IRS to Pay Employees $70M in Bonuses

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The Internal Revenue Service is reportedly ignoring spending cuts ordered by President Obama.

Sen. Chuck Grassley, R-Iowa, said his office learned the IRS is about to pay $70 million in employee bonuses despite an Obama administration directive to cancel discretionary bonuses because of automatic spending cuts.

"The IRS always claims to be short on resources, but it appears to have $70 million for union bonuses," the senator said.

"And it appears to be making an extra effort to give the bonuses despite opportunities to renegotiate with the union and federal instruction to cease discretionary bonuses during sequestration," he added.

The IRS said it's negotiating with the employees' union on the issue.

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