The IRS is in hot water, after an audit revealed it gave out big bonuses to employees who were in tax trouble themselves.
The Internal Revenue Service is in damage control mode.
This after a report by the Treasury Inspector General for Tax Administration found the agency paid out more than $2.8 million in bonuses, plus thousands of hours of paid time-off, to employees who’d recently been disciplined for various types of misconduct.
That includes understating their tax liabilities, late payments, or under-reporting their income.
The perks were handed out in 2011 and 2012.
The report implies this is a contradiction to the agency’s core duty,
And that it “appears to create a conflict with the IRS’s charge of ensuring the integrity of tax administration.”
Though the agency isn’t required to consider tax compliance when giving bonuses, it says that it will change that policy.
Saying in a statement:
“We strive to protect the integrity of the tax system, and we recognize the need for proper personnel policies.”
Despite the controversy, the IRS did reduce the overall amount it actually spent on bonuses following federal rules put in place a few years ago.