The IRS is set to pay roughly $70 million in employee-union bonuses, contrary to an Obama administration directive to halt such rewards amid the deep, government-wide budget cuts known as sequestration.
The apparent deal with the National Treasury Employees Union is scheduled for Wednesday and was made public by Iowa Republican Sen. Chuck Grassley of Iowa.
Grassley’s office said the information came from a “person with knowledge of IRS budgetary procedures.”
The IRS is already facing widespread criticism, which started last month when IRS officials acknowledged that agents had improperly targeted Tea Party groups and conservative organizations for additional scrutiny when they applied for tax-exempt status during the 2010 and 2012 elections. Then the agency’s inspector general issued a report a few weeks later that documented lavish employee conferences during the same time period.
Grassley says the bonuses should be canceled under an April directive from the White House budget office.
Read more: FOX NEWS