaucracy refuses to enforce them,” said Sen. Kennedy. “My provision ensures that federal contractors who refuse to pay their taxes won’t get another red penny from American taxpayers. The free ride is over for tax cheaters.”
This provision applies to entities with seriously delinquent tax debts. It includes important exceptions for those who are disputing a tax assessment and those who have arranged an appropriate and legal payment plan with the IRS.