A new report shows the Internal Revenue Service routinely gave bonuses and time off awards to tax agency workers who had been disciplined internally for job-related misconduct, which included fraud, misuse of government credit cards and the failure to properly pay their federal taxes to Uncle Sam.
"Total absurdity," said Sen. Kelly Ayotte (R-NH).
The report from the Treasury Inspecter General for Tax Administration found 1,146 performance awards were given to IRS employees who had tax conduct issues, which included "willful understatement of tax liabilities over multiple tax years, late payment of tax liabilities, and underreporting of income."
The report, which focused on a two year period from late 2010 to late 2012, found that while IRS officials consider internal conduct issues and disciplinary action when it comes to pay raises, "IRS officials stated that the IRS generally does not consider conduct issues when administering other types of awards."
Investigators said that "appears to create a conflict with the IRS’s charge of ensuring the integrity of the system of tax administration," the report concluded.
"Disturbing," tweeted Sen. Ted Cruz (R-TX).
Without giving details about specific misconduct, the report showed that one IRS employee received a "10-calendar-day suspension" in September 2011; then, in August 2012 - less than a year later - that worker was given a performance award of around $1,300.
Overall, the review found that employees with "recent substantiated conduct issues" - which included written reprimands, suspensions and even loss of job - received "more than $2.8 million in monetary awards, more than 27,000 hours in time-off awards" and 175 pay raise step increases from October 2010 to December 2012.
Of the 1,449 IRS employees who received an award within one year of a disciplinary action:
+ 1,146 had tax payment issues - but still received a total of $1.06 million in cash awards total, and 10,582 hours of time off
+ 246 were found to have misused government travel cards, but they still received $328,216 in cash awards and 1,016 hours in extra time off
+ 53 had been disciplined for some other form of "misconduct" - but still received $31,579 in cas awards and 541 hours of extra vacation time
+ 48 workers who had been found to engage in "willful misconduct" that was cause for firing - but still were paid $38,810 in bonuses and given 416 extra hours of time off
+ 32 IRS workers who had been disciplined for fraud, received $22,103 in bonuses and 396 hours of time off. "Examples of fraud include fraudulently claiming unemployment benefits and fraudulently entering attendance and leave on timesheet," the report said.
The IRS has agreed with a recommendation from investigators that conduct issues which result in disciplinary action - "especially the nonpayment of taxes owed to the Federal Government" - be taken into account for all types of performance and discretionary awards.
You can read the inspector general's report here.
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