A recent investigation conducted by the Treasury Inspector General for Tax Administration (TIGTA) has revealed that approximately 6,000 workers and contractors of the Internal Revenue Service (IRS) have a combined outstanding tax debt of nearly $50 million.
Senator Joni Ernst (R-Iowa), who instigated the investigation, did not mince her words when criticizing IRS Commissioner Daniel Werfel.
In response to these findings, Ernst has put forth the Audit the IRS Act, which requires yearly audits of IRS personnel and demands the dismissal of any employee discovered to be in arrears with their taxes.
“The spirit of 1776 is still alive and well with a tax revolt happening right now at the most unlikely of places in Washington, the IRS,” Ernst said.
“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.”
“My legislation will create a zero-tolerance policy for tax evasion and misconduct while ensuring these IRS bureaucrats are no longer allowed to live by one set of rules and enforce another on honest, hardworking Americans,” she added.
The TIGTA audit unveiled several alarming statistics regarding tax compliance among IRS personnel:
- Over 5,800 IRS and contractor employees owe nearly $50 million in overdue taxes.
- Despite having the authority to terminate employees who willfully fail to pay taxes, only 20 individuals were dismissed for tax-related offenses.
- More than 500 former IRS employees with documented compliance issues—including criminal and sexual misconduct—were rehired by the agency or its contractors.
- Of the 3,323 IRS employees identified with unpaid taxes, 2,044 owe over $12 million without being on a payment plan.
- Among 2,484 contractor employees, 1,729 owe more than $17 million, also without payment plans.
“Government-wide, TIGTA found 149,000 federal employees owe an astounding $1.5 billion in unpaid taxes. Tens of thousands are repeat tax cheats, failing to file tax returns year after year, and the number is steadily increasing,” said Ernst.
In a scathing letter addressed to Commissioner Werfel, Ernst emphasized the need for immediate action: “Today is a great day to demonstrate the seriousness of that pledge by making the thousands of tax-evading tax collectors at the IRS either pay up or pack up.”
She highlighted that as taxpayers are being pushed to bear greater responsibilities with new audits targeting lower-income and middle-class individuals, many at the IRS are avoiding their own obligations.
Ernst’s proposed bill aims to guarantee strict monitoring of IRS employees’ tax compliance and emphasizes that all Americans should be held to equal standards.
“Taxpayers will never trust the IRS when the agency’s own auditors can’t even pass a tax audit,” she said.
This shocking report is released as the Biden administration intensifies its push to recruit an extra 88,000 IRS agents, supposedly to focus on middle-class Americans and diligent taxpayers.
The double standard is astonishing. Joe Biden’s administration has faced backlash for raising taxes on tips and actively hiring more IRS agents to ensure tax adherence among regular citizens. Meanwhile, those responsible for tax collection are themselves not adhering to tax laws.
Former President Donald Trump has openly criticized Biden’s tax strategies, especially the contentious surge in IRS recruitment.
“I am the only Candidate who has ever called for delivering relief to our wonderful Service Workers by NOT TAXING THEIR TIPS,” Trump wrote. “It was my idea that Tips should not be taxed, and only I will GET IT DONE – And do it IMMEDIATELY upon my return to the White House,” Trump wrote on Truth Social.
“Crooked Joe Biden has taken the totally opposite approach, trying to TAX more and more of their Tips, even hiring 88,000 IRS Agents to collect! In fact, Crooked Joe substantially increased the Reporting Requirements for Workers (2023!), and would go still further if I wasn’t here to watch.”
“Biden could never, and will never, get done what I’ve proposed – Just like he never got Student Loan Forgiveness done. With Biden, it’s ALL TALK, AND NO ACTION. Hopefully Rank and File Union Members, Union Leadership itself, and Workers all over the Country, both Union and Non-Union, will support Donald J. Trump, because I’m NO TALK AND ALL ACTION! TRUMP KEEPS HIS PROMISES, AND STANDS WITH OUR GREAT WORKERS. PROMISES MADE, PROMISES KEPT!” he wrote.
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