April 30, 2014

Senators Manchin and Burr Introduce 'No Bonuses for Tax Cheats Act'

Washington, D.C. – Today, U.S. Senators Joe Manchin (D-WV) and Richard Burr (R-NC) introduced the No Bonuses for Tax Cheats Act. This legislation is in response to the Treasury Inspector General for Tax Administration (TIGTA) report, which brought to light the $2.8 million in bonuses that the IRS gave to employees who were delinquent on their taxes or who had committed serious misconduct, including fraud and drug use. The No Bonuses for Tax Cheats Act would bar the IRS from paying out bonuses to employees who are tax delinquent or were found to have substantial evidence of misconduct.

“It is appalling and completely unacceptable that millions of dollars in bonuses were given to IRS employees who haven’t been paying their taxes,” Senator Manchin said. “The faith of the American people in our government is bruised every time negligence and indecency of this sort comes to light. How can we expect the American people — many of whom are struggling to make ends meet — to trust their government when they learn that the very agency charged with collecting their tax dollars is rewarding employees who haven’t paid theirs? No federal agency should reward tax-delinquent employees with taxpayer-funded bonuses, least of all the IRS. I thank my good friend Senator Burr for working with me on this important piece of legislation that will help right this wrong.”

“If the American people are going to trust the IRS to administer the tax code, the agency needs to get its own house in order,” said Senator Burr. “Employees who choose not to follow the law they are entrusted to enforce are a threat to the integrity and mission of the IRS, and they should not be sheltered or rewarded in any way.  It is my hope that the Senate will swiftly adopt this commonsense and bipartisan piece of legislation so that misconduct is no longer rewarded at taxpayer expense.” 

Please read the full text of the bill here and the TIGTA report here.