FAR 52.209-11: Representation by Corporations Regarding Delinquent Tax Liability or Felony Conviction
Official federal procurement regulation analysis, contractor performance obligations, and risk mitigation strategies for small businesses.
What It Means in Plain English
Requires corporate offerors to represent whether they have unpaid federal tax liabilities that have been assessed, for which all judicial and administrative remedies have been exhausted, or whether they have been convicted of a felony under federal law within the preceding 24 months.
Mandatory in all solicitations where the contract will be funded by federal appropriations.
Mandatory Statutory Requirements
- Tax Assessment Check: Covers delinquent federal tax liabilities exceeding $10,000 where all appeals have been exhausted.
- 24-Month Felony Window: Discloses any federal felony criminal convictions of the corporation within the last 2 years.
- Statutory Award Prohibition: Appropriations acts forbid federal agencies from awarding contracts to corporations with unresolved tax liabilities or felony convictions unless the agency has considered suspension/debarment.
Contractor Compliance Obligations
- Confirm corporate tax standing with IRS and corporate officers before checking representation boxes.
- Maintain active payment plans or settlement agreements with the IRS if past tax disputes exist.
Falsely certifying that the company has no delinquent federal tax liability when the IRS has recorded a final notice of tax lien causes immediate contract rescission and False Claims Act scrutiny.
Frequently Asked Questions About FAR 52.209-11
Does an ongoing tax audit count as a delinquent tax liability?
No. A liability does not count as delinquent under this clause if judicial or administrative remedies (such as an ongoing appeal) are still pending.