Some IRS Contractors Owe Back Taxes, Too

Posted on Nov 23, 2013

A report released by the IRS inspector general on Wednesday, October 23, 2013 found that some people the IRS hires as contractors for the agency owe the federal government back taxes. 

According to the report:

  • Approximately 700 IRS contractors owe back taxes.
  • The amount owed by the contractors totals about $5.4 million.
  • More than half of the approximately 700 IRS contractors who owe the federal government back taxes are technically ineligible to do work for the IRS because they are not on installment plans to satisfy their outstanding tax liabilities. 
  • The IRS does a good job of screening new contract workers for compliance with the tax code but could do a better job monitoring compliance among existing contract workers.

The Treasury inspector general for tax administration has suggested IRS contractors should be held to the same standards as IRS employees because of the nature of IRS contract work. IRS employees who fail to pay their taxes on time, or develop a payment plan, are considered to have committed misconduct that could result in job loss.

The IRS has indicated that it will review the issue and take actions, as necessary.

IRS contractors and employees are certainly not the only ones who may owe back taxes. In 2011, approximately 8.2% of taxpayers had delinquent taxes. If you owe back taxes to the IRS, then our experienced Oklahoma tax lawyers encourage you to learn more about your rights in our FREE library article, “I am in Trouble with the IRS – Do I Need a Lawyer?”

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