Even the IRS Misuses Credit Cards

June 10, 2013, Written By Bill Hardekopf

Think you’re the only one getting audited? Think again. Even the IRS itself has to go through an audit every few years, and the latest one revealed some not-so-pleasant news about certain government employees.

The organization uncovered close to 1,000 cases of misused credit cards, most of which were used for travel expenses. While the reports have not detailed how the cards were misused, they did indicate that there is a problem in the government that needs to be addressed.

The cases of travel card misuse were discovered for the 2010 and 2011 fiscal years. In 2011, the IRS travel card program went through over $121 million in transactions on roughly 52,000 billed accounts nationwide. In total, the IRS employs over 90,000 people, which means that more than half of them are involved in the travel card program.

The main issue here is not the misuse itself but the punishments that are in place for them. The IRS outlines certain reprehensions that are to be put in place when someone misuses a travel card, but most of those are severely reduced when it comes time to punish employees.

“As its mission includes requiring taxpayers to pay taxes owed on time and voluntarily, the IRS should take further steps to address employees who do not voluntarily pay their travel card bills on time. Identified misuse should be met with appropriate disciplinary action,” said Inspector General J. Russell George.

We are still awaiting more detailed reports about the misuse, but this just goes to show that even the IRS has problems managing credit cards.



The information contained within this article was accurate as of June 10, 2013. For up-to-date
information on any of the terms, cards or offers mentioned above, visit the issuer's website.


About Bill Hardekopf

Bill Hardekopf is the CEO of LowCards.com and covers the credit card industry from all perspectives. Bill has been involved with personal finance for over 15 years. He is a frequent contributor to Forbes, The Street and The Christian Science Monitor.

View all posts by Bill Hardekopf