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Posted by on Apr 16, 2013

House Approves Bill to Prevent Delinquent Taxpayers from Receiving Grants and Contracts

The U.S. House of Representatives unanimously approved a bill yesterday that would prevent entities from receiving grants and contracts if they are “seriously delinquent” in paying federal taxes. The Contracting and Tax Accountability Act of 2013, H.R. 882, would require grant applicants to submit a certification indicating if their federal taxes have been paid in full. Federal agencies would be required to initiate debarment procedures against recipients that file false certificates or are found to have serious delinquent tax debt. Agencies could award grants to recipients with tax debt; however, those recipients would be designated as high-risk entities.

If passed into law, the implications for grant recipients should be minimal. A majority of grant recipients are local government entities or not-for-profit organizations, therefore, the issue of delinquent taxes will not be applicable.

The bill has not been introduced in the U.S. Senate yet, and it is unclear when, or if, the Senate will address this issue. To stay informed of the latest developments on this bill, click here.

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  1. Grants Legislation Update - [...] H.R. 882 – Contracting and Tax Accountability Act of 2013:  This legislation would prohibit the awarding of grants and…

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