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Federal Taxes, Contractor Responsibility, and Suspension and Debarment

Apr.25.2008

A final rule was published on April 22, 2008 [http://www.crowell.com/pdf/Fed-Reg_Vol73-No78.pdf], requiring all offerors, even those offering commercial items, to certify whether they have “delinquent federal taxes in an amount that exceeds $3,000” and requiring CO's to consider such a delinquency in a responsibility determination and to notify the agency’s suspension and debarment official. The rule includes such a tax delinquency and “violating Federal criminal tax laws” as new grounds for suspension and debarment, but a tax liability is not considered delinquent until all administrative and judicial appeal rights have been exhausted and until the offeror fails to pay the taxes when due.

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For more information, please contact the professional(s) listed below, or your regular Crowell & Moring contact.

David C. Hammond
Partner – Washington, D.C.
Phone: +1 202.624.2510
Email: dhammond@crowell.com