Danny Werfel to Cut $70M in IRS Bonuses

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Well, it looks like the IRS scandals are finally putting enough pressure on acting chief Danny Werfel to stop the bleeding, because Tuesday he announced that the agency will be canceling this year’s employee bonuses for managers and is working to cancel bonuses for union workers according to Fox News. However, Werfel is telling IRS employees that the cuts are due to budget difficulties and not the scandals that have rocked the agency. In a mass email sent to employees, he wrote, “This is not a reflection of the quality or performance of the work done by the IRS workforce, but rather an unfortunate byproduct of the difficult budgetary situation we find ourselves in.”

The email further states, “It is my intention to continue to pursue eliminating award payouts this year to bargaining unit employees. This approach is consistent with government-wide policy, which requires suspension of awards during sequestration to the extent appropriate legal procedures are complied with.” A House Republican spending bill would prohibit funding for employee bonuses and awards until the IRS bonus program is reviewed.

The IRS union’s (NTEU) collective bargaining agreement calls for about $70 million in bonuses this year. The union has said it believes the bonuses are legally required under the agreement, but there is a clause that could enable the IRS to renegotiate.

If the IRS is successful in canceling union bonuses, the agency will also cancel two of the remaining five scheduled furlough days for workers, Werfel said.

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