As of 2024FAR 9.104-5
Detailed Answer
Tax obligations affect federal contracting eligibility:
**Disclosure requirements:**
- Must disclose federal tax delinquency over $10,000
- Required in SAM.gov representations
- Applies to unpaid taxes where all remedies exhausted
- Includes taxes with outstanding IRS lien
**Impact on contracting:**
- Contracting officer considers in responsibility
- Large delinquencies raise serious concerns
- May request information about payment plans
- Could result in non-responsibility finding
**Prohibitions:**
- Some appropriations acts prohibit awards to tax delinquents
- DOD, DHS, and other agencies have specific restrictions
- Applies when incorporated into solicitation
- Check specific solicitation requirements
**What counts as delinquent:**
- Final tax liability assessed by IRS
- No longer subject to administrative or judicial review
- Not currently under payment agreement
- Outstanding IRS lien filed
**What doesn't count:**
- Taxes under appeal or dispute
- Taxes covered by installment agreement
- Taxes under offer in compromise
- State/local taxes (federal only)
**Addressing tax issues:**
- Establish IRS payment plan
- Remove lien through payment or agreement
- Disclose honestly even if problematic
- Seek professional tax advice
**Best practices:**
- Resolve tax issues before pursuing contracts
- Keep current on all tax obligations
- Document payment agreements
- Update SAM when status changes
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