A recent report indicated that over a 10 year period approximately 1,600 Internal Revenue Service (“IRS”) employees willfully evaded their tax obligations. The wrongful activity included:
- failing to file timely
- claiming improper dependents
- claiming improper first-time homebuyer credits
The law calls for the termination of such employees unless it is waived by the IRS commissioner. Yet many of these employees were not only not fired, but went on to receive bonuses, raises and promotions. Only within the last year has the IRS made it a policy that bonuses are not payable to employees who willfully fail to pay taxes.