irs

Citing budget cuts, the Internal Revenue Service is canceling this year’s employee bonuses for managers and is working to cancel bonuses for union workers, the agency announced Tuesday.

Acting IRS Commissioner Danny Werfel told workers in an email that he is canceling the bonuses because of automatic spending cuts enacted this year. The union’s collective bargaining agreement calls for about $70 million in performance bonuses this year, but there is a clause that could enable the IRS to renegotiate.

“It is my intention to continue to pursue eliminating award payouts this year to bargaining unit employees,” Werfel said in the email. “This approach is consistent with government-wide policy, which requires suspension of awards during sequestration to the extent appropriate legal procedures are complied with.”