IRS Report Highlights Rising Tax Noncompliance Among Federal Employees and Retirees
A report by the Treasury Inspector General for Tax Administration has revealed a significant increase in tax noncompliance among federal employees and retirees. Between fiscal years 2021 and 2024, the total tax debt owed by this group rose by 32%, amounting to over $1.5 billion. The report indicates that more than 571,000 current and retired federal employees have outstanding tax obligations totaling approximately $6.3 billion. Despite a slight decrease in the federal workforce, the number of delinquent employees and retirees increased by 43% during the same period. The IRS had previously issued 427,000 notices to inform federal employees of their tax noncompliance, but this was a one-time effort. The report suggests that privacy restrictions hinder the IRS from sharing specific tax information with federal agencies, affecting accountability. 
