S-1427-119
Read twice and referred to the Committee on Finance.
Sponsored by Joni Ernst (R-IA)
What it does
This bill would prohibit individuals with a "seriously delinquent tax debt" — defined as a debt for which the IRS has filed a tax lien — from being appointed to or continuing in any officer, employee, or contract employee role at the IRS. It would require the IRS to verify annually that current staff and contractors do not have such debts, and to screen applicants before hiring. The Office of Personnel Management would be required to issue regulations to implement these provisions. Exceptions apply for debts being repaid under an installment agreement or offer in compromise, or where a collection due process hearing or innocent spouse relief is pending.
Who benefits
Taxpayers broadly, who would have greater assurance that IRS personnel are themselves compliant with tax law. Competing job applicants who do not have delinquent tax debts and would no longer compete against those who do. Taxpayer advocacy groups seeking greater accountability at the IRS. Members of Congress and constituents who view IRS credibility as important to voluntary tax compliance.
Who is hurt
Current IRS employees and contractors who have seriously delinquent tax debts and would face termination. Job applicants with such debts who would be barred from IRS employment. Individuals who may have accrued tax liens due to circumstances such as medical hardship, divorce, or financial crisis — even if they are working toward resolution. The IRS itself may face workforce disruption or hiring challenges if a meaningful share of applicants or current staff are disqualified. The Office of Personnel Management would bear the administrative cost of developing new regulations.
Supporters argue
Supporters argue that it is fundamentally inconsistent for the agency responsible for enforcing tax compliance to employ individuals who are themselves seriously delinquent on their taxes. They point to a 2014 Treasury Inspector General for Tax Administration (TIGTA) report finding that hundreds of IRS employees had significant tax compliance issues, undermining public trust in the agency. Supporters contend that the bill's exceptions for installment agreements, offers in compromise, and pending hearings are carefully tailored to protect individuals actively resolving their debts in good faith, making the restriction both fair and targeted.
Opponents argue
Opponents argue that the bill creates a categorical employment bar that could disproportionately affect lower-income workers who may have fallen into tax debt through circumstances beyond their control, such as medical emergencies or job loss, rather than willful noncompliance. They contend that existing civil service procedures and the IRS's own conduct standards already provide mechanisms to address employee tax compliance issues on a case-by-case basis, making a blanket statutory prohibition unnecessarily rigid. Critics may also raise concerns about due process for current employees who could be terminated before fully exhausting administrative remedies.
Constitutional context
No significant constitutional tension is present. Congress has broad authority under Article I to set conditions of federal employment and to structure executive agencies. The bill's employment restrictions do not implicate the Taxing and Spending Clause or the Sixteenth Amendment in any contested way.
Checks and balances
Congress gains authority to set a new categorical employment standard for the IRS; the Office of Personnel Management is directed to issue implementing regulations; existing civil service appeal rights and administrative procedures serve as checks on individual termination decisions.
Historical precedent
A nearly identical provision was enacted for employees of the Department of Veterans Affairs under the VA Accountability and Whistleblower Protection Act of 2017, and similar tax compliance requirements apply to federal contractors under existing IRS guidance.