[House Report 112-115]
[From the U.S. Government Publishing Office]


112th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 1st Session                                                    112-115

======================================================================



 
            FEDERAL EMPLOYEE TAX ACCOUNTABILITY ACT OF 2011

                                _______
                                

 June 23, 2011.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

   Mr. Issa, from the Committee on Oversight and Government Reform, 
                        submitted the following

                              R E P O R T

                             together with

                             MINORITY VIEWS

                        [To accompany H.R. 828]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Oversight and Government Reform, to whom 
was referred the bill (H.R. 828) to amend title 5, United 
States Code, to provide that persons having seriously 
delinquent tax debts shall be ineligible for Federal 
employment, having considered the same, report favorably 
thereon with an amendment and recommend that the bill as 
amended do pass.

                                CONTENTS

                                                                   Page
Committee Statement and Views....................................     3
Section-by-Section...............................................     5
Explanation of Amendments........................................     6
Committee Consideration..........................................     6
Roll Call Votes..................................................     6
Application of Law to the Legislative Branch.....................     6
Statement of Oversight Findings and Recommendations of the 
  Committee......................................................     7
Statement of General Performance Goals and Objectives............     7
Federal Advisory Committee Act...................................     7
Unfunded Mandate Statement.......................................     7
Earmark Identification...........................................     7
Committee Estimate...............................................     7
Budget Authority and Congressional Budget Office Cost Estimate...     7
Changes in Existing Law Made by the Bill as Reported.............     8
Minority Views...................................................    12

    The amendment is as follows:
    Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE.

  This Act may be cited as the ``Federal Employee Tax Accountability 
Act of 2011''.

SEC. 2. INELIGIBILITY OF PERSONS HAVING SERIOUSLY DELINQUENT TAX DEBTS 
                    FOR FEDERAL EMPLOYMENT.

  (a) In General.--Chapter 73 of title 5, United States Code, is 
amended by adding at the end the following:

``SUBCHAPTER VIII--INELIGIBILITY OF PERSONS HAVING SERIOUSLY DELINQUENT 
                    TAX DEBTS FOR FEDERAL EMPLOYMENT

``Sec. 7381. Definitions

  ``For purposes of this subchapter--
          ``(1) the term `seriously delinquent tax debt' means an 
        outstanding debt under the Internal Revenue Code of 1986 for 
        which a notice of lien has been filed in public records 
        pursuant to section 6323 of such Code, except that such term 
        does not include--
                  ``(A) a debt that is being paid in a timely manner 
                pursuant to an agreement under section 6159 or section 
                7122 of such Code;
                  ``(B) a debt with respect to which a collection due 
                process hearing under section 6330 of such Code, or 
                relief under subsection (a), (b), or (f) of section 
                6015 of such Code, is requested or pending;
                  ``(C) a debt with respect to which a levy has been 
                issued under section 6331 of such Code (or, in the case 
                of an applicant for employment, a debt with respect to 
                which the applicant agrees to be subject to a levy 
                issued under such section); and
                  ``(D) a debt with respect to which relief under 
                section 6343(a)(1)(D) of such Code is granted;
          ``(2) the term `employee' means an employee in or under an 
        agency, including an individual described in sections 2104(b) 
        and 2105(e); and
          ``(3) the term `agency' means--
                  ``(A) an Executive agency;
                  ``(B) the United States Postal Service;
                  ``(C) the Postal Regulatory Commission; and
                  ``(D) an employing authority in the legislative 
                branch.

``Sec. 7382. Ineligibility for employment

  ``(a) In General.--Subject to subsection (c), any person who has a 
seriously delinquent tax debt shall be ineligible to be appointed or to 
continue serving as an employee.
  ``(b) Disclosure Requirement.--The head of each agency shall take 
appropriate measures to ensure that each person applying for employment 
with such agency shall be required to submit (as part of the 
application for employment) certification that such person does not 
have any seriously delinquent tax debt.
  ``(c) Regulations.--The Office of Personnel Management, in 
consultation with the Internal Revenue Service, shall, for purposes of 
carrying out this section with respect to the executive branch, 
promulgate any regulations which the Office considers necessary, except 
that such regulations shall provide for the following:
          ``(1) All due process rights, afforded by chapter 75 and any 
        other provision of law, shall apply with respect to a 
        determination under this section that an applicant is 
        ineligible to be appointed or that an employee is ineligible to 
        continue serving.
          ``(2) Before any such determination is given effect with 
        respect to an individual, the individual shall be afforded 60 
        days to demonstrate that such individual's debt is one 
        described in subparagraph (A), (B), (C), or (D) of section 
        7381(a)(1).
          ``(3) An employee may continue to serve, in a situation 
        involving financial hardship, if the continued service of such 
        employee is in the best interests of the United States, as 
        determined on a case-by-case basis.
  ``(d) Reports to Congress.--The Director of the Office of Personnel 
Management shall report annually to Congress on the number of 
exemptions made pursuant to subsection (c)(3).

``Sec. 7383. Review of public records

  ``(a) In General.--Each agency shall provide for such reviews of 
public records as the head of such agency considers appropriate to 
determine if a notice of lien (as described in section 7381(1)) has 
been filed with respect to an employee of or an applicant for 
employment with such agency.
  ``(b) Additional Requests.--If a notice of lien is discovered under 
subsection (a) with respect to an employee or applicant for employment, 
the agency may--
          ``(1) request that the employee or applicant execute and 
        submit a form authorizing the Secretary of the Treasury to 
        disclose to the head of the agency information limited to 
        describing whether the employee or applicant has a seriously 
        delinquent tax debt; and
          ``(2) contact the Secretary of the Treasury to request tax 
        information limited to describing whether the employee or 
        applicant has a seriously delinquent tax debt.
  ``(c) Authorization Form.--The Secretary of the Treasury shall make 
available to all agencies a standard form for the authorization 
described in subsection (b)(1).
  ``(d) Negative Consideration.--The head of an agency, in considering 
an individual's application for employment or in making an employee 
appraisal or evaluation, shall give negative consideration to a refusal 
or failure to comply with a request under subsection (b)(1).

``Sec. 7384. Confidentiality

  ``Neither the head nor any other employee of an agency may--
          ``(1) use any information furnished under the provisions of 
        this subchapter for any purpose other than the administration 
        of this subchapter;
          ``(2) make any publication whereby the information furnished 
        by or with respect to any particular individual under this 
        subchapter can be identified; or
          ``(3) permit anyone who is not an employee of such agency to 
        examine or otherwise have access to any such information.''.
  (b) Clerical Amendment.--The analysis for chapter 73 of title 5, 
United States Code, is amended by adding at the end the following:

``SUBCHAPTER VIII--INELIGIBILITY OF PERSONS HAVING SERIOUSLY DELINQUENT 
                    TAX DEBTS FOR FEDERAL EMPLOYMENT

``7381. Definitions.
``7382. Ineligibility for employment.
``7383. Review of public records.
``7384. Confidentiality.''.

SEC. 3. EFFECTIVE DATE.

  This Act and the amendments made by this Act shall take effect 9 
months after the date of enactment of this Act.

                     Committee Statement and Views


                          PURPOSE AND SUMMARY

    Most taxpayers file accurate tax returns and pay the taxes 
they owe on time, regardless of their income. Federal employees 
and individuals applying for federal employment should do the 
same. At the end of fiscal year 2009, the most recent year for 
which Internal Revenue Service (IRS) data is available, 184,000 
civilian federal employees owed more than $1.5 billion in 
taxes. The average delinquency rate for federal civilian 
employees was 3.35 percent, up from 2.29 percent in fiscal year 
2008.\1\ The vast majority of federal workers who owe taxes owe 
them from the income they earn.
---------------------------------------------------------------------------
    \1\Internal Revenue Service, Federal Employee/Retiree Delinquency 
Initiative (FERDI) Annual Report, October 2009.
---------------------------------------------------------------------------
    Employees who consciously ignore the channels and processes 
in place to fulfill their tax obligations must be held 
accountable. The Federal Employee Tax Accountability Act of 
2011 addresses this area of non-compliance with our tax laws by 
prohibiting individuals with seriously delinquent tax debt from 
federal civilian employment. The intent of the bill is simple: 
If you are a federal employee or applicant, you should be 
making a good faith effort to pay your taxes or to dispute 
them, as all taxpayers have the right to do. Holding federal 
employees who fail to meet their taxpayer obligations 
accountable will foster public confidence in the federal 
workforce.

                  BACKGROUND AND NEED FOR LEGISLATION

    Federal employees are called to account for paying taxes by 
the Code of Ethics for the Executive Branch.\2\ The code of 
ethics dictates that federal employees must ``satisfy in good 
faith their obligations as citizens, including all just 
financial obligations, especially those such as federal, state, 
or local taxes that are imposed by law.''
---------------------------------------------------------------------------
    \2\5 CFR 2635.809.
---------------------------------------------------------------------------
    The IRS urges individuals to resolve their taxpayer 
obligations. Taxpayers who fail to pay all they owe receive a 
Notice of Tax Due and Demand for Payment, a bill including the 
tax owed plus interest and penalties. If the taxpayer does not 
respond to the first notice or subsequent notices sent by the 
IRS, their account becomes delinquent.
    Delinquent accounts may be turned over for collection, 
during which time an attempt will be made to reach agreement on 
a payment plan. Taxpayers who cannot pay their tax on time have 
a number of options, including (1) extension of time to pay; 
(2) installment agreement; (3) delayed collection; and (4) 
offer in compromise. Taxpayers who fail to cooperate with 
payment options may be subject to enforced collection action. 
The IRS affords individuals several avenues for 
reconsideration, including the right to appeal the collection 
action.
    During the collection process, the IRS may file a Notice of 
Federal Tax Lien to secure the government's interest. Once a 
lien has been filed, the IRS cannot issue a Certificate of 
Release of Federal Tax Lien until the taxes, penalties, 
interest, and associated recording fees are paid in full.
    In 1992, the IRS established the Federal Employee/Retiree 
Delinquency Initiative (FERDI) to promote federal tax 
compliance among current and retired federal employees. Under 
FERDI, the IRS annually identifies federal employees who are 
tax delinquent for appropriate follow-up action. In addition, 
the IRS contacts agency Chief Human Capital Officers with 
general data on delinquency rates of their civilian employees. 
The IRS also provides information to support employee 
communication on tax compliance.\3\
---------------------------------------------------------------------------
    \3\Statement of Beth Tucker, Deputy Commissioner, Wage and 
Investment Division, Internal Revenue Service, for hearing entitled, 
``H.R. 4735, a bill to amend title 5, United States Code, to provide 
that persons having seriously delinquent tax debts shall be ineligible 
for federal employment,'' U.S. House Subcommittee on Federal Workforce, 
Postal Service and the District of Columbia, March 17, 2010, at pp 15-
18.
---------------------------------------------------------------------------
    To help the IRS collect delinquent taxes more effectively, 
Congress included a provision in the Taxpayer Relief Act of 
1997\4\ authorizing the establishment of the Federal Payment 
Levy Program (FPLP), which allows the IRS to continuously levy 
up to 15 percent of certain federal payments made to delinquent 
taxpayers. Federal payments that can be levied through the FPLP 
include federal salaries, federal annuities, and federal 
employee travel advances or reimbursements.
---------------------------------------------------------------------------
    \4\26 USC 6331(h).
---------------------------------------------------------------------------
    In March 2011, the Chief Human Capital Officers Council met 
to develop strategies to reduce the number of federal employees 
with delinquent tax liabilities. Agency heads discussed the 
federal employee delinquency rate in communications related to 
the 2010 tax filing deadline. For example, Office of Personnel 
Management Director John Berry sent an email reminding OPM 
employees of their responsibility to pay their taxes.\5\
---------------------------------------------------------------------------
    \5\Email from John Berry, Director, U.S. Office of Personnel 
Management, April 15, 2011.
---------------------------------------------------------------------------
    Despite these efforts, the percentage of federal employees 
with delinquent tax liabilities has increased. At the end of 
fiscal year 2009, the most recent year for which Internal 
Revenue Service (IRS) data is available, 184,240 civilian 
federal employees owed $1,517,030,306 in taxes. Only 85,000 of 
the 184,240 had entered into installment agreements. The 
average delinquency rate for federal civilian employees was 
3.35 percent, up from 2.29 percent in fiscal year 2008.\6\ The 
Committee agrees with the General Accountability Office that 
``voluntary compliance with tax law, the foundation of the U.S. 
tax system, could be undermined if the public perceives that 
federal workers and former federal workers successfully evade 
their tax obligations.''\7\ Since the vast majority of federal 
workers owe taxes stemming from the income they earn, the 
Committee supports the legislation.
---------------------------------------------------------------------------
    \6\Internal Revenue Service, Federal Employee/Retiree Delinquency 
Initiative (FERDI) Annual Report, October 2009, available at http://
msnbcmedia.msn.com/i/CNBC/Sections/News_And_Analysis/_Story_Inserts/
graphics/_MEDIA/FERDI_2009_REDACTED.pdf
    \7\U.S. General Accountability Office, Internal Revenue Service: 
Unpaid Taxes of Federal Workers and Annuitants, GAO-01-195 (Washington, 
D.C.: June 2001).
---------------------------------------------------------------------------

                          LEGISLATIVE HISTORY

    On March 3, 2010, Representative Chaffetz (R-UT) introduced 
H.R. 4735, a bill to amend title 5, United States Code, to 
provide that persons having seriously delinquent tax debts 
shall be ineligible for federal employment. H.R. 4735 was 
offered as an amendment to H.R. 572, the Contracting and Tax 
Accountability Act of 2009 during Committee consideration of 
H.R. 572 on March 4, 2010. H.R. 572 was not reported by the 
Committee during the 111th Congress. The Subcommittee on 
Federal Workforce, Postal Service, and the District of Columbia 
held a hearing to consider the legislation on March 17, 2010. 
H.R. 4735 was reintroduced for the 112th Congress on February 
28, 2011, as H.R. 828.

                           Section-by-Section


Section 1. Short Title

    Establishes the short title of the bill as ``Federal 
Employee Tax Accountability Act of 2011.''

Section 2. Ineligibility of Persons Having Seriously Delinquent Tax 
        Debts for Federal Employment

    Individuals having seriously delinquent tax debts are 
ineligible for federal employment in the executive and 
legislative branch. ``Seriously tax delinquent'' is defined as 
an outstanding federal tax debt for which a notice of lien has 
been publicly filed. The bill exempts employees who are working 
to settle tax liabilities by excluding federal tax debts being 
paid in accordance with an installment agreement, offer of 
compromise, or wage garnishment; for which a due process 
hearing or request for relief from joint and several liability 
is requested or pending; or for which relief has been granted.
    The bill prescribes a scheme for conducting the tax reviews 
necessary to identify individuals who are seriously tax 
delinquent that is based on the July 29, 1977 Treasury 
Department Order granting the IRS Commissioner authority to 
undertake tax checks. First, agencies identify individuals 
ineligible for employment by requiring applicants to certify 
they are not seriously tax delinquent. Second, agencies 
periodically conduct reviews of public records for liens. If a 
lien is discovered, the individual submits a form to the agency 
authorizing the Secretary of the Treasury to disclose to the 
agency head information on whether or not the individual has a 
seriously delinquent tax debt. Tax information disclosed to the 
agency head is confidential.
    The Office of Personnel Management (OPM), in consultation 
with the Internal Revenue Service, establishes regulations to 
implement the bill. The regulations must give the individual 60 
days to demonstrate their debt meets one of the exemptions, 
provide due process rights, and allow for a financial hardship 
exemption. OPM reports annually to Congress on the number of 
financial hardship exemptions granted.

Section 3. Effective Date

    The bill takes effect 9 months after the date of enactment.

                       Explanation of Amendments

    Rep. Chaffetz offered an amendment in the nature of a 
substitute establishing a scheme for identifying individuals 
who are seriously tax delinquent. The Chaffetz amendment was 
agreed to by voice vote.
    Rep. Lynch offered an amendment to the Chaffetz amendment 
in nature of a substitute exempting federal employees whose 
wages are being garnished, requiring additional due process 
measures before a personnel action is taken, and providing for 
a financial hardship exemption. Chairman Issa asked unanimous 
consent to modify the time period for an individual to 
establish they do not have seriously delinquent tax debt from 
90 days to 60 days. There was no objection. The Lynch 
amendment, as modified, was agreed to by voice vote.

                        Committee Consideration

    On April 13, 2011, the Committee met in open session and 
ordered reported favorably the bill, H.R. 828, as amended, by 
voice vote, a quorum being present.

                            Roll Call Votes

    There were no recorded votes during consideration of H.R. 
828.

              Application of Law to the Legislative Branch

    Section 102(b)(3) of Public Law 104-1 requires a 
description of the application of this bill to the legislative 
branch where the bill relates to the terms and conditions of 
employment or access to public services and accommodations. 
This bill prohibits individuals with seriously delinquent tax 
debt from federal civilian employment, including legislative 
branch employees.

  Statement of Oversight Findings and Recommendations of the Committee

    In compliance with clause 3(c)(1) of rule XIII and clause 
2(b)(1) of rule X of the Rules of the House of Representatives, 
the Committee's oversight findings and recommendations are 
reflected in the descriptive portions of this report.

         Statement of General Performance Goals and Objectives

    In accordance with clause 3(c)(4) of rule XIII of the Rules 
of the House of Representatives, the Committee's performance 
goals and objectives are reflected in the descriptive portions 
of this report.

                     Federal Advisory Committee Act

    The Committee finds that the legislation does not establish 
or authorize the establishment of an advisory committee within 
the definition of 5 U.S.C. App., Section 5(b).

                       Unfunded Mandate Statement

    Section 423 of the Congressional Budget and Impoundment 
Control Act (as amended by Section 101(a)(2) of the Unfunded 
Mandates Reform Act, P.L. 104-4) requires a statement as to 
whether the provisions of the reported include unfunded 
mandates. In compliance with this requirement the Committee has 
received a letter from the Congressional Budget Office included 
herein.

                         Earmark Identification

    H.R. 828 does not include any congressional earmarks, 
limited tax benefits, or limited tariff benefits as defined in 
clause 9 of rule XXI.

                           Committee Estimate

    Clause 3(d)(2) of rule XIII of the Rules of the House of 
Representatives requires an estimate and a comparison by the 
Committee of the costs that would be incurred in carrying out 
H.R. 828. However, clause 3(d)(3)(B) of that rule provides that 
this requirement does not apply when the Committee has included 
in its report a timely submitted cost estimate of the bill 
prepared by the Director of the Congressional Budget Office 
under section 402 of the Congressional Budget Act.

     Budget Authority and Congressional Budget Office Cost Estimate

    With respect to the requirements of clause 3(c)(2) of rule 
XIII of the Rules of the House of Representatives and section 
308(a) of the Congressional Budget Act of 1974 and with respect 
to requirements of clause 3(c)(3) of rule XIII of the Rules of 
the House of Representatives and section 402 of the 
Congressional Budget Act of 1974, the Committee has received 
the following cost estimate for H.R. 828 from the Director of 
Congressional Budget Office:

                                                      May 11, 2011.
Hon. Darrell Issa,
Chairman, Committee on Oversight and Government Reform,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 828, the Federal 
Employee Tax Accountability Act of 2011.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Matthew 
Pickford.
            Sincerely,
                                              Douglas W. Elmendorf.
    Enclosure.

H.R. 828--Federal Employee Tax Accountability Act of 2011

    H.R. 828 would make individuals with federal tax debt that 
is seriously delinquent ineligible to be appointed, or continue 
serving, as an employee of the federal government. The 
legislation defines seriously delinquent tax debt as 
outstanding tax debt to the federal government for which a 
public lien has been filed. Tax debt that is being paid in a 
timely manner, or is part of a requested or pending collection-
due-process hearing, would not be considered seriously 
delinquent. Federal agencies would be required to have job 
applicants certify that they do not have such debt. The 
legislation would also allow agencies to review the public 
records of applicants or current employees; if a lien is 
discovered, agencies would be authorized to ask affected 
individuals to request that the Secretary of the Treasury 
confidentially disclose the status of that lien.
    Based on information from the Office of Management and 
Budget, the Internal Revenue Service, and the Joint Committee 
on Taxation (JCT), CBO estimates that, subject to the 
availability of appropriated funds, implementing H.R. 828 would 
cost $1 million in 2012 and less than $500,000 in subsequent 
years to create certification forms, develop new regulations, 
and review records of current and prospective employees.
    Pay-as-you-go procedures apply to the bill because it would 
affect direct spending and revenues. Agencies not funded 
through annual appropriations, such as the Tennessee Valley 
Authority and Bonneville Power Administration, would face some 
additional costs, but CBO estimates that any net increase in 
direct spending by such agencies would not be significant. JCT 
estimates that enacting the bill would have a negligible effect 
on revenues.
    H.R. 828 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act and 
would not affect the budgets of state, local, or tribal 
governments.
    The CBO staff contact for this estimate is Matthew 
Pickford. This estimate was approved by Theresa Gullo, Deputy 
Assistant Director for Budget Analysis.

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (new matter is 
printed in italic and existing law in which no change is 
proposed is shown in roman):

TITLE 5, UNITED STATES CODE

           *       *       *       *       *       *       *


PART III--EMPLOYEES

           *       *       *       *       *       *       *


SUBPART F--LABOR-MANAGEMENT AND EMPLOYEE RELATIONS

           *       *       *       *       *       *       *


             CHAPTER 73--SUITABILITY, SECURITY, AND CONDUCT

                   SUBCHAPTER I--REGULATION OF CONDUCT

Sec.
7301. Presidential regulations.
     * * * * * * *

 SUBCHAPTER VIII--INELIGIBILITY OF PERSONS HAVING SERIOUSLY DELINQUENT 
                    TAX DEBTS FOR FEDERAL EMPLOYMENT

7381. Definitions.
7382. Ineligibility for employment.
7383. Review of public records.
7384. Confidentiality.
     * * * * * * *

 SUBCHAPTER VIII--INELIGIBILITY OF PERSONS HAVING SERIOUSLY DELINQUENT 
                    TAX DEBTS FOR FEDERAL EMPLOYMENT

Sec. 7381. Definitions

  For purposes of this subchapter--
          (1) the term ``seriously delinquent tax debt'' means 
        an outstanding debt under the Internal Revenue Code of 
        1986 for which a notice of lien has been filed in 
        public records pursuant to section 6323 of such Code, 
        except that such term does not include--
                  (A) a debt that is being paid in a timely 
                manner pursuant to an agreement under section 
                6159 or section 7122 of such Code;
                  (B) a debt with respect to which a collection 
                due process hearing under section 6330 of such 
                Code, or relief under subsection (a), (b), or 
                (f) of section 6015 of such Code, is requested 
                or pending;
                  (C) a debt with respect to which a levy has 
                been issued under section 6331 of such Code 
                (or, in the case of an applicant for 
                employment, a debt with respect to which the 
                applicant agrees to be subject to a levy issued 
                under such section); and
                  (D) a debt with respect to which relief under 
                section 6343(a)(1)(D) of such Code is granted;
          (2) the term ``employee'' means an employee in or 
        under an agency, including an individual described in 
        sections 2104(b) and 2105(e); and
          (3) the term ``agency'' means--
                  (A) an Executive agency;
                  (B) the United States Postal Service;
                  (C) the Postal Regulatory Commission; and
                  (D) an employing authority in the legislative 
                branch.

Sec. 7382. Ineligibility for employment

  (a) In General.--Subject to subsection (c), any person who 
has a seriously delinquent tax debt shall be ineligible to be 
appointed or to continue serving as an employee.
  (b) Disclosure Requirement.--The head of each agency shall 
take appropriate measures to ensure that each person applying 
for employment with such agency shall be required to submit (as 
part of the application for employment) certification that such 
person does not have any seriously delinquent tax debt.
  (c) Regulations.--The Office of Personnel Management, in 
consultation with the Internal Revenue Service, shall, for 
purposes of carrying out this section with respect to the 
executive branch, promulgate any regulations which the Office 
considers necessary, except that such regulations shall provide 
for the following:
          (1) All due process rights, afforded by chapter 75 
        and any other provision of law, shall apply with 
        respect to a determination under this section that an 
        applicant is ineligible to be appointed or that an 
        employee is ineligible to continue serving.
          (2) Before any such determination is given effect 
        with respect to an individual, the individual shall be 
        afforded 60 days to demonstrate that such individual's 
        debt is one described in subparagraph (A), (B), (C), or 
        (D) of section 7381(a)(1).
          (3) An employee may continue to serve, in a situation 
        involving financial hardship, if the continued service 
        of such employee is in the best interests of the United 
        States, as determined on a case-by-case basis.
  (d) Reports to Congress.--The Director of the Office of 
Personnel Management shall report annually to Congress on the 
number of exemptions made pursuant to subsection (c)(3).

Sec. 7383. Review of public records

  (a) In General.--Each agency shall provide for such reviews 
of public records as the head of such agency considers 
appropriate to determine if a notice of lien (as described in 
section 7381(1)) has been filed with respect to an employee of 
or an applicant for employment with such agency.
  (b) Additional Requests.--If a notice of lien is discovered 
under subsection (a) with respect to an employee or applicant 
for employment, the agency may--
          (1) request that the employee or applicant execute 
        and submit a form authorizing the Secretary of the 
        Treasury to disclose to the head of the agency 
        information limited to describing whether the employee 
        or applicant has a seriously delinquent tax debt; and
          (2) contact the Secretary of the Treasury to request 
        tax information limited to describing whether the 
        employee or applicant has a seriously delinquent tax 
        debt.
  (c) Authorization Form.--The Secretary of the Treasury shall 
make available to all agencies a standard form for the 
authorization described in subsection (b)(1).
  (d) Negative Consideration.--The head of an agency, in 
considering an individual's application for employment or in 
making an employee appraisal or evaluation, shall give negative 
consideration to a refusal or failure to comply with a request 
under subsection (b)(1).

Sec. 7384. Confidentiality

  Neither the head nor any other employee of an agency may--
          (1) use any information furnished under the 
        provisions of this subchapter for any purpose other 
        than the administration of this subchapter;
          (2) make any publication whereby the information 
        furnished by or with respect to any particular 
        individual under this subchapter can be identified; or
          (3) permit anyone who is not an employee of such 
        agency to examine or otherwise have access to any such 
        information.

           *       *       *       *       *       *       *


                             MINORITY VIEWS

    As the majority notes in this report, ``Most taxpayers file 
accurate tax returns and pay the taxes they owe on time, 
regardless of their income. Federal employees and individuals 
applying for federal employment should do the same.'' By and 
large, they do.
    The vast majority of federal workers take their income tax 
obligations seriously, as evidenced by the fact that the tax 
compliance rate in the federal community is much higher than in 
the general public. According to the most recent statistics 
from the Internal Revenue Service, more than 96% of federal 
workers paid their taxes on time and do not owe money to the 
government.
    Chairman Issa conceded during the Committee's consideration 
of H.R. 828 that, given the high voluntary compliance rate 
within the federal workforce, H.R. 828 is ``almost pure 
symbolism.''\8\ The Joint Committee on Taxation agrees. It 
estimates that H.R. 828 would have a ``negligible impact'' on 
revenue.
---------------------------------------------------------------------------
    \8\House Committee on Oversight and Government Reform, Full 
Committee Business Meeting, p. 87, 112th Cong. (Apr. 13, 2011).
---------------------------------------------------------------------------
    The minority appreciates that the majority supported an 
amendment offered by Rep. Lynch to ensure that H.R. 828, in the 
rare circumstances in which it applies, would not hinder the 
government's revenue collection efforts or result in unfair 
treatment of federal employees.
    All federal workers should pay their taxes. The Committee's 
efforts and energy would be better spent, however, by focusing 
on measures to strengthen the federal civil service and improve 
the efficiency and effectiveness of the federal government 
rather than by making symbolic gestures intended to perpetuate 
a negative image of the federal workforce.
                                                Elijah E. Cummings.

                                  
