The Volokh Conspiracy

Government Tax Scofflaws:

Federal employees apparently owe some $2.8 billion in federal income taxes. Paul Caron at TaxProf reports that, measured in terms of the percentage of employees who are tax scofflaws, the worst agencies are the U.S. Commission on Civil Rights (9.43%), the Government Printing Office (7.41%), and the Smithsonian (5.56%). Also worth noting, apparently 4.85 percent of Tax Court employees are tax scofflaws as well.

Gabriel Malor (mail):
I wonder what the percentage of tax scofflaws in the general public is. For comparison.
1.19.2007 11:15am
PaddyL (mail):
These tax scofflaws are just a fraction of the total uncollected tax. It has been reported frequently that the uncollected taxes range between $200 and $400 billion each year. The IRS is one of the most dysfunctional federal agencies. Its incompetence and apathy costs each of us dearly.
1.19.2007 1:35pm
Malvolio:
Do we really want an avid, eager, aggressive IRS?

Remember the fable of the Log King and the Stork King?
1.19.2007 2:55pm
e:
I don't get it. Do they have lots of side income or have they pared down W-2 withholding and somehow thought the IRS wouldn't get the W-2? Or are we likely talking about people at the bottom - entry-level rung who might benefit from some simple training (15 April is important because you need to...)
1.19.2007 2:57pm
kathy:
Hey Paddy -
How does the existence of tax scofflaws (and what exactly does that mean in this context?) demonstrate the "incompetence and apathy" of the IRS? And on what do you base your assertion? One of the few things more annoying than tax evaders (assuming these are not people who made the accidental mistakes that almost all taxpayers are likely to make at some point) are people who make grand sweeping claims on a subject they know nothing about.

And by the way, if you think the Tax Code is too complex to be understood by most taxpayers (an assertion that few would disagree with), that is CONGRESS's doing, not the IRS's. If you've got a problem, write to your congressman or woman and leave hardworking IRS employees who are doing the best they can in a difficult bureaucratic system alone.
1.19.2007 4:10pm
Avery Katz (mail):
This is the kind of irresistible report that travels like wildfire on the Internet, but if one follows back several links to the original source, Washington DC all-news radio station WTOP [known locally more for its hourly traffic helicopter reports than for newsgathering] one will not find a clear definition of "tax scofflaw" on any of these links.

The article on the WTOP website alternatively speaks of "employees who failed to file income tax returns," "employees who failed to comply with federal tax laws," and "delinquent employees," but the spreadsheet containing the breakdown instead refers to "all balance due and potential nonfiler accounts, regardless of status." It also states that "Data is obtained through an annual match of internal W-2 records." So I think I'll wait for analysis from a more informed source before I form an opinion. But you just go ahead and post; it's more entertaining.
1.19.2007 8:38pm
Public_Defender (mail):
Are you a "scofflaw" if you file a return showing that you owe taxes and then set up and follow through with a payment plan? Under this TV station's definition, yes. That's just not honest.
1.20.2007 4:47am