Department of the Treasury 

Treasury Inspector General for 

Tax Administration 

Congressional Justification 

for Appropriations and Annual 

Performance Report and Plan 

FY 2018
TIGTA - 2 

Table of Contents

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

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

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

1.1 – Appropriations Detail Table .............................................................................................. 4

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

C – Budget Increases and Decreases Description ....................................................................... 5

1.3 – Operating Levels Table ...................................................................................................... 6

D – Appropriations Language and Explanation of Changes ...................................................... 7

E – Legislative Proposals ............................................................................................................ 7

Section II – Annual Performance Report and Plan ................................................................... 8

A – Strategic Alignment ............................................................................................................. 8

B – Budget and Performance by Budget Activity ...................................................................... 9

2.1.1 – Audit Resources and Measures ....................................................................................... 9

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

2.1.2 – Investigations Resources and Measures ........................................................................ 11

Investigations Budget and Performance ................................................................................... 11

Key Accomplishments and Budget Savings ............................................................................. 13

Section III – Additional Information ........................................................................................ 15

A – Summary of Capital Investments ....................................................................................... 15

 
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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) 2018 

budget request of $161,113,000 represents a decrease of 3.5 percent below its FY 2017 

Annualized Continuing Resolution (CR) amount. Funding TIGTA’s FY 2018 budget request 

will enable TIGTA to attempt to address its expansive workload of emerging Internal Revenue 

Service (IRS) challenges and congressional requests while conducting its oversight 

responsibilities. These resources will fund 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 2018 budget request: 

 The aggregate budget request for TIGTA operations is $161,113,000; 

 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 $491,000. 

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. TIGTA’s strategic goals and activities support its vision. 

TIGTA’s Strategic Goals: 

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

 Protect the integrity of tax administration; and 

 Be an organization that values its people. 

TIGTA’s audit, investigative, and inspection and evaluation activities 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 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; 

 

1

 5 U.S.C. app. 3 § 6(f)(1). 
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 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 

 Overseeing the IRS’s efforts to increase international tax compliance. 

1.1 – Appropriations Detail Table 

Dollars in Thousands

Treasury Inspector General for 

Tax Administration FY 2016 FY 2017 FY 2018 FY 2017 to FY 2018

Appropriated Resources Enacted Annualized CR Request $ Change % Change

FTE AMOUNT FTE AMOUNT FTE AMOUNT FTE AMOUNT FTEAMOUNT

New Appropriated Resources:

Audit 331 $65,100 358 $64,976 341 $62,704 (17) ($2,272) -4.75% -3.50%

Investigations 456 $102,175 501 $101,981 478 $98,409 (23) ($3,572) -4.59% -3.50%

Subtotal New Appropriated Resources 787 $167,275 859 $166,957 819 $161,113 (40) ($5,844) -4.66% -3.50%

Other Resources:

Reimbursables 2 $535 2 $1,500 2 $600 0 ($900) 0.00% -60.00%

Subtotal Other Resources 2 $535 2 $1,500 2 $600 0 ($900) 0.00% -60.00%

Total Budgetary Resources 789 $167,810 861 $168,457 821 $161,713 (40) ($6,744) -4.65% -4.00%

Note: FY 2016 FTE & Other Resources are Actual 

1.2 – Budget Adjustments Table

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 
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C – Budget Increases and Decreases Description 

Maintaining Current Levels (MCLs) .................................................... +$3,335,000 / +0 FTE 

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

Funds are requested for the proposed January 2018 pay-raise. 

Pay Annualization +$715,000 / +0 FTE 

Funds are requested 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 ............................................................................... -$9,179,000 / -40 FTE 

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. 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. 
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1.3 – Operating Levels Table 

Dollars in Thousands 

Treasury Inspector General for Tax Administration FY 2016 FY 2017 FY 2018 

Object Classification Actual Annualized CR Request 

 

11.1 - Full-time permanent 85,481 87,619 85,060 

11.3 - Other than full-time permanent 378 399 385 

11.5 - Other personnel compensation 8,326 8,534 8,158 

11.9 - Total personnel compensation 94,185 96,552 93,603 

12.0 - Personnel benefits 36,944 37,856 36,876 

Total Personnel and Compensation Benefits $131,129 $134,408 $130,479 

21.0 - Travel and transportation of persons 4,839 3,135 2,662 

22.0 - Transportation of things 14 15 15 

23.1 - Rental payments to GSA 8,881 9,400 9,400 

23.2 - Rental payments to others 182 200 200 

23.3 - Communication, utilities, and misc charges 472 500 400 

24.0 - Printing and reproduction 11 7 7 

25.1 - Advisory and assistance services 2,042 1,900 1,800 

25.2 - Other services from non-Federal sources 1,359 1,100 1,000 

25.3 - Other goods and services from Federal sources 9,603 9,200 9,100 

25.4 - Operation and maintenance of facilities 6 15 15 

25.7 - Operation and maintenance of equipment 2,657 2,000 1,730 

26.0 - Supplies and materials 1,221 1,000 700 

31.0 - Equipment 5,326 4,000 3,500 

42.0 - Insurance claims and indemnities 1 52 5 

91.0 - Unvouchered 115 25 100 

Total Non-Personnel $36,729 $32,549 $30,634 

New Budgetary Resources $167,858 $166,957 $161,113 

FTE 787 859 819 

Note: This table includes total annually appropriated funding (actuals for FY 2016, FY 2017 Annualized CR and FY 2018). 
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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; $161,113,000, of which 

$5,000,000 shall remain available until September 30, 2019; 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. 

Note.—A full-year 2017 appropriation for this account was not 

enacted at the time the budget was prepared; therefore, the budget 

assumes this account is operating under the Further Continuing 

Appropriations Act, 2017 (P.L. 114-254). The amounts included 

for 2017 reflect the annualized level provided by the continuing 

resolution. 

E – Legislative Proposals 

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

A – Strategic Alignment 

TIGTA, an independent office within the Department of the Treasury, was created by Congress 

as a part of the Internal Revenue Service Restructuring and Reform Act of 1998 (RRA 98).2 It 

provides independent 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 makes recommendations designed to improve 

the administration of the Federal tax system; conducts administrative and criminal investigations 

of allegations of waste, fraud, and abuse; and helps to ensure that the IRS protects and secures 

taxpayers’ data. TIGTA also has the unique responsibility of protecting the IRS and its 

employees. TIGTA’s role is important, given the current economic environment and the 

increased emphasis by the Administration, Congress, and the American people on the Federal 

Government’s accountability and efficient use of resources. TIGTA’s budget activities align 

with its vision and goals. 

The FY 2018 - 2022 strategic plan is currently under development. The annual performance plan 

will be updated in the FY 2019 budget to reflect the new priorities. 

 

2

 Pub. L. No. 105-206, 112 Stat. 685. 
TIGTA - 9 

B – Budget and Performance by Budget Activity 

2.1.1 – Audit Resources and Measures 

Dollars in Thousands 

 Resource Level FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 

 Actual Actual Actual Actual Actual Annualized 

CR Request 

Column1 Column32 Column4 Column5 Column6 Column7 Column8 Column9 

 Appropriated Resources $57,306 $54,309 $53,763 $57,463 $59,752 $64,976 $62,704 

 Reimbursable Resources 0 $500 $600 $382 $60 $600 $0 

Budget Activity Total $57,306 $54,809 $54,363 $57,845 $59,812 $65,576 $62,704 

FTE 337 323 309 316 331 358 341 

Note: FY 2016 Appropriated and Reimbursable Resources are Actual 

  Measure FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2016 FY 2017 FY 2018 FY 2012 - 

Actual Actual Actual Actual Actual Target Target Target FY 2016 

Trend

Percentage of Audit Products 

Delivered when Promised to 

Stakeholders

71.0 84.0 65.0 80.0 75.0 68.0 68.0 68.0

Percentage of 

Recommendations Made that 

Have Been Implemented

94.0 87.0 89.0 92.0 97.0 85.0 85.0 85.0

Key: DISC - Discontinued, B – Baseline 

Audit Budget and Performance 

($62,704,000 from direct appropriations): 

TIGTA’s OA identifies opportunities to improve the administration of the Nation’s tax laws by 

completing comprehensive and independent performance and financial audits of IRS programs 

and operations. TIGTA’s audit program incorporates both statutory audit requirements and 

specific audits identified through TIGTA’s risk assessment process. TIGTA’s audit work is 

concentrated on high-risk areas and on the IRS’s progress in achieving its strategic goals. 

TIGTA strategically evaluates IRS programs, activities, and functions, so that resources are spent 

in the areas of highest vulnerability to the Nation’s system of tax administration. In FY 2016, 

OA issued 89 final audit reports that included potential financial benefits totaling approximately 

$14.6 billion and affected approximately 1 million taxpayer accounts. 

TIGTA’s Annual Audit Plan communicates audit priorities to the IRS, Congress, and other 

interested parties. Many of the activities described in the Annual Audit Plan address the 

fundamental goals related to the IRS’s mission to administer its programs effectively and 

efficiently. Audits address 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, and globalization. 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. 
TIGTA - 10 

By focusing on the most critical areas, TIGTA’s recommendations not only result in cost 

savings, but also have other quantifiable impacts, such as the protection of existing revenue, 

increased revenue, and reduction of the number of fraudulent refunds and improper payments. 

TIGTA’s reports for FY 2016, addressed issues that included: 

 Offset Refunds to Liquidate Existing Tax Debt – TIGTA identified 53,672 individual 

taxpayers who received approximately $74.5 million in tax refunds in Tax Year 2013 that the 

IRS could have offset against outstanding tax debts on the taxpayers’ associated business tax 

accounts. In addition, TIGTA identified 487 individual and 29 business taxpayers that 

received more than $2.9 million in tax refunds for TY 2013 that should have been offset to 

pay their outstanding tax debts. 

 Authentication Process – In FY 2016, TIGTA reported that its analysis of the eAuthentication processes used to authenticate users of the IRS online “Get Transcript” and 

“Identity Protection Personal Identification Number" applications found that these 

authentication methods provide only single-factor authentication, despite Government 

standards requiring multifactor authentication for such high-risk applications. As a result, 

unscrupulous individuals have gained unauthorized access to tax account information. 

 Federal Unemployment Tax – During FY 2016, TIGTA identified some discrepancies with 

the State Federal Unemployment Tax Act certification data files, as well as the IRS’s process 

related to multi-State employer accounts. Changes could potentially increase revenue by 

almost $92 million. 

Description of Performance: 

TIGTA uses two performance measures to gauge the success of the audit program. The first 

measure, Percentage of Audit Products Delivered when Promised to Stakeholder (see Table 2.1.1 

on page 9), indicates that TIGTA’s products are more likely to be used 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).

The second measure, Percentage of Recommendations Made that Have Been Implemented (see 

Table 2.1.1 on page 9), assesses TIGTA’s effect on improving the IRS’s accountability, 

operations, and services. TIGTA makes recommendations designed to improve the 

administration of the Federal tax system. The IRS must implement these recommendations to 

realize the financial or non-financial benefits. Since the IRS needs time to act on 

recommendations, TIGTA uses the Department of the Treasury’s Joint Audit Management 

Enterprise System to track the percentage of four-year-old recommendations that have been 

implemented, rather than the results of the activities during the fiscal year in which the 

recommendations are made. TIGTA tracks recommendations that have not been implemented 

by the IRS and has a formal process with the IRS to close out unimplemented recommendations 

in situations in which circumstances may have changed or when the IRS has taken alternative 

corrective measures to address TIGTA’s audit findings. 

In 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 
TIGTA - 11 

a result of ongoing supervisory monitoring of the execution of audits to ensure timely audit 

products to stakeholders. In FY 2016, the actual Percentage of Recommendations Made that 

Have Been Implemented was 97 percent, which exceeded the full-year target of 85 percent. 

TIGTA exceeded its target because of continuous discussions with the IRS throughout the audit 

process concerning both the findings and potential recommended solutions to ensure that feasible 

alternatives were identified. For FY 2018, the target for Percentage of Audit Products Delivered 

when Promised to Stakeholders will remain 68 percent. The target for Percentage of 

Recommendations Made that Have Been Implemented will remain at 85 percent.

2.1.2 – Investigations Resources and Measures 

Dollars in Thousands 

 Resource Level FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 

 Actual Actual Actual Actual Actual Annualized 

CR Request 

Column1 Column32 Column4 Column5 Column6 Column7 Column8 Column9 

 Appropriated Resources $94,390 $89,452 $95,748 $101,476 $108,106 $101,981 $98,409 

 Reimbursable Resources 0 $400 $1,100 $429 $475 $900 $600 

Budget Activity Total $94,390 $89,852 $96,848 $101,905 $108,581 $102,881 $99,009 

FTE 470 451 433 442 456 501 478 

Note: FY 2016 Appropriated and Reimbursable Resources are Actual 

Measure FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2016 FY 2017 FY 2018 FY 2012 - 

Actual Actual Actual Actual Actual Target Target Target FY 2016 

Trend

Percentage of Results from 

Investigative Activities

89.0 90.0 92.0 93.0 90.0 81.0 81.0 81.0

Key: DISC - Discontinued, B - Baseline

Investigations Budget and Performance 

($98,409,000 from direct appropriations, and $600,000 from reimbursable resources): 

In addition to protecting the IRS’s ability to collect the majority of the revenue for the Federal 

Government’s operations, TIGTA, through its OI, has the statutory responsibility of protecting 

the integrity of tax administration, as well as the IRS’s employees. 

TIGTA’s investigative resources are allocated based 

upon a performance model that focuses on three 

primary areas of investigation: 

 Employee integrity; 

 Employee and infrastructure security; and 

 External attempts to corrupt tax administration. 

The performance model (Figure 1) 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 investigative accomplishments to TIGTA’s external stakeholders. 

Figure 1: Investigative Performance Model
TIGTA - 12 

Employee Integrity: IRS employee misconduct, real or perceived, erodes public trust and 

impedes the IRS’s ability to enforce tax laws effectively. In FY 2016, 45 percent of TIGTA’s 

investigative body of work involved alleged employee misconduct. TIGTA’s investigative 

results convey a message to IRS employees that these types of activities will not go unchecked. 

TIGTA processed 14,499 complaints, opened 2,879 investigations, and closed 2,887 

investigations in FY 2016. During this period, 122 cases of all types of investigations were 

accepted for criminal prosecution, and TIGTA referred for IRS action 1,032 cases of employee 

misconduct. As a result of one of TIGTA’s investigations into employee misconduct, a former 

IRS special agent was sentenced to more than five years in prison for his role in a stolen identity 

refund fraud scheme.3

 In another case, a former IRS revenue agent in Seattle, Washington, was 

found guilty by a jury of receiving a bribe and an illegal gratuity in his official capacity.4

Employee and Infrastructure Security: In FY 2016, TIGTA responded to 949 threat-related 

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

against IRS personnel and physical infrastructure. TIGTA also believes that through its 

investigations of threat-related incidents, it is creating a safe and secure environment for 

taxpayers who need to conduct business with the IRS. From FY 2011 through the end of 

FY 2016, TIGTA has processed more than 13,125 threat-related complaints and investigated 

more than 6,515 threats against IRS employees. 

External Attempts to Corrupt Tax Administration: TIGTA is statutorily mandated to 

investigate external attempts to corrupt tax administration, which include criminal misconduct by 

nonemployees, such as impersonation of the IRS, attempted bribery of IRS employees, 

international cybercrime and identity theft, and procurement fraud. 

Impersonation Scam: Since summer 2013, a significant part of TIGTA’s workload has 

consisted of investigating a telephone impersonation scam in which a victim receives an 

unsolicited telephone call from a person claiming to be an IRS agent. 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. 

As of March 31, 2017, more than 1.9 million Americans reported that they have received one of 

these calls, and 10,300 victims have reported that they paid a total of more than $55 million to 

the scammers. As a direct result of TIGTA’s investigative efforts, in October 2016, 56 

individuals and five call centers located in India were indicted for the scam. Since the 

indictment, reports of impersonation calls have dropped by more than 90 percent. 

International Cybercrime and Identity Theft: By the end of Calendar Year 2013, the IRS had 

reported nearly 2.9 million identity-theft cases, 13 percent of which were reported by taxpayers, 

and 87 percent of which were detected by the IRS. The Office of Investigation’s highly 

specialized group of criminal investigators with technical expertise in investigating electronic 

 

3

 N.D. Ala. Judgment filed Nov. 16, 2015. 

4

 W.D. Wash. Verdict Form filed Feb. 12, 2016. 
TIGTA - 13 

crimes, including computer intrusions and Internet-based fraud schemes, will continue to combat 

cybercriminals. 

Procurement Fraud: In fiscal year 2016, the IRS awarded over $2.2 billion in contracts and 

grants involving over 11,000 contract transactions. The 2016 Association of Certified Fraud 

Examiners Report to the Nations on Occupational Fraud and Abuse estimates that on average, 

five percent of an organization’s revenue is lost as a result of fraud on an annual basis. In the 

case of the IRS, this projection translates to over $112 million lost to fraud in fiscal year 2016. 

 

Description of Performance: 

TIGTA’s OI has adopted one performance measure, Percentage of Results from Investigative 

Activities (see Table 2.1.2 on page 11), that identifies 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. In 

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. With the FY 

2018 budget request, TIGTA will attempt to maintain its special agents’ skills and abilities in 

order to be able to respond to its mission requirements. For FY 2018, OI’s performance target is 

79 Percent of Results from Investigative Activities. For FY 2018, TIGTA is anticipating a high 

rate of turnover of its management team due to retirements. In addition, based on reduced 

resources, TIGTA is anticipating the inability to backfill special agent positions. As experienced 

special agents retire or transfer from the agency, it is anticipated that TIGTA’s ability to 

effectively produce results will decrease in FY 2018. 

Key Accomplishments and Budget Savings 

While the scope, complexity, and magnitude of the Nation’s economy and deficit continue to 

present significant challenges, TIGTA remains one of the best investments in the Federal 

Government. In FY 2016, through targeted and vigorous oversight efforts that addressed 

congressional concerns and its own audit and investigative priorities, TIGTA generated overall 

potential financial accomplishments of over $15 billion. 

During FY 2016, these financial accomplishments included: 

 Increased and/or protected revenue in the amount of $14.6 billion; 

 Cost savings of $40.8 million; and 

 Significant investigative accomplishments of $487 million. 

Funding for TIGTA allows its oversight efforts to 

continue, and in FY 2016 these efforts produced a 

return on investment of $90 for every $1 invested 

(Figure 2). During that period, TIGTA issued audit 

reports with recommendations that potentially 

increased and/or protected revenue of $14.6 billion. 

TIGTA also issued audit reports with 

recommendations that identified a potential cost 

savings of $40.8 million. The phrase “cost savings” Figure 2: TIGTA’s Return on Investment 
TIGTA - 14 

includes questioned costs and funds put to better use. 

Questioned costs are: 

 Costs that cannot be reimbursed because they represent a violation of law, regulation, or 

contract; 

 Expenditures that are not reasonable or necessary to accomplish the intended purpose; and 

 Costs that are appropriate, but for which the vendor cannot provide proof that the cost was 

incurred. 

Funds put to better use are funds that could be used more efficiently or effectively if 

management took actions to implement the recommendation(s), including but not limited to: 

 Reductions in outlays; 

 Avoidance of unnecessary expenditures noted in pre-award contract reviews; and 

 Prevention of erroneous payment of refundable tax credits. 

In addition to funds that could be put to better use, TIGTA’s investigative efforts resulted in over 

$25.5 million in court-ordered fines, penalties, and restitution. 

Office of Inspections and Evaluations Highlights

The Office of Inspections and Evaluations (I&E) identifies opportunities for improvement in IRS 

and TIGTA programs by performing inspections and evaluations that report timely, useful, and 

reliable information to decision makers and stakeholders. 

The Office of Inspections and Evaluations provides a range of specialized services and products, 

including quick reaction reviews, on-site office inspections, and in-depth evaluations of major 

functions, activities, or programs. These activities provide TIGTA with additional flexibility, 

capacity, and capability to improve tax administration. Inspections serve to: 

 Provide factual and analytical information; 

 Monitor compliance; 

 Measure performance; 

 Assess the effectiveness of programs and operations; 

 Share best practices; and 

 Inquire into allegations of waste, fraud, abuse, and mismanagement. 

Evaluations often result in recommendations to streamline IRS operations, enhance data quality, 

and minimize inefficient and ineffective procedures. In FY 2016, I&E produced 11 reports, 

including reviews of: the IRS taxpayer assistance centers, IRS reasonable accommodation 

requests for adaptive technology, and procedures to protect taxpayer information at offer in 

compromise public inspection file locations. 
TIGTA - 15 

Section III – Additional Information 

A – Summary of Capital Investments 

Technology Investments – TIGTA has no major IT investments; however, non-major 

investments include: 

 IT Applications and Collaboration – This investment represents an enterprise view of 

TIGTA's applications development which includes system design, development, testing, 

deployment, and maintenance of information applications systems.

 IT Infrastructure End-User Systems and Support – This investment is an enterprise view 

of TIGTA's end-user hardware, peripherals and software, and the helpdesk.

 IT Infrastructure Mainframe and Servers Services and Support – This investment 

represents an enterprise view of TIGTA's servers, including hardware and software 

operations, licensing, maintenance, back-up, continuity of operations, disaster recovery, 

virtualization, and data center consolidation.

 IT Infrastructure Telecommunications – This investment represents an enterprise view of 

TIGTA's data networks and telecommunications hardware and software operations, licenses, 

maintenance, back-up, continuity of operations, and disaster recovery.

 IT Security Systems and Enterprise Architecture – This investment represents TIGTA's 

IT investments responsible for enterprise architecture services.

The Office of Information Technology provides cost-effective and timely IT products and 

services that permit successful completion of TIGTA’s business goals, while at the same time 

meeting legislative and other executive mandates. The following are TIGTA’s FY 2018 

prioritized information technology requirements that directly support TIGTA operations: 

 Continuous Diagnostics and Mitigation (CDM) – CDM is a program sponsored by the 

Department of Homeland Security to meet the standard requirements set by the National 

Institutes of Standards and Technology. The program is intended to provide Federal agencies 

with the capabilities and tools to identify and address cybersecurity risks.

 Server and Storage Area Network Refresh 2018 – TIGTA’s infrastructure equipment will 

be eligible for refresh in FY 2018. 

 Increased Bandwidth – The bandwidth for TIGTA’s field offices must be upgraded to 

support the increased demand for improved transmission of data. 

Law Enforcement Vehicles – Effective FY 2014, TIGTA acquires its vehicles by lease through 

the General Services Administration. However, TIGTA will maintain ownership of 

approximately 8 surveillance/communications vehicles. These vehicles will remain part of 

TIGTA’s capital asset strategy. The vehicles will be used to support TIGTA’s investigations and 

must meet the mission-critical need to conduct criminal law enforcement activities. TIGTA 

communications vehicles also are used in support of its Continuity of Operations (COOP) Plan. 

COOP provides a mechanism for the organization to recover full operational capability following 

a critical incident, including the capability to communicate during a local or national emergency.

A summary of capital investment resources, including major IT and non-technology investments, 

can be viewed and downloaded at: 

http://www.treasury.gov/about/budget-performance/Pages/summary-of-capital-investments.aspx 

This website also contains a digital copy of this document.