H.R. 882: “Contracting and Tax Accountability Act of 2013” has a chance of becoming law because it sounds like it will stop contracts from going to tax-dodging companies, but has plenty of loopholes.
Passed the House of Representatives on Monday, April 15, 2013.
*Get all the details on this bill in podcast episode CD024: Let’s Gut the STOCK Act
(a) If you want a government contract, you must submit a form saying you don’t have a “seriously delinquent” tax debt.
(c)(1) The person or company will be suspended or disbarred from government contracts if they have a seriously delinquent tax debt and/or lie about not having one.
(c)(2) This can be waived as long as Congress is told.
The same rules from Section 3 apply to federal grants.
Section 5: Definitions
(1)(A) ‘Person’ is an individual, a partnership, or a corporation.
(1)(C) A ‘partnership’ will be considered one with a seriously delinquent tax debt if the indebted partner owns 50% or more of the partnership.
(1)(D) A ‘corporation’ will be considered one with a seriously delinquent tax debt it it has an officer or shareholder that holds 50% or more, or a controlling interest of the shares of corporate stock.
(3)(A) ‘Seriously delinquent debt’ has a lien filed against it.
(3)(B) Exceptions to ‘seriously delinquent debt’ include a debt being paid in a “timely manner” or a debt with a pending hearing.
This will apply to contracts and grants starting 270 days (approx. 9 months) after this bill is signed.