[Congressional Record Volume 160, Number 64 (Thursday, May 1, 2014)]
[Senate]
[Pages S2619-S2620]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. ROBERTS (for himself, Mr. Enzi, Mr. Cornyn, Mr. Toomey, 
        Mr. Johanns, Mr. Thune, Mr. Rubio, Mr. McConnell, and Mr. 
        Isakson):
  S. 2282. A bill to prohibit the provision of performance awards to 
employees of the Internal Revenue Service who owe back taxes; to the 
Committee on Finance.
  Mr. ROBERTS. Mr. President, this is a speech--these are some 
remarks--that I really should not have to make, but late this 
afternoon, I rise to discuss more amazing actions from our Nation's tax 
collector. This is, unfortunately, an agency that is fast becoming the 
gang that cannot shoot straight--the folks who brought us the partisan 
suppression of free speech, who piled onto that with proposed rules to 
shut down political action by groups with which they disagree or do not 
favor, and the same team that shares confidential taxpayer information 
with their allies outside of government. Obviously, I am talking about 
the Internal Revenue Service.
  Here is a great deal: Break the law you are required to enforce and 
get a cash bonus and free time off.
  What on Earth is this all about?
  Well, last week, the Treasury Department's Inspector General for Tax 
Administration issued a report, which I have here, on the Internal 
Revenue Service bonuses that were awarded to

[[Page S2620]]

personnel who have violated the tax laws or who have been subject to 
serious infractions of employee policy.
  This is a lot like hiring someone to work for you, and then they 
steel money from you or acted in ways that are very inappropriate. 
Would you give them a bonus? I do not think most businesspeople would 
do that. According to the inspector general, close to $3 million was 
awarded to staff with violations on their records, with about half of 
that amount going to people who had violated the Tax Code.
  Other personnel at the IRS received cash bonuses or other awards 
despite being cited for--listen to this--drug use, making violent 
threats, fraudulently claiming unemployment benefits and misusing 
government credit cards. Still they got bonuses--up to $3 million.
  In fact, the report indicates that close to 70 percent of IRS 
personnel receive some sort of performance award--70 percent of the 
IRS. That is rather remarkable when you think about the sorts of 
problems your average taxpayer has in getting help from that particular 
agency.
  This is flatly outrageous--if not appalling or atrocious--and cannot 
be tolerated. It also makes me wonder what you have to do to be 
disqualified from an award.
  More disturbing, these awards, even for people breaking the law, are 
perfectly acceptable under current IRS and government-wide guidelines. 
Let me repeat that. These awards, even for people breaking the law, are 
perfectly acceptable under current IRS and government-wide guidelines.
  Indeed, the IG report makes it clear that under the terms of the 
collective bargaining agreement with the main union for IRS employees, 
these awards are appropriate and cannot be taken away because of such 
violations.
  The distribution of these awards at a time when the IRS is under 
scrutiny for its actions concerning the political activity of 
conservative groups, when its performance of basic taxpayer service 
functions has drastically worsened, and when it is calling for 
additional funding, calls into question the agency's commitment to fair 
enforcement of our tax laws.
  The IG report recognized that these awards--while not technically 
prohibited--appear to be in conflict with the IRS's charge of 
``ensuring integrity of the system of tax administration.'' Well, no 
kidding. Thank goodness for the inspector general.
  That is what we call an understatement--maybe the understatement of 
the year.
  This is another fox in the henhouse story. Not only is the fox in the 
henhouse, but he is now being rewarded for eating the chickens.
  These performance awards are just plain wrong and should not go to 
anyone who breaks the law, particularly the laws which the agency 
enforces.
  These bonus awards weaken public confidence in the Nation's tax 
enforcement agency and are a sign that the agency has indeed run off 
the rails.
  The inspector general report recommended that the IRS create a new 
policy to take disciplinary actions into account when awarding bonuses.
  It seems to me we need to do more than set up a new policy or 
guideline. We need something more concrete and more immediate. That is 
why today I am joining with my friends--Senators Enzi, Cornyn, Rubio, 
Toomey, Thune, Johanns, Isakson, and Leader McConnell--to introduce the 
No Bonuses for Delinquent IRS Employees Act--a bill that really should 
be unnecessary. I thank my colleagues for joining me and, more 
especially, Senator Enzi, who has done a great deal of work on this and 
helped expose this from the first.
  Our bill is pretty simple. It will prohibit the IRS from providing 
any performance award to any IRS employee who owes an outstanding 
Federal tax debt for failing to pay their taxes.
  Nobody likes to be audited. Nobody likes to get that phone call from 
the IRS. Nobody likes to see the taxman at the door. And then if the 
taxman says: I am sorry, you owe X for a violation of Y, and you find 
out this individual got a performance bonus even though he or she fails 
to meet the tax obligations they face, that is rather incredible.
  Given what we know about recent IRS actions--and the growing 
discontent with the agency I hear from Kansans every day--continuing to 
award personnel bonuses to employees who have outstanding tax 
liabilities or have violated the tax laws is beyond comprehension and 
outrageous and should be stopped.
  This is not a partisan issue. It is just plain common sense. The IRS 
should not be in the business of awarding bonuses to its agents who are 
unable or unwilling to abide by the tax laws they are directed to 
uphold--simple as that.
  So I call upon all my colleagues to support the No Bonuses for 
Delinquent IRS Employees Act and will ask for its immediate 
consideration.
  In closing, I would like to point out this issue has been well-
documented in a 26-page report by the inspector general. I thank the 
inspector general for the work he has done. Right on the first page it 
says: ``The Awards Program Complied With Federal Regulations, but Some 
Employees With Tax and Conduct Issues Received Awards.'' Most IRS 
employees complied with Federal regulations, but some employees with 
tax and conduct issues still received awards. That is an oxymoron.
  Then, if you skip to the back, there are some recommendations. The 
recommendation is for corrective action. This is what it says:

       The IRS Human Capital Officer--Daniel Riordan is the IRS 
     Human Capital Officer--will conduct a feasibility study. But 
     they do not have to take action right away. They just want to 
     discuss the feasibility of a study--by June 30 of this year--
     just a couple months away--for the implementation of a policy 
     requiring management to consider a policy change.

  It does not say just to do it; it says just consider whether conduct 
issues resulting in disciplinary actions should be made part of the 
performance evaluation, especially the nonpayment of taxes owed to the 
Federal government, prior to awarding performance and discretionary 
awards.
  Daniel Riordan has received marching orders from the Inspector 
General to conduct a feasibility study by June 30, to determine whether 
the IRS should even consider whether disciplinary actions, including 
the nonpayment of taxes owed to the Federal Government, should be part 
of the evaluation as to whether an employee should be eligible for a 
performance award.
  We really do not need this legislation. We have introduced it to 
force action. The inspector general says: Let's have action. On 26 
pages, he says: Let's have action.
  So to Daniel Riordan, I have the following advice--before we get 60 
people on this and pass a bill, why don't you just go ahead and do it. 
Do not conduct a feasibility study. We have all the evidence right 
here. If you would just change the current policy, it would remove yet 
another problem, another unfortunate asterisk when we think of the IRS.
  I want to thank my colleagues for cosponsoring this legislation and 
again ask for its immediate consideration.

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