IRS contract employees owe $5.4MM in tax debt.

Employees of the IRS are required to file tax returns on time and pay any federal income tax owed.  Wouldn't you know that the IRS has contractors just like other businesses and in total they owe $5,400,000.00 in taxes.

A recent report from the Treasury Inspector General for Tax Administration (TIGTA) points out that contract employees are not being held to the same standard. TIGTA found that as of 6/14/12, 691 (5%) of the 13,591 IRS contract employees reviewed had $5.4 million in Federal tax debt. Of these, 319 still had staff-like access to IRS facilities even though they were not on a payment plan.

The IRS reviews contractor compliance every five years, whereas employees are continuously monitored. Recommendations in the report include further evaluation of contractor employees that TIGTA identifies as potentially noncompliant and bringing those individuals into compliance or removing their IRS contracts. Report Number: 2013-10-082.

Lyle PhippsComment