0
Federal Employees and Retirees with Delinquent Tax Debt Initiative (FERDI) Act
12/15/2023, 4:06 PM
Summary of Bill S 1011
Under the FERDI Act, federal agencies would be required to take action against employees and retirees who have outstanding tax debt. This could include garnishing wages, withholding tax refunds, or taking other appropriate measures to collect the debt.
The bill also includes provisions to protect the rights of federal employees and retirees, ensuring that they are given notice and an opportunity to dispute the debt before any action is taken. Additionally, the FERDI Act aims to streamline the process for collecting tax debt from federal employees and retirees, making it more efficient and effective. Overall, the FERDI Act is designed to ensure that federal employees and retirees are held accountable for their tax obligations, while also protecting their rights and ensuring a fair and transparent process for debt collection.
Congressional Summary of S 1011
Federal Employees and Retirees with Delinquent Tax Debt Initiative (FERDI) Act
This bill disqualifies individuals with delinquent tax debt from federal employment and requires the Internal Revenue Service (IRS) to regularly publish a report on the tax liabilities of federal employees.
Specifically, the bill disqualifies both applicants and current employees with seriously delinquent tax debt from federal employment. The bill defines seriously delinquent tax debt as a federal tax liability that has been assessed by the Department of the Treasury and that may be collected via levy or court proceeding, with specified exceptions. Agencies must provide for appropriate review of public records to determine if there are any liens against applicants or current employees, and may take certain personnel actions against employees who willfully fail to file taxes or understate their liability.
The bill also directs the IRS to publish an annual report on current and retired federal civilian and military employees who have delinquent tax debt or an unfiled tax return for the most recent fiscal year. (The IRS currently investigates and reports on similar information through its Federal Employee/Retiree Delinquency Initiative, or FERDI.)
