Saturday, September 01, 2007

IRS to go after government entities that owe $45 million

The Chicago Tribune reports:
Federal offices owe some $45 million in delinquent withholding taxes and the Internal Revenue Service needs to do more to ensure that the government lives up to its taxpaying obligations, according a report issued Friday.

The Treasury Inspector General for Tax Administration, who oversees IRS operations, also found that as of January this year delinquent state and local government accounts totaled $254 million.

"It is outrageous that government entities are failing to pay their employment taxes," Inspector General George J. Russell said in a statement. "It is especially troubling that federal organizations are a part of this problem. The IRS must develop comprehensive procedures to remedy this inexcusable situation."

Government offices, like any private employer, must meet employment tax deposit and reporting requirements. Some 86,000 federal, state and local entities file and pay employment taxes for some 23 million employees, 20 percent of the U.S. work force.
Do you know many people in the private sector who could get away with this?