Quantcast
Get breaking news alerts via email

Click here to manage your alerts
IRS workers who owe back taxes get $1M in bonuses

Report » Facing disciplinary action, 28,000 employees also rewarded,

First Published Apr 22 2014 07:01 pm • Last Updated Apr 22 2014 08:18 pm

Washington • The Internal Revenue Service has paid more than $2.8 million in bonuses to employees with recent disciplinary problems, including $1 million to workers who owed back taxes, a government investigator said Tuesday.

More than 2,800 workers got bonuses despite facing a disciplinary action in the previous year, including 1,150 who owed back taxes, said a report by J. Russell George, the Treasury inspector general for tax administration. The bonuses were awarded from October 2010 through December 2012.

Join the Discussion
Post a Comment

George’s report said the bonus program doesn’t violate federal regulations, but it’s inconsistent with the IRS mission to enforce tax laws.

"These awards are designed to recognize and reward IRS employees for a job well done, and that is appropriate, because the IRS should encourage good performance," George said. "However, while not prohibited, providing awards to employees who have been disciplined for failing to pay federal taxes appears to create a conflict with the IRS’s charge of ensuring the integrity of the system of tax administration."

Other examples of misconduct by workers getting bonuses included misusing government credit cards for travel, drug use, violent threats and fraudulently claiming unemployment benefits.

The IRS said it has developed a new policy linking conduct and performance bonuses for executives and senior level employees.

"Even without a formal policy in place over the past four years, the IRS has not issued awards to any executives that were subject to a disciplinary action," the IRS said in a statement. "We are also considering a similar policy for the entire IRS workforce, which would be subject to negotiations with the National Treasury Employees Union."

The IRS had about 100,000 workers during the period under review.

In the 2011 budget year, more than 70,000 IRS workers got cash bonuses totaling $92 million, the report said. In the 2012 budget year, nearly 68,000 workers got cash bonuses totaling $86 million.

The report said the IRS considers prior conduct before awarding permanent pay increases. "However, IRS officials stated that the IRS generally does not consider conduct issues when administering other types of awards," the report said.


story continues below
story continues below

There are no government-wide policies on providing bonuses to employees with conduct issues, the report said. However, a 1998 law calls for removing IRS employees who are found to have intentionally committed certain acts of misconduct, including willful failure to pay federal taxes.

Tax compliance at the IRS is generally better than at other federal agencies.

In 2011, 3.2 percent of federal workers owed back taxes, according to IRS statistics. The Treasury Department, which includes the IRS, had the lowest delinquency rate, at 1.1 percent.

The delinquency rate for the general public was 8.2 percent.

———

Follow Stephen Ohlemacher on Twitter: http://twitter.com/stephenatap



Copyright 2014 The Salt Lake Tribune. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Top Reader Comments Read All Comments Post a Comment
Click here to read all comments   Click here to post a comment


About Reader Comments


Reader comments on sltrib.com are the opinions of the writer, not The Salt Lake Tribune. We will delete comments containing obscenities, personal attacks and inappropriate or offensive remarks. Flagrant or repeat violators will be banned. If you see an objectionable comment, please alert us by clicking the arrow on the upper right side of the comment and selecting "Flag comment as inappropriate". If you've recently registered with Disqus or aren't seeing your comments immediately, you may need to verify your email address. To do so, visit disqus.com/account.
See more about comments here.
Staying Connected
Videos
Jobs
Contests and Promotions
  • Search Obituaries
  • Place an Obituary

  • Search Cars
  • Search Homes
  • Search Jobs
  • Search Marketplace
  • Search Legal Notices

  • Other Services
  • Advertise With Us
  • Subscribe to the Newspaper
  • Access your e-Edition
  • Frequently Asked Questions
  • Contact a newsroom staff member
  • Access the Trib Archives
  • Privacy Policy
  • Missing your paper? Need to place your paper on vacation hold? For this and any other subscription related needs, click here or call 801.204.6100.