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DOD issues interim rule requiring contractors to notify contracting officer if IRS levy will jeopardize contract performance.

DOD has issued an interim rule amending the DFARS to require DOD contractors to notify the contracting officer promptly if the Internal Revenue Service (IRS) imposes a levy that will jeopardize contract performance. According to DOD, this interim rule addresses contract nonperformance that may result from application of a levy and the resulting impact on national security. If the government agrees with the contractor that such a levy will jeopardize contract performance and such nonperformance will adversely impact national security, the rule provides that some or all of the monies collected will be returned to the contractor. This rule became effective on September 1, 2005. Comments were due by October 31, 2005. (70 Fed. Reg. 52031, 9/1/05)

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Title Annotation:Regulations
Publication:Contract Management
Date:Nov 1, 2005
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