Washington, DC - Today, the House passed H.R. 4881, the Contracting and Tax Accountability Act, which was introduced by Reps. Edolphus “Ed” Towns (D-NY) and Brad Ellsworth (D-IN).  The bill was originally passed in the Oversight Subcommittee chaired by Rep. Towns before it moved to the full House.  This bill would withhold most federal contracts and grants from businesses and organizations that are delinquent in their federal taxes.

“Today, people across the country are finishing up their tax returns to submit to the IRS by tomorrow.  Nobody likes to pay taxes, but the vast majority of American families and companies obey the law and comply with their responsibilities as citizens,” said Rep. Towns.

Following is a brief overview of what the bill endeavors to accomplish.

Prohibits any person who has a seriously delinquent tax debt from obtaining a federal government contract or grant;

Requires contract and grant applicants to give contracting officers permission to check their tax status.

Establishes a practical and cost-effective strategy to ensure all companies compete on a level playing field and that our tax dollars are being used wisely. 

“Unfortunately, some people do not follow the law and have serious delinquencies in paying taxes to the IRS.  What is most shocking is that many companies that did not pay their taxes were benefiting from federal government contracts.  This bill will put an end to that problem, once and for all,” Rep. Towns added.

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Return to Congressman Towns' website