Huh? IRS Awarded $1 Million in Bonuses to Employees Who Owed Back Taxes While many of us scramble to file on time and avoid penalties, an internal investigation has revealed that IRS workers who owed back taxes were actually given bonuses.

By Geoff Weiss

Opinions expressed by Entrepreneur contributors are their own.

Though millions of Americans scrambled to file their taxes on time last week, a group of employees within the Internal Revenue Service who missed the April 15 deadline in years past were astonishingly rewarded by the organization.

The IRS dispensed $1 million in bonuses to 1,150 workers who owed back taxes between October 2010 and December 2012, an internal government investigation revealed yesterday.

In total, the organization handed out $2.8 million in bonuses to 2,800 workers with disciplinary problems, according to The New York Times, including misuse of government credit cards, drug use, violent threats and fraudulent unemployment benefit claims.

J. Russell George, the Treasury inspector general for tax administration, who filed the report, said that though the bonuses had not been bestowed illegally, the act represents a stark divergence from the IRS' stated mission.

"While not prohibited, providing awards to employees who have been disciplined for failing to pay federal taxes appears to create a conflict with the IRS's charge of ensuring the integrity of the system of tax administration," George said.

Related: 5 Tax Mistakes That Startups Make

Geoff Weiss

Former Staff Writer

Geoff Weiss is a former staff writer at Entrepreneur.com.

Editor's Pick

Related Topics

Leadership

Do You Have a Strong Identity? 5 Ways to Uncover the Core of Your Organization — And Why It Matters

Understanding and carefully adapting organization identity in concert with emergent realities provides the balance our organizations need in our present turbulent climate.

Collaboration

This Is the Unseen Advantage Your Small Business Might Need

If you're ready to learn how to help your business increase revenue, access new markets, create better customer experiences and brand awareness, strategic alliances may be the answer you're looking for.

Business Ideas

This Teacher Sells Digital Downloads for $10. Her Side Hustle Now Makes Six Figures a Month: 'It Seems Too Good to Be True, But It's Not.'

When one middle school teacher needed to make some extra income, she started a remote side hustle with no physical products and incredibly low overhead. Now she brings in six figures each month, and offers courses teaching others how to do the same.

Business News

Elon Musk Gives Profanity-Laden Tirade During DealBook Interview: "Go F--- Yourself'

Musk addressed the companies that have pulled advertising from the X platform at the 2023 DealBook Summit in New York on Wednesday. Watch the interview, here.

Living

'I Haven't Ticked All the Boxes Yet.' Hilary Duff Reveals Her Next Venture After More Than 2 Decades in the Spotlight — and the Surprisingly Relatable Key to Her Enduring Success

The actor talks entrepreneurship, secrets to success and her latest role as chief brand director for Below 60°, a product line of air fragrances.