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.
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
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.
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
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.
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.
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
Batman
Apr 20, 2007
Waht coding process to eliminate history? How you do this and what is it?
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?
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.
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.
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 .
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?
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.
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.
Michael Hampton
Dec 30, 2007
TJ, I’m sorry you’re feeling that way. Please see a psychiatrist as soon as possible.
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.
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?
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.
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!