Sen. Chuck Grassley of Iowa says his office has learned that the IRS is executing an agreement with the employees' union on Wednesday to pay the bonuses. Grassley says the bonuses should be canceled under an April directive from the White House budget office.
The directive was written by Danny Werfel, a former budget official who has since been appointed acting IRS commissioner.
"The IRS always claims to be short on resources," Grassley said. "But it appears to have $70 million for union bonuses. 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."
The IRS said it is negotiating with the union over the matter but did not dispute Grassley's claim that the bonuses are imminent.
