Over 800 employees of the Internal Revenue Service (IRS) are still behind on millions of dollars in back taxes, despite ongoing criticism from Senator Joni Ernst (R-IA). Ernst, who has been vocal about the issue, is now calling on Elon Musk, the newly appointed co-leader of the Department of Government Efficiency (DOGE), to address the tax discrepancies and waste within the IRS.
In a statement, Ernst likened the situation to the historical Boston Tea Party, noting, “If hardworking Americans dodge taxes, they are faced with steep fines and imprisonment, but it appears that tax collectors in Washington believe those rules are for thee but not for me.”
A report released in July, which was requested by Ernst, revealed that more than 5,800 IRS and contractor employees collectively owed nearly $50 million in unpaid taxes. Despite this, only 20 IRS employees who failed to pay taxes were dismissed.
This report led Ernst to introduce the “Audit the IRS Act,” which aims to mandate regular audits of IRS employees and prohibit the hiring of those with unpaid taxes. Her office also highlighted that the amount of tax debt owed by IRS employees, totaling nearly $546 million, drew a response from Musk.
The billionaire entrepreneur, now co-leading DOGE with former GOP presidential candidate Vivek Ramaswamy, posted on X (formerly Twitter) about the issue, saying, “Looks like a lot of opportunity for @DOGE!”
Musk further commented, “There are thousands of examples of taxpayer dollars being wasted. These are just a few,” referencing the $50 million in back taxes owed by federal employees.
Musk and Ramaswamy were appointed by President-elect Donald Trump to lead DOGE, a new organization designed to operate outside the federal government.
According to a statement from the Trump team, DOGE’s mission is to dismantle bureaucracy, reduce excessive regulations, eliminate wasteful spending, and restructure federal agencies.
Senator Ernst has expressed hope that DOGE will tackle the issue of tax evasion and waste within the IRS, saying, “While Elon Musk and the Trump administration are looking to eliminate waste, I can think of no better place to start than by firing every single IRS agent refusing to pay taxes.”
In a letter to the IRS in July, Ernst recommended that any employees or contractors found evading taxes be referred to the Department of Justice for prosecution.
IRS Commissioner Daniel Werfel responded to Ernst’s concerns in a November letter, stating that the IRS follows a “well-established process” for referring such cases to the DOJ. This process includes evaluating cases on an individual basis, with an emphasis on prosecuting serious offenses that could result in substantial jail time.
Of the 70 IRS employees who failed to file tax returns, only 20 were terminated, while 47 others were suspended. One employee received an admonishment, and two others resigned. Commissioner Werfel assured that the IRS would continue its efforts to ensure that all employees and contractors comply with tax regulations.
The Washington Examiner has also reached out to DOGE for comments on its approach to addressing tax waste within the federal government.
