Tax DODGER Act
- Bill Number
- S. 1444
- Origin Chamber
- Senate
- Congress
- 119th Congress, Session 1
- Policy Area
- Government Operations and Politics
- Status
- Introduced
- Latest Action
- 2025-04-10: Read twice and referred to the Committee on Homeland Security and Governmental Affairs.
- Last Updated
- 2026-06-08T13:34:49Z
AI-Generated Summary
Bill Summary: S. 1444 - Tax Delinquencies and Overdue Debts are Government Employees' Responsibility Act (Tax DODGER Act)
Purpose
This legislation aims to increase tax compliance among current and former federal employees by requiring public reporting of tax delinquencies and imposing employment restrictions on those with serious unpaid tax debts or unfiled returns. It seeks to ensure that federal workers and retirees meet their tax obligations, promoting accountability in government service.
Key Provisions
- Annual Reporting Requirement (Section 2): The Secretary of the Treasury must submit an annual report to specified congressional committees (Senate Finance, House Ways and Means, Senate Homeland Security and Governmental Affairs, House Oversight and Government Reform) and publish it online. The report covers the most recent fiscal year and includes:
- Breakdown of populations: Current civilian employees, retired civilians, active-duty military, military reserves/National Guard, and retired military.
- Number of individuals in each group with delinquent tax debt (excluding those in installment payment plans) or unfiled tax returns.
- Total owed amounts and delinquency rates for each group.
- Data broken down by federal agency.
- Ineligibility for Federal Employment (Section 3): Amends Chapter 73 of Title 5, U.S. Code, to add a new subchapter on noncompliant taxpayers:
- Definitions:
- "Agency" includes executive agencies, U.S. Postal Service, Postal Regulatory Commission, and legislative branch employers.
- "Employee" covers most federal workers, including some in specific categories.
- "Seriously delinquent tax debt" means assessed federal taxes collectible by levy or court action, but excludes debts under installment agreements, pending appeals or relief requests, continuous wage levies, or released levies.
- Employment Restrictions (Section 7382): Individuals with seriously delinquent tax debt cannot be hired or continue serving as federal employees. Applicants must certify they have no such debt; agencies may request authorization for the Treasury to confirm this. Regulations by the Office of Personnel Management (OPM), in consultation with the IRS, ensure due process (e.g., 180 days to prove an exception applies) and allow case-by-case hardship waivers if continued employment benefits the U.S. government.
- Public Records Review (Section 7383): Agencies must check public records for tax liens (legal claims on property for unpaid taxes) on applicants and employees. If a lien is found, agencies can request IRS confirmation of delinquency via a standard authorization form.
- Confidentiality (Section 7384): Tax information obtained can only be used for employment decisions under this law; it cannot be shared publicly or with unauthorized parties to protect privacy.
- Adverse Actions for Tax Misconduct (Section 7385): Agencies can discipline or fire employees for willful failure to file tax returns or understate tax liability (unless due to reasonable cause, not neglect). This includes termination but not paid leave. Affected employees get standard federal appeal rights.
- Reporting on Exemptions: OPM must annually report to Congress on hardship exemption requests and approvals.
- Effective Date: The employment ineligibility provisions take effect 270 days after enactment.
Significant Changes to Existing Law
- Adds a new Subchapter VIII to Chapter 73 of Title 5, U.S. Code, which governs federal employee suitability and conduct. Previously, tax compliance was not a direct barrier to federal hiring or retention, though agencies could consider it informally.
- Introduces mandatory certification and IRS data-sharing for tax status during hiring, with explicit exclusions for certain payment plans or disputes to avoid overly broad restrictions.
- Expands personnel actions to include tax-related misconduct as grounds for discipline, aligning it with existing procedures for misconduct but adding specific tax violations.
- Requires the first public, agency-specific reporting on federal tax delinquencies, which was not previously mandated.
Potential Impacts
- On Government Agencies: Agencies must implement new hiring checks, record reviews, and certification processes, increasing administrative workload for human resources and compliance teams. OPM and Treasury will need to develop forms, regulations, and reporting systems, potentially straining resources initially.
- On Citizens: Federal job applicants and current employees (including military and retirees) face barriers if they have serious tax issues, which could limit career opportunities or lead to job loss. Retirees are tracked via reporting but not directly affected by employment rules. This may encourage broader tax compliance among the public by highlighting consequences for government roles.
- On International Relations: No direct impacts; the bill focuses on domestic federal workforce and tax enforcement.
Main Stakeholders Affected
- Federal Employees and Applicants: Current and prospective civilian and military workers, including reserves and retirees, who must certify tax compliance or face ineligibility/dismissal.
- Federal Agencies: All executive, postal, and legislative employers responsible for implementing checks and actions.
- U.S. Department of the Treasury and IRS: Tasked with annual reporting, data disclosure upon authorization, and defining "seriously delinquent" debts.
- Office of Personnel Management (OPM): Oversees regulations, due process, and exemption reporting.
- Congressional Committees: Receive reports to oversee implementation and tax policy.
- Taxpayers Generally: Indirectly affected through emphasis on compliance, potentially influencing IRS enforcement priorities.
Notable Legal, Constitutional, or Political Implications
- Legal and Constitutional: Emphasizes due process rights under existing federal employee laws (e.g., appeal procedures in 5 U.S.C. §§ 7513, 7543), including notice and 180-day challenges, to avoid arbitrary actions. Confidentiality provisions protect privacy under laws like the Privacy Act, limiting data use to employment purposes. The 270-day delay allows time for rulemaking, reducing implementation risks. Potential challenges could arise if hardship waivers are seen as too discretionary, but case-by-case reviews align with constitutional fairness standards.
- Political: Promotes fiscal responsibility and accountability in government by targeting "tax dodgers" in public service, which could appeal to efforts to reduce federal debt. The public reporting aspect increases transparency but raises privacy debates. As an introduced bill (April 10, 2025), it reflects priorities on tax enforcement amid ongoing budget concerns, without altering broader tax laws.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Recent Actions
- 2025-04-10: Read twice and referred to the Committee on Homeland Security and Governmental Affairs.
- 2025-04-10: Introduced in Senate
Bill Versions
- Tax Delinquencies and Overdue Debts are Government Employees’ Responsibility Act — issued 2025-04-10 — PDF (10 pages)