IRS paid 1,100 of its employees bonuses although they owed back taxes

[JoePhilly]

17. Actually, in your example ... your employee might be able to sue you.

Let's say you work for me. I have a construction company and I sub-contract some areas, like plumbing. You are my employee, and you get one of the sub-contractors I use to help you do renovations on your home. That arrangement is 100% between you and that sub. My business is not involved.

Now, if you and that sub-contractor get into a dispute over who owes who ... I am not involved in any way. And, if I include bonuses as part of your total compensation, and that bonus is based on your performance as my employee, that money is yours, and I can not withhold it from you if you and that sub contract have a dispute. My business is not part of it.

Now, back to the government. If an IRS employee is having a dispute over how much taxes they have paid, you can't withhold their earnings. Or, I guess we think the government should be able to just stop paying them altogether. The bonus is part of their total compensation. You can no more withhold that, they you can stop paying their medical benefits that are also part of the job.

To do so is basically extortion.