Federal employees owe nearly $2.46 billion in delinquent taxes, according to an Internal Revenue Service report.
The annual report is part of the IRS' Federal Employee/Retiree Delinquency Initiative, created in 1993 to address federal employee tax compliance problems, such as owing a balance or failing to file a tax return.
On average, 5.25 percent of federal agencies' employees are considered tax delinquent. Overall in the country, 8.12 percent of taxpayers are considered delinquent.
Nearly 40 percent of delinquent feds are paying off their back taxes in installments, compared to only 19 percent of the general taxpayer population.
Among Cabinet departments, the Education Department has the highest percentage of tax delinquent employees at 9.26 percent. Among independent agencies, the African Development Foundation topped the charts with nearly 21 percent of its staff listed as delinquent.
IRS Commissioner Charles Rossotti is sending letters this week to every agency head listing each organization's percentage of employees that are delinquent in paying their taxes. The letters do not disclose the names of individual delinquent employees.
Tax Delinquency by Agency
| Department | Percentage of Employees Delinquent | Money Owed to IRS |
| Education | 9.26% | $3 million |
| Housing and Urban Development | 8.56% | $6 million |
| Labor | 7.71% | $10 million |
| Veterans Affairs | 7.60% | $95 million |
| Defense | 7.34% | $217 million |
| Health and Human Services | 7.18% | $19 million |
| Commerce | 6.43% | $15 million |
| State | 6.27% | $3 million |
| Transportation | 4.76% | $20 million |
| Interior | 4.52% | $15 million |
| Energy | 4.51% | $3.5 million |
| Justice | 3.96% | $17 million |
| Agriculture | 3.96% | $17 million |
| Treasury | 3.80% | $18 million |