[Federal Register Volume 75, Number 15 (Monday, January 25, 2010)]
[Presidential Documents]
[Pages 3979-3980]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-1561]



[[Page 3977]]

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Part II





The President





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Memorandum of January 20, 2010--Addressing Tax Delinquency by 
Government Contractors
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  Federal Register / Vol. 75, No. 15 / Monday, January 25, 2010 / 
Presidential Documents  

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 Title 3--
 The President

[[Page 3979]]

                Memorandum of January 20, 2010

                
Addressing Tax Delinquency by Government 
                Contractors

                Memorandum for the Heads of Executive Departments and 
                Agencies

                The Federal Government pays more than half a trillion 
                dollars a year to contractors and has an important 
                obligation to protect American taxpayer money and the 
                integrity of the Federal acquisition process. Yet 
                reports by the Government Accountability Office (GAO) 
                state that Federal contracts are awarded to tens of 
                thousands of companies with serious tax delinquencies. 
                The total amount in unpaid taxes owed by these 
                contracting companies is estimated to be more than $5 
                billion.

                Too often, Federal contracting officials do not have 
                the most basic information they need to make informed 
                judgments about whether a company trying to win a 
                Federal contract is delinquent in paying its taxes. We 
                need to give our contracting officials the tools they 
                need to protect taxpayer dollars.

                Accordingly, I hereby direct the Commissioner of 
                Internal Revenue (Commissioner) to direct a review of 
                certifications of non-delinquency in taxes that 
                companies bidding for Federal contracts are required to 
                submit pursuant to a 2008 amendment to the Federal 
                Acquisition Regulation. I further direct that the 
                Commissioner report to me within 90 days on the overall 
                accuracy of contractors' certifications.

                I also direct the Director of the Office of Management 
                and Budget, working with the Secretary of the Treasury 
                and other agency heads, to evaluate practices of 
                contracting officers and debarring officials in 
                response to contractors' certifications of serious tax 
                delinquencies and to provide me, within 90 days, 
                recommendations on process improvements to ensure these 
                contractors are not awarded new contracts, including a 
                plan to make contractor certifications available in a 
                Government-wide database, as is already being done with 
                other information on contractors.

                Executive departments and agencies shall carry out the 
                provisions of this memorandum to the extent permitted 
                by law. This memorandum is not intended to, and does 
                not, create any right or benefit, substantive or 
                procedural, enforceable at law or in equity by any 
                party against the United States, its departments, 
                agencies, or entities, its officers, employees, or 
                agents, or any other person.

[[Page 3980]]

                The Director of the Office of Management and Budget is 
                hereby authorized and directed to publish this 
                memorandum in the Federal Register.
                
                
                    (Presidential Sig.)

                THE WHITE HOUSE,

                    WASHINGTON, January 20, 2010

[FR Doc. 2010-1561
Filed 1-22-10; 11:15 am]
Billing code 3110-01-P