Interim rule concerning tax-delinquent corporations | KPMG | GLOBAL

Federal agencies prohibited from contracting with tax-delinquent corporations

Interim rule concerning tax-delinquent corporations

The U.S. Defense Department, General Services Administration, and National Aeronautics and Space Administration today jointly released for publication in the Federal Register an interim rule that prohibits the federal government from entering into a contract with any corporation having a delinquent federal tax liability or felony conviction under federal law (unless the agency has determined that suspension of the corporation is not necessary to protect the interests of the government).


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The interim rule [PDF 230 KB] has an effective date of February 26, 2016, and includes a certification requirement regarding tax matters for contracts having a value greater than $5 million. 

Written comments concerning this rule are due by a date that is 60 days after December 4, 2015 (the date of publication in the Federal Register).

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