Wednesday, February 20th, 2019 @ 2:23PM

CFEG reports that on August 30, 2013 the Treasury Inspector General for Tax Administration, (TIGTA), issued a report finding that 13,591 IRS contractor employees owed millions in federal taxes and that just 5% or 691 of these employees owed nearly $5.4 million. This article will examine pertinent statistics and findings of TIGTA relative to the millions of dollars owed by these IRS employees. https://www.treasury.gov/tigta/auditreports/2013reports/201310082fr.pdf

TIGTA reported that the IRS has controls in place to prevent contractor employees who have Federal tax debts or who have not filed the required Federal tax returns from obtaining staff-like access. TIGTA found that the IRS’s existing practices allowed contractor employees with Federal tax debts and who have failed to file their tax returns to go undetected. TIGTA found 691 (5%) of the 13,591 contractor employees assigned to active IRS contracts owed almost $5.4 million in Federal tax debt which was almost exclusively associated with individual income tax returns. https://www.treasury.gov/tigta/auditreports/2013reports/201310082fr.pdf  If the employee is on a payment plan the IRS considers them to be tax compliant. However, TIGTA identified 352 contractor employees identified 352 contractor employees, with Federal tax debts totaling $2.7 million dollars as of June 14, 2012, who were not on a payment plan to resolve their tax debt. TIGTA identified 13 contractor employees who were considered by the IRS as tax compliant but had failed to filed a required Federal tax return. https://www.treasury.gov/tigta/auditreports/2013reports/201310082fr.pdf

TIGTA found that 65% of the contractor employees had Federal tax debts from one calendar year and 30% had Federal tax debts from five or more tax years.  TIGTA reported that 80% of the 691 contractor employees with Federal tax debts owed $10,000 or less. However, 11 contractor employees owed more that $50,000 each and the tax debts of these employees ranged from $64,000 to a high of about $184,000, for a total of $1.1 million in Federal tax debt. https://www.treasury.gov/tigta/auditreports/2013reports/201310082fr.pdf

Of the 691contractor employees TIGTA reviewed who had a Federal tax debt, 339 were on a payment plan. These 339 employees owed the IRS $2.7 million in Federal taxes. TIGTA found that 352 of the 691 contractor employees, with Federal tax debt totaling an additional $2.7 million, were not on a payment plan to resolve their tax debt. https://www.treasury.gov/tigta/auditreports/2013reports/201310082fr.pdf

TIGTA reviewed the 50 contractor employees with the largest Federal tax debts from the 691 contractor employees identified as having Federal tax debts. As of June 14, 2012, the range for these 50 contractor employees who owed Federal taxes was a low of approximately $24,000 to a high $184,000, for a total of $2.4 million in Federal taxes owed to the IRS. https://www.treasury.gov/tigta/auditreports/2013reports/201310082fr.pdf

The IRS’s mission is to “provide America’s taxpayers top quality service by helping them understand and meet their tax responsibilities and by applying the tax law with integrity and fairness to all.” https://www.irs.gov/about-irs/the-agency-its-mission-and-statutory-authority TIGTA found in its report that the IRS’s existing practices allowed contractor employees with Federal tax debts and who have failed to file their tax returns to go undetected. When this occurs the IRS fails in its mission to apply the tax law

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Categories: IRS Agents Owe Hundreds Of Millions In Upaid Taxes