Tax Delinquency Increasing Among Federal, Retired Employees, IRS Watchdog Reveals

These individuals, numbering over 571,000, collectively owe around $6.3 billion to the Internal Revenue Service.

The Internal Revenue Service in Washington on Jan. 6, 2026. Madalina Kilroy/The Epoch Times

Tax noncompliance among federal employees and retirees has increased over recent years, partly due to the suspension of certain collection programs during the COVID-19 pandemic, according to a May 6 report from the Treasury Inspector General for Tax Administration (TIGTA).

Data from the Internal Revenue Service’s (IRS) federal delinquency initiative (known as FERDI) shows that “the overall delinquent balance owed by federal employees and retirees increased by more than $1.5 billion (32 percent) between FY 2021 and FY 2024,” TIGTA said.