[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 1011 Introduced in Senate (IS)]
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118th CONGRESS
1st Session
S. 1011
To require an annual report of Federal employees and retirees with
delinquent tax debt.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
March 28, 2023
Mr. Braun (for himself and Ms. Ernst) introduced the following bill;
which was read twice and referred to the Committee on Homeland Security
and Governmental Affairs
_______________________________________________________________________
A BILL
To require an annual report of Federal employees and retirees with
delinquent tax debt.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Federal Employees and Retirees with
Delinquent Tax Debt Initiative (FERDI) Act''.
SEC. 2. ANNUAL REPORT ON FEDERAL EMPLOYEES AND RETIREES WITH DELINQUENT
TAX DEBT.
(a) In General.--The Secretary of the Treasury (or the Secretary's
delegate) shall submit to the relevant committees and make a public on
the internet an annual report on current and retired Federal civilian
and military employees who have delinquent tax debt or an unfiled tax
return for the most recent fiscal year.
(b) Matters Included.--The report under subsection (a) shall
include--
(1) the population of individuals who are civilian
employees, retired civilian employees, active duty military
employees, military reserve or national guard employees, and
retired military employees;
(2) the number of individuals in each category listed in
paragraph (1) who have delinquent tax debt (excluding those
individuals who have an installment agreement) or an unfiled
tax return;
(3) the aggregate balance owed and the delinquency rate for
each such category; and
(4) the information described in paragraphs (2) and (3)
broken down by Federal agency.
(c) Relevant Committees.--For purposes of this section, the term
``relevant committees'' means the Committee on Finance of the Senate,
the Committee on Ways and Means of the House of Representatives, the
Committee on Homeland Security and Governmental Affairs of the Senate,
and the Committee on Oversight and Accountability of the House of
Representatives.
SEC. 3. INELIGIBILITY OF NONCOMPLIANT TAXPAYERS FOR FEDERAL EMPLOYMENT.
(a) In General.--Chapter 73 of title 5, United States Code, is
amended by adding at the end the following:
``SUBCHAPTER VIII--INELIGIBILITY OF NONCOMPLIANT TAXPAYERS FOR FEDERAL
EMPLOYMENT
``Sec. 7381. Definitions
``For purposes of this subchapter--
``(1) the term `agency' means--
``(A) an Executive agency;
``(B) the United States Postal Service;
``(C) the Postal Regulatory Commission; and
``(D) an employing authority in the legislative
branch;
``(2) the term `employee' means an employee in or under an
agency, including an individual described in section 2104(b) or
2105(e); and
``(3) the term `seriously delinquent tax debt'--
``(A) means a Federal tax liability that has been
assessed by the Secretary of the Treasury under the
Internal Revenue Code of 1986 and may be collected by
the Secretary by levy or by a proceeding in court; and
``(B) does not include--
``(i) a debt that is being paid in a timely
manner pursuant to an agreement under section
6159 or section 7122 of such Code;
``(ii) a debt with respect to which a
collection due process hearing under section
6330 of such Code, or relief under subsection
(a), (b), or (f) of section 6015 of such Code,
is requested or pending;
``(iii) a debt with respect to which a
continuous levy has been issued under section
6331 of such Code (or, in the case of an
applicant for employment, a debt with respect
to which the applicant agrees to be subject to
such a levy); and
``(iv) a debt with respect to which such a
levy is released under section 6343(a)(1)(D) of
such Code.
``Sec. 7382. Ineligibility for employment
``(a) In General.--Subject to subsection (c), an individual is
ineligible to be appointed, or to continue serving, as an employee if
that individual--
``(1) has a seriously delinquent tax debt;
``(2) does not submit the certification required under
subsection (b); or
``(3) does not submit an authorization form requested under
section 7383(b)(1).
``(b) Disclosure Requirement.--The head of each agency shall take
appropriate measures to ensure that each individual applying for
employment with that agency is required to submit (as part of the
application for employment) a certification that the individual does
not have any seriously delinquent tax debt.
``(c) Regulations.--
``(1) In general.--Subject to paragraph (2), the Director
of the Office of Personnel Management, in consultation with the
Commissioner of Internal Revenue, shall, for purposes of
carrying out this section with respect to the executive branch,
promulgate any regulations that the Office considers necessary.
``(2) Content.--The regulations promulgated under paragraph
(1) shall provide for the following:
``(A) All applicable due process rights afforded by
chapter 75 and any other provision of law shall apply
with respect to a determination under this section that
an applicant is ineligible to be appointed as an
employee or that an employee is ineligible to continue
serving as an employee.
``(B) Before any such determination is given effect
with respect to an individual, the individual shall be
afforded 180 days to demonstrate that the debt of the
individual is a debt described in clause (i), (ii),
(iii), or (iv) of section 7381(3)(B).
``(C) An employee may continue to serve, in a
situation involving financial hardship, if the
continued service of the employee is in the best
interests of the United States, as determined on a
case-by-case basis and certified as such by the head of
the employing agency.
``(d) Reports to Congress.--Not later than 1 year after the date of
enactment of this section, and annually thereafter, the Director of the
Office of Personnel Management shall submit to the Committee on
Homeland Security and Governmental Affairs of the Senate and the
Committee on Oversight and Accountability of the House of
Representatives a report regarding, for the year covered by the report,
the number of exemptions requested and the number of exemptions granted
under subsection (c)(2)(C).
``Sec. 7383. Review of public records
``(a) In General.--Each agency shall provide for such reviews of
public records as the head of the agency considers appropriate to
determine if a notice of lien has been filed pursuant to section 6323
of the Internal Revenue Code of 1986 with respect to an employee of, or
an applicant for employment with, that agency.
``(b) Additional Requests.--If a notice of lien is discovered under
subsection (a) with respect to an employee or applicant for employment,
the applicable agency may--
``(1) request that the employee or applicant execute and
submit a form authorizing the Secretary of the Treasury to
disclose to the head of the agency information limited to
describing whether--
``(A) the employee or applicant has a seriously
delinquent tax debt; or
``(B) there is a final administrative or judicial
determination that such employee or applicant committed
any act described in section 7385(b); and
``(2) request that the Secretary of the Treasury disclose
any information so authorized to be disclosed.
``(c) Authorization Form.--The Secretary of the Treasury shall make
available to all agencies a standard form for the authorization
described in subsection (b)(1).
``Sec. 7384. Confidentiality
``Neither the head nor any other employee of an agency may--
``(1) use any information furnished under this subchapter
for any purpose other than the administration of this
subchapter;
``(2) make any publication through which the information
furnished by or with respect to any particular individual under
this subchapter can be identified; or
``(3) permit anyone who is not an employee of that agency
to examine or otherwise have access to any such information.
``Sec. 7385. Adverse actions for employees who understate taxes or fail
to file
``(a) In General.--
``(1) In general.--Subject to subsection (c), the head of
an agency may take any personnel action against an employee of
that agency if there is a final administrative or judicial
determination that the employee committed any act described in
subsection (b).
``(2) Personnel actions.--In paragraph (1), the term
`personnel action'--
``(A) includes separation; and
``(B) does not include administrative leave or any
other type of paid leave without duty or charge to
leave.
``(b) Acts.--The acts described in this subsection are--
``(1) willful failure to file any return of tax required
under the Internal Revenue Code of 1986, unless such failure is
due to reasonable cause and not to willful neglect; or
``(2) willful understatement of Federal tax liability,
unless such understatement is due to reasonable cause and not
to willful neglect.
``(c) Procedure.--Under regulations prescribed by the Director of
the Office of Personnel Management, an employee subject to a personnel
action under this section shall be entitled to the procedures provided
under section 7513 or 7543, as applicable.''.
(b) Clerical Amendment.--The table of subchapters for chapter 73 of
title 5, United States Code, is amended by adding at the end the
following:
``SUBCHAPTER VIII--INELIGIBILITY OF NONCOMPLIANT TAXPAYERS FOR FEDERAL
EMPLOYMENT
``7381. Definitions.
``7382. Ineligibility for employment.
``7383. Review of public records.
``7384. Confidentiality.
``7385. Adverse actions for employees who understate taxes or fail to
file.''.
(c) Effective Date.--This section, and the amendments made by this
section, shall take effect on the date that is 270 days after the date
of enactment of this Act.
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