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Tuesday
Apr222014

IRS Awards Bonuses to Employees Who Didn't Pay Taxes

iStock/Thinkstock(WASHINGTON) -- The Internal Revenue Service gave out $2.8 million in bonuses to workers with conduct issues, including those who didn't pay their federal taxes, a new report finds.

The announcement from the Treasury Inspector General for Tax Administration explained that though the award program for IRS employees was in line with federal regulations, more than 1,100 people with "tax compliance problems" received more than $1 million in cash bonuses and more than 10,000 hours in time-off awards.

J. Russell George, Treasury inspector general, said the awards are desiged to reward the employees for a "job well done, and that is appropriate, because the IRS should encourage good performance." However, George acknowledged the conflict in giving bonuses to those who failed to pay their dues.

The audit was conducted under new federal guidance issued requiring agencies to reduce spending on their awards programs. It was also found that more than 2,800 employees with conduct issues resulting in disciplinary action received more than $2.8 million in awards and extra time off.

The report recommends that the IRS Human Capital Officer looks toward implementing a policy that requires management to consider such issues before presenting bonuses. As a result, the agency plans to conduct a study by the end of June to put a plan in motion.

Copyright 2014 ABC News Radio