2013 has been a historically difficult year for the IRS. There have been a number of “minor” scandals involving the agency, such as the accidental posting of thousands of taxpayer social security numbers on the internet which happened several weeks ago. (Obviously this could only be called a “minor” mishap in a very bad year.)
2013 has been a historically difficult year for the IRS. There have been a number of “minor” scandals involving the agency, such as the accidental posting of thousands of taxpayer social security numbers on the internet which happened several weeks ago. (Obviously this could only be called a “minor” mishap in a very bad year.)
But the major scandal involved the IRS targeting non-profit groups for extra scrutiny depending on their political orientation. A report published in the spring of this year revealed that IRS agents were instructed to focus special attention on groups that appeared to have conservative political leanings. This report was shocking to just about everyone—because while many of us have no love for the agency, most people do expect the IRS to play by the rules and enforce the tax code fairly.
Despite this, the agency planned to pay employees millions of dollars in bonuses this year. If you’re wondering what type of organization would actually reward their employees during a historically difficult year… now you have your answer.
Washington Post reports:
In an internal memo on Wednesday, IRS Principal Deputy Commissioner Daniel Werfel said he has directed senior staff to come up with options for eliminating [an estimated $70 million in bonuses] despite collective bargaining agreements that guarantee the bonuses under certain conditions.
The union that represents IRS employees pushed back against the plan on Wednesday, saying the agency should not have to forgo bonuses to eliminate the last furlough days.
“The IRS should examine all parts of its budget and operations before eliminating incentive awards for high-performing frontline employees,” said National Treasury Employees Union president Colleen M. Kelley.
Sen. Chuck Grassley (R-Iowa) has questioned why the IRS would consider bonuses in a year when the agency is embroiled in multiple controversies due to actions by managers and frontline employees alike. A pair of inspector general audits this year showed that the IRS had taken inappropriate actions toward conservative groups and spent lavishly on a 2010 conference in Anaheim.
While it is clearly appropriate that the IRS would look to cancel the bonuses this year, it is shocking that this is even an area of discussion to begin with. The IRS is in the midst of a historically bad year, and they shouldn’t be rewarding themselves for it!
So what does all of this have to do with taxpayers? For one thing, it is taxpayer dollars that are ultimately paying these bonuses. And it is another reminder that the IRS can’t be trusted to exercise fair or proper judgment. Many taxpayers make the mistake of assuming that the IRS is always operating fairly when in the midst of a dispute, but this couldn’t be further from the truth. As at taxpayer, you do have rights—but the IRS won’t help you exercise them. In fact, they hope that you don’t, because it will be that much easier to collect “their” money from you.
Whether or not the agency pays themselves millions in bonuses during a disastrous year is ultimately beside the point. What really matters is that you protect yourself if you’re facing a tax dispute with the IRS. Contact us today if you would like to learn more!
