GSA CITES A NUMBER OF UNDEFINED TERMS USED IN SECTION 6050M's PROPOSED RULE.

We have reviewed your proposed rule implementing the new reporting requirements of section 6050M of the Internal Revenue Code offer the following comments for your consideration. [sic]

A number of terms are used in the proposed rule but are not defined. Specifically, the phrases "date of contract action," "contract action," and "total amount obligated" are used throughout the rule. If reporting is to be made through the Federal Procurement Data Center, we assume these phrases have the same meaning as in the Federal Procurement Data System reporting manual. However, to avoid confusion we recommend that you indicate in the rule that the phrases have the same meaning.

The proposed rule provides for reporting to IRS within 30 days of the end of the quarter. This time frame is inconsistent with the current FPDS reporting requirement and will not provide adequate time for error corrections for the quarter. This is particularly problematic in view of the requirement for the head of the agency or a designee to declare, under penalty of perjury, that the information is to the best of his or her knowledge and belief, true, correct, and complete.

The requirement for the declaration, under penalty of perjury is unreasonable and unrealistic. In any major procuring agency there are thousands of individual employees who are acting as contracting officers awarding hundreds of thousands of purchases and contracts each year. With a system that involves so many individuals and so many different types of transactions it would be virtually impossible for any agency head or designee to sign such a declaration. We fail to see how it would serve the Government's interest to prosecute one of its employees for making such a statement. This provision of the rule is not necessary to implement the statutory reporting requirement and provides no meaningful benefit to the Government. If IRS feels some certification is necessary to ensure that the agencies take this reporting requirement seriously we recommend that you require the agency head or designee to certify or declare that the agency has implemented a program for reporting that provides adequate quality control mechanisms to ensure timely and accurate reporting of all contract actions.

We appreciate the opportunity to comment on the proposed rule.

Sincerely,