Federal Manager's Daily Report

Management issues that made the IRS the target of numerous congressional and other investigations are being addressed, commissioner John Koskinen said at a recent Senate hearing on the agency’s proposed budget.

That proposal seeks a funding boost of about $1 billion, or about 9 percent, to restore some of the funding and positions lost in recent years in part due to those scandals. Even after a boost in its current year funding as part of a budget agreement enacted in December, the agency remains below its 2010 level and its workforce is down by about 17,000 during that time to about 80,000.

The past budget restrictions were due in part to a series of scandals at the agency, including findings of wasteful spending on conferences, a costly “spoof” video for the entertainment of its own employees, and bonus and hiring practices.

Koskinen said that spending on conferences has been reduced by 80 percent since 2010, and that currently any division planning to spend more than $20,000 on a conference is required to obtain prior approval from him. Any proposed conference expense over $50,000 must also be approved by the Secretary of the Treasury or his designee.

“With regard to videos, any IRS division seeking to make a video must receive prior approval from an executive review board the agency created in 2013 for this purpose. As for performance awards, the IRS no longer pays such awards to IRS employees who are disciplined for serious misconduct issues or who have willfully failed to pay their taxes. In addition, processes are in place to ensure the IRS does not rehire former employees who had significant conduct or performance problems during prior employment with the agency,” he said.