Ninety-Five Percent of IRS and Contractor Employees Were Tax Compliant; However, There Were Some Tax Delinquencies or Prior Conduct/Performance Issues
Why did we do this audit?
To evaluate the IRS's process for identifying and addressing willful tax noncompliance among employees and contractors, and the steps taken to mitigate the risks of rehiring former employees with past conduct or performance issues.
This review was initiated by a congressional request for us to assess the IRS's employment practices, including the number of employees with unresolved tax debts and the number of rehires previously separated for performance issues, such as unpaid taxes, and the actions taken to resolve these issues.
What did we find?
Overall, IRS and contractor employees were 95% tax compliant. Between October 1, 2021, and April 1, 2023, the IRS closed 1,175 cases involving disciplinary actions for tax noncompliance among 1,068 employees.
During that same time period, 70 employees were identified with substantiated willful tax violations and 20 were removed as a result. Although the law requires an employee who has either willfully not filed or willfully understated their taxes due to be removed, subject only to the IRS Commissioner’s discretion, this disciplinary action is not always enforced.
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