WASHINGTON (AP) — Already reeling from a pair of scandals, the Internal Revenue Service is drawing new criticism over plans to hand out millions of dollars in employee bonuses.
The Obama administration has ordered agencies to cancel discretionary bonuses because of automatic spending cuts, but the IRS says it’s merely following legal obligations under a union contract.
The agency is about to pay $70 million in employee bonuses, said Sen. Chuck Grassley of Iowa, a senior Republican on the Senate Finance Committee, which has jurisdiction over the IRS.
Grassley says his office has learned that the IRS was to execute an agreement with the employees’ union Wednesday to pay the bonuses. Grassley says the bonuses should be canceled under an April directive from the White House budget office.