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Public Statements

Ellsworth Provision To Crack Down On Contractor Tax Cheats Passes House 417-3

Press Release

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Date:
Location: Evansville, IN

Today, the House of Representatives by a vote of 417 -- 3 passed the Implementing Management for Performance and Related Reforms to Obtain Value in Every Acquisition Act (IMPROVE Act), which contains a key provision from Rep. Ellsworth to prevent defense contractors with delinquent tax payments from receiving federal contract.

This bill requires companies seeking a defense contract to prove they are in good-standing with the IRS. This is done by certifying that the company carries no serious delinquent tax debt. The Department of Defense will not have to rely solely on the company's word, however. The company must allow the Treasury to verify that the certification is true. False certification will be reported to the contractor database -- the Past Performance Information Retrieval System.

Representative Ellsworth spoke on the floor in support of the bill, "Each year in April, Hoosiers play by the rules by paying their taxes. They expect companies doing business with the federal government must do the same. It's really that simple. Bad actors don't just cheat us and our government of tax revenue; they also gain an unfair advantage over businesses that are doing the right thing."


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