II 110th CONGRESS 1st Session S. 2394 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.
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.
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The amendment made by section 511 of the Tax Increase Prevention and Reconciliation Act of 2005 is repealed and the Internal Revenue Code of 1986 shall be applied as if such amendment had never been enacted.
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.
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).
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.
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.
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.
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).