Cash Bonus

Wouldn’t it be nice if the IRS had to run their branch more like a business? It might mean that our tax dollars are be spent more effectively. In a recent report by the Treasury Inspector General for Tax Administration, IRS-employee performance bonuses were detailed. Employee bonuses are certainly a normal thing for the IRS to dole out, its actually an incentive-based practice that most businesses take part in. But, there’s more . . .

What may shock most people is “when the IRS awards performance bonuses, the report states, the IRS does not distinguish between an employee who is unimpeachable and one who has been cited for misconduct. Come again, you ask? You heard right,” wrote Forbes contributor Robert W. Wood.

The IRS awards bonuses in the form of cash and time-off perks, “But the report says that IRS employees with misconduct and other faults still get the bonuses and other perks. This is hardly an isolated problem. The report reveals that the IRS brass handing out the awards simply did not consider employee misconduct,” wrote Wood.

If you are wondering how this is in any way logical, you are not alone. Furthermore, the watchdog report details how something like employees of the IRS forgetting to pay their taxes and owing back taxes, did not even make employees ineligible for cash incentives.

In fact, the statistics are alarming. “Between October 1, 2010 and December 31, 2012, more than 2,800 IRS employees with recent bad conduct in their record received more than $2.8 million in cash awards, more than 27,000 hours in time-off awards, and 175 quality step increases in their IRS employment. Among these awards, more than 1,100 IRS employees with substantiated Federal tax compliance problems received more than $1 million in cash awards, more than 10,000 hours in time-off awards, and 69 quality step increases within a year after the IRS substantiated their tax compliance problem,” wrote Wood.

You can check out the full report by clicking here.

There is some good news. The IRS has agreed to repent, and change their ways in the future. Due to the findings of the report, the IRS plans to change their policy.

“Considering that the U.S. tax system is built primarily on voluntary compliance, having confidence that we have a fair and impartial tax system is pivotal. That’s one reason the IRS targeting scandal has so deeply undermined the trust people have in the tax agency. As we peel back layers from the IRS, it can seem harder and harder to apply normal standards,” wrote Wood.

On Tuesday Senators Kelly Ayotte, R-N.H., and Claire McCaskill, D-Mo., have introduced a bill that would ban such bonuses for federal employees if they aren’t in good standing with their agency or the law. You can read more about the bill here.

Many Americans, including IRS employees, fall behind on their taxes. If you owe back taxes to Uncle Sam, it is best to contact a tax resolution attorney today. The specialists at U.S. Tax Shield are knowledgeable and take pride in customer satisfaction. Their A+ rating from the Better Business Bureau (BBB) is only one example of outstanding customer service. Contact a tax resolution lawyer, and they will help you clear your IRS debt.