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Delinquent Federal Tax Flag in SAM.gov

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How does "Delinquent Federal Debt" flagged on a Company's SAM.gov affect a company? Does it delay contract awards mods, shipments, payments, etc?

Please note that this delinquency is due to a minor late payment on a tax that is currently under review by the IRS for abatement due to reasonable cause.

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The debt can be recaptured by deductions from payments on contracts to the federal government, and it affects the responsibilty determination when being considered for future contract awards.

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Thank you. Does it affect contracts already awarded to the contractor? Does this debt flag prohibit a government agency from issuing a delivery order or modification to a current contract?

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The debt collection can affect any current or future contracts.

It's up to the awarding agency whether they use it to affect issuing delivery orders or modifications - but they could.

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Which agency? I was just tracking down such a prohibition that is part of the Consolidated Appropriations Act, 2014 - This only applies to certain agencies but there may be similar coverage somewhere else for other agencies. Do you have a lawyer who can track this down? See for instance: http://beta.congress.gov/bill/113th-congress/house-bill/3547

Public Law (01/17/2014)

"Division D: Energy and Water Development and Related Agencies Appropriations Act, 2014 - Energy and Water Development and Related Agencies Appropriations Act, 2014

Title V: General Provisions - (Sec. 501) Prohibits the use of funds appropriated by this Act to influence congressional action on legislation or appropriation pending before Congress.

(Sec. 502) Prohibits the use of funds to enter into a contract, memorandum of understanding, or cooperative agreement with, make a grant to, or provide a loan or loan guarantee to any corporation that was convicted of a felony criminal violation under any federal law within the preceding 24 months, where the awarding agency is aware of the conviction, unless the agency has considered suspension or debarment of the corporation and determined that this further action is not necessary to protect government interests.

(Sec. 503) Extends the same prohibition to any corporation that has any unpaid federal tax liability that has been assessed, for which all judicial and administrative remedies have been exhausted or have lapsed, and that is not being paid in a timely manner, where the awarding agency is aware of the unpaid tax liability, unless it has considered suspension or debarment of the corporation and determined that this further action is not necessary."

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A firm that is delinquent in the payment of its taxes can be debarred or suspended or declared nonresponsible. The law might prohibit doing business with a firm that is delinquent. If you are contracting with a specific agency, check the agency's FAR supplement for specific policies.

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