Congress doesn't want federal money going to corporations involved with committing felonies or evading taxes. That makes sense, doesn't it?
Well, notice CM-737 shows what happens down in the bureaucracy. USDA comes up with a form which corporation officers have to sign every year, which places another burden on the county office clerk, and the corporation officers, recognizing that 100 percent of the corporations have to sign, but probably only 1 percent at maxium are actually involved in crime or tax evasion.
Now in a rational world, the bureaucracy which is nearest to the determinations of felony/tax evasion (presumably DOJ) would be responsible for flagging the corporation's records (i.d. tax ID) and all federal payments would bounce against a Do Not Pay database, which would include these flags. But that would require a unitary federal bureaucracy, and the American people in their wisdom have decided to favor freedom over efficiency. As long as we're willing to pay the price, we're democratic after all.