IRS rewards 1,150 who owe back taxes
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WASHINGTON (AP) – 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.
George’s report said the bonus program doesn’t violate federal regulations, but it’s inconsistent with the IRS mission to enforce tax laws.
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.