5/19/15 Tax Cheats

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Taxpayers who waited until April 15th to file are now beginning to hear from the IRS.  Some are getting refunds.  Others are having mistakes pointed out.  And a few are getting those dreaded audit notices.

The inspector general for the IRS just released a report about those who’ve been caught cheating on their taxes.

This group of tax cheats is very specific.  Everyone on the list works for the IRS.

These aren’t people who were late filing.  Or had difficulties paying a tax liability.  These were folks the IRS determined actually cheeated on their taxes.

According to federal law, tax-cheating IRS employees must be terminated.  Although the IRS Commissioner is permitted to hand-down lesser punishment.

Let’s see how they did.

During the period of 2004 through 2013 the IG found:

Nearly 130,000 cases that raised red flags.

13,000 were identified as potentially willful non-compliance with tax rules.

Almost 1600 employees were determined to have cheated on their taxes.

400 were fired.

220 resigned or were allowed to retire.

The nearly 1,000 remaining received lesser punishment including suspensions, reprimands or counseling. 

You could possibly go to jail for cheating on your taxes.  However, some IRS employees who cheat will only be counseled.

Here’s the kicker.  More than 100 of these tax cheats were promoted, given time-off awards, or received monetary bonuses.

When it comes to the IRS, there are two Americas.

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