WASHINGTON (July 9, 2013)--Citing budget cuts, acting Internal Revenue Service Commissioner Danny Werfel says he has canceled this year's employee bonuses for managers and is working to cancel them for union workers as well.
Werfel told workers in an e-mail Tuesday 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 says 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.