[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[S. 2394 Introduced in Senate (IS)]







110th CONGRESS
  1st Session
                                S. 2394

To amend the Internal Revenue Code of 1986 to simplify, modernize, and 
    improve public notice of and access to tax lien information by 
   providing for a national, Internet accessible, filing system for 
               Federal tax liens, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           November 16, 2007

  Mr. Coleman (for himself and Ms. Collins) introduced the following 
  bill; which was read twice and referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
To amend the Internal Revenue Code of 1986 to simplify, modernize, and 
    improve public notice of and access to tax lien information by 
   providing for a national, Internet accessible, filing system for 
               Federal tax liens, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE; AMENDMENT OF 1986 CODE.

    (a) Short Title.--This Act may be cited as the ``Good Government 
Contractor Act of 2007''.
    (b) Amendment of 1986 Code.--Except as otherwise expressly 
provided, whenever in this Act an amendment or repeal is expressed in 
terms of an amendment to, or repeal of, a section or other provision, 
the reference shall be considered to be made to a section or other 
provision of the Internal Revenue Code of 1986.

SEC. 2. REPEAL OF IMPOSITION OF WITHHOLDING ON CERTAIN PAYMENTS MADE TO 
              VENDORS BY GOVERNMENT ENTITIES.

    The amendment made by section 511 of the Tax Increase Prevention 
and Reconciliation Act of 2005 is repealed and the Internal Revenue 
Code of 1986 shall be applied as if such amendment had never been 
enacted.

SEC. 3. FAR CONTRACTOR QUALIFICATIONS.

    (a) In General.--Not later than 180 days after the date of the 
enactment of this Act, the Civilian Agency Acquisition Council and the 
Defense Acquisition Regulations Council shall amend the Federal 
Acquisition Regulation issued under sections 6 and 25 of the Office of 
Federal Procurement Policy Act (41 U.S.C. 405 and 421) to provide that 
for a prospective contractor to be determined responsible, such 
contractor must not have any tax debt.
    (b) Tax Debt.--For purposes of this section, the term ``tax debt'' 
means an outstanding debt under the Internal Revenue Code of 1986 which 
has not been paid within 180 days after an assessment of a tax, 
penalty, or interest and which is not subject to further appeal or a 
petition for redetermination under such Code. Such term does not 
include a debt that is being paid in a timely manner pursuant to an 
agreement under section 6159 or section 7122 of such Code.

SEC. 4. FINAL RULE PROMULGATION.

    Not later than 180 days after the date of the enactment of this 
Act, the Civilian Agency Acquisition Council and the Defense 
Acquisition Regulations Council shall make final the proposed rule FAR 
Case 2006-011 (Representations and Certifications--Tax Delinquency).

SEC. 5. NATIONAL TAX LIEN FILING SYSTEM.

    (a) Filing of Notice of Lien.--Subsection (f) of section 6323 
(relating to validity and priority against certain persons) is amended 
to read as follows:
    ``(f) Filing of Notice; Form.--
            ``(1) Filing of notice.--The notice referred to in 
        subsection (a) shall be filed in the national Federal tax lien 
        registry established under subsection (k). The filing of a 
        notice of lien, or a certificate of release, discharge, 
        subordination, or nonattachment of lien, in the national 
        Federal tax lien registry shall be effective for purposes of 
        determining lien priority regardless of the nature or location 
        of the property interest to which the lien attaches.
            ``(2) Form.--The form and content of the notice referred to 
        in subsection (a) shall be prescribed by the Secretary. Such 
        notice shall be valid notwithstanding any other provision of 
        law regarding the form or content of a notice of lien.
            ``(3) Other national filing systems.--The filing of a 
        notice of lien shall be governed by this title and shall not be 
        subject to any other Federal law establishing a place or places 
        for the filing of liens or encumbrances under a national filing 
        system.''.
    (b) Refiling of Notice.--Paragraph (2) of section 6323(g) (relating 
to refiling of notice) is amended to read as follows:
            ``(2) Refiling.--A notice of lien may be refiled in the 
        national Federal tax lien registry established under subsection 
        (k).''.
    (c) Release of Tax Liens or Discharge of Property.--
            (1) In general.--Section 6325(a) (relating to release of 
        lien) is amended by inserting ``, and shall cause the 
        certificate of release to be filed in the national Federal tax 
        lien registry established under section 6323(k),'' after 
        ``internal revenue tax''.
            (2) Release of tax liens expedited from 30 to 10 days.--
        Section 6325(a) (relating to release of lien) is amended by 
        striking ``not later than 30 days'' and inserting ``not later 
        than 10 days''.
            (3) Discharge of property from lien.--Section 6325(b) 
        (relating to discharge of property) is amended--
                    (A) by inserting ``, and shall cause the 
                certificate of discharge to be filed in the national 
                Federal tax lien registry established under section 
                6323(k),'' after ``under this chapter'' in paragraph 
                (1),
                    (B) by inserting ``, and shall cause the 
                certificate of discharge to be filed in such national 
                Federal tax lien registry,'' after ``property subject 
                to the lien'' in paragraph (2),
                    (C) by inserting ``, and shall cause the 
                certificate of discharge to be filed in such national 
                Federal tax lien registry,'' after ``property subject 
                to the lien'' in paragraph (3), and
                    (D) by inserting ``, and shall cause the 
                certificate of discharge of property to be filed in 
                such national Federal tax lien registry,'' after 
                ``certificate of discharge of such property'' in 
                paragraph (4).
            (4) Discharge of property from estate or gift tax lien.--
        Section 6325(c) (relating to estate or gift tax) is amended by 
        inserting ``, and shall cause the certificate of discharge to 
        be filed in the national Federal tax lien registry established 
        under section 6323(k),'' after ``imposed by section 6324''.
            (5) Subordination of lien.--Section 6325(d) (relating to 
        subordination of lien) is amended by inserting ``, and shall 
        cause the certificate of subordination to be filed in the 
        national Federal tax lien registry established under section 
        6323(k),'' after ``subject to such lien''.
            (6) Nonattachment of lien.--Section 6325(e) (relating to 
        nonattachment of lien) is amended by inserting ``, and shall 
        cause the certificate of nonattachment to be filed in the 
        national Federal tax lien registry established under section 
        6323(k),'' after ``property of such person''.
            (7) Effect of certificate.--Paragraphs (1) and (2)(B) of 
        section 6325(f) (relating to effect of certificate) are each 
        amended by striking ``in the same office as the notice of lien 
        to which it relates is filed (if such notice of lien has been 
        filed)'' and inserting ``in the national Federal tax lien 
        registry established under section 6323(k)''.
            (8) Release following administrative appeal.--Section 
        6326(b) (relating to certificate of release) is amended--
                    (A) by striking ``and shall include'' and insert 
                ``, shall include'', and
                    (B) by inserting ``, and shall cause the 
                certificate of release to be filed in the national 
                Federal tax lien registry established under section 
                6323(k),'' after ``erroneous''.
            (9) Conforming amendments.--Section 6325 is amended by 
        striking subsection (g) and by redesignating subsection (h) as 
        subsection (g).
    (d) National Federal Tax Lien Registry.--
            (1) In general.--Section 6323 is amended by adding at the 
        end the following new subsection:
    ``(k) National Registry.--The national Federal tax lien registry 
referred to in subsection (f)(1) shall be established and maintained by 
the Secretary and shall be accessible to and searchable by the public 
through the Internet at no cost to access or search. The registry shall 
identify the taxpayer to whom the Federal tax lien applies and reflect 
the date and time the notice of lien was filed, and shall be made 
searchable by, at a minimum, taxpayer name, the State of the taxpayer's 
address as shown on the notice of lien, the type of tax, and the tax 
period, and, when the Secretary determines it is feasible, by property. 
The registry shall also provide for the filing of certificates of 
release, discharge, subordination, and nonattachment of Federal tax 
liens, as authorized in sections 6325 and 6326, and may provide for 
publishing such other documents or information with respect to Federal 
tax liens as the Secretary may by regulation provide.''.
            (2) Administrative action.--The Secretary of the Treasury 
        shall issue regulations or other guidance providing for the 
        maintenance and use of the national Federal tax lien registry 
        established under section 6323(k) of the Internal Revenue Code 
        of 1986. The Secretary of the Treasury shall take appropriate 
        steps to secure and prevent tampering with the data recorded 
        therein. Prior to implementation of such registry, the 
        Secretary of the Treasury shall review the information 
        currently provided in public lien filings and determine whether 
        any such information should be excluded or protected from 
        public viewing in such registry.
    (e) Transition Rules.--The Secretary of the Treasury may by 
regulation prescribe for the continued filing of notices of Federal tax 
lien in the offices of the States, counties and other governmental 
subdivisions after December 31, 2008, for an appropriate period to 
permit an orderly transition to the national Federal tax lien registry 
established under section 6323(k) of the Internal Revenue Code of 1986.
    (f) Effective Date.--The amendments made by this section shall 
apply to notices of lien filed after December 31, 2008. The national 
Federal tax lien registry (established under section 6323(k) of the 
Internal Revenue Code of 1986) shall be made operational as of January 
1, 2009, whether or not the Secretary of the Treasury has promulgated 
final regulations establishing such registry.

SEC. 6. FEDERAL TAX CONVICTION DATABASE.

    (a) In General.--The Attorney General of the United States shall 
establish and maintain a database containing the names of individuals 
and entities with convictions for Federal tax offenses under the 
Internal Revenue Code of 1986. Such database shall be accessible and 
searchable by the head of any Federal agency for purposes of verifying 
information provided by prospective contractors.
    (b) Administrative Action.--The Attorney General shall issue 
regulations or other guidance providing for the maintenance and use of 
the database established under subsection (a). The Attorney General 
shall take appropriate steps to secure and prevent tampering with the 
data recorded therein.

SEC. 7. REQUIRED ACCESS TO REGISTRY AND DATABASE.

    Not later than 180 days after the date of the enactment of this 
Act, the Civilian Agency Acquisition Council and the Defense 
Acquisition Regulations Council shall amend the Federal Acquisition 
Regulation issued under sections 6 and 25 of the Office of Federal 
Procurement Policy Act (41 U.S.C. 405 and 421) to require a contracting 
officer making a determination of responsibility with respect to any 
prospective contractor to access the national Federal tax lien registry 
established under section 6323(k) of the Internal Revenue Code of 1986 
and the Federal tax conviction database established under section 6 of 
this Act.

SEC. 8. CAUSES FOR DEBARMENT AND SUSPENSION.

    Not later than 180 days after the date of the enactment of this 
Act, the Civilian Agency Acquisition Council and the Defense 
Acquisition Regulations Council shall amend the Federal Acquisition 
Regulation issued under sections 6 and 25 of the Office of Federal 
Procurement Policy Act (41 U.S.C. 405 and 421)--
            (1) to provide as a cause for either contractor debarment 
        or suspension the knowingly making of false statements 
        regarding Federal tax information, including on the Online 
        Representations and Certifications Application or to the 
        Central Contractor Registry, incurring a tax debt (as defined 
        in section 3(b)), or the conviction or imposition of a civil 
        judgment for the commission of Federal tax evasion or any other 
        Federal tax offense, and
            (2) to require the debarring official or suspending 
        official to provide a statement of explanation for the 
        nondebarment or non-suspension of any contractor in any 
        determination involving any cause for debarment or suspension 
        described in paragraph (1).
                                 <all>