Home Media Center News Releases

Washington, DC – The Bush Administration’s proposed 2003 budget includes a request for Congress to modify a 1998 law requiring the termination of Internal Revenue Service (IRS) employees for certain violations in the performance of their official duties. National Treasury Employees Union (NTEU) National President Colleen M. Kelley applauded the administration’s request, saying the harshness of the law has negatively impacted employee morale and performance.

“NTEU has held all along that it is unfair to hold IRS employees to a higher standard than the general population, a higher standard than other federal employees, and a higher standard than those who wrote these provisions into law in the first place. The administration’s recommendation is a sound one and should be acted on by Congress as soon as possible,” said Kelley.

Section 1203(b) of the IRS Restructuring and Reform Act of 1998 (RRA) requires the termination of employees for specific violations. Known among employees as the “10 deadly sins,” the list of violations includes the failure to timely file tax returns even when a refund is expected.

In its budget request, the administration noted that an IRS employee who fails to file a refund return (a tax return due a refund) “is subject to termination even though a taxpayer who files a refund return late is not subject to any penalty.”

The administration also said it supports a Treasury Inspector General for Tax Administration (TIGTA) request to remove from the list of Section 1203(B) violations the allegations of wrongful conduct by IRS employees against other IRS employees. The administration said these types of allegations “can be addressed by existing administrative and statutory procedures.”

The administration is recommending the addition of unauthorized inspection of returns or return information to the list of violations, but the proposal would require the IRS Commissioner to “establish guidelines outlining specific penalties up to and including termination.” The Commissioner would have the authority to determine “whether mitigating factors support a personnel action other than that specified in the guidelines for a covered violation.”

The administration said the change “would improve IRS employee morale and enhance the fundamental fairness of the statute.”

“Fundamental fairness is what we have sought since enactment of the overly harsh 1203(b) provisions,” said Kelley. “NTEU members have worked hard to educate and encourage elected officials to address this situation. I am hopeful that Congress will act quickly in support of the administration’s proposal and in support of IRS employees and American taxpayers.”