People who work for the Internal Revenue Service in Massachusetts and at its other locations around the country are required to pay income taxes like everyone else. Unlike other federal agencies, the IRS requires its all of its workers to be in full compliance by timely filing their returns and either paying in full all amounts owed or entering into approved installment arrangements. However, a report recently released by the agency’s inspector general showed that nearly 700 contract workers owe a combined total of $5.4 million in taxes. Over half of those are supposedly ineligible to work for the IRS because they have not enrolled in an installment plan to get them caught up.
The report states that the IRS checks up on tax payments of contract workers when they first start their jobs but fails to continue monitoring them. The Service is apparently more vigorous when it comes to its 90,000 regular employees who undergo frequent compliance checks. The tax delinquency rate for the Treasury Department was 1.1 percent for 2011, compared to a rate of 3.2 percent for all federal workers and retirees in the same year.
The IRS stated that it views tax compliance for all taxpayers and those who work for the Service very seriously. Non-compliance with tax laws is considered misconduct that could result in discipline or termination. In the statement the agency also said that it would continue working with the contractors to help them resolve tax liabilities.
Wage garnishment is one of the tools that the IRS may employ to resolve outstanding tax issues with a taxpayer. When wages are garnished, it may cause hardships for the worker and the worker’s family. An attorney may be able to help with paycheck garnishment and bank account levy issues.
Source: FOX News, “700 IRS contract workers owe $5.4M in back taxes”, October 23, 2013