Overview
This section outlines the statutory requirements for contractors to provide their Taxpayer Identification Number (TIN) to federal agencies to facilitate debt collection and mandatory IRS information reporting.
Key Rules
- Mandatory Disclosure: Under 31 U.S.C. 7701(c), every contractor doing business with the Government must furnish its TIN to the contracting agency.
- Payment Documentation: Per 31 U.S.C. 3325(d), Government payment offices must include the contractor’s TIN on all certified vouchers submitted to disbursing officials.
- Debt Collection: The Government is authorized to use the TIN to identify, collect, and report any delinquent debts the contractor owes arising from their relationship with the Government.
- IRS Reporting: The TIN is a required data point for the Government’s mandatory reporting of contract awards and payment information to the Internal Revenue Service.
Practical Implications
- Payment Delays: Failure to provide a valid TIN will prevent the Government from processing certified vouchers, effectively blocking payments to the contractor.
- Federal Offsets: The use of the TIN for debt collection means the Government can easily identify contractors with outstanding federal debts and potentially offset contract payments to satisfy those liabilities.