Overview
This section mandates that Federal executive agencies report specific contract information and Taxpayer Identification Numbers (TINs) to the Internal Revenue Service (IRS) to comply with statutory tax reporting requirements.
Key Rules
- Statutory Basis: The requirement is driven by 26 U.S.C. 6050M and 26 CFR, requiring heads of agencies to provide data to the IRS for tax administration.
- Thresholds:
- Contracts and modifications exceeding $25,000 entered into on or after January 1, 1989.
- Modifications of $50,000 or more for contracts originally awarded before January 1, 1989 (if the modification occurred on or after April 1, 1990).
- Required Data Points: Agencies must report the contractor's name, address, TIN, common parent's TIN (if applicable), contract action date, obligated amount, and estimated completion date.
- Transmission Method: Data is transmitted to the IRS via the Federal Procurement Data System (FPDS).
Practical Implications
- Contracting Officers must ensure that contractor TINs and parent entity information are accurately captured in the System for Award Management (SAM) and reflected in FPDS to ensure seamless compliance with IRS reporting.
- This mechanism allows the IRS to cross-reference federal payments with tax filings, effectively identifying tax-delinquent contractors receiving federal funds.