Robert J. Fedor, Esq., L.L.C.

Tax debt plagues federal government workers

Nearly every U.S. adult citizen is required to pay taxes. From a part-time worker at a fast-food restaurant to an executive at a large corporation, Uncle Sam doesn’t discriminate or play favorites. Tax rules and codes are notoriously complex and can be easily misinterpreted. As a result, taxpayers may error when filing or paying their taxes. In fact, it turns out even individuals who work within the U.S. federal government encounter confusion and problems when calculating their tax bills.

The Internal Revenue Service recently announced that “more than 318,000” current and former federal employees have tax debt. The IRS estimates roughly 33 percent of current and former federal employees owe some $3.3 billion in back taxes. This includes individuals who work in the U.S. House and Senate, at the White House, the Department of Veterans Affairs and even in the Treasury Department. While the IRS failed to disclose the positions of the federal government employees believed to have tax debt, the sheer number is further proof that anyone, regardless of age or position, can make mistakes when filing or estimating taxes.

Federal government workers who owe tax debt aren’t provided any special treatment. The IRS will aggressively pursue federal government workers who are delinquent in paying their taxes in the same manner as any civilian taxpayer. A delinquent taxpayer is provided written notice detailing the amount he or she owes in the form of a letter and bill. Typically, two such bills requesting prompt payment are issued. In cases where a taxpayer fails to take any action or pay the amount owed, the IRS may take action to garnish wages or seize other assets or property.

Anyone can fall prey to the IRS and be subject to fines, penalties and even criminal charges. Regardless of income or position, individuals who believe they may soon be or are facing criminal charges related to tax debt would be wise to contact a criminal defense attorney who handles IRS tax matters.

Source: NBC News, “Thousands of Federal Workers Owe Billions in Back Taxes,” May 2, 2014

No Comments

Leave a comment
Comment Information