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Uncle Sam’s tax deadbeat trouble

April 26, 2007

Back in January, the all-news radio station in Washington, D.C., reported on (and we blogged about) all the tax deadbeats who work or once worked in the federal government.

All told, nearly half a million current and former U.S. federal employees have not filed tax returns. Their unpaid taxes come to almost $3 billion.

I guess members of Congress don’t listen to WTOP as they drive to their Capitol Hill offices, because lawmakers are just now getting around to reacting to the tax scofflaws currently or previously on Uncle Sam’s payroll.

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In a letter sent this week to Dubya, the chair and the ranking minority member of the Senate Finance Committee ask for the prez’s help in getting these folks fully tax compliant:

"As the nation’s Chief Executive, we are asking you to instruct heads of executive departments and agencies to remind Federal employees and retirees of their tax obligations and to warn them of the consequences for failing to comply with our nation’s tax laws."

Sens. Max Baucus (D-Mont.) and Charles Grassley (R-Iowa) also invoke the new holy grail of tax policy — closing the tax gap — and note that these federal workers and retirees are contributing to the gap.

Every department has delinquent taxpayers.
The most tax deadbeats, percentage-wise, were found in the U.S. Commission on Civil Rights.

The relatively good news for the Treasury Department, of which the IRS is a part,
is that it has the lowest delinquency rate, just 1.3 percent.

You can read the full letter and accompanying press release here. The Finance Committee also released a spreadsheet detailing the number of delinquent federal employees by department.

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The More Tax Posts tab at the top of this page will take you to, well, more tax posts. You also can search below for a tax topic. 

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TO WRAP UP 2026

It’s over! With October’s extended filing deadline behind us, it is now time to focus on year-end moves to reduce your 2026 tax bill. 

You’ll find ways to do just that on the Tax Tips page (see the More Tax Posts drop-down menu at the top of the blog), as well as the separate tax tip pages for each month, notably October through December. If you’re on the Tax Tips page, you’ll find a monthly list at the end of this column. If you’re on another blog page, you can head straight to the October tips; at the bottom of that tips page you’ll find links to all the other 11 months’ collections of tax advice.

Not to spoil what you’ll find in that tax advice, but it does cover such things as tax deductions for charitable donations, investment moves that could reduce tax due, and ways to max out your tax-favored retirement savings. 

Finally, as the year winds down, things get hectic. There are lots of other things to occupy our time, like the much more fun upcoming holidays. But don’t lose sight of taxes, since timing is key. To be of use, most tax moves must be made by the end of the tax year. That’s Thursday, Dec. 31, which also is the last business day of the year. 

So that you don’t miss that final tax year deadline, also keep an eye on the countdown clock below. It will keep you on top of just how much time is left to make important, tax-saving moves. (Note: I’m in the Central Time Zone, so adjust accordingly for where you live.)

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