IRS Inspector General Finds 9% of Federal Workers Delinquent on Taxes in 2024

U.S. 9 percent of the total federal workforce, the IRS inspector general reported on May 11, 2026. 1 billion as of 2024.

About 50000 of those federal civilian employees failed to file tax returns in multiple years, and more than 1000 workers failed to file returns at least six times during their careers. The total number of current and former federal employees late on their taxes reached 571000 as of 2024, a 43 percent increase in three years. 3 billion.

The inspector general said federal employees have a higher responsibility to satisfy their tax obligations in good faith as citizens. U.S. Postal Service recorded a 10 percent federal tax delinquency rate among employees as of 2024, with an outstanding balance of $570 million in unpaid taxes.

3 percent among employees, who owed nearly $380 million. Civilian Defense Department employees had a federal tax delinquency rate above 7 percent. The Army had more actual federal tax delinquencies than the Navy among civilian employees as of 2024, though Navy civilian employees had a higher outstanding federal tax balance.

The IRS suspended collection notices and levy programs during the pandemic recovery. It began phasing collection notices and levy programs back in as of August 2024.

The IRS expects the federal employee tax delinquency rate to decline in the future. The IRS sent 427000 reminder letters to federal employees and retirees in summer 2025. Following those letters, 59000 people made payments totaling $58 million.

“While these outcomes cannot be attributed solely to the notice, the results suggest targeted outreach can be effective and will inform future compliance strategies,” said Lia Colbert, commissioner of the IRS small business and self-employed division.

The inspector general’s audit identified cases where the IRS flags significant income reported but no return filed for at least three years. The audit identified 102 cases where a federal employee had eight years of earned income but failed to file a return.

It also found 20 cases where federal employees went nine years or longer without filing a return despite earned income. None of the 102 or 20 long-term non-filing federal employee cases had been referred to the IRS criminal investigations division as of late 2025. The inspector general made referrals of the long-term non-filing federal employee cases to the IRS criminal investigations division.

The Washington Times reported that the inspector general’s review showed things are steadily getting worse despite the IRS’s efforts at outreach and resumed enforcement.