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Senator Accuses IRS of Paying $70 Million in Discretionary Bonuses Despite Sequestration

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Photo courtesy of arsheffield/Flickr

WASHINGTON (AP) — An influential Republican senator says the Internal Revenue Service is about to pay $70 million in employee bonuses despite an Obama administration directive to cancel discretionary bonuses because of automatic spending cuts.

Sen. Chuck Grassley of Iowa says his office has learned that the IRS is executing an agreement with the employees’ union on Wednesday to pay the bonuses. Grassley says the bonuses should be canceled under an April directive from the White House budget office.

The directive was written by Danny Werfel, a former budget official who has since been appointed acting IRS commissioner.

The IRS says it is negotiating with the union over the matter. The National Treasury Employees Union did not respond to requests for comment.

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