A Nov. 8 letter from the IRS to Iowa Senator Joni Ernst revealed that 860 of 2,044 IRS employees with unpaid balances totaling $12 million still haven’t paid overdue taxes. Of the 70 employees who “willfully evaded” taxes, only 20 were terminated.
Ernst, citing a July report, noted that over 5,800 IRS and contractor employees owed nearly $50 million in back taxes. The report led Ernst to propose the Audit the IRS Act, requiring regular audits of IRS employees and banning the agency from employing tax evaders.
President-elect Donald Trump’s appointment of Elon Musk and Vivek Ramaswamy to the new Department of Government Efficiency (DOGE) aims to address federal waste. Musk pointed to IRS tax evasion as an opportunity for reform, saying DOGE will “dismantle bureaucracy” and restructure agencies.
Ernst urged DOGE to prioritize firing IRS agents who evade taxes and recommended referring such cases to the Department of Justice. IRS Commissioner Daniel Werfel defended the agency’s process, stating that tax evasion cases are reviewed and prosecuted selectively for maximum deterrence.
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