Report: IRS gave millions to employees in trouble for misconduct on their taxes

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NEW YORK (CNNMoney) – As many Americans are celebrating the end of tax season, the IRS is attempting to clean up a mess at its own office.

According to CNN, an audit of the IRS revealed that it paid bonuses to employees who were in trouble over tax issues themselves.

More than $2.8 million, plus thousands of hours of paid time off, were given to employees who had recently been disciplined for misconduct.

According to the report issued by the Treasury Inspector General for Tax Administration, about $1 million in bonuses were given to 1,100 employees who were in trouble over tax-related issues.

Those issues include willful understatement of tax liabilities, late payments and under reporting of income.

However, the report also found that the IRS reduced overall spending on bonuses and complied with new federal guidelines that were issued in 2011.

Although federal regulations do not require the IRS to consider tax compliance of employees when issuing bonuses, the agency says it will change the policy.

In a statement, the IRS said, “We strive to protect the integrity of the tax system, and we recognize the need for proper personnel policies.”

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