Delinquent IRS employees paid bonuses by the agency

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NEW YORK — The IRS is in damage control mode Tuesday after an audit revealed that it paid bonuses to employees who were in trouble over tax issues themselves.

More than $2.8 million, plus thousands of hours of paid time-off, were doled out over two years to employees who had recently been disciplined for various types of misconduct, according to an audit report. About $1 million of that money was given as bonuses to 1,100 employees who were in trouble over tax related issues.

The tax problems include willful understatement of tax liabilities, late payments and under-reporting of income, according to the report issued by the Treasury Inspector General for Tax Administration.

The report says that providing awards to employees who fail to pay taxes “appears to create a conflict with the IRS’s charge of ensuring the integrity of the system of tax administration.”

Although federal regulations do not require the IRS to consider tax compliance of employees when issuing bonuses, the agency says it will change the policy, as per the audit’s suggestion.

“We strive to protect the integrity of the tax system, and we recognize the need for proper personnel policies,” the agency said in a statement.

Over the past four years, the IRS says it has not issued awards to any executives who were subject to disciplinary action. It is now considering extending that policy to all employees.

The audit report found that the IRS did reduce overall spending on bonuses, fully complying with new federal guidance issued in fiscal year 2011.


  • Will Grant

    No shock here…the entire US Government and all agencies are corrupt and lie, cheat and steal from people. I am sure if an investigation was done by an outside source who wasnt paid to keep their mouth shut, it would reveal a ton of lies and cover-ups throughout 100 years of politics and money laundering.

  • Mark Stabler

    My question is why is the Federal Government giving bonus payments to employees in any case? They are paid above the average pay compared to regular American citizens. Secondly, any employee of the IRS that cheats on their taxes should be fired. The problem with government is there is no accountability with the elected and non-elected. Show up for work, most of the time, and it’s your job for life. No wonder it takes forever to get anything done and usually it has to be done over several times to get it close to right.

  • stinger90

    We’ll getting closer and closer to seeing a Revolution. People are getting tried of being screwed over and over again when it comes to our Government. It’s being going on much too long.


    Every employee of the IRS should be imprisoned for 10 years, just on general purpose and just for being associated with the IRS. Then the IRS should be terminated. The only difference between the Gestahpo and Waffen SS and the IRS, is the IRS haven’t yet put anyone in gas chambers………that we know of.

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