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Friday, March 29, 2013

Public Sector Roundup: Tax-Delinquent Federal Workers Would Face Firing Under Bill OK’d by Panel

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Federal government employees with "seriously delinquent tax debt" could be fired by their agencies and federal job applicants forced to withdraw their applications under legislation (H.R. 249) approved by voice vote March 20 by the House Oversight and Government Reform Committee.

The Federal Employee Tax Accountability Act, which next could be considered by the full House, defines seriously delinquent tax debt as "an outstanding debt under the Internal Revenue Code … for which a notice of lien has been filed in public records pursuant to section 6323." However, the measure would exclude tax debts that are being paid in a timely manner under an agreement with the Internal Revenue Service; those for which a due process hearing has been requested or is pending; and those for which a levy has been put into place or relief granted.

H.R. 249 would apply to federal executive branch employees, U.S. Postal Service and Postal Regulatory Commission employees, and those employed by legislative branch agencies. Agency heads would be required to ensure that job candidates provide certification that they are not seriously delinquent on their tax debts.

Rep. Jason Chaffetz (R-Utah), who introduced the measure Jan. 15, said before the committee vote that the bill is not intended to ensnare federal employees and job applicants who are fighting tax liens by legal means or those whose wages already are being garnished by IRS.

For individuals going through the dispute resolution process, "nothing happens," said Chaffetz, who chairs the Oversight and Government Reform Subcommittee on National Security. "The only way this affects an employee is if they're not doing anything to resolve the problem," he said.

According to Chaffetz, the bill is necessary because tax-delinquent federal employees currently owe more than $1 billion in federal taxes.

Similar legislation introduced by Chaffetz in the last session of Congress was approved by the full House last July on a 263-114 vote. However, the Senate did not act on the measure before the conclusion of the 112th Congress.

 

In other public sector news:

  • Legislation (H.R. 933) signed by President Obama to fund the federal government for the remainder of fiscal year 2013 will maintain the current federal pay freeze through the end of the calendar year. The pay freeze, in effect since the beginning of calendar year 2011, applies to the annual across-the-board increase generally provided to most federal executive branch employees each January, but not to step increases, merit increases and bonuses, or promotions.
  • Federal agencies would be required to cut their total travel expenditures by 30 percent compared with fiscal year 2010 and to post detailed information about conference expenditures of more than $10,000 under an amendment in the nature of a substitute for a previously introduced measure (H.R. 313) that was approved with additional changes by the House Oversight and Government Reform Committee.
  • State retiree health insurance benefits do not constitute guaranteed pension benefits protected by the pension protection clause of the Illinois Constitution, a state circuit court ruled, dismissing four class actions by retired state employees seeking to void a fiscal overhaul measure enacted last year.
  • Also in Illinois, an overwhelming majority of 35,000 state employees who are members of Council 31 of the American Federation of State, County and Municipal Employees ratified a new three-year collective bargaining agreement with the state.
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