Federal Workers Owe Billions in Back Taxes

The Internal Revenue Service will announce this week that Federal employees owe more than $2.5 billion in back taxes, but overall are far less likely to be delinquent than the average US taxpayer.

The IRS has compiled statistics on Federal workers for nine years now. Of the 8.7 million federal workers and retirees, 381,500 were behind on their taxes, or 2.8% of the total. This compares with a national average of 5.2% of the American workforce being behind on taxes.

IRS Commissioner Charles Rossotti says tax delinquency at any level by federal workers is cause for concern.

"If the public perceives that federal employees do not maintain the highest level of tax compliance, public confidence in government will suffer," Rossotti said in a letter to each federal agency head detailing that department's noncompliance rate.

According to the IRS report, the noncompliance rate - the percentage of those who are not even attempting to pay down their back debts - for Federal Agencies includes*:

House of Representatives - over 4%
Senate - 3.5%
Executive Office of the President- 3.4%
Treasury Department (including the IRS) - 1.5%
Federal Bureau of Investigation - 1.4%

*Figures include elected officials and members of their staff.

Voice of the Editor

What would you do if one of your clients won the lottery? We asked several accountants to weigh in with their advice for the lucky Powerball winner, and the tips we received are useful for anyone who receives a windfall, whether it's a lottery win, an inheritance, a big bonus on the job, or a killing in the stock market.
ADVERTISEMENT

This Week on AccountingWEB

CPAs Mira Finé, Scott Hitchcock, Rob Keasal, Kathy Scorcio, and Ken Travis offer ten pieces of financial advice for the newest Powerball winner.
Hang Bower of BDO USA and Dan Black of Ernst & Young share their perspectives on why their firms made the Best Places to Work for Recent Grads 2013 list.
Herbein + Company, Inc. firm members talked with AccountingWEB about their year-round employee wellness program.
Bill Walter of Gross, Mendelsohn & Associates and Harold Gaar of TravisWolff LLP weigh in on mobile technology use while employees are at work.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT