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

These individuals, numbering more than 571,000, collectively owe about $6.3 billion to the IRS.

The IRS in Washington on Jan. 6, 2026. Madalina Kilroy/The Epoch Times

Tax noncompliance among federal employees and retirees has increased over recent years, partly because of 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 IRS’s federal delinquency initiative (known as FERDI) show 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.