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MemoMemorandumObama · D

Presidential Memorandum

Addressing Tax Delinquency by Government Contractors

This memorandum directs the IRS Commissioner to review contractor tax-delinquency certifications required under a 2008 Federal Acquisition Regulation amendment and report back within 90 days on their accuracy. It also orders OMB, Treasury, and agency heads to evaluate contracting officer practices and recommend within 90 days process improvements to block tax-delinquent contractors from receiving new awards, including a plan for a government-wide certification database.

Federal Register Open PDF 75 FR 3979

Impact dates

  1. IRS Commissioner report on accuracy of contractor certifications

  2. OMB/Treasury recommendations on process improvements and government-wide database plan

Key directives

  • IRS Commissioner to review certifications of non-delinquency in taxes submitted by federal contract bidders
  • IRS Commissioner to report within 90 days on overall accuracy of contractors' certifications
  • OMB Director, with Treasury Secretary and agency heads, to evaluate contracting officer and debarring official practices regarding serious tax delinquencies
  • OMB-led group to provide within 90 days recommendations on process improvements to prevent new contracts to tax-delinquent contractors
  • OMB-led group to include plan for government-wide database of contractor certifications

Who is ordered

Timeline

Immediate

  • Memorandum issuance and publication in Federal Register
  • IRS Commissioner directed to launch review of contractor tax certifications

Near term (90d)

  • IRS Commissioner report due on accuracy of contractor certifications
  • OMB/Treasury recommendations due on process improvements and government-wide database plan

Long term

  • Potential implementation of contractor certification database
  • Possible changes to contractor eligibility and debarment practices

Risks & tensions

  • Limited to review and recommendations; no immediate enforcement or disqualification mechanism imposed
  • Success depends on follow-through by agencies and potential congressional or regulatory action
  • Relies on self-reported contractor certifications rather than direct IRS verification at award stage
  • Vague on scope of 'other agency heads' and specific evaluation criteria
Presidential Memorandum: Addressing Tax Delinquency by Government Contractors · Executive Orders