Federal workers owe $3.5 billion in back taxes; Expect renewal of legislative efforts to fire federally-employed tax debtors

March 10, 2013

Taxes, or more precisely the paying of them, are problematic for lots of folks, including those whose paychecks come from a federal agency.

The Internal Revenue Service last week released data, reported by the AP (it's not yet available on the tax agency's website), showing that nearly 312,000 federal workers and retirees owed more than $3.5 billion in back taxes as of Sept. 30, 2011.

That amount due earns this week's By the Numbers honor.

3 point 5 billion in federal employee back taxes

That amount is a nearly 12 percent increase over the year before.

Overall, the 9.8 million federal workers included in the analysis had a delinquency
rate of 3.2 percent.

But that's actually not too bad in the grand tax scheme, er, perspective.

The delinquency rate for the general public during that fiscal year was, according to the IRS, 8.2 percent, five percentage points worse than federal
workers.

Legislation already in the hopper: That any of Uncle Sam's employees (or those receiving retirement benefits from him) aren't paying their proper taxes is a concern and sure to set off a firestorm of criticism.


US Rep Jason ChaffetzIt also might get Rep. Jason Chaffetz (R-Utah; pictured at right) some cosponsors on his bill, H.R. 249, that would fire federal workers who owe back taxes. Under current law, IRS employees are the only federal workers who can be fired for not paying their taxes.

Expanding that personnel option has been one of Chaffetz's legislative quests. In prior legislative sessions he filed bills that targeted federal workers who are "the most
serious offenders. They've gotten to the point where the IRS is having
to put a lien on their property."

Chaffetz also previously sought to prevent federal agencies from hiring individuals who
haven't paid their taxes.

Those same provisions are in Chaffetz's latest measure, the Federal Employee Tax Accountability Act of 2013. He introduced it in mid-January, soon after the 113th Congress convened.

Chaffetz also reintroduced the Members of Congress Tax Accountability Act. This bill, H.R. 884 in the new Congress, would require Representatives and Senators to disclose their delinquent tax liability, would require an ethics inquiry into that delinquency and would garnish the wages of a Member who had a delinquent federal tax liability.

I expect the Congressman's website also will very soon have a statement about this latest report on overdue taxes from federal workers.

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Those procrastinating filers aren’t a problem. In fact, the IRS appreciates taxpayers who take time to fill out their 1040 forms correctly. It also is grateful that tax submissions are spread out a bit, especially now that the IRS is a leaner agency. Processing returns is easier when they arrive throughout the year instead of in massive bunches.

But enough about Uncle Sam’s tax collection issues. The focus now is on all y’all who filed for extensions, giving you another six months to complete your return. Since your new mid-October due date will be here before you know it, let’s get started now on meeting it.

The ol’ blog is here to help you finish up your extended Form 1040. You can start with January’s tax tips page, which has links to the rest of the year’s tips by-month collections. You also can peruse various tax categories for more tailored advice by clicking on the More Tax Posts drop-down menu at the top of this (and every) page.

And to make sure you don’t miss your new filing deadline, the count-down clock below will let you know just how much time you to file by Oct. 15. At the latest.e. (Note: I’m in the Central Time Zone, so adjust accordingly for where you live.)

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