An audit revealed the agency paid bonuses to employees who were in trouble over tax issues.
The audit was conducted by the Treasury Inspector General for Tax Administration. It found that over a two-year period, nearly $3 million was paid to employees who were disciplined for tax misconduct.
About $1 million of that money was given as bonuses to 1,100 employees with tax troubles.
Federal regulations do not require the IRS to consider tax compliance when issuing bonuses to employees, but the agency will change the policy.