Treasury inspector general audit: 42,000 federal employees 'repeatedly' don't file federal returns

Tens of thousands of federal employees have "repeatedly” failed to file their federal tax returns, according to a new federal watchdog report.

The Treasury Inspector General for Tax Administration flags 42,000 so-called "federal employee non-filers" and states the government is limited in its authority to punish them, according to the Washington Times.

The IRS puts little effort into targeting the non-filers because of laws that restricts how much information the agency can share with other federal agencies, so it has limit  ability to prod or punish the employees, the audit found.

As of 2021, delinquent federal employees owed $1.5 billion in unpaid taxes, The Times also reports.

“Repeatedly not filing a tax return when a taxpayer is required to do so is a brazen form of noncompliance," the inspector general said in the report Thursday. "Federal civilian employees with tax delinquencies have a legal and ethical requirement to be current with their tax obligations.”

The audit also shows tax compliance among federal employees has been trending down in recent years – with 108,000 in 2017 having been delinquent in filing or paying, compared to 149,000 in 2021.