Feds Face Tax Check-Up: 'Tax DODGER Act' Mandates Public Reporting, Ties Jobs to Tax Compliance

This bill, officially the "Tax Delinquencies and Overdue Debts are Government Employees Responsibility Act" or "Tax DODGER Act," sets up new rules for federal employees and retirees concerning unpaid taxes. Its main goals are twofold: first, to publicly report on tax delinquency within the federal workforce, and second, to make owing significant back taxes a potential barrier to getting or keeping a federal job.

Shining a Light: The Public Tax Debt Report

Under Section 2, the Treasury Department gets a new annual task: create a public report detailing federal employees and retirees (both civilian and military, active and retired) who have "delinquent tax debt" or haven't filed a tax return for the most recent fiscal year. This isn't just a total number; the report must break down the figures by agency, showing how many people in each category owe taxes, the total amount owed, and the delinquency rate. This information will be sent to key congressional committees and, notably, made available online to the public.

Pay Up or Get Out? Job Eligibility and Consequences

Section 3 introduces significant changes to federal employment rules (amending Title 5, U.S. Code, with a new Subchapter VIII, sections 7381-7385). The big takeaway: individuals with "seriously delinquent tax debt" become ineligible for federal employment. What counts as "seriously delinquent"? Section 7381 defines it, but includes exceptions for debts being paid off under an agreement, under review, or subject to certain collection actions.

• Hiring Hurdle: Job applicants will need to certify they don't have such debt (Sec 7382). Agencies are also mandated to check public records for tax liens against applicants and current employees (Sec 7383). They can even ask individuals to authorize the Treasury to disclose their tax debt status.
• Current Employees: The bill doesn't just target new hires. Section 7385 allows agency heads to take personnel actions, including firing, against current employees who "willfully fail to file tax returns or understate their tax liability," unless there's a reasonable cause.
• Safety Nets & Fine Print: There are some procedural safeguards. The Office of Personnel Management (OPM) will issue regulations including due process rights for affected individuals. There's a potential 180-day window to resolve debt issues, and exemptions might be granted for financial hardship if keeping the employee is deemed in the nation's best interest (Sec 7382). Information gathered under this act is supposed to be kept confidential and used only for administration (Sec 7384). Employees facing adverse action under Section 7385 retain appeal rights (referencing sections 7513 and 7543).

These employment-related changes kick in 270 days after the bill becomes law, giving agencies and employees some time to prepare for the new requirements and potential consequences.