Universal Service, 15502 [2018-07531]
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Federal Register / Vol. 83, No. 70 / Wednesday, April 11, 2018 / Rules and Regulations
FEDERAL COMMUNICATIONS
COMMISSION
47 CFR Part 54
Universal Service
CFR Correction
In Title 47 of the Code of Federal
Regulations, Parts 40 to 69, revised as of
October 1, 2017, on page 186, in
§ 54.410, make the following
corrections:
■ In paragraph (f)(2)(iii), remove the
words ‘‘the National Verifier, state
Lifeline administrator, or state agency’’
and add, in their place, ‘‘the eligible
telecommunications carrier’’;
■ In paragraph (f)(4), remove the words
‘‘re-certification or subscribers’ Lifeline’’
and add, in their place, ‘‘re-certification
of subscribers’ Lifeline’’; and
■ In paragraph (f)(5), remove the words
‘‘state agency’s inability’’ and add, in
their place, ‘‘state agency that it is
unable’’.
■
[FR Doc. 2018–07531 Filed 4–10–18; 8:45 am]
BILLING CODE 1301–00–D
DEPARTMENT OF THE TREASURY
48 CFR Parts 1009 and 1052
Department of the Treasury
Acquisition Regulations; Tax Check
Requirements
Department of the Treasury.
Final rule.
AGENCY:
ACTION:
This rule finalizes without
change an interim rule that amended the
Department of the Treasury Acquisition
Regulation (DTAR) by adding a subpart
titled ‘‘Responsible Prospective
Contractor’’ and a paragraph concerning
Representation and certifications
regarding responsibility matters, for the
purpose of directing IRS contracting
officers to the newly added DTAR
subpart titled ‘‘Tax Check
Requirement,’’ which prescribes the
policies and procedures for performing
a tax check on the apparent successful
offeror in order to determine eligibility
to receive an award.
DATES: Effective date: May 11, 2018.
FOR FURTHER INFORMATION CONTACT:
Thomas O’Linn, Procurement Analyst,
Office of the Procurement Executive, at
(202) 622–2092.
SUPPLEMENTARY INFORMATION:
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SUMMARY:
I. Background
The DTAR, which supplements the
Federal Acquisition Regulation (FAR), is
codified at 48 CFR Chapter 10.
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14:51 Apr 10, 2018
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It is in the interest of the United
States Government to only award
contracts to entities that are responsible
and law abiding. This is codified in FAR
9.104 by requiring contracting officers to
perform a responsibility determination
prior to each contract award by using
the standards at FAR 9.104–1, as well as
consider information submitted by the
contractor and information they
research or acquire from other sources.
The IRS administers the Internal
Revenue Code as enacted by Congress.
Since fiscal year 2012, language in the
annual consolidated Appropriations Act
has prohibited the Federal Government
under various conditions from using
appropriated funds to enter into a
contract with a prospective contractor
unless the prospective contractor
certifies in writing that it has not been
notified of any unpaid Federal tax
assessment. Most recently, Sections 744
and 745 of Division E of the
Consolidated and Further Continuing
Appropriations Act, 2015 (Pub. L. 113–
235) prohibits the Federal Government
from entering into a contract with any
corporation where the awarding agency
is aware of an unpaid Federal tax
liability.
For purposes of tax administration,
the IRS has access to taxpayer return
information that is not otherwise
available to other Federal Agencies
pursuant to 26 U.S.C. 6103(h)(1). The
Department of the Treasury has
determined that an IRS contractor’s
compliance with the tax laws is a tax
administration matter. Additionally, 26
U.S.C. 6103(c) authorizes the IRS to
disclose a taxpayer’s return information
to such person(s) as the taxpayer may
designate in a consent to such
disclosure. In many cases, however, the
official signing a contract proposal on
behalf of an offeror will not be an
official to whom the IRS is authorized
to disclose the offeror’s tax information.
Thus, in order to ensure that IRS is
authorized to discuss the offeror’s own
tax information with an authorized
official of the offeror, a consent to
disclosure is required. This consent to
disclosure must be in the form of a
separate written document pertaining
solely to the authorized disclosure and
must be signed and dated by an
authorized person as required and
defined in 26 U.S.C. 6103(c) and 26 CFR
301.6103(c)–1(e)(4).
II. Interim Rule
On November 16, 2017 (82 FR 53426),
the Department issued an interim rule to
amend the DTAR to establish policies
and procedures that facilitate
successful, timely, and economical
execution of IRS contractual actions in
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Fmt 4700
Sfmt 4700
compliance with the FAR and various
appropriation restrictions. Specifically,
the interim rule established an express
requirement for IRS contracting officers
to use taxpayer return information that
is available only to IRS to perform a tax
check on the apparent successful offeror
for purposes of determining eligibility to
enter into a contract with the IRS. The
IRS has established an internal
Procedure, Guidance and Information
(PGI) that further supplements the
DTAR requirement for IRS contracting
officers to use when conducting a tax
check. To ensure compliance with 26
U.S.C. 6103(h)(1) and to safeguard
taxpayer return information, the PGI
restricts the number of personnel within
the IRS Office of Procurement who have
access to tax compliance information.
The PGI also limits the amount of
information provided to the contracting
officer regarding a delinquent Federal
tax liability. Upon notification by the
contracting officer that the offeror has a
delinquent Federal tax liability, the
offeror may provide the contracting
officer with documentation that
demonstrates the offeror’s tax status as
paid-in-full or that an approved
payment agreement has been reached, at
which time the contracting officer will
coordinate with the appropriate office
within IRS to validate the offeror’s tax
status (see FAR 9.104–5(a)(1), (b)(1) and
(e)).
The offeror may want to take steps to
confirm it does not have a delinquent
Federal tax liability prior to submission
of its response to the solicitation. If the
offeror recently settled a delinquent
Federal tax liability, the offeror may
want to take steps to obtain information
in order to demonstrate the offeror’s
responsibility to the contracting officer,
if such information is requested (see
FAR 9.104–5(a)(1) and (b)(1)).
The interim rule supplemented
paragraph (b) of FAR 9.104–5,
Representation and certifications
regarding responsibility matters, for the
purpose of directing IRS contracting
officers to the newly added DTAR
subpart 1009.70, which prescribes the
policies and procedures for performing
a tax check on the apparent successful
offeror to determine eligibility to receive
an award.
The interim rule added DTAR
subparts 1009.1, Responsible
Prospective Contractors, and 1009.70,
Tax Check Requirements. This latter
subpart prescribes the policies and
procedures IRS contracting officers will
use for performing a tax check on the
apparent successful offeror to determine
eligibility to receive an award.
Definitions of terms ‘‘authorized
representative(s) of the offeror,’’
E:\FR\FM\11APR1.SGM
11APR1
Agencies
[Federal Register Volume 83, Number 70 (Wednesday, April 11, 2018)]
[Rules and Regulations]
[Page 15502]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-07531]
[[Page 15502]]
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FEDERAL COMMUNICATIONS COMMISSION
47 CFR Part 54
Universal Service
CFR Correction
0
In Title 47 of the Code of Federal Regulations, Parts 40 to 69, revised
as of October 1, 2017, on page 186, in Sec. 54.410, make the following
corrections:
0
In paragraph (f)(2)(iii), remove the words ``the National Verifier,
state Lifeline administrator, or state agency'' and add, in their
place, ``the eligible telecommunications carrier'';
0
In paragraph (f)(4), remove the words ``re-certification or
subscribers' Lifeline'' and add, in their place, ``re-certification of
subscribers' Lifeline''; and
0
In paragraph (f)(5), remove the words ``state agency's inability'' and
add, in their place, ``state agency that it is unable''.
[FR Doc. 2018-07531 Filed 4-10-18; 8:45 am]
BILLING CODE 1301-00-D