The Labor & Employment Blog is a forum for practitioners and Bloomberg BNA editors to share ideas, raise issues, and network with colleagues.
Friday, March 29, 2013
by Louis C. LaBrecque
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.
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