The integrity of the Internal Revenue Service (IRS) is fundamental to maintaining public trust in the U.S. tax system. However, recent findings have raised concerns about tax compliance among IRS employees and contractors.

As of 2023, reports indicated that over 5,800 IRS workers and contractors were delinquent in their tax obligations, collectively owing nearly $46 million. Alarmingly, only about a third of these individuals were on payment plans to address their debts. By 2024, 860 employees, including 50 who had willfully evaded payment, remained on the federal payroll.

This issue extends beyond the IRS. A 2023 audit identified over 42,000 federal civilian employees who failed to file tax returns for multiple years between fiscal years 2016 and 2020. The highest numbers of repeat non-filers were found within major federal agencies, including the U.S. Postal Service, the Department of Veterans Affairs, and the Army.

The broader implications of non-compliance are significant. The IRS estimates that the gross tax gap—the difference between taxes owed and those paid on time—was approximately $706 billion for tax year 2022. This gap comprises amounts from non-filing, underreporting, and underpayment.

In response to these challenges, the IRS has initiated efforts to enhance enforcement. For instance, in 2024, the agency launched a campaign targeting high-income individuals who failed to file tax returns, focusing on cases involving substantial financial activity. Additionally, the IRS reported recovering billions in back taxes and proceeds from enforcement actions since receiving increased funding through recent legislative initiatives.

Despite these efforts, concerns remain about internal compliance. Lawmakers have urged the IRS to address the issue of unpaid taxes among its own employees and contractors, emphasizing the need for the agency to set a standard for tax compliance to maintain public confidence.

This particularly stings during tax filing season when individuals and tax professionals are working to timely file and pay taxes. Addressing internal non-compliance not only upholds the integrity of the IRS but also reinforces the principle that all individuals, regardless of their position, are subject to the same tax obligations.