The Tax DODGER Act would accomplish two main things. First, it requires the U.S. Treasury to publish an annual public report detailing federal civilian and military current employees and retirees who have delinquent federal tax debt or unfiled tax returns for the most recent fiscal year. The report would break down counts and dollar amounts by category (civilian workers, retirees, active-duty military, reserve/National Guard, etc.) and by agency, and it would be provided to specific committees in Congress and posted on the public internet. Second, the bill adds a new subchapter to Title 5 of the U.S. Code that would make individuals ineligible for federal employment if they have a “seriously delinquent tax debt,” subject to due-process protections and certain exceptions. It would require job applicants to certify they have no seriously delinquent tax debt, empower agencies to review public tax liens, allow disclosure with a limited authorization, and permit adverse personnel actions (including potential separation) for willful tax noncompliance. The act also allows limited exemptions for financial hardship and calls for annual reporting on these exemptions. The provisions would take effect 270 days after enactment.
Key Points
- 1Annual public reporting on federal employees and retirees with delinquent tax debt or unfiled returns, including counts, debt levels, and agency breakdowns for civilian and military personnel and retirees.
- 2Creation of an eligibility bar for federal employment: anyone with a seriously delinquent tax debt would generally be ineligible to be appointed or to continue serving, unless they obtain an approved exception.
- 3Certification requirement for job applicants: agencies must require applicants to certify they do not have any seriously delinquent tax debt.
- 4180-day demonstration period for debt exceptions: before a final negative employment action is effective, an applicant or employee can have up to 180 days to demonstrate the debt qualifies for one of the statutory exceptions (e.g., due process pending or a debt under a formal payment arrangement).
- 5Disclosure and review of liens: agencies may review public tax records for liens and may request authorization to disclose limited tax debt information to the agency.
- 6Confidentiality protections: information collected under these provisions must be used only for administering this subchapter and cannot be published in a way that identifies individuals.
- 7Adverse actions for tax noncompliance: agencies may take personnel actions, including separation, against employees who willfully fail to file or willfully understate their tax liability, with due-process requirements applying.
- 8Reporting on exemptions: OPM must annually report to Congress on the number of exemptions requested and granted under the hardship provision.
- 9Expanded scope: the term “agency” includes Executive branch agencies, the U.S. Postal Service, the Postal Regulatory Commission, and employing authorities in the legislative branch.
- 10Effective date: the Act’s provisions would take effect 270 days after enactment.