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.

You may like these other stories...

Treasury prepares options to address tax inversionsDamian Paletta of the Wall Street Journal reported on Monday that US Treasury Department officials are assembling a list of administrative options for Treasury Secretary...
Deloitte CEO Joe Echevarria to retire to pursue public serviceMichael Rapoport of the Wall Street Journal reported that Deloitte LLP CEO Joe Echevarria plans to retire later this month to pursue his interest in public...
If your clients include retailers, pending federal legislation allowing states to tax Internet sales could mean big changes in the way they process and account for their sales and use taxes.In July, the Marketplace and...

Already a member? log in here.

Upcoming CPE Webinars

Aug 21
Meet budgets and client expectations using project management skills geared toward the unique challenges faced by CPAs. Kristen Rampe will share how knowing the keys to structuring and executing a successful project can make the difference between success and repeated failures.
Aug 26
This webcast will include discussions of recently issued, commonly-applicable Accounting Standards Updates for non-public, non-governmental entities.
Aug 28
Excel spreadsheets are often akin to the American Wild West, where users can input anything they want into any worksheet cell. Excel's Data Validation feature allows you to restrict user inputs to selected choices, but there are many nuances to the feature that often trip users up.
Sep 9
In this session we'll discuss the types of technologies and their uses in a small accounting firm office.