1829.101 Resolving tax problems.
(a) The Office of General Counsel (Code G) shall (1) represent NASA in all negotiations under FAR Part 29 and (2) keep the Associate Administrator for Procurement fully informed on their status.
(b) Communications with the Department of Justice for representation or intervention in proceedings concerning taxes shall be made only by the General Counsel.
(c) Matters involving foreign taxes requiring the assistance of other executive departments shall be forwarded to the General Counsel for appropriate action.
(d) Tax problems that cannot be solved readily by reference to FAR Part 29 shall be forwarded to the General Counsel through the installation's Office of Chief Counsel. The forwarding of tax problems to the General Counsel is particularly important when--
(1) The amount of tax actually or potentially involved is substantial;
(2) The legal incidence of a tax appears to be upon the United States or its property, a specific exemption pertinent to the transaction appears to exist, or a State or local tax appears to have a direct effect upon a transaction in interstate commerce;
(3) Judicial or administrative action against a contractor is threatened;
(4) The imposition or potential imposition of a tax is the result of an amendment of a tax law or a change of position by the tax authorities; or
(5) The possibility exists of obtaining refunds of taxes previously paid.
(e) Regarding tax problems, the initiating office or intervening offices shall forward the following material to the General Counsel:
(1) A comprehensive statement of pertinent facts, including documents and correspondence.
(2) A copy of the contract.
(3) A thorough review of the legal issues involved and recommended action.
(4) If appropriate, a statement of the problem's effects on procurement policies and procedures, with recommendations.
(f) Copies of tax-related correspondence shall be sent to the Associate Administrator for Procurement.
1829.203 Other Federal tax exemptions.
(a) The Associate Administrator for Procurement has obtained a permit from the Bureau of Alcohol, Tobacco, and Firearms (Treasury Department) enabling NASA and its contractors to purchase spirits (e.g., specially denatured spirits) tax-free for nonbeverage Government use. Installations can obtain copies of the permit from the Contract Management Division (Code HK) at NASA Headquarters.
(b) When purchasing spirits for use by NASA personnel, the contracting officer shall attach a copy of the permit to the contract. Upon receipt of the spirits, the permit shall be returned to the contracting officer unless future orders are anticipated.
(c) When a NASA contractor requires spirits to perform a NASA contract, the contracting officer shall furnish the contractor a copy of the permit to provide its vendor. Upon receipt of the spirits, the contractor shall return the permit to the contracting officer unless future orders are anticipated. In any event, the permit shall be returned upon completion of the contract.
(d) To comply with 26 U.S.C. 5271(g), the procurement officer shall post a copy of the permit for inspection.