Republicans called for reform at the Internal Revenue Service Thursday after receiving news that the tax agency is awarding bonuses to employees who have been disciplined for misconduct, even after being warned about the problem years ago.
The Treasury Inspector General for Tax Administration found in a new report that the IRS gave bonuses of almost $1.8 million in 2016 and 2017 to nearly 2,000 employees who had been cited for misconduct, including drug use, sexual harassment, and unauthorized access of taxpayer information.
Senate Finance Chairman Orrin Hatch and House Ways and Means Chairman Kevin Brady called on IRS acting commissioner David Kautter, a Trump appointee, to stop the agency from handing out bonuses to employees who have been disciplined.
“Awards are intended to reward the best among the federal workforce, not the worst,” they wrote. “And yet, we see example after example of awards given to IRS employees engaging in clear misconduct, including unauthorized access of tax return information, possession of illegal drugs, and sexual harassment in the workplace.”
The inspector general’s report found that the IRS has improved its screening of employees receiving bonuses since it warned in 2014 that many with sketchy records were getting awards. But employees are still slipping through the cracks, including one IRS worker who was found with marijuana at his or her desk, and another who physically sexually harassed another employee during work hours.
The IRS offered to give an assessment and timeline to Hatch and Brady by January, but the lawmakers told the agency to fix the problem now by following the inspector general’s recommendations, noting that the agency has been required to do so in recently passed laws.

