700 IRS contract workers owe $5.4M in back taxes

By Stephen Ohlemacher

Associated Press

Published: Wednesday, Oct. 23 2013 12:00 a.m. MDT

FILE - This March 22, 2013 file photo shows the exterior of the Internal Revenue Service building in Washington. No one answered the phone at the IRS hotline for tax help.

Associated Press

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WASHINGTON — A Treasury investigator says nearly 700 people who work for Internal Revenue Service contractors owe $5.4 million in back taxes. That's about 5 percent of all IRS contract workers.

In a report released Wednesday, the IRS inspector general says most of the workers were not enrolled in plans for paying their owed taxes. Not being in a payment plan is supposed to make workers ineligible to do work for the IRS.

The report said the agency should do more to ensure workers employed by IRS contractors are current in their taxes.

Unlike other federal agencies, the IRS requires employees and those who work on agency contracts to comply with federal tax laws. That means they have to file returns on time and either pay all the taxes they owe or enroll in a payment plan.

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