Sept. 09--More than 300,000 federal workers and retirees are delinquent on about $3.5 billion in taxes, according to a report published Wednesday.
The Treasury Inspector General for Tax Administration recommended improvements to an Internal Revenue Service program that promotes tax compliance by current and retired federal employees.
As of the end of fiscal 2014, "the IRS identified 304,665 delinquent federal employees and retirees who owed approximately $3.54 billion in unpaid taxes," the inspector general said in its 35-page report.
The number of tax scofflaws is growing too, the report said.
The amount of unpaid taxes increased by approximately $119 million, or 3 percent, since 2010, the inspector general said. "In addition, the number of delinquent federal employees and retirees increased by approximately 25,284 from 279,381" since 2010.
"The Internal Revenue Service is generally successful at collecting delinquent taxes from current and retired federal employees, but some program improvements can be made," the inspector general said.
For example, the Federal Payment Levy Program allows the IRS to levy up to 15 percent of certain federal payments, including wages, to delinquent taxpayers. The inspector general estimates that expanding the levy program "to include more federal payments could potentially increase revenue by approximately $18.3 million over the next five years."
Federal employees and retirees have a lower rate of tax delinquency than the general population of taxpayers. On average, 3.1 percent of federal employees and retirees are delinquent on taxes as compared to 8.4 percent of the general population of taxpayers, the inspector general said.
byerak@tribpub.com
