IRS doles out bonuses to employees with conduct issues

Rep. Pat Tiberi (R-Ohio) said on Thursday a report that concluded IRS employees with conduct violations and tax compliance issues were awarded bonuses serves as an example of mismanagement within the agency.

Between October 2010 and December 2012, the IRS distributed more than $2.8 million to approximately 2,800 employees with recent conduct issues, including nonpayment of taxes, according to a Treasury Inspector General for Tax Administration (TIGTA) report.

“Rewarding employees who have violated official conduct or had tax compliance issues is just another example of mismanagement at the IRS,” Tiberi said. “For those people and groups that faced extra scrutiny by IRS officials because of their beliefs, this must add insult to injury….”

The report found that 1,100 employees with federal tax-compliance problems received more than $1 million in cash rewards

Tiberi said he would continue to work with House Ways and Means Committee Chairman Rep. Dave Camp Camp (R-Mich.) and the rest of the committee to “root out” issues at the IRS.

Overall, the TIGTA reported that the IRS distributed approximately $92 million in cash rewards and 520,000 hours of time off to 70,500 employees in 2011. In 2012, the IRS distributed $86 million in cash and 490,000 hours of time off to 67,870 employees.

The rewards are designed to recognize and reward IRS employees for performance.

Tiberi said he would support prohibiting the IRS from issuing bonuses to employees who owe back taxes.

“No one should be permitted to flaunt the law and still be rewarded,” Tiberi said.