IRS Hiring Freeze Until All Employees' Tax Debts Are Cleared: New Bill Sets Strict Rules

The "No Hires for the Delinquent IRS Act" freezes all new IRS hiring until the Secretary of the Treasury certifies that no current employee has a "seriously delinquent tax debt." This isn't just any overdue tax bill; it's specifically defined as an outstanding federal tax debt where a lien notice has been filed. Think of it like this: if the IRS has officially claimed your property because of unpaid taxes, you've crossed the line.

Keeping the Taxman Honest

The bill, however, makes some important exceptions. You're off the hook if your debt is:

• Being paid on time under an official agreement (as outlined in sections 6159 or 7122 of the tax code).
• Currently under review through a collection due process hearing (section 6330), or if you've requested or are waiting on a decision for relief under section 6015 (a, b, or f) – basically, you're contesting it or seeking special consideration.
• One that has had a levy issued against it under section 6331.
• One that has been granted relief under section 6343(a)(1)(D).

Real-World Roadblocks?

While the bill aims to boost public trust by ensuring those enforcing tax laws are also following them, there are potential snags. For example, imagine a small business owner hit hard by unexpected economic downturn, falling behind on taxes. Even if they're actively working with the IRS on a payment plan, the strict "lien notice" definition could still classify them as "seriously delinquent," potentially impacting their employment if they work at the IRS and slowing down agency hiring. The certification process itself could also face pressure, potentially leading to delays or borderline cases being overlooked. It's like saying everyone needs a perfect driving record to work at the DMV – a good idea in theory, but real-life situations can be more complicated.