The Washington Examiner reported that the report illuminates tax compliance issues sparking a legislative push by Ernst for the Audit the IRS Act, aimed at enforcing stricter compliance among IRS personnel.
The investigation, spearheaded by Ernst and conducted by the Treasury Inspector General for Tax Administration, was released on July 24.
It uncovered that the vast majority of IRS employees, 96% in fact, are compliant with their tax obligations. However, the focus remains sharply on the non-compliant minority.
Few Non-Compliant IRS Employees Face Termination
Despite these significant findings, only 20 of these non-compliant individuals have faced termination.
Sen. Ernst expressed her concerns in stark terms, questioning the integrity of the IRS. "When IRS auditors can’t even pass my audit, it’s clear they can’t be trusted by the taxpayers,” Ernst remarked.
In her proactive approach, Ernst is set to propose the Audit the IRS Act. This legislation would mandate regular tax audits for IRS employees and aims to prevent the retention or hiring of those evading their tax responsibilities.
The senator's letter targeted IRS Commissioner Daniel Werfel, urging a ramp-up in tax compliance enforcement within the agency. "I would also like to know what actions you are taking to ensure 100 percent tax compliance by IRS employees and contractors,” wrote Ernst to Werfel.
Proposed Legislation Seeks to Amend Hiring Practices
Ernst's proposed legislation underlines a stringent penalty for non-compliance: termination unless delinquent employees are enrolled in a payment plan. Her initiative also addresses the controversial rehiring of former IRS employees, which included over 500 individuals with past severe misconduct or tax issues, 282 of whom had multiple issues documented.
The rehiring process has been heavily criticized by many including Ernst herself.
“Between their tax evasion and rampant misconduct, the Biden-Harris administration’s army of IRS agents can’t even clear the most basic of hurdles. I’m working to end the double standard and hold these bureaucrats accountable to the same rules they enforce on hardworking Americans," she stated bluntly.
Regarding contractor compliance, IRS’s Human Capital Officer Traci DiMartini showed a proactive stance by barring 59 out of 72 contractors found with unfiled tax returns from accessing IRS facilities and systems.
IRS Counters with Policy Defense
However, the IRS has expressed disagreement with some of the recommendations from the Treasury Inspector General for Tax Administration regarding handling unfiled tax returns.
They argued that these measures would exceed the authority of their chief human capital officer, and affirmed handling compliance with existing IRS policies.
"The officer does not have tax collection authority,” the IRS indicated, pointing to what they consider an overreach suggested by the audit report.
Ernst's final remark resonates with a call for fairness in her letter to Werfel: “There is absolutely nothing fair about forcing hardworking Americans to pay the salaries of tax-evading tax collectors while the IRS targets lower-income and middle-class Americans with nearly two-thirds of the new audits,” she expressed vehemently.
Conclusion
In conclusion, the recent IRS internal audit has unveiled a significant issue of tax non-compliance among its employees and contractors.
Senator Joni Ernst's Audit the IRS Act seeks to address these concerns by imposing stricter regulations and penalties, including regular audits and potential termination for delinquent employees.
As this legislative proposal gains traction, it echoes a broader call for accountability and integrity within the federal tax system, aiming to obliterate perceived double standards and restore public trust in the tax authority.
