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IRS Agents Owe $1.5B in Unpaid Taxes
149,000 IRS Agents and Gov't Employees Willfully Evade Back Taxes!
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Over 800 IRS employees owe millions in back taxes after audits pushed by Ernst
Rachel Shilke | Washington Examiner | 11-18-24
EXCLUSIVE — Over 800 Internal Revenue Service employees still owe millions in back taxes despite heavy criticism from Sen. Joni Ernst (R-IA), who is hoping the level of tax waste will be squashed by billionaire Elon Musk, the newly tapped co-leader of the Department of Government Efficiency.
In a letter to the Iowa senator sent on Nov. 8 and shared exclusively with the Washington Examiner, the IRS noted that of the 2,044 employees who reported having balances totaling more than $12 million, 860 employees still have not paid overdue taxes. Only 20 of the 70 employees who “willfully evaded” paying their taxes were removed.
“We haven’t seen a tax revolt like this since the Boston Tea Party,” Ernst said in a statement. “If hardworking Americans dodge taxes, they are faced with steep fines and imprisonment, but it appears that tax collectors in Washington believe those rules are for thee but not for me.”
A July report, requested by Ernst, found over 5,800 IRS and contractor employees owed nearly $50 million in overdue taxes. Only 20 of the agency’s employees who failed to pay taxes were terminated.
The July report prompted Ernst to introduce the Audit the IRS Act, which would require regular tax audits of agency employees and prohibit the IRS from hiring or continuing to employ tax evaders.
Ernst’s team pointed the Washington Examiner to the fact that the level of tax cheats from the IRS, amounting to nearly $546 million, drew a response from Musk, who will co-lead DOGE with former GOP presidential candidate Vivek Ramaswamy.
“Looks like a lot of opportunity for @DOGE!” Musk posted on X, citing an article from the New York Post.
In another post, Musk lamented, “There are thousands of examples of taxpayer dollars being wasted. These just a few,” and cited a post mentioning the $50 million in back taxes owed by federal employees.
President-elect Donald Trump appointed Musk and Ramaswamy to the new organization Tuesday, which will operate outside the federal government, two of many nominations that have sent shockwaves through Washington. The organization will “dismantle bureaucracy, slash excess regulations, cut wasteful expenditures and restructure federal agencies,” according to a statement from Trump.
Ernst hopes DOGE will take the steps to eliminate tax waste and bring accountability to federal government spending.
“While Elon Musk and the Trump administration are looking to eliminate waste, I can think of no better place to start than by firing every single IRS agent refusing to pay taxes,” Ernst said.
The senator also recommended in her letter to the IRS in July that employees and contractors should be referred to the Department of Justice for tax evasion.
“Our Criminal Investigation division has a well-established process for referring cases to DOJ, which includes, but is not limited to, cases involving current or former employees and contractors,” IRS Commissioner Daniel Werfel said in his Nov. 8 letter in response to Ernst. “Referrals are made on a case-by-case basis and both agencies invest resources in prosecuting felonies that are likely to result in a substantial period of incarceration and provide the most effective deterrence.”
Of the 70 employees who willfully failed to file tax returns, only 20 were removed after all cases were referred to the agency’s review board. However, Werfel noted that 47 employees were suspended, one faced “admonishment,” and two resigned from the agency.
“The IRS continues to follow established processes to address all instances of IRS employees and contractors failing to meet their tax compliance responsibilities,” Werfel said.
Back in August Ernst stated, “While the IRS warns, ‘tax evasion is a serious crime punishable by imprisonment, fines, and the imposition of civil penalties,’ the agency is rewarding its own tax dodgers with paychecks and lavish benefits made possible, ironically, with the taxes paid by law-abiding citizens.”
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