It has been revealed that thousands of workers responsible for collecting levies from American taxpayers are themselves behind on their own tax payments. According to the Department of the Treasury’s Inspector-General for Tax Administration (TIGTA), at least 5,800 IRS employees and contractors collectively owe nearly $50 million in overdue taxes, with over half of them not being required to adhere to a payment plan.
In a report shared with The Epoch Times, TIGTA disclosed that 4 percent of the 85,359 IRS employees have outstanding taxes, amounting to $9 million for those on payment plans and $12 million for those without. Additionally, among IRS contractors, 10 percent have unpaid taxes, totaling $17 million for those without a payment plan and $8 million for those with one.
Furthermore, the TIGTA report highlighted that 512 former IRS employees with tax compliance issues or other misconduct problems have been rehired by the agency or its contractors, despite federal law mandating the removal of federal workers with unpaid taxes unless granted permission by the IRS Commissioner.
Enforcement of Tax Compliance Laws
The law requires that federal employees with unpaid taxes should be terminated unless the IRS Commissioner grants an exception. However, since 2021, more than 1,000 IRS workers with tax noncompliance issues have been allowed to remain employed by current IRS Chief Danny Werfel.
According to the TIGTA report, disciplinary actions were taken against 1,068 current employees with confirmed tax noncompliance issues, resulting in the removal of 20 individuals for willful violations between October 1, 2021, and April 1, 2023.
Ms. Ernst highlighted in a letter to Mr. Werfel that a 2023 TIGTA report uncovered that 149,000 federal employees owe a staggering $1.5 billion in unpaid taxes, with many being repeat tax offenders who fail to file returns annually.
The Treasury watchdog expressed concern that having IRS employees and contractors with unpaid taxes poses a privacy security risk to all taxpayers. The report emphasized the importance of hiring tax-compliant employees to protect sensitive taxpayer information and maintain public trust in tax administration.
As the IRS expands its workforce with an additional $80 billion in funding, President Biden aims to enhance tax compliance, particularly among high-income earners. However, Ms. Ernst criticized the IRS for targeting middle-income taxpayers and failing to hold its own tax collectors accountable for unpaid taxes.
Ms. Ernst awarded the IRS the July 2024 Squeal Award for prioritizing audits of hardworking Americans over addressing the overdue tax bills of its tax collectors. The Squeal Awards, initiated by the Iowa Republican, spotlight waste and fraud within the federal government.
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