Department of the Treasury – Budget in Brief 

Treasury Inspector General for Tax Administration 

Program Summary by Budget Activity 

Dollars in Thousands 

 FY 2016 FY 2017 FY 2018 FY 2017 TO FY 2018

Budget Activity Enacted Annualized CR Request $ Change % Change

Audit $65,100 $64,976 $62,704 ($2,272) -3.50%

Investigations $102,175 $101,981 $98,409 ($3,572) -3.50%

Subtotal, TIGTA $167,275 $166,957 $161,113 ($5,844) -3.50%

Offsetting Collections - Reimbursables $535 $1,500 $600 ($900) -60.00%

Total Program Operating Level $167,810 $168,457 $161,713 ($6,744) -4.00%

Direct FTE 787 859 819 (40) -4.66%

Reimbursable FTE 2 2 2 0 0.00%

Total FTE 789 861 821 0 -4.65%

Note: FY 2016 FTE & Other Resources are Actual 

Summary 

The Treasury Inspector General for Tax 

Administration’s (TIGTA) Fiscal Year 

(FY) 2018 budget request of $161,113,000 

represents a decrease of 3.5 percent below its 

FY 2017 Annualized Continuing Resolution 

(CR) amount. These resources will fund 

critical audit, investigative, and inspection and 

evaluation services to protect the integrity of 

the Nation’s system of tax administration. 

TIGTA’s vision is to “maintain a highly 

skilled, proactive, and diverse Inspector 

General organization dedicated to working in 

a collaborative environment with key 

stakeholders to foster and promote fair tax 

administration.” While there are a number of 

critical areas where TIGTA will provide 

oversight, its FY 2018 priorities include: 

 Identifying opportunities to improve the 

administration of the Nation’s tax laws, 

improve tax compliance, and achieve 

program efficiencies and cost savings; 

 Mitigating security risks affecting taxpayer 

data, tax systems, and Internal Revenue 

Service (IRS) employees; 

 Protecting the integrity of the IRS by 

effectively investigating the international 

IRS impersonation scam that has impacted 

more than 1.9 million Americans; 

 Conducting criminal investigations of 

individuals and groups who impersonate 

the IRS in order to victimize senior 

citizens and other vulnerable Americans; 

 Developing advanced analytics and 

innovative approaches to help prevent and 

detect the flow of dollars fraudulently 

obtained by criminals and IRS employees; 

 Providing the IRS with the investigative 

coverage and the information necessary to 

mitigate domestic and foreign threats 

against its employees, facilities, and data 

systems; 

 Improving the integrity of IRS operations 

by detecting and deterring waste, fraud, 

abuse, and misconduct, including the 

unauthorized disclosure of confidential 

taxpayer information by IRS employees; 

 Conducting comprehensive audits and 

inspections and evaluations that provide 

recommendations for achieving monetary 

benefits, addressing erroneous and 

improper payments, and enhancing the 

service the IRS provides to taxpayers; 

 Rapidly and effectively responding to 

attempts to impersonate the IRS for 

fraudulent purposes; 

 Overseeing the IRS’s efforts to administer 

tax law changes related to health care; and 
Department of the Treasury – Budget in Brief 

 Overseeing the IRS’s efforts to increase 

international tax compliance. 

TIGTA was created by Congress as a part of 

the Internal Revenue Service Restructuring 

and Reform Act of 1998 (RRA 98). TIGTA’s 

audits, investigations, inspections, and 

evaluations protect and promote the fair 

administration of the U.S. tax system. TIGTA 

conducts audits that advise the public, 

Congress, the Secretary of the Treasury, and 

IRS management of high-risk issues, 

problems, and deficiencies related to the 

administration of IRS programs and 

operations. TIGTA’s audit recommendations 

improve the administration of the Federal tax 

system. TIGTA’s administrative and criminal 

investigations ensure the integrity of IRS 

employees, protect the IRS and its employees, 

and help the IRS protect and secure 

taxpayers’ data. TIGTA’s inspections and 

evaluations provides responsive, timely, and 

cost-effective inspections and evaluations of 

challenging areas in IRS programs. TIGTA’s 

oversight is essential to the efficiency and 

equity of the IRS’s tax administration system. 

TIGTA ensures that taxpayers can have 

confidence that the IRS collects more than 

$3.1 trillion in tax revenue in an effective and 

efficient manner. 

TIGTA FY 2018 Budget Highlights 

Dollars in Thousands

Treasury Inspector General for 

Tax Administration FTE Amount

FY 2017 Annualized CR 859 $166,957

Changes to Base:

Maintaining Current Levels (MCLs): - $3,335

Pay-Raise - $1,951

Pay Annualization - $715

Non-Pay - $669

Subtotal Changes to Base - $3,335

Total FY 2018 Base 859 $170,292

Program Changes:

Program Decreases: (40) ($9,179)

Reduce Audit and Investigation Activity 

Levels for Labor Costs and Staffing (40) ($6,595)

Operating Cost Reductions - ($2,584)

Total FY 2018 Request 819 $161,113

FY 2018 Budget Adjustments 

Adjustments to Request 

Maintaining Current Level (MCLs) 

Pay-Raise +$1,951,000 / +0 FTE 

Funds are required for the proposed January 

2018 pay-raise. 

Pay Annualization +$715,000 / +0 FTE 

Funds are required for annualization of the 

January 2017 pay-raise. 

Non-Pay +$669,000 / +0 FTE 

Funds are requested for non-labor expenses 

such as travel, contracts, rent, supplies, and 

equipment. 

Program Decreases 

Reduce Audit and Investigation Activity 

Levels for Labor Costs and Staffing 

-$6,595,000 / -40 FTE 

Audit and Investigations Activity levels will 

be reduced for labor costs and FTE. Reaching 

this savings target without impacting the 

quality of TIGTA’s programs will require a 

combination of actions to include balancing 

mission and workload with available FTE. 

The reduction of 40 FTE will result in a 

reduced number of investigations and audits in 

FY 2018. Since FY 2015, the number of 

mandated audits increased from 17 to 22. 
Department of the Treasury – Budget in Brief 

Therefore, for the Office of Audit (OA), a 

reduction of FTE will result in a higher 

percentage of resources being devoted to 

mandated audits versus the high-risk audits 

that are more likely to result in quantifiable 

outcomes, such as cost savings, revenue 

protection, and taxpayer privacy and security. 

For the Office of Investigations (OI), staffing 

reductions will limit TIGTA’s ability to 

respond to every allegation of IRS employee 

misconduct, and it will extend the amount of 

time it takes to investigate all of the allegations 

received by TIGTA. 

Operating Cost Reductions -$2,584,000 / +0 

FTE 

TIGTA has closely scrutinized its operational 

requirements for the impact of budget 

reductions. With the reduction in FTE levels 

in Audit and Investigations Activities, there 

will be a corresponding reduction in 

operational costs. TIGTA continues to 

identify cost-savings in travel, training, and 

contracts. Further cuts will be made in these 

areas to reduce budget impact on TIGTA’s 

staffing levels. TIGTA will look for contract 

efficiencies from continued evaluation of 

contracts for strategic sourcing and negotiation 

of more advantageous contract terms. 

Additionally, TIGTA has aggressively 

implemented its telework program in order to 

reduce its footprint. 

Explanation of Budget Activities 

Audit $62,704,000 from direct 

appropriations 

TIGTA’s audit work is concentrated on highrisk areas and the IRS’s progress in achieving 

its strategic goals. TIGTA strategically 

evaluates IRS programs, activities, and 

functions so that resources are expended in the 

areas of highest vulnerability of the Nation’s 

system of tax administration. TIGTA’s audit 

program includes both statutory audit 

requirements and specific audits identified 

through TIGTA’s risk-assessment process. By 

focusing on the most critical areas, TIGTA 

identifies and recommends improvements that 

add value while addressing high-risk tax 

administration issues. TIGTA’s audits and 

recommendations help promote the economy, 

efficiency, and effectiveness of IRS programs; 

ensure the fair and equitable treatment of 

taxpayers; and detect and deter waste, fraud, 

and abuse. 

During FY 2016, OA issued 89 audit reports 

that included potential financial benefits of 

approximately $14.6 billion a n d affected 

approximately 1 million taxpayer accounts. In 

FY 2014, several k e y Affordable Care Act 

(ACA) provisions became effective. 

Beginning in Calendar Year 2014, most 

individuals were required to maintain 

minimum essential coverage, and some low to 

middle-income individuals are eligible to 

receive the Premium Tax Credit. As such, 

FY 2015 and FY 2016 were significant years 

for oversight of ACA provisions. TIGTA’s 

independent oversight plays a key role in 

ensuring that these provisions are 

implemented and administered in accordance 

with the law and the intent of Congress. 

Investigations $98,409,000 from direct 

appropriations, $600,000 from 

reimbursable resources 

TIGTA has a statutory responsibility to protect 

the integrity of tax administration and to 

protect the ability of the IRS to collect revenue 

for the Federal Government. To accomplish 

this, TIGTA investigates allegations of serious 

administrative and criminal misconduct 

committed by IRS employees. TIGTA’s 

investigative resources focus on three primary 

areas of investigation: Employee Integrity; 

Employee and Infrastructure Security; and 

External Attempts to Corrupt Tax 

Administration. 

Employee Integrity: IRS employee 

misconduct, real or perceived, can erode 

public trust and impede the IRS’s ability to 
Department of the Treasury – Budget in Brief 

enforce tax laws effectively. This misconduct 

manifests itself in a variety of ways, including 

misuse of IRS resources or authority; theft; 

fraud; extortion; taxpayer abuses; and 

unauthorized access to, and disclosure of, tax 

return information. During FY 2016, 45 

percent of TIGTA’s investigative body of 

work involved alleged employee misconduct. 

TIGTA’s special agents possess the 

knowledge, skills, and expertise to investigate 

such matters. TIGTA’s investigation of 

employee misconduct conveys a message to 

IRS employees that these types of activities 

will not go unchecked. TIGTA promotes 

employee integrity by conducting proactive 

investigative initiatives to detect criminal 

activity and other serious misconduct in the 

administration of IRS programs. 

Employee and Infrastructure Security: 

Physical violence, harassment, and 

intimidation of IRS employees pose some of 

the most significant challenges to the 

implementation of a fair and effective system 

of tax administration. TIGTA’s investigative 

efforts place high priority on its oversight of 

IRS employee safety and physical security, 

protecting approximately 85,000 employees 

and 540 facilities throughout the country. 

TIGTA maintains IRS employee and 

infrastructure security by conducting 

investigations into incidents that threaten IRS 

employees, facilities, and infrastructure. The 

Inspector General Reform Act of 2008 

authorizes TIGTA to provide physical security 

to protect IRS employees against external 

threats. TIGTA works aggressively and takes 

swift action to protect IRS employees, 

including providing armed escorts to IRS 

employees in dangerous situations. 

External Attempts to Corrupt Tax 

Administration: TIGTA is statutorily 

mandated to investigate external attempts to 

corrupt tax administration, including criminal 

misconduct by nonemployees, such as 

impersonation of the IRS, attempted bribery 

of IRS employees, international cybercrime 

and identity theft, and procurement fraud. 

Many IRS employees are in direct contact with 

taxpayers and encounter situations in which a 

taxpayer may challenge the employee’s 

integrity with a bribe. Bribery or attempted 

bribery of a public official is a criminal 

offense and a threat to the integrity of the IRS 

and the Nation’s system of tax administration. 

 

Additionally, TIGTA is investigating 

nationwide IRS impersonation schemes, in 

which criminals are pretending to be IRS 

employees and are attempting to collect 

phantom tax liabilities from innocent 

taxpayers. A s o f M a r c h 3 1 , 2 0 1 7 , 

TIGTA received more than 1.9 million reports 

related to this type of contact; and more than 

10,300 taxpayers have been defrauded out of 

more than $55 million as a result of 

impersonation scams. 

In May 2015, the IRS reported to TIGTA that 

criminals used taxpayer-specific data acquired 

from non-IRS sources to successfully gain 

unauthorized access to more than 100,000 tax 

accounts through IRS’s “Get Transcript” 

application. In August 2015, as a result of 

TIGTA’s investigative findings, the IRS 

conducted a deeper analysis in which it 

identified an additional 220,000 successful 

attempts to clear the “Get Transcript” 

verification process by individuals with 

taxpayer-specific sensitive data. The updated 

review also identified an additional 170,000 

suspected attempts that failed to clear the 

authentication processes. Following TIGTA’s 

advice, the IRS disabled the “Get Transcript” 

application until this matter was investigated. 

On June 2016, after an extensive review, the 

IRS turned both the “Get Transcript” 

application and the associated EAuthentication gateway back on. However, 

the security of these two systems continues to 
Department of the Treasury – Budget in Brief 

be of great concern and OI is currently 

conducting investigations of recent breaches 

of the “new systems.” 

As part of its overall investigation into the 

data breach, OI is conducting an in-depth 

forensic review of more than 300,000 

accounts to determine if they were used for 

any other type of identity theft. The 

investigation will also identify the 

vulnerabilities that allowed the accounts to be 

stolen and will generate the evidence 

necessary to bring the responsible individuals 

to justice. 

Legislative Proposals 

TIGTA has no legislative proposals. 

TIGTA Performance Highlights

FY 2014 FY 2015 FY 2016 FY 2017 FY 2018

FY 2014 – 

FY 2016

Budget Activity Performance Measures Actual Actual Actual Target Target Trend

Audit

Percentage of Audit Products 

Delivered when Promised to 

Stakeholders

65.0 80.0 75.0 68.0 68.0

Audit

Percentage of 

Recommendations Made that 

Have Been Implemented

89.0 92.0 97.0 85.0 85.0

Investigations Percentage of Results from 

Investigative Activities 92.0 93.0 90.0 81.0 81.0

Key: DISC - Discontinued, B – Baseline 

Description of Performance 

 For FY 2016, OA issued 89 final audit 

reports identifying approximately $14.6 

billion in potential financial benefits. 

 For FY 2016, the actual Percentage of 

Audit Products Delivered when Promised 

to Stakeholders was 75 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 

audit products to stakeholders. 

 The FY 2016 actual Percentage of 

Recommendations Made that Have Been 

Implemented was 97 percent. TIGTA 

exceeded its target as a result of 

continuous discussions with the IRS 

throughout the audit process, both on the 

findings and on the potential recommended 

solutions, to ensure that feasible 

alternatives were identified. 

 For FY 2018, OA’s p e r f o r m a n c e 

targets are 68 percent of Audit 

Products Delivered when Promised to 

Stakeholders and 85 percent of 

Recommendations Made that Have Been 

Implemented. 

 During FY 2016, TIGTA initiated 16 

proactive investigative initiatives to detect 

systemic weaknesses or potential IRS 
Department of the Treasury – Budget in Brief 

program vulnerabilities. TIGTA processed 

14,499 complaints, opened 2,879 

investigations, and closed 2,887 

investigations in FY 2016. During this 

period, TIGTA referred for IRS action 

1,032 cases of employee misconduct, and 

122 cases of all types of investigations 

were accepted for criminal prosecution. 

 For FY 2016, the Percentage of Results 

from Investigative Activities was 

90 percent, which exceeded the full-year 

target of 81 percent. OI exceeded the 

FY 2016 performance measure as a result 

of the hard work of experienced 

executives, managers, and special agents. 

 For FY 2018, OI’s performance target is 

79 percent of Results from Investigative 

Activities. This number is adjusted to 

reflect the fewer number of experienced 

FTE which will decrease the total number 

of results OI will achieve as a result of its 

investigative activities.