Proposed rule, based on similar Defense Department regulations, would have exempted companies working overseas from fraud-reporting requirements.
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Contractors would have to certify they do not owe "seriously delinquent" taxes.
Skeptics say it will be hard to change VA writing process, and complex rules do not lend themselves to simple prose.
The measure, which would apply to all federal agencies, responds to loss of hundreds of days worth of White House e-mails.
Measure will require federal agencies to use plain language in commonly used federal forms.
The White House is widely perceived by critics to be running roughshod over agency scientists and lawyers on policy.
Memo follows report exposing widespread abuse across agencies.
Bush administration will leave the task of preparing a full fiscal 2010 budget to the next president's team.
Ways and Means renews its commitment to ending IRS program; hopes for more Senate support.
Recent report calls for capping the number of flights out of New York, more steps to ease delays.