HR 5695
No Taxation Without Operation Act
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- Passed Senate
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Bill overview
This bill, titled the No Taxation Without Operation Act, suspends the collection of federal income taxes for individuals during a government shutdown. Specifically, it prevents citizens from owing taxes or accruing penalties related to their income taxes while a shutdown is in effect. Additionally, it exempts back pay received by furloughed federal employees and contractors covered by the Government Employee Fair Treatment Act of 2019 from federal income taxes. The Treasury Department is tasked with creating guidelines for employers to ensure compliance with these provisions.
Key provisions
- Suspends federal income tax collection during government shutdowns.
- Exempts individuals from tax liability and penalties during a shutdown.
- Exempts back pay for furloughed federal employees and contractors from federal income taxes.
- Requires the Treasury Department to issue compliance guidelines for employers.
Who is affected
- Taxpayers
- Federal employees
- Federal contractors
- Employers
Notable changes
- Provides a temporary suspension of income tax collection during shutdowns.
- Specifically addresses back pay taxation for furloughed employees and contractors.
Sponsors
Official sponsors from legislative records.
Primary sponsor
Robert P. Bresnahan
Cosponsor
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119th CONGRESS — 1st Session
H. R. 5695
IN THE HOUSE OF REPRESENTATIVES
A BILL
To suspend Federal individual income taxes during a lapse in appropriations, and for other purposes.
This Act may be cited as the No Taxation Without Operation Act
.
Federal income taxes during the duration of a partial or full government shutdown, or
the accrual of any penalty or interest with respect to any Federal individual income tax payment or any Federal individual income tax return,
for any furloughed Federal employee or contractor who is furloughed or working without pay during a partial or full government shutdown and is subject to the Government Employee Fair Treatment Act of 2019, their backpay shall not be subject to Federal income taxes, and
the Treasury Department shall issue guidelines for employers to ensure compliance of this Act for tipped, hourly wage, salaried, and all other covered employees.
For purposes of this section, the term partial or full government shutdown
means any period during which a lapse in Federal appropriations results in a partial or full government shutdown.