TaxProf Blog

Editor: Paul L. Caron, Dean
Pepperdine University School of Law

Thursday, October 27, 2011

TIGTA: IRS Does Not Adhere to Recruitment/Retention Bonus Guidelines

TIGTA The Treasury Inspector General for Tax Administration yesterday released The Administration of Recruitment and Retention Incentives Has Improved, but Additional Actions Should Be Taken (2011-10-107):

To assist in its workforce planning efforts, the Internal Revenue Service (IRS), like other Federal agencies, has the flexibility to use payment compensation in the form of recruitment and retention incentives to attract and retain a high-quality workforce. Specifically, the IRS can offer recruitment incentives to attract new employees for positions that are difficult to fill, and retention incentives to retain employees with unusually high or unique qualifications. ... The average recruitment incentive ranged from $2,600 to $10,000 per recruit and the average retention incentive ranged from $8,000 to $27,000 per employee between Calendar Years 2005 and 2010. ...

TIGTA found that some controls were bypassed or not followed. This resulted in some recruitment and retention incentives not being processed in accordance with IRS guidelines between January 2006 and February 2010. For example, seven (25.9%) of the 27 retention incentives reviewed did not contain adequate documentation to support that employees would likely leave the IRS in the absence of the incentive, which presents a risk that the incentives may not have been justified.

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...and the sun still rises in the east.

Posted by: ColoComment | Oct 28, 2011 9:54:17 AM