WASHINGTON (AP) — Citing budget cuts, the head of the Internal Revenue Service says he has canceled this year's employee bonuses for managers and is working to cancel bonuses for union workers.
Acting IRS Commissioner Danny Werfel told workers in an email Tuesday that he is canceling the bonuses because of automatic spending cuts enacted this year. The union's collective bargaining agreement calls for about $70 million in performance bonuses this year, but there is a clause that could enable the IRS to renegotiate.
The union has said it believes the bonuses are legally required under the agreement.
The IRS has been under intense scrutiny since the agency revealed in May that agents had improperly targeted conservative political groups when they applied for tax-exempt status.