H.R. 572 Contracting and Tax Accountability Act of 2009

H.R. 572, the “Contracting and Tax Accountability Act of 2009”, prohibits companies with seriously delinquent federal tax debts from receiving new federal contracts. The Contracting and Tax Accountability Act of 2009 was introduced by Rep. Ellsworth and Chairman Towns on January 15, 2009. H.R 572 establishes a process through which persons with seriously delinquent federal tax debts may be prohibited from receiving federal contracts and grants.

H.R. 572 is designed to mandate that tax compliance be a prerequisite for receiving a federal contract. The Federal Acquisition Regulation was revised in 2008 to require contractors to certify that they do not have a delinquent tax debt to the federal government. The bill would codify that regulation and provide a means to verify the contractor’s certification.