The Internal Revenue Service could not provide documentation for $394,430 of the invoiced labor hours paid on an estimated $1 million in labor charges, according to a new report.
The report, released by the Treasury Inspector General for Tax Administration, found that the IRS received an appropriation of $203 million in funds from the American Recovery and Reinvestment Act of 2009. The IRS awarded $85.4 million in contracts using Recovery Act funds for work that included reprogramming IRS computer systems, updating related tax forms and publications, and providing customer services to assist taxpayers with the new tax law provisions included in the Recovery Act.
TIGTA initiated its audit because it is required to monitor the IRS’s implementation of Recovery Act provisions. The overall objective of TIGTA’s review was to assess the IRS’s controls over contract invoice review, approval, and payment processes and to identify improper payments of Recovery Act funds made to contractors.
The IRS responded: "Whatever we are the IRS, we do what we want!"
Of course, I'm joking about the IRS response. However, the IRS can do better than this.