Federal Employee Bonuses and Delinquent Taxes

By on January 30, 2015 in Current Events, Pay & Benefits with 76 Comments

Senator Pat Roberts (R-KS) has introduced a bill would block federal employees who are delinquent on their taxes from receiving a bonus or award.

According to the Treasury Department’s Inspector General, about $3 million in bonuses was awarded to IRS  employees with various violations on their employment records. About half of that bonus amount went to employees with tax violations on their record. The IG report indicates that close to 70 percent of IRS personnel receive various types of performance rewards.

In a press statement, Senator Roberts stated: “[E]mployees who deliberately ignore the process and procedures for fulfilling their tax obligations must be held accountable. When these public employees serve at the IRS, their lack of willingness to pay their tax obligations calls into question the integrity of the agency. It’s really unconscionable that there are tax delinquents working as tax collectors.”

The “Federal Employee Tax Accountability Act” would require federal employees to be current on their federal income taxes, and would prevent federal personnel who are delinquent in paying a federal tax liability from receiving a bonus or cash award. Exceptions are made for tax debt being paid pursuant to an agreement with the IRS and for certain hardships.

© 2016 Ralph R. Smith. All rights reserved. This article may not be reproduced without express written consent from Ralph R. Smith.

About the Author

Ralph Smith has several decades of experience working with federal human resources issues. He has written extensively on a full range of human resources topics in books and newsletters and is a co-founder of two companies and several newsletters on federal human resources.

Top