When a person has a large federal tax debt, they may feel like their situation is hopeless. However, there are avenues and options out there for addressing such debts. Offers in compromise and installment agreements are a couple examples of options a person with a tax debt may be able to pursue. Skilled tax lawyers can help taxpayers understand what routes they could pursue given their particular tax debt situation. They can also provide taxpayers with support, guidance and advice throughout the process of working to resolve a tax debt.
Properly addressing a tax debt in a prompt manner can be very important. Having a large tax debt can have many impacts on a person, and the longer a person leaves the debt unaddressed, the more time the impacts they are facing can have to grow in number and severity.
Recently introduced federal legislation seeks to add a new ramification of having a major unaddressed tax debt for individuals involved in or seeking to be involved in the federal sector.
The bill is called the Tax Accountability Act. It would take eligibility for federal contracts, grants and civilian employment away from individuals who have a tax debt that is seriously delinquent. Among the bill's provisions is one that would make certifying tax status mandatory for individuals applying for such employment, grants or contracts.
The bill carves out some exemptions, including exemptions for individuals who are taking efforts to address their debt and outstanding liabilities. The fact that these kinds of exemptions are sometimes present in legislation like this underscores how important promptly taking steps to address one’s tax debt can be for a person.
Legislation like this has gone before Congress in the past, but failed to have success. One wonders if this year will prove different for this kind of legislation. What overall impacts do you think the recently introduced bill would have if it does successfully traverse the legislative process.
Source: FedSmith, “Legislation Introduced to Target Tax Delinquent Federal Employees,” Ian Smith, Jan. 11, 2017