IRS Managers Suspended

THE DAILY FED

IRS Managers Suspended

The IRS has suspended a number of mid-level managers while it investigates allegations that field agents were rated on the number of penalties they imposed on taxpayers, Newsweek magazine reported.

Newsweek also reported that it had obtained a copy of an internal IRS memo from a collections office that gave details of how agency managers use collections data to evaluate workers, an apparent violation of the Taxpayer Bill of Rights.

These developments followed three days of hearings last week in which taxpayers detailed being pursued by the agency for taxes they had paid or did not even owe.

Although the IRS would not comment on the suspensions, acting IRS Commissioner Michael Dolan said Thursday that "in some cases it may be appropriate to suspend the employee pending the outcome of the investigation."

Senior IRS managers will meet with Treasury Department officials today for "a candid conversation" about the Finance Committee testimony and "what other actions may be necessary," The Washington Post reported.