The Internal Revenue Service doled out nearly $6 million in bonuses to employees over the past five years, with one treasured lawyer receiving $285,688 in performance and retention awards, six times the average U.S. wage, according to newly released documents.
The authoritative Tax Analysts revealed information received under the Freedom of Information Act that the IRS paid 1,269 performance awards and retention incentives to 351 legal experts in the counsel’s office for a total of $5.97 million between January 1, 2010, and February 2, 2015.

IRS Commissioner John Koskinen restored the bonus system in 2014. Graeme Jennings/Washington Examiner
The documents show that despite coming under fire in Congress, IRS Commissioner John Koskinen made good on his decision to reinstate bonuses in 2014 after the budget sequester forced a freeze.
“When performance awards resumed in earnest in early 2014, just a few months after Koskinen assumed the position of commissioner in December 2013, most were paid in February 2014 (212 awards worth $624,952) and March 2014 (26 awards totaling $351,435). No further awards were recorded until November 2014 (190 awards totaling $598,935) and January 2015 (28 awards totaling $401,173),” said the report.
The average award during the five-year span was $4,483. Individual awards for a single year ranged from $88 to $44,096, and total awards for individuals over the period ranged from $250 to $285,688. That is more than six times the average U.S. salary of $44,888.
That huge bonus went to Deputy Chief Counsel for Operations Christopher Sterner over the five years. He received performance bonuses worth $99,695, and retention awards totaling $185,993 since 2010.
In a mission statement, the Office of Chief Counsel’s job: “Serve America’s taxpayers fairly and with integrity by providing correct and impartial interpretation of the internal revenue laws and the highest quality legal advice and representation for the Internal Revenue Service.”
Paul Bedard, the Washington Examiner’s “Washington Secrets” columnist, can be contacted at [email protected].