Congress Continues To Threaten Contracting By Inverted Cos.

Recent congressional action regarding inverted domestic corporations may lead to further limitations on the ability of IDCs to contract with the federal government. Starting with the 2002 legislation that established the U.S. Department of Homeland Security, and then extended to all government agencies through the appropriations legislation, Congress has placed contracting restrictions on government agencies prohibiting "contracts with expatriates." In that original DHS legislation, which is referenced in the later appropriations legislation, an IDC is relatively narrowly defined. However, proposals in the current session of Congress expand the definition considerably.

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