Treasury Inspector General for Tax Administration

Program Summary by Budget Activity

Dollars in Thousands

FY 2019 FY 2020 FY 2021 FY 2020 to FY 2021

Budget Activity Operating Plan Enacted Request $ Change % Change

Audit $66,260 $66,260 $66,667 $407 0.61%

Investigations $103,990 $103,990 $104,683 $693 0.67%

Subtotal, TIGTA $170,250 $170,250 $171,350 $1,100 0.65%

Offsetting Collections - Reimbursable $798 $500 $500 $0 0.00%

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

Unobligated Balances Brought Forward $5,000 $5,000 $5,000 $0 0.00%

Total Program Operating Level $7,939 $5,500 $5,500 $0 0.00%

Direct FTE 736 800 800 0 0.00%

Reimbursable FTE 2 2 2 0 0.00%

Total Full-time Equivalents (FTE) 738 802 802 0 0.00%

Note: FY 2019 FTE & Other Resources are Actual

Summary

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

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

budget. 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.” Although there are a number of critical areas in which 

TIGTA will provide oversight, its FY 2021 priorities include: 

 Identifying opportunities to improve the administration of the Nation’s tax laws, improve tax 

compliance, and achieve program efficiencies and cost savings; 

 Overseeing the Internal Revenue Service’s (IRS) efforts to implement tax law changes; 

 Assessing the IRS’s efforts to address tax-related identity theft; 

 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 2.5 million Americans; 

 Conducting criminal investigations of individuals and groups who impersonate the IRS in 

order to victimize senior citizens and other vulnerable Americans; 

 Conducting advanced analytics and innovative approaches to help prevent and detect the 

flow of dollars fraudulently obtained by criminals and dishonest IRS employees; 

 Enhancing taxpayer confidence in electronic Federal tax administration through vigorous 

investigation and prosecution of cyber criminals engaged in attacks against, and manipulation 

of, IRS taxpayer service portals as well as the IRS network; 

 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; and 
 Conducting comprehensive audits, inspections and evaluations that provide 

recommendations for achieving monetary benefits, addressing erroneous and improper 

payments, and enhancing the service the IRS provides to taxpayers.

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 administrative and criminal investigations ensure the 

integrity of IRS employees, protect the IRS and its employees, and help the IRS protect and 

secure taxpayer data. TIGTA’s Office of 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 fairness of the IRS’s tax administration 

system. TIGTA ensures that taxpayers can have confidence that the IRS collects more than $3.5 

trillion in tax revenue in an effective and efficient manner. 

TIGTA’s primary functions of audit, investigations, inspections, and evaluations align with the 

following Department of the Treasury FY 2018 – FY 2022 Strategic Plan goals: 

Goal 1: Boost U.S. Economic Growth; 

Goal 4: Transform Government-wide Financial Stewardship; and 

Goal 5: Achieve Operational Excellence. 

Budget Highlights

Dollars in Thousands

Treasury Inspector General for Tax Administration 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 Decreases:

Operating Cost Reduction 0 ($3,254)

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

Budget Adjustments

Maintaining Current Levels.....................................................+$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.

Legislative Proposals 

TIGTA has no legislative proposals.

Performance Highlights 

FY 2017 FY 2018 FY 2019 FY 2020 FY 2021

Budget Activity Performance Measure Actual Actual Actual Target Target

Audit Percentage of Audit Products Delivered 

When Promised to Stakeholders 79 81 84 70 70

Audit Percentage of Recommendations Made 

That Have Been Implemented 92 85 83 85 85

Investigations

Percentage of Closed Investigations 

Resulting in a Criminal, Administrative, 

or Law Enforcement Action

90 89 91 81 85

Description of Performance

 For FY 2019, the Office of Audit (OA) issued 97 audit reports and other products 

identifying approximately $28.1 billion in potential financial benefits.

 For FY 2019, the actual Percentage of Audit Products Delivered When Promised to 

Stakeholders was 84 percent. TIGTA exceeded the full-year target by 16 percentage points.

 For FY 2019, the actual Percentage of Recommendations Made That Have Been 

Implemented was 83 percent. TIGTA did not meet the 85 percent target due in part to the 

IRS having to put recommendations on hold or delay implementation due to funding 

issues. TIGTA is working with the IRS to prioritize these unimplemented 

recommendations.

 For FY 2021, OA’s performance targets are 70 percent of Audit Products Delivered When 

Promised to Stakeholders and 85 percent of Recommendations Made That Have Been 

Implemented. 

 During FY 2019, TIGTA initiated 25 proactive investigative initiatives to detect systemic 

weaknesses or potential IRS program vulnerabilities. TIGTA processed 8,320 complaints, 

opened 2,356 investigations, and closed 2,237 investigations in FY 2019. During this period, 

TIGTA referred for IRS action 1,079 cases of employee misconduct and 119 cases of all 

types of investigations were accepted for criminal prosecution. 

 For FY 2019, the Percentage of Closed Investigations Resulting in a Criminal, 

Administrative, or Law Enforcement Action was 91 percent, which exceeded the full-year 

target of 79 percent by 12 percentage points. The Office of Investigations (OI) exceeded the 
FY 2019 performance measure as a result of the hard work of experienced executives, 

managers, and special agents. 

 For FY 2021, OI’s performance target will increase to 85 percent. 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 

systems. In addition, OI will maintain the availability of highly trained personnel to address 

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

compromising of IRS computer systems in the expanding digital environment of Federal tax 

administration, which will contribute to maintaining the public’s confidence in the safe, fair, 

and effective administration of the Nation’s Federal tax system.