IRS About to Pay $70M in Union-Mandated Bonuses

Despite a directive from the Obama administration, the Internal Revenue Service will pay out $70M in bonuses, according to Senator Chuck Grassley. "Sen. Chuck Grassley of Iowa says his office has learned that the IRS is executing an agreement with the employees' union on Wednesday to pay the bonuses."

The Senator said that those bonuses should have been canceled based on a directive from the White House Budget Office. 

"The IRS always claims to be short on resources," Grassley said. "But it appears to have $70 million for union bonuses. And it appears to be making an extra effort to give the bonuses despite opportunities to renegotiate with the union and federal instruction to cease discretionary bonuses during sequestration."

The Office of Management and Budget released a statement asserting, "IRS is under a legal obligation to comply with its collective bargaining agreement, which specifies the terms by which awards are paid to bargaining-unit employees."

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by ELIZABETH SHELD