Paul L. Caron
Dean


Saturday, October 3, 2015

The IRS Scandal, Day 877

IRS Logo 2Washington Examiner, IRS Needs a Housecleaning, Not Retention Bonuses:

Earlier this year, IRS Commissioner John Koskinen warned taxpayers that they would suffer delays and poor service from his agency during tax time. In doing so, he cited cuts to the IRS budget.

But as we noted at the time, this was a case of malingering and retaliation, not of real need at the IRS. The IRS had access to $500 million in fees that it could use to deliver needed services, but chose to use the money for a long list of other things.

One of those other things was bonuses for senior executives and nonunion managerial employees — a small line item, to be sure, but a rather incredible one to behold at an agency so publicly beset over widespread power-tripping and misconduct within its bureaucracy.

A few new details of the senior IRS bonus binge have finally come to light, thanks to a Freedom of Information Act request from the Tax Analysts. As the Washington Examiner's Paul Bedard reported Wednesday, the agency paid nearly $2 million in bonuses to these top employees between the time Koskinen took his post in late 2013 (amid the targeting scandal) and January 2015. During that period, 456 managerial employees received bonuses. Over the last five years, 1,269 such employees have gotten bonuses and 351 attorneys have received retention incentives, with a total value of $6 million. ...

In any case, an agency caught in such egregious misconduct as the IRS seems like a strange one to be giving bonuses to top staff. Just this week, the IRS has also been dinged in an inspector general investigation for failing to fulfill lawful FOIA requests properly more than 12 percent of the time. According to the Treasury Inspector General for Tax Administration, the agency failed to give taxpayers the information to which they were entitled in eight out of 65 cases studied.

In the nearly three years since the targeting scandal was revealed, it has become clear that it was just a symptom of a much deeper problem at the IRS — a culture that lacks accountability, rewards failure, and persecutes the innocent. Like the Department of Veterans Affairs, it needs a thorough housecleaning, not retention bonuses.

https://taxprof.typepad.com/taxprof_blog/2015/10/the-irs-scandal-day-877.html

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Comments

Clearly the best way to improve an agency is to cut its employees' pay, especially the ones that had nothing to do with misconduct. Maybe they should just get rid of compensation alltogether, then they could really turn things around.

Posted by: taxlawyer | Oct 3, 2015 6:59:47 AM