IRS awards bonuses to 1,100 who owe back taxes - FOX 29 News Philadelphia | WTXF-TV

IRS awards bonuses to 1,100 who owe back taxes

IRS awards bonuses to 1,100 who owe back taxes

Posted: Updated:

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.

"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.

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.

  • Local NewsMore>>

  • 75-Year Old Woman Hurt During Purse Snatching At South Jersey Shopping Center

    75-Year Old Woman Hurt During Purse Snatching At South Jersey Shopping Center

    Friday, August 22 2014 11:02 PM EDT2014-08-23 03:02:06 GMT
    "I'm shocked because I come here all the time and I've never had an issue ever and never felt unsafe," said Christina Polizzi of Cherry Hill. She is one of many shoppers atThe Promenade shopping Center on Route 73 in Eveshamhorrified to hear that a 75 year old woman was critically hurt from a man who snatched her purse. "That's horrible, that's horrible," said Polizzi.It happened Wednesday night around 8:30. Police say the woman was walkingwhen a man came up alongside her and violently grabbe...
    "I'm shocked because I come here all the time and I've never had an issue ever and never felt unsafe," said Christina Polizzi of Cherry Hill. She is one of many shoppers atThe Promenade shopping Center on Route 73 in Eveshamhorrified to hear that a 75 year old woman was critically hurt from a man who snatched her purse. "That's horrible, that's horrible," said Polizzi.It happened Wednesday night around 8:30. Police say the woman was walkingwhen a man came up alongside her and violently grabbe...
  • Local Military Family Behind 'Goodbye Monsters' Book, Protector

    Local Military Family Behind 'Goodbye Monsters' Book, Protector

    Friday, August 22 2014 10:00 PM EDT2014-08-23 02:00:16 GMT

    A South Jersey veteran and his wife responded to bedtime fears with a new book called "Goodbye Monsters," and it comes with a protector!

    A South Jersey veteran and his wife responded to bedtime fears with a new book called "Goodbye Monsters," and it comes with a protector!

  • Clerk Shot During Wilmington Liquor Store Robbery

    Clerk Shot During Wilmington Liquor Store Robbery

    Friday, August 22 2014 6:38 PM EDT2014-08-22 22:38:37 GMT
    A surveillance camera catches it all as two workers at Cutrona Liquors in Wilmington struggling to keep a gunman out of their North Market Street shop.
    A surveillance camera catches it all as two workers at Cutrona Liquors in Wilmington struggling to keep a gunman out of their North Market Street shop.
Powered by WorldNow

WTXF-TV
330 Market Street
Philadelphia, PA 19106-2796

Phone: (215) 925-2929
Fax: (215) 982-5494

Didn't find what you were looking for?
All content © Copyright 2000 - 2014 Fox Television Stations, Inc. and Worldnow. All Rights Reserved.
Privacy Policy | New Terms of Service What's new | Ad Choices