Department of the Treasury 

Treasury Inspector General for 

Tax Administration 

Congressional Budget 

Justification and Annual 

Performance Plan and Report 

FY 2021 

 
TIGTA - 2 

Table of Contents

Section I – Budget Request........................................................................................................... 3

A – Mission Statement ................................................................................................................ 3

B – Summary of the Request ...................................................................................................... 3

1.1 – Appropriations Detail ......................................................................................................... 3

1.2 – Budget Adjustments ........................................................................................................... 4

C – Budget Increases and Decreases Description ....................................................................... 4

1.3 – Object Classification (Schedule O) Obligations ................................................................ 5

D – Appropriations Language and Explanation of Changes ...................................................... 6

E – Legislative Proposals ............................................................................................................ 6

Section II – Annual Performance Plan and Report ................................................................... 7

A – Strategic Alignment ............................................................................................................. 7

B – Budget and Performance by Budget Activity ...................................................................... 8

2.1.1 – Audit Resources and Measures ....................................................................................... 8

Audit Budget and Performance ................................................................................................... 9

2.1.2 – Investigations Resources and Measures ........................................................................ 10

Investigations Budget and Performance ................................................................................... 10

Inspections and Evaluations ...................................................................................................... 12

C – Changes in Performance Measures .................................................................................... 13

D – Evidence-Building Activity ............................................................................................... 13

Section III – Additional Information ........................................................................................ 14

A – Summary of Capital Investments ....................................................................................... 14

 
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Section I – Budget Request 

A – Mission Statement 

Provide quality professional audit, investigative, and inspection and evaluation services that 

promote integrity, economy, and efficiency in the administration of the Nation’s tax system. 

B – Summary of the Request 

The Treasury Inspector General for Tax Administration’s (TIGTA) Fiscal Year (FY) 2021 

budget request of $171,350,000 represents an increase of 1 percent above its FY 2020 enacted 

level. Funding TIGTA’s FY 2021 budget request will enable TIGTA to conduct critical audit, 

investigative, and inspection and evaluation services to protect the integrity of the Nation’s 

system of tax administration. In accordance with the requirements of Section 6(f)(1) of the 

Inspector General Act of 1978 (as amended),1

 TIGTA submits the following information related 

to its FY 2021 budget request: 

• The aggregate budget request for TIGTA operations is $171,350,000; 

• The portion of the request needed for TIGTA training is $1,800,000; and 

• The portion of the request needed to support the Council of the Inspectors General on 

Integrity and Efficiency is $565,455. 

1.1 – Appropriations Detail 

Dollars in Thousands FY 2019 FY 2020 FY 2021 FY 2020 to FY 2021 

Treasury Inspector General for Tax 

Administration Operating Plan Enacted Request % Change 

New Appropriated Resources FTE AMOUNT FTE AMOUNT FTE AMOUNT FTE AMOUNT 

Audit 308 $66,260 333 $66,260 333 $66,667 0.0% 0.6% 

Investigations 428 $103,990 467 $103,990 467 $104,683 0.0% 0.7% 

Subtotal New Appropriated Resources 736 $170,250 800 $170,250 800 $171,350 0.0% 0.6% 

Other Resources 

Reimbursable 2 $798 2 $500 2 $500 0.0% 0.0% 

Recoveries from Prior Years 0 $2,141 0 $0 0 $0 NA NA 

Unobligated Balances from Prior Years 0 $5,000 0 $5,000 0 $5,000 NA 0.0% 

Subtotal Other Resources 2 $7,939 2 $5,500 2 $5,500 0.0% 0.0% 

Total Budgetary Resources 738 178,189 802 $175,750 802 $176,850 0.0% 0.6% 

Note: FY 2019 Other Resources and Full-time Equivalents (FTE) reflect actuals. 

 

 

1

 5 U.S.C. app. 3 § 6(f)(1). 
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1.2 – Budget Adjustments 

Dollars in Thousands 

FTE Amount 

FY 2020 Enacted 800 $170,250 

Changes to Base: 

Maintaining Current Levels (MCLs): 0 $4,354 

Pay Annualization (2020 3.1% average pay raise) 0 $1,048 

Pay Raise (1.0% average pay raise) 0 $1,022 

FERS Contribution Increase 0 $1,582 

Non-Pay 0 $702 

Subtotal Changes to Base 0 $4,354 

FY 2021 Current Services 800 $174,604 

Program Changes: 

Program Decreases 0 ($3,254) 

Operating Cost Reduction 0 ($3,254) 

Subtotal FY 2021 Program Changes 0 ($3,254) 

FY 2021 President's Budget Request 800 $171,350 

C – Budget Increases and Decreases Description 

Maintaining Current Levels (MCLs).........................................................+$4,354,000 / +0 FTE 

Pay Annualization (3.1%) +$1,048,000 / +0 FTE 

Funds are requested for annualization of the January 2020 3.1% average pay raise. 

Pay Raise (1.0% in FY 2021) +$1,022,000 / +0 FTE 

Funds are requested for a 1.0% average pay raise in January 2021. 

FERS Contribution Increase +$1,582,000 / +0 FTE 

Funds are requested for the Federal Employee Retirement System (FERS) contribution rates 

effective FY 2021. 

Non-Pay +$702,000 / +0 FTE 

Funds are requested for non-labor expenses such as travel, contracts, rent, supplies, 

and equipment. 

Program Decreases....................................................................................-$3,254,000 / -0 FTE 

Operating Cost Reduction -$3,254,000 / -0 FTE 

TIGTA will reduce program levels in order to meet its FY 2021 budget request. Reaching this 

target without impacting the quality of TIGTA’s programs will require balancing mission 

requirements and workload. 
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1.3 – Object Classification (Schedule O) Obligations 

Dollars in Thousands 

Treasury Inspector General for Tax Administration FY 2019 FY 2020 FY 2021 

Object Classification 

Actual 

Obligations 

Estimated 

Obligations 

Estimated 

Obligations 

11.1 - Full-time permanent 86,030 87,948 89,964 

11.3 - Other than full-time permanent 428 404 416 

11.5 - Other personnel compensation 8,566 9,121 9,466 

11.9 - Personnel Compensation (Total) 95,024 97,473 99,846 

12.0 - Personnel benefits 37,268 38,189 39,468 

Total Personnel and Compensation Benefits $132,292 $135,662 $139,314 

21.0 - Travel and transportation of persons 4,310 4,100 3,886 

22.0 - Transportation of things 21 47 45 

23.1 - Rental payments to GSA 9,567 9,400 8,682 

23.2 - Rental payments to others 163 170 154 

23.3 - Communications, utilities, and miscellaneous charges 783 825 750 

24.0 - Printing and reproduction 2 8 8 

25.1 - Advisory and assistance services 2,958 2,752 2,668 

25.2 - Other services from non-Federal sources 1,029 849 750 

25.3 - Other goods and services from Federal sources 10,764 10,514 9,581 

25.4 - Operation and maintenance of facilities 2 24 24 

25.7 - Operation and maintenance of equipment 1,843 1,577 1,457 

26.0 - Supplies and materials 690 700 834 

31.0 - Equipment 5,693 3,962 3,555 

42.0 - Insurance claims and indemnities 0 4 4 

91.0 - Unvouchered 222 156 139 

Total Non-Personnel $38,047 $35,088 $32,536 

Total Obligations $170,339 $170,750 $171,850 

 

Full-time Equivalents (FTE) 736 800 800 

Amounts reflect obligations of annually appropriated resources, carryover balances, reimbursables, and transfers. 
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D – Appropriations Language and Explanation of Changes 

Appropriations Language Explanation of Changes 

DEPARTMENT OF THE TREASURY 

TREASURY INSPECTOR GENERAL FOR TAX 

ADMINISTRATION 

Federal Funds 

SALARIES AND EXPENSES 

For necessary expenses of the Treasury Inspector General for Tax 

Administration in carrying out the Inspector General Act of 1978, 

as amended, including purchase and hire of passenger motor 

vehicles (31 U.S.C. 1343(b)); and services authorized by 5 U.S.C. 

3109, at such rates as may be determined by the Inspector General 

for Tax Administration; [$170,250,000]$171,350,000, of which 

$5,000,000 shall remain available until September 30, 

[2021]2022; of which not to exceed $6,000,000 shall be available 

for official travel expenses; of which not to exceed $500,000 shall 

be available for unforeseen emergencies of a confidential nature, 

to be allocated and expended under the direction of the Inspector 

General for Tax Administration; and of which not to exceed 

$1,500 shall be available for official reception and representation 

expenses. (Department of the Treasury Appropriations Act, 

2020.)

E – Legislative Proposals 

TIGTA has no legislative proposals. 
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Section II – Annual Performance Plan and Report 

A – Strategic Alignment 

TIGTA, an independent office within the Department of the Treasury (Treasury), was established 

by Congress under the Internal Revenue Service (IRS) Restructuring and Reform Act of 1998 

(RRA 98).2

 It provides oversight of IRS activities by conducting independent audits, 

investigations, and inspections and evaluations necessary to prevent and detect waste, fraud, and 

abuse in IRS programs and operations. TIGTA conducts audits of IRS operations and makes 

recommendations designed to improve the administration of the Federal tax system. TIGTA also 

conducts administrative and criminal investigations into allegations of waste, fraud, and abuse 

while helping to ensure that the IRS protects and secures taxpayer data. TIGTA also has the 

unique responsibility of protecting the IRS and its employees. 

TIGTA’s budgetary activities align its vision and goals with the Treasury FY 2018 – FY 2022 

Strategic Plan, including objectives under the following goals: 

• Goal 1: Boost U.S. Economic Growth; 

• Goal 4: Transform Government-wide Financial Stewardship; and 

• Goal 5: Achieve Operational Excellence. 

TIGTA’s Strategic Goals: 

• Promote the economy, efficiency, and effectiveness of tax administration; 

• Protect the integrity of tax administration from internal and external threats; and 

• Sustain an inclusive work environment where employees are valued. 

Goal 1: Boost U.S. Economic Growth 

Objective 1.1 – Tax Law Implementation: Administer tax law to better enable all taxpayers to 

meet their obligations, while protecting the integrity of the tax system. 

TIGTA supports this strategic objective through its oversight of Treasury’s efforts to implement 

tax law changes enacted in the Tax Cuts and Jobs Act of 2017 (TCJA), which will continue to 

present challenges for the IRS. For example, the Taxpayer First Act, enacted on July 1, 2019, 

requires the IRS to propose an organizational redesign with the goals of improving efficiency, 

modernizing systems and business processes, and finding ways to better serve taxpayers. The 

TCJA also made substantial changes to the tax code that affect individuals, businesses, and taxexempt organizations. 

In addition, the IRS must administer other tax law provisions such as those in the Protecting 

Americans from Tax Hikes Act of 2015 (PATH). The PATH contains program integrity 

provisions intended to reduce fraudulent and improper Earned Income Tax Credit, Child Tax 

Credit, Additional Child Tax Credit, and American Opportunity Tax Credit payments. TIGTA 

continues to assess the IRS’s efforts to implement these provisions and future tax legislation. 

 

 

2

 Pub. L. No. 105-206, 112 Stat. 685. 
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Goal 4: Transform Government-wide Financial Stewardship

Objective 4.1 – Financial Data Access/Use: Increase the access and use of Federal financial data 

to strengthen Government-wide decision making, transparency, and accountability. 

TIGTA supports Treasury’s Digital Accountability and Transparency Act efforts by 

implementing the related policies and requirements. Many of TIGTA’s audits include 

recommendations that, when implemented, would result in cost savings, increased or protected 

revenue, or more efficient use of resources. Additionally, TIGTA develops advanced analytics 

and innovative approaches to help prevent and detect the flow of dollars fraudulently obtained by 

criminals or IRS employees. TIGTA provides the IRS with the investigative coverage and 

information necessary to mitigate domestic and foreign threats against its employees, facilities, 

and data systems. 

 

Goal 5: Achieve Operational Excellence 

Objectives 5.1 – 5.3 Workforce Management, Treasury Infrastructure, and Customer Value. 

TIGTA endeavors to hire and develop a workforce with the skills and competencies necessary to 

accomplish its mission to provide quality professional audit, investigative, and inspection and 

evaluation services related to the administration of the Nation’s tax system. TIGTA mitigates 

security risks affecting taxpayer data, tax systems, and IRS employees. It effectively improves 

customer value by protecting the IRS and its employees and responding to attempts to 

impersonate the IRS for fraudulent purposes. TIGTA prioritizes acquisition and application of 

human and financial resources to enhance its ability to detect and protect against cyberattacks. 

Additionally, TIGTA collaborates with the IRS to share intelligence and expertise to thwart 

cyber threats. 

B – Budget and Performance by Budget Activity 

2.1.1 – Audit Resources and Measures 

Dollars in Thousands FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 

 Resource Level Enacted Enacted Enacted Enacted Enacted Enacted Request 

Appropriated Resources $61,572 $65,100 $66,020 $66,020 $66,260 $66,260 $66,667 

Reimbursable Resources $382 $60 0 0 0 0 0 

Unobligated Balances Brought Forward $1,808 $1,780 $1,524 $1,674 $1,945 $1,945 $1,945 

Budget Activity Total $63,762 $66,940 $67,544 $67,694 $68,205 $68,205 $68,612 

Full-time Equivalents (FTE) 316 329 333 318 304 333 333 

The FY 2015 - FY 2019 appropriated resources represents the approved operating plan. The FY 2015 - FY 2019 columns represent realized 

resources for full-time equivalents, reimbursables, and user fees.

Performance Measure 

FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2019 FY 2020 FY 2021 

Actual Actual Actual Actual Actual Target Target Target 

Percentage of Audit 

Products Delivered When 

Promised to Stakeholders 

80 75 79 81 84 68 70 70 

Percentage of 

Recommendations Made 

That Have Been 

Implemented 

92 97 92 85 83 85 85 85 
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Audit Budget and Performance 

($66,667,000 from direct appropriations): 

TIGTA’s Office of Audit (OA) strives to promote the economy, efficiency, and effectiveness of 

tax administration. TIGTA provides recommendations to improve IRS systems and operations 

and to ensure the fair and equitable treatment of taxpayers. TIGTA’s comprehensive and 

independent performance and financial audits of the IRS’s programs and operations primarily 

address statutorily mandated reviews and high-risk challenges the IRS faces. 

The IRS’s implementation of audit recommendations results in: 

• Cost savings; 

• Increased or protected revenue; 

• Protection of taxpayers’ rights and entitlements; and 

• More efficient use of resources. 

In FY 2019, OA issued 97 final audit reports and other products, that: 

• Addressed a variety of high-risk issues, such as identity theft detection and prevention, 

security of taxpayer data, tax compliance, tax law changes, fraudulent claims and improper 

payments, tax systems and online services. 

• Reported potential financial benefits totaling approximately $28.1 billion, including 

o Increased and/or protected revenue in the amount of $27.7 billion; and 

o Cost savings of $362.5 million. 

• Affected approximately 1.7 million taxpayer accounts; and 

• Returned an estimated $434 for every dollar invested in TIGTA’s audit program. 

Description of Performance 

TIGTA uses two performance measures to gauge the success of its audit program: 

• Percentage of Audit Products Delivered to Stakeholders When Promised - TIGTA’s products 

will have a more significant impact if they are delivered when needed to support 

congressional and IRS decision making. 

To determine whether products are timely, TIGTA tracks the percentage of products that are 

delivered on or before the date promised (contract date). At the end of FY 2019, the actual 

Percentage of Audit Products Delivered When Promised to Stakeholders was 84 percent, 

which exceeded the full-year target of 68 percent. TIGTA exceeded this target as a result of 

ongoing supervisory monitoring of the execution of audits to ensure timely delivery of audit 

products to stakeholders. 

• Percentage of Recommendations Made That Have Been Implemented - This measure 

assesses TIGTA’s effect on improving the IRS’s accountability, operations, and services. 

To determine when a recommendation is implemented, TIGTA uses the Department of the 

Treasury’s Joint Audit Management Enterprise System to track the percentage of four-yearold recommendations that have been implemented, rather than the results of the activities 

during the fiscal year in which the recommendations are made. At the end of FY 2019, the 

actual Percentage of Recommendations Made That Have Been Implemented was 83 percent, 

which did not meet the full-year target of 85 percent. TIGTA did not meet this target partly 
TIGTA - 10 

due to IRS funding constraints, which delayed recommendation implementations. TIGTA is 

currently working with the IRS to prioritize these unimplemented recommendations.

For FY 2021, the target for Percentage of Audit Products Delivered When Promised to 

Stakeholders will remain at 70 percent. The target for Percentage of Recommendations Made 

That Have Been Implemented will also remain at 85 percent. TIGTA believes that these targets 

are best attained through effective monitoring of ongoing audit work and essential 

communication with the IRS regarding findings and the most appropriate recommendations for 

corrective action. Consequently, TIGTA’s OA will continue to accentuate the importance of 

these processes with IRS leadership. 

2.1.2 – Investigations Resources and Measures 

Dollars in Thousands FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 

 Resource Level Enacted Enacted Enacted Enacted Enacted Enacted Request 

Appropriated Resources $96,638 $102,175 $103,614 $103,614 $103,990 $103,990 $104,683 

Reimbursable Resources $429 $475 $357 $414 $798 $500 $500 

Unobligated Balances Brought Forward $3,192 $3,220 $2,392 $2,626 $3,055 $3,055 $3,055 

Budget Activity Total $100,259 $105,870 $106,363 $106,654 $107,843 $107,545 $108,238 

Full-time Equivalents (FTE) 442 460 469 448 429 469 469 

The FY 2015 - FY 2019 appropriated resources represents the approved operating plan. The FY 2015 - FY 2019 columns represent realized 

resources for full-time equivalents, reimbursables, and user fees. 

Performance Measure 

FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2019 FY 2020 FY 2021 

Actual Actual Actual Actual Actual Target Target Target 

Percentage of Closed 

Investigations Resulting in a 

Criminal, Administrative, or Law 

Enforcement Action 

93 90 90 89 91 79 81 85 

Investigations Budget and Performance 

($104,683,000 from direct appropriations, $500,000 from reimbursable sources): 

TIGTA is statutorily mandated to protect the integrity of Federal tax administration. TIGTA 

accomplishes this mission through the investigative work conducted by the Office of 

Investigations (OI). Through its investigative programs, OI protects the integrity of the IRS and 

its ability to collect revenue owed to the Federal Government by investigating violations of 

criminal and civil law that adversely impact Federal tax administration, as well as administrative 

misconduct by IRS employees, both of which undermine the integrity of the Nation’s voluntary 

tax system. 

TIGTA’s OI accomplishes its mission through the hard work of its employees, whose efforts are 

guided by a performance model that focuses on three primary areas of investigative 

responsibility: 

• Employee integrity; 

• Employee and infrastructure security; and 

• External attempts to corrupt tax administration. 

The performance model uses a ratio of those investigations that have the greatest impact on IRS 

operations or the protection of Federal tax administration to the total number of investigations 

conducted. These performance measures guide OI’s activities and help to demonstrate the value 

of TIGTA’s investigative accomplishments to its external stakeholders. 
TIGTA - 11 

Using investigative activities from FY 2018 and FY 2019 as a baseline, OI projects to receive 

approximately 9,500 complaints, open 2,500 investigations, close 2,400 investigations, and 

obtain approximately 135 criminal prosecutions for FY 2021. FY 2021 activity may actually be 

higher due to the impact of the month-long Government shutdown on FY 2019 operations. 

TIGTA’s FY 2019 statistics were slightly lower than the FY 2018 numbers, thus bringing the 

averages slightly lower. 

With respect to the primary areas of investigation, OI expects employee integrity investigations 

to remain constant at the 1,100 referrals estimated for FY 2021. Examples of TIGTA 

investigations into employee misconduct during FY 2019 include a former IRS special agent 

who was sentenced to 51 months’ imprisonment for corrupt interference with the IRS, filing 

false tax returns, theft of Government funds, and destruction or falsification of records. In 

another case, a former IRS employee was sentenced to 52 months’ imprisonment, followed by 36 

months’ supervised release, for stealing a taxpayer’s identity.3

 

Second, TIGTA has a statutory responsibility to identify, investigate, and respond to threats 

against IRS personnel and physical infrastructure. During FY 2019, TIGTA’s response to 

incidents of employee and infrastructure security increased by 86 with the backdrop of the 

Federal Government shutdown. With the media focused on the IRS and its policies and tax law 

revisions, TIGTA expects these types of investigations to remain at least constant; however, they 

are more likely to increase through FY 2021. Based on FY 2018 and FY 2019 activity, TIGTA 

estimates the need to respond to approximately 1,500 threat incidents in FY 2021. From FY 

2011 through FY 2019, TIGTA has processed more than 18,768 threat-related complaints and 

investigated more than 9,290 threats against IRS employees. One example of these types of 

investigations in FY 2019 involved a man who was convicted for forcibly assaulting an unarmed 

IRS revenue officer by pointing a shotgun at him and threatening to shoot him. 

Last, TIGTA investigates criminal activity originating outside the IRS, such as impersonation of 

an IRS employee, attempted bribery of IRS employees, international cybercrime and identity 

theft, and procurement fraud. Since 2015, abuses of the IRS Electronic Filing Personal 

Identification Number and Data Retrieval Tool for the Federal Student Loan process have 

increased the number of victimized taxpayers to over 800,000. The Taxpayer First Act of 2019, 

signed into law on July 1, 2019, focuses primarily on mandating the IRS to expand digital 

services such as these in the future. This will unavoidably raise the IRS risk portfolio, and 

generate additional work for TIGTA’s OI, over and above the current workload as cyber 

criminals seek to exploit these new services. 

Investigations into telephonic IRS impersonations is another high visibility area. Between 

October 2013 and September 2019, more than 2.5 million Americans have reportedly received 

unsolicited telephone calls from individuals who claimed to be IRS agents. The caller, using a 

fake name, provides a “badge number” and claims the victim owes taxes and is criminally liable 

for the amount owed. The victim is threatened that if he or she fails to pay the tax immediately, 

the victim will be arrested, a suit will be filed, or some other form of adverse action will be 

taken. More than 15,778 victims have reported that they had collectively paid upwards of $79.7 

 

3 The facts in the summarized cases on this page come from court documents of the respective jurisdictions. 
TIGTA - 12 

million to the scammers. By the end of FY 2019, TIGTA investigations resulted in 154 

individuals charged in Federal court. As a result, reports of this activity to TIGTA have reduced 

from a high of 180,000 reports in September 2016, to just over 1,600 in September 2019. 

Although this demonstrates that significant results can be obtained by forward-leaning 

investigations, it also illustrates that this activity will not likely cease as long as the scammers 

can identify potential victims. 

In FY 2019, OI’s total protection of dollars and financial accomplishments as a result of 

investigative activities was $24.2 million. Additionally, TIGTA’s investigative efforts resulted 

in more than $10.8 million in court-ordered fines, penalties, and restitution. 

Description of Performance 

TIGTA’s OI has adopted performance measures that identify the percentage of results derived 

from investigative activities that most accurately align with the strategic goals of the 

organization and provide the greatest impact on the protection of the integrity of Federal tax 

administration. At the end of FY 2019, the Percentage of Closed Investigations Resulting in a 

Criminal, Administrative, or Law Enforcement Action was 91 percent, which exceeded the fullyear target of 79 percent. The Office of Investigations exceeded the FY 2019 performance 

measure as a result of the hard work of experienced executives, managers, and special agents. 

With the FY 2021 budget request, TIGTA will continue to maintain its special agents’ skills and 

abilities in order to be able to respond to its mission requirements. 

For FY 2021, OI’s performance target will increase to 85 percent for Percentage of Closed 

Investigations Resulting in a Criminal, Administrative, or Law Enforcement Action. OI will 

continue to provide the IRS with the investigative coverage and information necessary to 

improve the integrity of IRS operations and mitigate threats against its employees, facilities, and 

data infrastructure. In addition, OI will maintain highly trained personnel available to address 

the significant vulnerabilities of taxpayer and IRS data and effectively combat compromises of 

IRS computer systems in the expanding digital environment of Federal tax administration, all of 

which contribute to maintaining the public’s confidence in the safe, fair, and effective 

administration of the Federal tax system. Through its investigative programs, OI will continue to 

protect the IRS’s ability to process approximately 253 million tax returns, collect more than 

$3.5 trillion in tax revenue, and issue more than $464 billion in refunds for the Federal 

Government.4

 

Funding for TIGTA allows its oversight efforts to 

continue, and for each dollar invested over the five-year 

period covering FY 2015 – FY 2019, TIGTA has 

produced an average annual return of $107 (Figure 1). 

 

Inspections and Evaluations 

TIGTA’s Office of Inspections and Evaluations (I&E) 

identifies opportunities for improvement in IRS and 

TIGTA programs by performing inspections and 

 

4

 IRS, Management’s Discussion & Analysis, Fiscal Year 2018. 

Figure 1: TIGTA’s Return on Investment
TIGTA - 13 

evaluations that report timely, useful, and reliable information to decision makers and 

stakeholders. This function has two primary product lines: inspections and evaluations. 

Inspections are intended to: 

• Provide factual and analytical information; 

• Monitor compliance; 

• Measure performance; 

• Assess the effectiveness and efficiency of programs and operations; 

• Share best practices; and 

• Inquire into allegation of waste, fraud, abuse, and mismanagement. 

Evaluations are intended to: 

• Provide in-depth reviews of specific management issues, policies, or programs; 

• Address Government-wide or multi-agency issues; and 

• Develop recommendations to streamline operations, enhance data quality, and minimize 

inefficient and ineffective procedures. 

In FY 2019, I&E produced eight external reports, which included reviews of: 

• Physical Security Controls (four different locations); 

• Follow-up Reports (on Offer in Compromise and I&E Recommendations); 

• IRS Virtual Delivery Strategy; and 

• 1099-Misc Accuracy of Information Reporting. 

C – Changes in Performance Measures 

TIGTA has no changes in performance measures. 

D – Evidence-Building Activity

The Foundations for Evidence-Based Policymaking Act of 20185

 emphasizes collaboration to 

advance data and evidence-building function in the Federal Government by statutorily mandating 

Federal evidence-building activities, open government data, confidential information protection, 

and statistical efficiency.

TIGTA supports Treasury’s efforts to use data and evidence for decisionmaking about program 

operations, policy, and regulations. TIGTA supports these efforts through data-driven 

decisionmaking when selecting which audits and investigations to pursue that have the most 

significant impact on tax revenue, taxpayer behavior, the integrity of the IRS, and the efficiency 

of agency operations. 

OA prepares its Audit Plan addressing the highest priority risk areas for tax administration. The 

plan addresses: 

• Taxpayer impact; 

• Stakeholders’ concerns; 

• Size of the program; and 

• Program changes. 

 

5 Pub. L. No. 115-435, 132 Stat. 5529.
TIGTA - 14 

OA is scheduled to conduct several key audits in FY 2020: Compliance Efforts for the Tax Cuts 

and Jobs Act Section 965 Repatriation Tax; Security Over Internet Accessible Computer 

Resources; and Using John Doe Summons Data to Ensure Cryptocurrency Tax Compliance. 

OI allocates its resources based on a performance model that assesses which investigations have 

the greatest impact on IRS operations and tax administration, and considers the following in its 

selection of investigations: 

• Value of the IRS assets and resources protected; 

• Volume of taxpayer information (personally identifiable information) affected; 

• Value of the cyber infrastructure and the sensitivity of affected data; and 

• Monetary losses incurred due to embezzlement, bribery, impersonation, and stolen funds. 

Section III – Additional Information 

A – Summary of Capital Investments 

Technology Investments – TIGTA has no major information technology investments. 

A summary of capital investments, including major information technology and non-technology 

investments, can be accessed at: 

https://www.treasury.gov/about/budget-performance/Pages/summary-of-capitalinvestments.aspx 

Law Enforcement Vehicles – TIGTA leases its vehicles through the General Services 

Administration. However, TIGTA maintains ownership of six surveillance and communications 

vehicles that will remain part of TIGTA’s capital asset strategy to support TIGTA’s investigative 

and law enforcement activities. TIGTA communications vehicles also are used in support of its 

Continuity of Operations (COOP) Plan. The COOP provides a mechanism for the organization 

to recover fully operational capability following a critical incident, including the capability to 

communicate during a local or national emergency.