An IRS executive Tuesday accused her agency of destroying whistleblowers' careers while protecting high-level managers who commit wrongdoing from punishment.
In unannounced testimony on the opening day of Senate Finance Committee hearings into IRS operations, Yvonne D. DesJardins, head of the employee and labor relations section in the IRS's chief counsel's office, said "higher-graded employees of the organization are not held to the same standards as employees of lesser grades, particularly when misconduct occurs."
"What I have observed leaves much to be desired when it comes to consistent treatment of individuals regarding discipline and in the manner in which the IRS deals with whistleblowers," DesJardins said. "The whistleblowers are ostracized and careers destroyed, and those senior officials who engaged in the misconduct which was reported and substantiated are not only protected from receiving any disciplinary actions but are often times rewarded during the same year that the misconduct occurs."
DesJardins, a self-described whistleblower who says the IRS has retaliated against her for challenging cases of misconduct, blamed the IRS deputy commissioner's office for not taking action against high-ranking officials when inspector general investigations supported disciplinary actions.
"The executives of the IRS are close to each other, frequently socializing with each other, and often developing long-lived friendships," DesJardins said. "Because of this, it is extremely difficult, if not impossible, for one executive to recommend and take an action against another. In several instances, it became clear that the IRS applied different standards to higher-graded individuals, which oftentimes resulted in one set of rules for executives and another for the remainder of the workforce."
Harry Patsalides, deputy assistant inspector general for investigations at the Treasury Department, said his investigations showed that IRS managers are allowed to voluntarily step down, rather than being fired, so that the IRS can avoid potential lawsuits. In addition, managers found guilty of violating employees' rights usually face no disciplinary action, Patsalides said.
"IRS management appears to treat managers differently than employees when it pertains to disciplinary action," Patsalides said.
DesJardins argued that the Office of Special Counsel, which handles whistleblowers' allegations, should take cases more seriously.
"The Office of Special Counsel needs to become more involved and not view each case as a case filed by a disgruntled employee," DesJardins said.
Sen. Orrin Hatch, R-Utah, said most IRS employees are doing a good job, but something must be done about the "bad apples" at the agency.
"It's apparent that there's a 'Good Ol' Boy' system," Hatch said. "It's apparent that there are people who are afraid to take on their colleagues. It's apparent that whistleblowers are being abused."
Also on Tuesday, the Clinton administration announced the appointment of former FBI and CIA director William Webster to head an independent review of the IRS' criminal investigation division, and unveiled a seven-point plan to improve the division, which came under attack during Senate Finance Committee hearings last year for abusing taxpayers. IRS Commissioner Charles Rossotti also brought on Michael Shaheen, former director of the Justice Department's office of professional responsibility, to assist Webster.
NEXT STORY: Justices question line-item veto's impact