The Tax Predators and the Tax Prey

We already noted the gross bookkeeping fiction in speaking of federal “employees” paying taxes.

But, guess what? Some of them don’t pay taxes even nominally!

Assorted excerpts from Washington Times:

More than 42,000 federal employees repeatedly failed to file their taxes with the IRS, according to a new audit that said the government is limited in its ability to punish the cheats.

But the IRS devotes little effort to targeting federal nonfilers, according to the Treasury Inspector General for Tax Administration. And the law restricts how much information the IRS can share with other federal agencies, so they’re limited in their ability to prod or punish the employees, the audit found.

As of 2021, delinquent federal employees owed $1.5 billion in unpaid taxes.

… tax compliance among federal employees has been trending down in recent years. As recently as 2017, just 108,000 employees were delinquent in filing or paying. But in 2021, that rose to 149,000 cases, out of a federal workforce of 3 million.

The delinquents generally avoid punishment, the inspector general said, though the exact number of cases referred for criminal investigation was redacted in the new report.

And just 28 of the federal nonfilers were slapped with civil penalties.

Lia Colbert, the commissioner of the IRS’ small business and self-employed division, said nearly 80% of the delinquencies the audit found were “resolved” by last September.

“We identified over 17,000 repeat Federal civilian employee nonfilers who had not filed an income tax return for three or more years. Yet, these employees continued in their Federal jobs, with pay and benefits, without adequate IRS enforcement scrutiny,” the audit concluded.

Read the rest here…