IRS Employees and Contractors Owe $1.5 Billion in Back Taxes – A Crisis of Unchecked Accountability

The federal government faces a growing crisis as nearly 150,000 employees have become delinquent on their taxes, owing a staggering $1.5 billion in back taxes.

More than 3,300 IRS employees and 2,400 IRS contractors are currently in arrears for at least $29 million in unpaid taxes, with many not enrolled in any payment plan.

Jon Hartley, a senior fellow at the Foundation for Research on Equal Opportunity, described this situation as “the classic case of rules for thee but not for me,” emphasizing that tax evaders within the agency are “symptomatic of a larger problem of unchecked government waste and lack of accountability.”

The report highlights an alarming disconnect: while citizens often rely on the IRS to ensure compliance with tax laws, many employees themselves evade their obligations. This discrepancy is particularly troubling because the IRS serves as the primary enforcer of these rules.

Anyone who has experienced an IRS inquiry can attest that the agency is not known for compassion or understanding—but this criticism stems from a perspective that does not include the very individuals responsible for its operations.

The Treasury Inspector General for Tax Administration has called for immediate action, urging that contractors and employees who fail to meet tax obligations be terminated without delay.