Federal workers owe IRS $3 billion

December 15, 2009

As Uncle Sam looks to refill his coffers, he need look no further than his office buildings.

Just released data shows that in 2008 almost 300,000 federal employees and retirees failed to pay more than $3 billion in
income taxes.

The tax delinquent employees come from nearly every federal agency with more than 25 employees, according to IRS documents.

The IRS is the only federal agency where
employees can be fired for not paying their taxes. The non-compliance
rate for IRS employees in 2008 was 0.76 percent. The good news is that the IRS delinquency rate is down from 0.89
percent reported in 2007, the last time such data was released.

In fact, the Treasury Department, which includes the IRS, had the best compliance rate.

Other notable agencies with hat harbor tax scofflaws include:

  • Executive Office of the President (includes the White House), with 50 employees who owe $812,917;
  • U.S. Senate, with  231 employees who owe $2,469,026;
  • U.S. House of Representatives, with 447 employees who owe $5,809,631; and
  • U.S. Tax Court, with three employees who owe $39,752.

Which agency has the worst compliance rate? The U.S. Postal Service. It has 28,913 employees who owe $297,933,756. Still, that's much better than in 2007, when more than 54,000
postal employees owed more than $407 million.

You can read more on the government employee and retiree tax delinquents at TaxProf Blog, The Tax Lawyer's Blog, WTOP and the Associated Press.

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