IRS can't even collect taxes from government employees

January 19, 2007 @ 25 Comments

Internal Revenue Service documents show that the government is still trying to recover nearly $2.8 billion in back taxes from over 450,000 active and retired federal government employees who failed to file tax returns or pay taxes, or some 3.3 percent of the federal bureaucracy.

Spreadsheets obtained by Washington, D.C., radio station WTOP under the Freedom of Information Act show that hundreds of thousands of government employees failed to file a tax return for the 2005 tax year.

No federal agency was exempt, the documents show, though “tax compliance” varied from one agency to another.

Seventy-one employees in the Executive Office of the President, which includes the White House, owe $664,527 in taxes for 2005. About 20 of those employees have entered into an IRS payment plan, bringing the EOP balance down to $455,881owed by 50 employees. . . .

At the IRS, employees can be fired for failure to pay federal income taxes. But an IRS spokesperson tells WTOP it’s no easier to collect from federal employees than it is to collect from the general public.

In the past, IRS officials have been quick to compare the federal workers’ rate of compliance with the general public’s. But this year, the IRS is not able to track the compliance rate for the general public. — WTOP

The documents showed that about one-third of the employees, or 149,500, entered into payment plans with the IRS.

The United States Postal Service was the agency with the highest level of noncompliance, while the Treasury Department had the lowest level. IRS agents can be fired if they fail to pay taxes.

But, an IRS spokesman told WTOP, it’s no easier to collect from the bureaucrats as it is from the rest of us. Indeed, the IRS can hardly get a handle around the tax noncompliance issue, and has been reduced to prosecuting high-profile people who they allege have failed to pay taxes owed, such as Wesley Snipes.

25 Comments → “IRS can't even collect taxes from government employees”


  1. Jeff Hoyt

    Jan 19, 2007

    I wonder how many of these folks are not filing because they know that there is no law requiring them to do so, as opposed to just “failing” to file…
    http://www.originalintent.org/edu/fedincometax.php


  2. 7734

    Jan 19, 2007

    About the same amount as retired or working for the IRS isn’t it?

    Oh, and there is no legal law requiring you to pay taxes. There is a law requiring you to file. Two totally different animals.


  3. Jeff Hoyt

    Jan 19, 2007

    Great thought about the IRS folks!
    Although some outfits claim the number not filing is in the millions, I think that’s a bit optimistic.
    Please expand on paying/filing.
    Jeff


  4. ERS

    Jan 27, 2007

    ACCORDING TO THE PAPERWORK REDUCTION ACT (44 U.S.C. 3500 – 3520) YOU DO NOT HAVE TO FILE A 1040 IF THE IRS DID NOT SEND YOU A 1040 FORM WITH AN OFFICE OF MANAGEMENT AND BUDGET CONTROL NUMBER ON IT. YOU WILL NEVER GET ONE. THIS ACT IS CONSIDERED A COMPLETE DEFENSE AGAINST ANY AGENCY OF THE FEDERAL GOVERNMENT ATTEMPING TO COLLECT INFORMATION FROM A US CITIZEN.


  5. Anonymous

    Feb 05, 2007

    I haven’t filed since 1994. I told the IRS I had no taxable income accroding to the law. According to the law I am not required to pay, or file. They have left me alone 13 years now – anonymous but sincere. We are in the millions.


  6. Jeff Hoyt

    Feb 05, 2007

    Anonymous,
    That is correct – as a citizen working for someone else (i.e. not a corporate business owner, registered alien, etc.) there is no filing requirement. Did you go through the coding process to eliminate your history? Any other specific steps? And yes, you do number in the millions. My hat is off to you.
    Jeff


  7. Batman

    Apr 20, 2007

    Waht coding process to eliminate history? How you do this and what is it?


  8. Batman

    Apr 20, 2007

    I understand the theory behind an employee, but what is you are John Smith dba CrazyFarworks?

    Are you required as an independent business owner to file?


  9. Jeff Hoyt

    Apr 20, 2007

    Batman,
    You have to find an attorney who understands the codes that are used in the files of your tax returns. They are extremely arcane. Even the form numbers have particular meanings; Form 1040, for example, indicates that you are a resident of the Virgin Islands.
    Unfortunately, I am not at my permanent residence right now, and won’t return there until May. If you wish, you can send your email address to elkhound@temporaryinbox.com. After I return, I will send you the name of an attorney in Chicago that can tell you more.


  10. Kevin

    Sep 09, 2007

    Please educate me.

    I have never made much money, and did not file until I began earning roughly $30k.

    I have filed for several years since then, and have typically received a small return…until 2006, when my jobs shifted around and I got into sales. So in 2006, I failed to file, and did not do so until 2007. I was told that I owed a few hundred dollars from 2006, and roughly $2500 for 2007.

    I had a CPA do my taxes in 2007, and he submitted my forms. I told him to file me as I would be setting up a payment plan.

    I was told that I needed to pay roughly $300 up front and so I did…then since that day, I have not payed anything else.

    Is there a way to let them know that there is no legal way they can collect more from me?

    I have a very rough time paying for jet fighters and bombs.

    Please advise–

    Thanks–

    Kevin
    Chico Ca.


  11. Jon

    Dec 14, 2007

    I am disgusted by those who are posting about, and congratulating others on, evading taxes. As far as I’m concerned, this should be tantamount to forfeiting your US citizenship. And if you do not have a problem with that, move to another country. By intentionally evading taxes, you are literally becoming a leech on society, allowing millions of others to shoulder your tax burden for you while you continue to drive on roads, eat safe foods, and live in freedom. “Freedom is not free” – note that this has just as much to do with economics as it does with the men and women of the armed forces.

    As for the lame excuse of not paying taxes because you “have a rough time paying for jet fighters and bombs” – There are other far more effective methods of voicing your political views, the most important of which is exercising your citizenship and VOTING. By simply not paying taxes, you are not influencing decisions one bit, but instead are causing taxes to be raised for everyone else to pay for the budget anyway. Not to mention the fact that in addition to not funding “jet fighters and bombs” you are also not funding welfare programs, reconstruction programs, education, college loans and grants, and a slew of other things that both you and our society rely on. And despite any argument of the inefficiencies of those programs, no one can make a valid argument that we would simply be better off without any of them. No, I strongly suspect that your motivation for not paying taxes is entirely selfish and not motivated in the slightest by any sort of ideals – that just makes a convenient justification so you can sleep at night.

    So lets make fun of the current system – I agree it stinks – but then lets also CONTRIBUTE something for positive change. I am in fact in favor of the Fair Tax to replace all income and payroll taxes. Look into it at .


  12. Michael Hampton

    Dec 15, 2007

    Jon, I would suggest that it is you who are anti-American and should leave the country. Income taxes pay for absolutely none of those vital services you mention. They barely cover the interest on the national debt. The debt, you should recall, that your parents’ generation incurred in your name before you were even born.

    For you to say that people who don’t pay income taxes are leeches on society is entirely absurd. These people are quite the opposite: they are productive people who deal with others honestly and don’t rely on the government for anything unless they’re forced to do so at gunpoint, as they so often are in this no-longer-free country.

    And as for those essential programs, how can you justify helping one set of people by harming another set of people?


  13. Noah

    Dec 18, 2007

    I want to point out that THERE IS NO LAW ANYWHERE REQUIRING YOU TO SIGN ANYTHING. Tax forms are not valid unless signed. I’m not voluntarily going to sign a form that admits that I made any specific amount of money in a given year and that I owe taxes on it. That would be stupid, as it waives my 5th amendment right to not provide testimony against myself, and I suppose the 5th Amendment is probably why there is no law requiring anyone to sign anything in the first place.

    To those who think not paying taxes is un-american I offer this… This country was founded largely in response to unfair taxation by the British. I say it’s as American as those colonists who destroyed the British tea shipment in Boston two-hundred some odd years ago in protest of the unfair tax on tea. The Federal Government takes about 10% of my pay if I let them. That seems pretty unfair considering the property tax I already pay for the things of value I spend my income on, and the tax I pay on the initial purchase of all items and services. Even after I pay the sales tax on those items, the income of those whom I payed that money to is taxed, and then taxed again when they spend it. Literally, we are taxed coming and going every step of the way.

    As far as the social safety-net argument… most people still pay for Medicare and Medicaid regardless, as it is separately itemized on pay stubs. Other programs that supposedly miss out on funding because people don’t pay income tax are mostly paid for by other types of taxes. Schools are paid for mostly by property tax, roads by gasoline tax, etc. Those taxes could be raised to make up for lack of trickle down federal and state money with little impact if people didn’t have to pay income tax to the top of that trickle down system.

    Freedom is not free… It must be fought for and cannot be purchased. Buying freedom is not possible because there’s always another payment to make – thus creating a form of slavery. Those of you have seen the commercials on TV for Chase Freedom Credit Cards and have actually used their product as advertised are probably aware that you can Chase Freedom and make payments, but it really feels more like slavery in the end.

    Furthermore, this country is not free, nor is it a true democracy (direct rule by the people, usually through referendum and such methods). It is actually a republic (a system of elected leaders who represent the people and vote amongst themselves), though it is difficult to even call it that anymore as elected leaders don’t seem to represent the mass populace these days.


  14. TJ

    Dec 30, 2007

    Michael, I agree 110% with Jon, if you are not paying taxes — YOU ARE A LEECH in this country. Regardless if it pays for anything he mentioned, it does pay for our military and other vital functions required for this country to be free. If your one of the millions not paying taxes, I would be happy to help you step pn a plane and leave this country. Heck, I will help buy your one way ticket. One less leech we have to pay taxes for.


  15. Michael Hampton

    Dec 30, 2007

    TJ, I’m sorry you’re feeling that way. Please see a psychiatrist as soon as possible.


  16. CoyOrca

    Jan 02, 2008

    Please tell me more about the coding process. Very intrigued and wishing to investigate and participate in the process. Thank you…and also, the Office of Management and Budget Control Number…please expand.


  17. MD

    Jan 12, 2008

    For those not paying taxes for all of your lame vague reasons – you’ll all be caught eventually – and will not only owe your back taxes – but interest as well as you should be. All your crackpot theories consistently demonstrate your incredibly uneducated backgrounds and total lack of understanding of how government works, and the services it provides that touches each of our lives in many extraordinarily positive ways – from your receiving your mail, to military safety – border security to safe food supplies and protection of domestic industries such as farming and many many others that provide jobs and economic security. Your small minds that actually believe you don’t need or use those services demonstrates your all morons and freeloaders! Could these government functions be improved – of course – that’s all of our responsibilities as responsible citizens – to participate through voting and participating in the process. For those not paying taxes intentionally – your below an illegal alien status in this country in my book! Lack of education in this country leads to morons not paying their taxes and a large supply of ditch diggers, short order cooks and janitors – in other parts of the world, that same issue – lack of education (and lack of economic advantage) has created terrorists – who said stupidity wasn’t dangerous?


  18. MC

    Feb 03, 2008

    I have been in the military for over 20 years with 4 years to go before I finally retire and I for one will be one happy camper when that day comes. I and the majority of our enlisted soldiers I have talked are disgusted, and have lost faith in todays military leaders due to political interests, our government officials to include Congress in the name of National Security and our President. We have no constitutional rights while we are in the military, and we have to watch what we say or do while in the military or around the general public.

    Yes, we are citizens too and we have the right to vote and pay taxes like everyone else. I for one do not like to pay taxes to a corrupt and mismanaged government but, I do. My family and I live paycheck to paycheck in trying to get out of a hole, it is very exhausting and stressful to say the least. I’m not even sure what I want to do after I retire?

    As for voting goes, I have lost faith in that as well. I have voted for years against certain initatives, presidential candidates, ect. to have them approved or elected to office. If you ALL honestly think that your vote seriously counts in America you are sadly mistaken by your misguided hopes and dreams. Reality Check People! No matter what your race is or ethinic background are, we are all slaves to our government, business corporations, employers because of capitalism for we are a greedy and corrupt society who argue with each other and have differences of opinions on the way things should be in America.

    Bottom line is we are NOT a United Country! It is sad and very unfortunate to say that when 9/11 happened it opened our eyes but, we are still a country that is torn apart with our petty differences over taxes, welfare, presidents, homeless people and so on. The saga continues on through my lifetime, my childrens, and their childrens.


  19. RC

    Dec 24, 2009

    Hey MD,

    Have you even read the INTERNAL Revenue Code???? IT only applies to GOVERNMENT WORKERS, PERIOD. Read the definitions in the code!


  20. Hombre Colorado

    Jul 02, 2010

    RC thanks for getting back on the subject because I have been heavily involved in UCC, A4V and IRS exemption, but I have been told that because I am a government employee, I am not exempt and that the law particularly describes that government employees must pay taxes. Is there any other avenue for me? I have 4.5 years left and I will leave if that is what it takes. Please advise…


  21. Sandy

    Aug 31, 2010

    Well, they are threatening me with taking my land and home (mobile at that).
    I couldn’t pay my taxes because I became disabled and my disability co did not take taxes out. I thought it was exempt, now I have a bill I can’t possibly pay. Work is scarce and disability payments ended. I think I will ask members of congress with unpaid taxes for a loan.


  22. Jim

    Sep 29, 2010

    Hi Sandy,
    I would tell you to check the apprased value of you property.You can get a certificate of Discharge from the Federal Government Tax Lein.It is on the Internal Revenues Service website.You will want Form 14135.You may Quallify for a discarge.Read over the instructions on how to apply for the discharge.
    Good Luck,
    Jim

  23. Jan 13, 2011


  24. Larry

    Feb 21, 2011

    It is sad that so many people in out Country do not understand what freedom is, and believe that they should work so hard to make the dreams of others come true. We have Rights!

    For those of you who believe that not paying taxes is the same as treason you should read the Supreme Court Rulings wherein they state that there is no relationship between the amount of tax paid and patriotism. In fact they very people that own the corporations that take your hard earned money pay little or no personal income tax. Why should they, they have a nation full of dummies to pay all the bills for them. You people need to study the Constitution.

    I have copies of the votes from each of the States that voted on the 16th Amendment and IT WAS NOT RATIFIED, I have proof. The 16th Amendment was a scam created by John Rockefellers son-in-law. It is not law.

    Even if it were, the Supreme Court has ruled that it only applies to corporate profits. Supreme Court Rulings are the law. Case law means nothing, everyone is required to obey the Supreme Court rulings.

    There is no law requiring anyone to file a Form 1040, Supreme Court Justice William Renquist learned that before he died.

    If people tell you that you are required to pay taxes ask them for a copy of the law requiring you to file a F1040.


  25. Anonymus

    Feb 04, 2012

    Jon:

    You said:
    “There are other far more effective methods of voicing your political views, the most important of which is exercising your citizenship and VOTING.”

    That only works in places like Canada and Switzerland where there’s
    1) more than a duopoly – and
    2) in places where duopolies exist in the political system – where the duopolies do NOT have
    A) not only their hands in each other’s pockets or
    B) otherwise colluding with one another for the sole purpose of keeping the duopoly the way it is.

    When all you have is a duopoly, and all the different sides of the duopoly is different versions of the same thing, it’s like they make fun of in V: The Final Battle: two lizards come to power in each of the two sides of the – by then – world duopoly and the parting comment they have to the masses on Earth is:
    “You have to vote for one of us – or waste your vote on a third party in which case you might as well stay home and not vote.”

    You said:
    ”By simply not paying taxes, you are not influencing decisions one bit, but instead are causing taxes to be raised for everyone else to pay for the budget anyway.”

    However, if more and more and more people did the same, then the Government wouldn’t have a CHOICE but to only spend money they have instead of continuing to borrow-borrow-borrow. Eventually the Chinese are going to say `Enough is enough” and start treating America and the rest of the world like spoiled children or delinquent-debtors living off their increasing amounts of credit.

    Except unlike when a person declares bankruptcy – the community at large around them – where both Government as well as business and residential – is by and large unaffected – when a COUNTRY declares bankruptcy – all the other countries with which they have integrated financial ties – takes a very BIG hit.

    Look at Germany when Greece defaulted. The strongest economy in the world behind China and they started having problems once Greece went into free-fall. Same scenario in America:
    1. we take Canada and Mexico down with us cuz of NAFTA
    2. That delivers the death blow to Europe in a 1-2 punch after Greece and Turkey
    3. That causes the financial system in China to collapse
    4. That takes Japan and the rest of Southeast Asia along with it
    5. And we are all back in the jungle scrounging for food and shelter like cavemen.

    You said
    “Not to mention the fact that in addition to not funding “jet fighters and bombs” you are also not funding education, college loans and grants…”

    I didn’t have kids, don’t want kids and should not have to pay for idiot teachers to teach equally idiot kids in retail how to tell me to Google it or call customer service for assistance whenever I ask a question – with the even MORE idiotic customer service agents who ALSO know nothing except how to Google the Web
    – which I can do from here.

    So, if that’s what “school” and “college” is teaching, then i agree with all the big corporations: Eliminate school, entirely, and start kids working at offices, trades, farms or factories by the time they are 8 or 9 and only teach them what they need to know for their jobs, just like it was in America up til the 1930′s.

    You said:

    “welfare programs…”

    To pay perfectly capable people to sit at home watching cable TV they get free from the Government and either contribute to having or have the babies themselves, raising yet another generation of even worse idiots to perpetuate the system.

    You said:
    “reconstruction programs…”

    Like the newly constructed I-35 bridge that collapsed killing hundreds of people.

    You said:
    “and a slew of other things that both you and our society rely on. And despite any argument of the inefficiencies of those programs, no one can make a valid argument that we would simply be better off without any of them.”

    Yes we could. In Southern Europe none of these programs exist in the first place and they get along just fine. The equivalent of a 5th grade education is considered sufficient for executing daily life, corporations take in children as young as 8 or 9 to teach them on-the-job training, they work there for 30 or 40 years, the elderly and infirm are taken care of by their own families, women stay home in the kitchen where they belong and men work the farms, forests and factories like men have been doing for hundreds if not thousands of years.

    You upset the balance of nature – you pay the price.


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