Union Says IRS Employees Must Be Paid Bonuses

The union representing Internal Revenue Service employees said the agency has to award bonuses to top performers. The National Treasury Employees Union says it would be illegal for the IRS to cancel the bonuses and it would violate their collective bargaining agreement. The contract authorizes merit-based awards of up to $3,500 a year. Sen. Chuck Grassley (R-Iowa) has criticized the IRS for its plan to award $70 million in employee bonuses. Grassley said the agency is ignoring a guidance by the White House to cancel bonuses due to budget constraints. The IRS is in the process of negotiating with the union over the matter.