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Overview

Mission Statement

To provide integrated audit, investigative, and inspection and evaluation services that promote 

economy, efficiency, and integrity in the administration of the internal revenue laws.

Program Summary by Budget Activity

Dollars in Thousands

Appropriation FY 2010 FY 2011 FY 2012 FY 2010 to FY 2012

Enacted Annualized

CR Level

Request $ Change % Change

 Audit $57,421 $57,421 $62,357 $4,936 8.6%

 Investigations $94,579 $94,579 $95,474 $895 0.9%

Total Appropriated Resources $152,000 $152,000 $157,831 $5,831 3.8%

Total FTE 835 835 864 29 3.5%

FY 2012 Priorities

• Adapting to the Internal Revenue Service’s (IRS) continuously evolving operations and 

mitigating intensified risks associated with modernization, security, addressing the Tax Gap, 

and human capital challenges facing the IRS in domestic and international operations in 

order to increase voluntary tax compliance;

• Responding to domestic and international threats and attacks against IRS employees, 

property, and sensitive information;

• Improving the integrity of IRS operations by detecting and deterring fraud, waste, abuse, and 

misconduct by IRS employees; 

• Conducting comprehensive audits, inspections, and evaluations that include 

recommendations for monetary benefits and enhancing IRS’s service to taxpayers; 

• Informing the American people, the Congress, and the Secretary of the Treasury of problems 

and progress made to resolve them; and

• Overseeing the IRS’s efforts to administer the tax provisions of the American Recovery and 

Reinvestment Act of 2009 (Recovery Act), the Patient Protection and Affordable Care Act, 

and the Health Care and Education Reconciliation Act of 2010. These two pieces of 

legislation are referred to as the Affordable Care Act (ACA).
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Table of Contents

Overview ........................................................................................................................................ 1

Mission Statement....................................................................................................................... 1

Program Summary by Budget Activity....................................................................................... 1

FY 2012 Priorities....................................................................................................................... 1

Section 1 – Purpose ....................................................................................................................... 3

1A – Description of Bureau Vision and Priorities...................................................................... 3

1B – Program History and Future Outlook ................................................................................. 4

Section 2 – Budget Adjustments and Appropriation Language............................................. 11

2.1 – Budget Adjustments Table............................................................................................... 11

2A – Budget Increases and Decreases Description................................................................... 11

2.2 – Operating Levels Table .................................................................................................... 13

2.3 – Appropriations Detail Table............................................................................................. 14

2B – Appropriations Language and Explanation of Changes................................................... 14

2C – Legislative Proposals........................................................................................................ 15

Section 3 – Budget and Performance Plan ............................................................................... 16

3.1 – Budget by Strategic Outcome .......................................................................................... 16

3.2.1 Audit Budget and Performance Plan................................................................................ 19

3.2.2 Investigations Budget and Performance Plan................................................................... 22

Section 4 – Supporting Materials .............................................................................................. 23

4A – Human Capital Strategy Description................................................................................ 23

4.1 – Summary of IT Resources Table...................................................................................... 26

4B – Information Technology Strategy..................................................................................... 27
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Section 1 – Purpose

1A – Description of Bureau Vision and Priorities

The Treasury Inspector General for Tax Administration (TIGTA) was created by the Congress as 

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

TIGTA’s work is devoted to all aspects of activity related to the federal tax system as 

administered by the Internal Revenue Service (IRS). As one of 69 federal offices of Inspector 

General, TIGTA reviews IRS programs, makes recommendations to improve their effectiveness 

and efficiency, and investigates allegations of fraud, waste, and abuse. TIGTA conducts audits 

that advise the American people, the Congress, the Secretary of the Treasury, and IRS’s

management of high-risk issues, problems, and deficiencies related to the administration of IRS 

programs and operations. TIGTA’s audit recommendations aim to improve IRS systems and 

operations, while maintaining fair and equitable treatment of taxpayers. TIGTA’s investigations 

ensure the integrity of IRS employees, contractors, and tax professionals; provide for 

infrastructure security; and protect the IRS from external attempts to threaten or corrupt the 

administration of the tax laws. TIGTA’s Office of Inspections and Evaluations (I&E) provides 

responsive, timely, and cost-effective inspections and evaluations of IRS challenge areas. 

TIGTA’s oversight is essential to the efficiency and equity of the federal tax administration 

system. TIGTA ensures that the American taxpayer can have confidence that the IRS collects 

over $2 trillion in tax revenue in an effective and efficient manner without fraud and abuse.

TIGTA’s FY 2012 budget request of $157,831,000 represents an increase of 3.8 percent above 

the FY 2010 budget. These resources will finance critical audit, investigative, and inspection 

and evaluation services to protect the integrity of tax administration on behalf of the nation’s 

taxpayers. TIGTA’s audit, investigative, and inspection and evaluation priorities include:

• Adapting to the Internal Revenue Service’s (IRS) continuously evolving operations and 

mitigating intensified risks associated with modernization and security, addressing the Tax 

Gap, and human capital challenges facing the IRS in domestic and international operations in 

order to increase voluntary tax compliance;

• Responding to domestic and foreign threats and attacks against IRS employees, property, and 

sensitive information;

• Improving the integrity of IRS operations by detecting and deterring fraud, waste, abuse or 

misconduct by IRS employees; 

• Conducting comprehensive audits, inspections, and evaluations that include 

recommendations for monetary benefits and enhancing IRS’s service to taxpayers; 

• Informing the American people, the Congress, and the Secretary of the Treasury of problems 

and progress made to resolve them; and

• Overseeing the IRS’s efforts to administer tax provisions of the American Recovery and 

Reinvestment Act of 2009 (Recovery Act), the Patient Protection and Affordable Care Act, 

and the Health Care and Education Reconciliation Act of 2010 (ACA).

Additionally, TIGTA’s strategic goals contribute to the Department’s priority performance goal 

to significantly increase voluntary tax compliance.
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TIGTA’s commitment to valuing its people was recognized in the Partnership for Public 

Service’s 2010 Best Places to Work rankings. TIGTA placed 18 out of 224 in the overall index 

score measuring the performance of agency subcomponents related to employee satisfaction and 

commitment. This ranking is based on the Office of Personnel Management’s (OPM) biennial 

Federal Human Capital Survey, which federal agencies use as benchmarks to measure their 

performance. The 2010 survey was renamed the “Federal Employee Viewpoint Survey (EVS).” 

TIGTA’s response rate of 79 percent was second place among the Treasury bureaus and higher 

than the government average. Survey results provided valuable insight into the challenges 

agency leaders face in ensuring that TIGTA has an effective civilian workforce and how well 

they are responding. The survey highlights stated that TIGTA employees continue to be happy 

with their jobs and feel their work is important. The vast majority believe TIGTA is 

accomplishing its mission and would recommend it as a good place to work. 

In FY 2012, TIGTA will face the challenge of adapting its oversight activities to address the

complex and high-risk issues associated with IRS implementation of ACA legislation. TIGTA 

requests $5,600,000 to provide oversight of the IRS implementation of ACA. This effort will be 

in addition to TIGTA’s continuing work including assessing IRS tax compliance initiatives, 

evaluating the IRS’s efforts to administer tax provisions in the Recovery Act, detecting and 

investigating fraud and electronic crime, reviewing procurement activities, safeguarding taxpayer 

privacy, evaluating IRS Human Capital activities, and addressing requests for IRS program 

reviews from the Congress and other IRS stakeholders. Each of these issues presents significant 

challenges for both TIGTA and the IRS.

In accordance with the requirements of Section 6(f)(1) of the Inspector General Act of 1978 (as 

amended), the Treasury Inspector General for Tax Administration submits the following 

information related to its requested budget for FY 2012:

• The aggregate budget request for the operations of TIGTA is $157,831,000; 

• The portion of the request needed for TIGTA training is $2,692,000; and

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

Integrity and Efficiency (CIGIE) is $380,000.

The amount requested for training satisfies all TIGTA training needs for fiscal year 2012.

1B – Program History and Future Outlook

Previously a longstanding oversight office within the IRS, TIGTA was established as an 

independent office in January 1999 in accordance with RRA 98. TIGTA is mandated to provide 

independent audit, investigative, and inspection and evaluation services necessary to improve the 

quality and credibility of IRS operations, including oversight of the IRS Chief Counsel and the 

IRS Oversight Board. TIGTA’s audits, investigations, and inspections and evaluations are 

integral to the equitable treatment of taxpayers by the IRS, and in ensuring that collection of 

federal revenue is completed in a fair, efficient and effective manner that is secure from internal 

and external threats. Oversight activities are explicitly designed to identify high-risk systemic 

inefficiencies in IRS operations and to investigate exploited weaknesses in tax administration.
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In FY 2008, TIGTA’s Office of I&E began its first year of operation as a separate office after a 

successful pilot project during FY 2006 and FY 2007. I&E complements the work of the audit 

and investigative functions and provides TIGTA with additional flexibilities and capabilities to 

meet its mission and address increasing requests for IRS program reviews from the Congress and 

other IRS stakeholders. The scope of the group’s efforts ranges from answering Congressional 

concerns to evaluating IRS’s ability to administer the tax laws. I&E will continue to provide 

TIGTA the ability to conduct in-depth evaluations of major IRS functions, activities, and 

programs. I&E has positioned TIGTA well to respond to external stakeholders in a rapid 

response mode. As the group continues its work, I&E expects its influence in overseeing tax 

administration to grow and its service of informing interested parties to expand.

The passage of the Recovery Act provided funding for the additional workload that has arisen 

from overseeing IRS efforts to implement a variety of economic stimulus measures. A key 

component of the Recovery Act is the implementation of 56 tax provisions by the IRS. TIGTA’s 

program plan includes detailed information on all ongoing and planned activities. Recovery 

work is allowing TIGTA to revise coordination procedures with the IRS to make interim reports 

more readily available to the public on TIGTA’s website and Recovery.gov; successful Recovery 

coordination changes will have a positive long-term impact on traditional audit and inspection 

timelines. During FY 2010, TIGTA issued 14 Recovery Act reports. Another 17 reviews are 

ongoing. 

In 2010, the President signed into law significant changes to the nation’s health care system 

under the ACA. Changes to tax administration that IRS will be responsible for implementing 

include:

• Delivering tax credits to businesses and individuals to assist in covering the cost of health 

coverage;

• Administering the mandate for individuals to purchase health coverage (only for those 

who are deemed able to afford such coverage) or be subject to a penalty on their 

individual federal tax returns; and

• Administering multiple tax provisions designed to raise revenues to offset the cost of 

ACA.

The IRS components of the new ACA legislation are a cornerstone of the Administration’s plan 

to expand coverage for millions of Americans. TIGTA is in a unique position to allay concerns 

about IRS overreach, assure citizens about the integrity of the program, and give lawmakers the 

assurance that the program functions properly. TIGTA has often paved the way for new 

initiatives that are administered through the tax code. The most recent example was TIGTA’s 

audit recommendations on the First-Time Homebuyers Tax Credit. All recommendations were 

quickly embraced by the IRS, and taxpayers were quickly assured that this was not a loophole 

for tax cheats. The roll-out of the Earned Income Tax Credit (EITC) was another initiative that 

touched millions of tax payers. Similarly, auditors at TIGTA’s predecessor, IRS Inspections, 

were able to identify problems before they had an impact on the public’s perception of the 

program. 
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FY 2012 stands to be a crucial year in the IRS’s efforts to implement new systems and programs 

to administer these provisions. As IRS leadership lays the groundwork for administering these 

initiatives, TIGTA executives will monitor these plans and allocate staff and resources that best 

align with IRS decisions. TIGTA has already identified a critical need to conduct 16 separate 

ACA-related audits that will require 5,125 staff days, or 23 auditor full time equivalents (FTE), 

during FY 2012 alone. 

ACA will engage almost every component of TIGTA. Within the Office of Audit (OA), the 

Returns Processing and Account Services group will assess the integrity of new IRS forms and 

make sure that IRS systems are capable of directing the many calls from taxpayers. One 

example is a planned audit of the administration of section 9002 of the ACA that requires 

inclusion of employer sponsored health coverage on the Wage and Tax Statement (IRS form W2).

The Security and Information Technology Services division will expand its audits of IRS 

computer systems to ensure that health care information is safeguarded and secure. Sharing 

sensitive health care information will be new for most taxpayers and TIGTA’s review of the 

implementation of section 1411 of the ACA legislation will assure that information shared 

between the U.S. Department of Health and Human Services and TIGTA is secure.

Another example is the Compliance and Enforcement Operations group, which will expand 

audit coverage to include oversight of section 10907 of the ACA that creates a new 10 percent 

excise tax on indoor tanning services. Industry experts estimate that as many as 30 million 

Americans use indoor tanning services. This is just one of the 16 audits already identified that 

will be required to provide proper oversight of IRS’s expanded mission.

The Office of Investigations (OI) is similarly impacted by the demands of ACA. As the IRS’s 

efforts to implement new systems and programs to administer the provisions of the ACA 

increase, so will TIGTA’s efforts to protect the IRS from external attempts to corrupt or impede 

the administration of internal revenue laws. To effectively carry out this important oversight 

work, TIGTA must be better positioned to utilize law enforcement and intelligence resources to 

proactively detect and deter efforts impacting the IRS’s implementation of the ACA. TIGTA 

estimates that five series-1811 investigators will be required to discharge its increased duties 

associated with ACA. 

The five investigators will review and analyze intelligence information relating to potential 

violent acts against IRS employees and facilities and develop proactive leads to investigate and 

mitigate potential threats. The investigators will also respond to violent acts committed against 

IRS employees and facilities, initiate investigations into those incidents, and work towards the 

arrest, conviction and sentencing of the perpetrators. To further enhance their work, the 

investigators will utilize OI's technical expertise, including TIGTA’s Forensic Science 

Laboratory to help gather intelligence and investigate violent acts.

The Office of Inspections and Evaluations (I&E) will also provide oversight of the IRS’s 

administration of ACA and provide TIGTA with additional flexibility, capacity, and capability to 

produce value-added products and services to improve tax administration. Inspections will 
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usually be more limited in scope and will be completed in a more compressed period than a 

traditional audit. Evaluations related to ACA will result in recommendations to streamline 

operations, enhance data quality, and minimize inefficient and ineffective programs. Its work is 

not a substitute for audits and investigations; in fact, its findings may result in subsequent audits 

and/or investigations. I&E is requesting only one FTE at this time. Inspections and Evaluations, 

by their nature, have a short time horizon and will respond to specific ACA tax administration 

issues. 

TIGTA’s work requires close coordination among its Audit, Investigations, Inspections and 

Evaluations functions. Each program office brings unique skills and experience, but the bureau’s 

overall success depends greatly upon these offices’ close collaboration. TIGTA has years of 

experience in overseeing the roll-out of broad changes to tax administration. The success of the 

new ACA program will depend on the government’s ability to assure taxpayers that the new 

changes are properly administered. 

TIGTA continues to provide comprehensive coverage and oversight of all aspects of the IRS’s 

operations. In FY 2010, TIGTA’s overall accomplishments included, $8.61 billion in potential 

increased and/or protected revenue and $2.82 billion in potential cost savings.

Ensuring Taxpayer Privacy and Security: Millions of taxpayers entrust the IRS with sensitive 

financial and personal data that are stored in and processed on IRS computer systems. The risk 

that taxpayers’ identities could be stolen by exploiting security weaknesses in the IRS’s 

information technology systems continues to increase, as does the risk that IRS computer 

operations could be disrupted. Both internal factors (such as the increased connectivity of 

computer systems and greater use of portable laptop computers) and external factors (such as the 

volatile threat environment resulting from increased terrorist and hacker activity) require strong 

security controls. In FY 2010, OA issued reports that included addressing the protection of 

federal tax information at state government agencies and security controls over the Automated 

Collection System.

To prevent the compromise of sensitive taxpayer information, TIGTA proactively identifies IRS 

employees who inappropriately access and/or disclose such private information. These 

violations, known as unauthorized access (UNAX), are often the initial phase of IRS employee 

misconduct and frequently result in the uncovering of other criminal violations, including fraud 

and identity theft. IRS employees who are found to have committed UNAX violations may be 

subject to fines, prison terms, and loss of their jobs. Since enactment of the Taxpayer Browsing 

Protection Act in August 1998, TIGTA investigations have resulted in more than 6,908 adverse 

personnel actions taken by the IRS and 367 criminal prosecutions for UNAX violations through 

FY 2010. 

The importance of efforts to detect unauthorized access is often underestimated. Too often, 

UNAX is seen as browsing by bored employees. However, TIGTA’s investigations have 

revealed a far more disturbing trend where, in a significant number of cases, such unauthorized 

access was only the first stage in far more serious crimes such as falsification of records, fraud, 

embezzlement, and identity theft. 
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In FY 2009, TIGTA established a UNAX modernization group to address all computer 

applications the IRS currently uses that contain sensitive information. This group’s work to date 

includes monitoring the IRS’s efforts to develop and implement an enterprise-wide audit trail 

solution, providing guidance to the IRS on establishing retention policies so that forensic 

investigations can be conducted, and ensuring the IRS expands its automated capability to 

proactively detect unauthorized accesses on all computer systems. During FY 2010, TIGTA 

investigators completed 1,796 employee integrity investigations, of which 405 involved UNAX 

allegations. This resulted in 42 criminal prosecutions and 737 administrative disciplinary actions 

against IRS employees.

Tax Compliance: Tax compliance initiatives include administering tax regulations, collecting 

the correct amount of tax from businesses and individuals, and overseeing tax-exempt and 

government entities for compliance. Increasing voluntary compliance and reducing the $345 

billion Tax Gap (the IRS defines the Tax Gap as the difference between the estimated amount 

taxpayers owe and the amount they voluntarily and timely paid for a tax year) are currently the 

focus of many IRS initiatives. In FY 2010, OA issued reports addressing collection alternatives 

for economically distressed taxpayers, lien determinations, and sole proprietor correspondence 

audits. 

 

TIGTA continues its outreach efforts to IRS employees and tax practitioners. By doing so, 

TIGTA develops relationships with these groups to assist in identifying crimes against the IRS 

and taxpayers. In FY 2010, TIGTA provided 1,427 presentations to more than 52,000 IRS 

employees and educated tax professionals by providing 118 awareness presentations to 8,068 tax 

practitioners and preparers.

Leveraging Data to Improve Program Effectiveness and Reduce Costs: While the IRS has 

made some progress in using its data to improve program effectiveness and reduce costs, this 

area continues to be a major challenge. The IRS lacks a comprehensive, integrated system that 

provides accurate, relevant, and timely financial and operating data describing performance 

measures, productivity, and associated costs of IRS programs. In FY 2010, OA issued a report 

addressing the IRS’s methodology for calculating the cost of Unemployment Trust Fund 

administrative expenses.

Implementing Tax Law Changes: Each filing season tests the ability of the IRS to implement 

tax law changes made by the Congress. The correct implementation of tax law changes is a 

continuing challenge because the IRS must identify the tax law changes; revise the various tax 

forms, instructions, and publications; and reprogram computer systems used to process returns. 

In FY 2010, TIGTA issued a report on how the IRS can enhance taxpayer awareness of the 

benefits of the qualified joint-venture filing option. 

Department-wide Priority – Electronic Stewardship and Data Centers: Federal agencies have 

been directed to improve their energy efficiency and reduce greenhouse gas emissions. In FY 

2010, OA issued a report regarding the improvement of data center energy efficiency that could 

save the IRS millions of dollars in energy costs.
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Advising the Congress: During FY 2010, TIGTA provided one Congressional testimony, 18 

briefings, one Statement for the Record, and 39 official responses to the Congress regarding 

audit, investigative, and inspection and evaluation activities. Through direct communication, 

TIGTA aims to address the interest of Congressional committees on critical issues involving IRS 

operations. 

Going Green Initiatives: TIGTA has identified several ways to make its operations more 

environmentally friendly. TIGTA’s audits, inspections, and evaluations also have the potential 

to reduce the environmental impact of IRS’s operations. During FY 2010, OI’s Complaints 

Management Team began to process all complaints electronically, saving paper, ink, and storage 

costs. TIGTA has also conducted audits of IRS’s operations to ensure that both data centers and 

desktop computer equipment are energy efficient. Given the size of IRS’s workforce, any 

incremental improvement can make a significant difference. 

Fraud and Electronic Crime: The sensitivity of the data the IRS collects makes it an attractive 

target for employees, hackers, and others who could use the information for fraud and identity 

theft. TIGTA’s audit, investigative, inspection and evaluation work provides coverage of this 

growing national problem, providing proactive prevention and detection efforts that are required 

in this highly vulnerable and ever-evolving area. As described in Presidential Decision 

Directive NSC-63, IRS operations, that fund the federal government are part of the nation’s 

critical infrastructure. Degradation of the public’s trust in the tax system would lead to a decline 

in voluntary compliance and represents a risk to national security. 

Audit Outcomes: TIGTA strives to protect the integrity of America’s tax system. TIGTA’s 

audits focus on the economy, efficiency, and effectiveness of tax administration. TIGTA 

provides recommendations to improve IRS systems and operations while ensuring fair and 

equitable treatment of taxpayers. During FY 2010, TIGTA issued 129 reports identifying 

approximately $11.46 billion in potential financial benefits. These reports also impacted 

approximately 2.03 million taxpayer accounts in areas such as taxpayer burden, taxpayer rights 

and entitlements, taxpayer privacy and security, and increased revenue/revenue protected. These 

audits could return $74 for each $1 invested in FY 2010. 

Investigative Outcomes: OI investigates threats to America’s tax system, which could impede 

collection of tax revenue and reduce public confidence. In FY 2010, 86 percent of TIGTA’s 

closed investigations generated results, including 1,635 cases of employee misconduct referred 

to the IRS for administrative action and 235 cases accepted for prosecution. Even though the 

IRS is committed to “stopping UNAX in its tracks,” unauthorized access to confidential tax 

information remains a significant problem. During the same period, TIGTA closed 611 UNAX 

cases, resulting in 546 adverse personnel actions against IRS employees. Altogether, the 118 

employees under investigation for UNAX and other violations resigned during the investigation 

or before any personnel action could be taken. 

Inspections and Evaluations Outcomes: I&E took the lead in programming TIGTA’s Recovery 

Act activities. Additionally, I&E has reported on several pertinent issues including IRS’s 

preparedness to respond to a pandemic, as detailed in the IRS Pandemic Influenza Preparedness 
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Plan – Phase I. Planned evaluations will result in recommendations to streamline operations, 

enhance data quality, and improve the efficiency and effectiveness of IRS programs.
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Section 2 – Budget Adjustments and Appropriation Language

2.1 – Budget Adjustments Table

Dollars in Thousands

Inspector General for Tax Administration FTE Amount

FY 2010 Enacted 835 $152,000

FY 2011 Annualized CR Level 835 $152,000

Changes to Base:

Adjustment to Reach Policy Level: - $2,266

Adjustment to Reach FY 2011 President's Policy - $2,266

Maintaining Current Levels (MCLs): - $1,391

Maintaining Current Levels (MCLs) - $1,391

Efficiencies, Savings & Base Reductions: - ($3,474)

Program Reductions and Efficiencies - ($3,474)

Subtotal FY 2012 Changes to Base - $183

Total FY 2012 Base 835 $152,183

Program Changes:

Program Increases: 29 $5,648

Oversight of IRS Implementation of the Affordable Care Act 29 $5,600

CIGIE Payment - $48

Subtotal FY 2012 Program Changes 29 $5,648

Total FY 2012 Request 864 $157,831

2A – Budget Increases and Decreases Description

Adjustment to Reach Policy Level ...........................................................+$2,266,000 / +0 FTE

Adjustment to Reach FY 2011 President's Policy +$2,266,000 / +0 FTE 

Adjustment from the FY 2011 Annualized Continuing Resolution (CR) Rate to reach the FY 

2011 President's Policy Level. The President’s Policy Level is equal to the FY 2011 President's 

Budget as adjusted for the proposed pay freeze.

Maintaining Current Levels (MCLs) ......................................................+$1,391,000 / +0 FTE

Maintaining Current Levels (MCLs) +$1,391,000 / +0 FTE 

Funds are requested for inflation adjustments in non-labor expenses such as GSA rent 

adjustments, postage, supplies and equipment and health benefits and the increase in Federal 

Employee Retirement System participation. No inflation adjustment is requested for pay in FY 

2012.

Efficiencies, Savings & Base Reductions .................................................-$3,474,000 / +0 FTE

Program Reductions and Efficiencies -$3,474,000 / +0 FTE 

TIGTA continuously seeks to reduce programs that are non-critical and find efficiencies in its 

operations. Reaching a savings target of $3,474,000 without impacting the quality of TIGTA’s 

programs will require a combination of actions. TIGTA examines all vacancies to determine the 

impact of delayed back-filling and will strategically identify positions where longer lapses would 

have the smallest impact on mission. Reducing the reporting requirements identified in TIGTA’s 

charter document, RRA 98 will generate $840,000 in savings. However, these reductions would 

require statutory change and are further discussed in the Legislative Proposals section of this 

document. Further savings will be realized in data center and certification and accreditation 

consolidation.
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Program Increases ..................................................................................+$5,648,000 / +29 FTE

Oversight of IRS Implementation of the Affordable Care Act +$5,600,000 / +29 FTE 

The IRS components of the new ACA legislation are a cornerstone of the administration's plan to 

expand coverage for millions of Americans. TIGTA is in a unique position to ensure that IRS 

implements the law effectively, assure citizens about the integrity of the program, and give 

lawmakers the assurance that the program functions properly. TIGTA has often paved the way 

for new initiatives that are administered through the tax code. Funding will support 23 auditors, 

five investigators, and one inspections and evaluations specialist. TIGTA's work requires close 

coordination among its Audit, Investigations, Inspections and Evaluation functions. Each 

program office brings unique skills and experience, but the bureau's overall success depends 

greatly upon these offices’ close collaboration. The success of the new ACA program will 

depend on the government's ability to assure taxpayers that the new changes are properly 

administered.

CIGIE Payment +$48,000 / +0 FTE 

Funds for Council of Inspectors General on Integrity and Efficiency (CIGIE) will specifically 

support coordinated government-wide activities that identity and review areas of weakness and 

vulnerability in federal programs and operations with respect to fraud, waste and abuse. This 

increase raises TIGTA’s CIGIE contribution to $380,000.
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2.2 – Operating Levels Table

Dollars in Thousands

Inspector General for Tax 

Administration

FY 2010

Enacted

FY 2011

Annualized CR 

Level

Proposed 

Reprogram

mings

FY 2011

Proposed Operating 

Level

FY 2012 

Request

FTE 835 835 - 835 864

Object Classification

11.1 - Full-time permanent $82,553 $82,553 $0 $82,553 $85,290

11.3 - Other than full-time permanent $593 $593 $0 $593 $605

11.5 - Other personnel compensation $9,656 $9,656 $0 $9,656 $9,781

12 - Personnel benefits $27,796 $27,796 $0 $27,796 $28,761

21 - Travel and transportation of 

persons $4,823 $4,823 $0 $4,823 $4,964

22 - Transportation of things $24 $24 $0 $24 $36

23.1 - Rental payments to GSA $9,143 $9,143 $0 $9,143 $9,936

23.2 - Rental payments to others $288 $288 $0 $288 $292

23.3 - Communication, utilities, and 

misc charges $2,570 $2,570 $0 $2,570 $2,614

24 - Printing and reproduction $8 $8 $0 $8 $8

25.1 - Advisory and assistance 

services $1,135 $1,135 $0 $1,135 $1,141

25.2 - Other services $921 $921 $0 $921 $970

25.3 - Other purchases of goods and 

services from Govt. accounts $6,710 $6,710 $0 $6,710 $7,029

25.4 - Operation and maintenance of 

facilities $407 $407 $0 $407 $413

25.7 - Operation and maintenance of 

equip $1,232 $1,232 $0 $1,232 $1,260

26 - Supplies and materials $1,206 $1,206 $0 $1,206 $1,233

31 - Equipment $2,732 $2,732 $0 $2,732 $3,293

42 - Insurance claims and indemnities $150 $150 $0 $150 $152

91.0 - Confidential Expenditures $53 $53 $0 $53 $53

Total Budget Authority $152,000 $152,000 $0 $152,000 $157,831

Budget Activities

Audit $57,421 $57,421 $0 $57,421 $62,357

Investigations $94,579 $94,579 $0 $94,579 $95,474

Total Budget Authority $152,000 $152,000 $0 $152,000 $157,831
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2.3 – Appropriations Detail Table

Dollars in Thousands

FTE AMOUNT FTE AMOUNT FTE AMOUNT FTE AMOUNT FTE AMOUNT

New Appropriated Resources:

Audit 0 $57,237 349 $57,421 349 $57,421 373 $62,357 6.88% 8.60%

Investigations 0 94,275 486 94,579 486 94,579 491 95,474 1.03% 0.95%

Subtotal New Appropriated Resources 0 $151,512 835 $152,000 835 $152,000 864 $157,831 3.47% 3.84%

Other Resources:

Offsetting Collections - Reimbursable 2 2,113 3 1,300 3 1,300 3 1,300 0.00% 0.00%

Available multi-year/no-year funds 27 2,900 6,196

Subtotal Other Resources 29 $5,013 3 $7,496 3 $1,300 3 $1,300 0.00% -82.66%

Total Resources Available for Obligation 29 $156,525 838 $159,496 838 $153,300 867 $159,131 3.46% -0.23%

FY 2010 

Obligations

FY 2010 

to FY 2012 Resources Available for Obligation FY 2010 Enacted

FY 2012 

Request

 FY 2011 % Change

Annualized 

CR Level

2B – Appropriations Language and Explanation of Changes 

Appropriations Language Explanation of 

Changes

DEPARTMENT OF THE TREASURY

TREASURY INSPECTOR GENERAL FOR TAX 

ADMINISTRATION

Federal Funds

General and Special 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 (not to exceed 150 for 

replacement only for police-type use) and hire of passenger 

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

U.S.C. 3109, at such rates as may be determined by the 

Inspector General for Tax Administration; $157,831,000 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.
TIGTA - 15

2C – Legislative Proposals

TIGTA proposes eliminating certain reviews conducted to comply with reporting requirements 

in the IRS Restructuring and Reform Act of 1998. These statutory reviews yield little in the way 

of improving performance measures and are of relatively low value. TIGTA would prefer to 

redirect resources applied to these reviews to conducting high-risk audits. TIGTA recommends 

legislative changes eliminating reporting requirements in the following areas:

• The requirement to report information regarding any administrative or civil actions related to 

Fair Tax Collection Practices violations in one of TIGTA’s Semiannual Reports. This 

pertains to Internal Revenue Code Section 7803 (d)(1)(G). 

• The requirement to review and certify annually that IRS is complying with the requirements 

of 26 U.S.C. section 6103(e)(8) regarding information on joint filers. 

• The requirement to annually report on the IRS’s compliance with Internal Revenue Code 

Sections 7521(b)(2) and (c) requiring IRS employees to stop a taxpayer interview whenever a 

taxpayer requests to consult with a representative and to obtain their immediate supervisor’s 

approval to contact the taxpayer instead of the representative if the representative has 

unreasonably delayed the completion of an examination or investigation.

• The annual reporting requirement for the remaining RRA 98 provisions should be revised to 

a biennial reporting requirement.
TIGTA - 16

Section 3 – Budget and Performance Plan

This table lists all FY 2012 resources by strategic goal, objective and outcome outlined in the FY 

2007-2012 Treasury Department Strategic Plan. The Treasury Strategic Plan provides a 

description of what the agency intends to accomplish over the next five years.

For detailed information about the FY 2007-2012 Treasury Strategic Plan, please go to: 

http://www.treasury.gov/about/budget-performance/strategic-plan/Pages/index.aspx

3.1 – Budget by Strategic Outcome

Dollars in Thousands

Treasury Strategic Outcome FY 2010 

Enacted

FY 2011 

Annualized 

CR Level

FY 2012 

Request

% Change

FY10 to FY12

 Exceptional accountability and transparency 153,300 153,300 159,131 3.80%

Total $153,300 $153,300 $159,131 3.80%

3A - Audit ($62,357,000 from direct appropriations, and $551,000 from reimbursable 

programs): OA’s mission is to promote the sound administration of the nation’s tax laws by 

conducting comprehensive, independent performance and financial related audits of IRS 

programs. Audits will not only focus on the economy and efficiency of IRS functions but also 

ensure that taxpayers’ rights are protected and the taxpaying public is adequately served.

OA strategically evaluates IRS programs and operations so that TIGTA resources are expended 

in the areas of highest vulnerability. To carry out this goal, OA develops an annual audit plan 

that communicates its priorities and incorporates both statutory audit coverage, high-risk audit 

work identified through an annual risk assessment process and stakeholder requests. By focusing 

on critical areas, OA ensures that TIGTA audits identify and recommend improvements in the 

most vulnerable IRS programs.

During FY 2010, TIGTA issued 129 audit reports that included potential financial benefits of 

approximately $11.46 billion and potentially impacted approximately 2.03 million taxpayer 

accounts in areas such as taxpayer burden, taxpayer rights and entitlements, taxpayer privacy and 

security, and increased revenue/revenue protected. 

American Recovery and Reinvestment Act of 2009 (Recovery Act): The American Recovery 

and Reinvestment Act of 2009 includes multiple tax law provisions the IRS must implement. 

TIGTA received $7 million for oversight and audits of IRS activities related to the Making Work 

Pay Credit and Economic Recovery Payments. This funding is available through September 30, 

2013. While TIGTA received funding to cover the costs of its efforts under the Recovery Act, 

current estimates indicate that this funding will run out during FY 2012. At that time, the cost of 

these important audit activities will be absorbed in TIGTA’s regular appropriation.

In FY 2010, OA issued a report noting that millions of taxpayers may be negatively affected by 

the reduced withholding associated with the Making Work Pay Credit. Taxpayers receive the 

Making Work Pay Credit by means of a decrease in federal income tax withholding. This 

creates the vulnerability that some taxpayers may have their taxes under withheld at the end of 
TIGTA - 17

Tax Years 2009 and 2010. If taxpayers received more of the Making Work Pay Credit than they 

are entitled to, they may ultimately owe taxes when filing their Tax Years 2009 and 2010 tax 

returns and may be assessed estimated tax penalties. 

In another review, OA found that initial published guidance for Recovery Act bonds was 

complete, accurate, and consistent. The Recovery Act authorizes new and expanded bond 

financing subsidies of more than $57.8 billion. However, this figure could be much higher 

because one type of tax credit bond, known as Build America Bonds, was not given a limit. 

These financing subsidies enable state and local governments to borrow at lower costs for capital 

projects and also target programs for energy projects and schools. The IRS quickly published 

guidance to help bond issuers understand how to issue tax-exempt and tax credit bonds intended 

to stimulate the economy by preserving and creating jobs.

Ensuring Taxpayer Privacy and Security: The IRS’s Safeguards Program is tasked with 

ensuring that state government agencies receiving federal tax information maintain adequate 

safeguards to protect the data from unauthorized disclosure. This audit was initiated as a followup to a prior audit report to determine whether the IRS’s Safeguards Program implemented 

sufficient policies and procedures to ensure that state government agencies adequately protect 

federal tax information from the IRS. TIGTA found that two of four previously reported 

conditions, the use of Plans of Actions and Milestones (POA&Ms) and the timeliness of 

reporting results continue to require management attention. TIGTA identified 45 state 

government agencies in the POA&M tool that had 1,094 security weaknesses which were not 

corrected by the targeted milestone dates. Also, safeguard review reports continue to be issued

late.

In another review, TIGTA found that the IRS needs to implement additional security controls to 

protect the Automated Collection System (ACS) and sensitive taxpayer data. The ACS is a 

telephone contact system used by IRS employees to perform critical IRS processes such as 

collecting tax revenues and helping taxpayers resolve their tax issues. The lack of complete 

security controls increases the risks that taxpayer data could be stolen or computer operations 

could be disrupted. 

Tax Compliance: Estimates by the IRS show that sole proprietors who underreported their 

income caused $68 billion of the $345 billion Tax Gap in 2001. This creates an unfair burden on 

honest taxpayers and diminishes the public’s respect for the tax system. TIGTA evaluated closed

correspondence audits of individual sole-proprietor returns and found significant tax issues were 

not addressed during these audits. TIGTA estimates the IRS could realize $82.6 million in 

additional taxes and interest over five years if the recommendations are implemented. TIGTA’s

calculation assumes that all estimated taxes and interest would be owed based upon audits of the 

taxpayers’ records and that conditions such as tax rates and IRS audit coverage remain the same. The 

amount does not take into consideration implementation costs those associated with training and lost 

opportunities. 

 

A separate review concluded that lien determinations were not appropriately made or were made 

late for more than $1.4 billion in delinquent taxes. The IRS protects its claims against taxpayers 

who owe delinquent taxes by filing federal tax liens (liens), which establish the IRS’s priority 

among secured creditors for the taxpayers’ equity. Failure to protect the government’s interest 
TIGTA - 18

on taxes that are owed creates an unfair burden on taxpayers who properly pay their taxes in full 

and on time. TIGTA estimated the IRS could realize $657.6 million in increased revenue over 

five years if the recommendation was implemented. 

TIGTA also conducted a review to determine whether the IRS effectively implemented

provisions identified to assist economically distressed taxpayers having difficulties paying their 

balance-due accounts. Collection provisions offer many viable alternatives to help resolve 

taxpayers’ balance-due accounts. When the economy weakened, the IRS proactively 

implemented or re-emphasized provisions to help economically distressed taxpayers. However, 

some of the actions could jeopardize collections and, at times, some taxpayers may have had 

difficulty identifying the alternatives if they were unfamiliar with IRS resources.

Leveraging Data to Improve Program Effectiveness and Reduce Costs: TIGTA conducted a 

review to determine whether the IRS developed and implemented a methodology to reasonably 

and accurately calculate the cost of Unemployment Trust Fund administrative expenses. The

review found that while additional procedures and controls have been implemented, there are 

still insufficient controls to ensure that expenses associated with the administration of the 

Unemployment Trust Fund are accurately calculated. For example, the IRS overestimated its 

trust-fund-related expenses by $63 million during FYs 2005 through 2009. As a result, these 

funds were not available during this period to fund the federal government’s share of 

unemployment benefit payments to eligible taxpayers.

Department-wide Priority – Electronic Stewardship and Data Centers: The IRS has 

implemented programs and processes to improve energy efficiency. For example, some facilities 

fully implemented an Environmental Management System and/or were awarded the ENERGY 

STAR® designation. In addition, the IRS has a training program to ensure that employees have 

access to applicable courses and that training completion is documented. However, the IRS does 

not have policies and procedures for improving energy efficiency in the data centers or for 

implementing data center energy-efficiency best practices. The IRS could potentially realize 

savings of $3.2 million over four years, at two sites, by implementing best practices to improve 

airflow management. 

Implementing Tax Law Changes: OA conducted an audit to determine whether taxpayers who 

potentially qualified for the Qualified Joint Venture (QJV) filing option were adequately 

informed of the election and its potential benefits. Many potentially qualified individuals were 

not aware of the QJV filing option for two reasons: first, the IRS did not clearly present the new 

tax law provision and its associated benefits in some of its publications or provide sufficient 

outreach to emphasize the new tax law change to the paid-preparer community; and second, the 

tax preparation software packages used by taxpayers and paid preparers did not adequately 

prompt or notify users of the new provision.
TIGTA - 19

3.2.1 Audit Budget and Performance Plan

Audit Budget Activity

Resource Level FY 2008 FY 2009 FY 2010 FY 2011 FY 2012

Obligated Obligated Enacted Annualized CR 

Level

Request

 Appropriated Resources $50,852 $53,797 $57,421 $57,421 $62,357

 Reimbursable Resources $539 $361 $551 $551 $551

Total Resources $51,391 $54,158 $57,972 $57,972 $62,908

Budget Activity Total $51,391 $54,158 $57,972 $57,972 $62,908

Measure FY 2008 FY 2009 FY 2010 FY 2011 FY 2012

Actual Actual Actual Target Target

Percentage of Audit Products Delivered when Promised to 

Stakeholders (Oe)

65.0 81.0 76.0 65.0 70.0

Percentage of Recommendations Made that Have Been 

Implemented (Oe)

85.0 91.0 95.0 83.0 85.0

Key: Oe - Outcome Measure, E - Efficiency Measure, Ot - Output/Workload Measure, M - Management/Cust. Satisfaction, DISC -

Discontinued, and B - Baseline

Description of Performance: 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).

Additionally, TIGTA makes recommendations designed to improve administration of the

federal tax system. The IRS must implement these recommendations in order to realize the 

financial or non-financial benefits. The second measure assesses TIGTA’s effect on improving 

the IRS’s accountability, operations, and services. Since the IRS needs time to act on 

recommendations, TIGTA utilizes the Department’s Joint Audit Management Enterprise System 

to track the percentage of recommendations made four years ago 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 where circumstances 

may have changed, or when the IRS has taken alternative corrective measures that address 

concerns TIGTA identified. 

For FY 2010, actual performance has exceeded expectations on both measures. The actual

percentage of audit products delivered when promised to stakeholders was 76 percent against a 

target of 65 percent. The actual percentage of recommendations made that have been 

implemented was 95 percent against a target of 83 percent.
TIGTA - 20

3B - Investigations ($95,474,000 from direct appropriations, and $749,000 from reimbursable 

programs): While most Offices of Inspectors General focus primarily on fraud, waste, and 

abuse, TIGTA’s mission is more extensive. TIGTA has the 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 criminal activity and 

administrative misconduct by IRS employees, protects the IRS against external attempts to 

corrupt tax administration, and ensures IRS employee safety and data and infrastructure security. 

The following summaries highlight TIGTA’s investigative efforts in these three core areas:

Employee Integrity: IRS employee misconduct can hinder the IRS’s ability to collect revenue 

for the federal government. An estimated 47 percent of TIGTA’s current investigations involve 

alleged employee misconduct. In addition to UNAX investigations, employee misconduct 

investigations include allegations of extortion, theft, false statements, and financial fraud. 

TIGTA also administers a proactive integrity program to help detect possible fraud and other 

misconduct by IRS employees. During FY 2010, TIGTA initiated 70 proactive investigative 

initiatives.

Employee and Infrastructure Security: TIGTA is statutorily mandated to ensure that the IRS 

operates in an environment free from any and all threats on employees, facilities, and data 

infrastructure. To meet this mandate, TIGTA conducts investigations of individuals or groups 

who threaten or assault IRS employees, facilities, or IRS data infrastructure. In an era of 

increasing threats to the nation, the protection of IRS personnel, facilities, and data is of the 

utmost importance. 

According to the Anti-Defamation League, the militia movement has almost quadrupled in size 

in the past two years, growing to more than 200 groups across the United States. Antigovernment and hate groups have grown from 149 groups in 2008, to 512 groups in 2009 -- a 

244 percent increase. Each year, OI investigates approximately 900 individuals to determine if 

they pose a legitimate threat to IRS employees and facilities. Additionally, over 5,000 

individuals are currently identified as having the potential to harm the IRS or its employees. 

During FY 2010, OI closed 1,425 investigations of assaults and/or threats made against IRS 

employees and facilities.

In addition to the reactive investigations that OI conducts related to threats and assaults, OI 

investigative analysts monitor the IRS.gov website for any potential threats against IRS 

employees or facilities that would warrant further investigation. In FY 2010, the investigative 

analysts have reviewed nearly 39,000 IRS or anti-government related e-mail communications 

containing key words that could be interpreted as threats. Due to a lack of resources, the 

investigative analysts have only been able to comprehensively research, analyze, and act on less 

than one percent of these communications. The inability to identify, monitor, and follow-up on 

potentially threatening communications made directly to the IRS presents a significant risk.

OI’s Electronic Crimes and Intelligence Division (ECID) investigates electronic attacks on the 

IRS. In calendar year 2010, the IRS Computer Security Incident Response Team (CSIRC) 

documented almost 22 million external attacks against the IRS network. During this time period, 

IRS CyberSecurity identified and reported to TIGTA 4,941 “Cyber and Disclosure Incidents” 
TIGTA - 21

involving the IRS network. CSIRC also reported 1,006 incidents involving the identification of 

malware (malicious programs) against the 235,000 devices connected to the IRS enterprise 

network. The Electronic Tax Administration (ETA) program was mandated by the Congress 

with a goal that 80 percent of all tax returns would be filed electronically. A successful attack on 

the ETA program would cause the public to lose confidence in the IRS and could set the entire 

ETA initiative back many years. 

TIGTA maintains IRS employee and infrastructure security by conducting investigations into 

incidents that threaten IRS employees, facilities, and infrastructure. TIGTA’s highest priority 

complaints involve threats and assaults against IRS employees. TIGTA works aggressively and 

takes swift action to protect IRS employees, including providing armed escorts. In October 

2008, the Inspector General Reform Act of 2008 was signed into law, which allows TIGTA to 

provide physical security to protect IRS employees against external threats. TIGTA also 

operates a Criminal Intelligence Program that develops and facilitates pertinent information 

regarding potential threats to IRS employees and operations. This program includes 

participation in the Federal Bureau of Investigation-sponsored Joint Terrorism Task Forces 

nationwide. In addition, TIGTA has a System Intrusion and Network Attack Response Team to 

defend against hackers who attempt to compromise the data integrity of taxpayer information 

stored in IRS computer systems. 

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

investigate external attempts to corrupt tax administration, which includes criminal misconduct 

by non-employees, such as, impersonation of IRS employees; interference with the 

administration of internal revenue laws, bribery, misuse of Treasury names, symbols, etc.;

contract fraud; as well as tax practitioner fraud relating to thefts of taxpayer remittances and 

refunds.

In FY 2012, OI foresees continued risks in IRS programs that will require more oversight. 

Phishing scams that falsely depict e-mails from the IRS are of great interest and risk. (“Phishing”

involves sending e-mails to users falsely claiming to be established, legitimate enterprises in 

order to solicit private information for the purpose of identity theft.) These schemes attempt to 

retrieve a user’s Social Security Number (SSN) and banking information by replicating an 

official IRS seal and/or requesting information required for depositing tax refunds. The IRS, in 

coordination with OI, has identified 11,546 phishing sites since November 2005 through 

December 2010. Oversight in this area is necessary to ensure that misuse of the IRS name, 

impersonation of an IRS employee, and identity theft incidents are resolved expeditiously. 

With the IRS focusing on increased revenue collection from delinquent taxpayers, OI anticipates 

a rise in attempts to bribe IRS employees involved in those collection activities. TIGTA 

educates IRS employees on how to recognize bribe overtures and their responsibility to report 

bribery attempts to TIGTA. During FY 2010, OI closed 59 investigations into bribery of IRS 

employees by taxpayers. 

Another area of concern that poses risks to tax administration is IRS contract improprieties. 

TIGTA is committed to conducting procurement investigations that ensure the highest degree of 

integrity, economy, and efficiency in IRS contracts. TIGTA conducts proactive and reactive 
TIGTA - 22

investigations to detect and deter criminal activity by contractors and IRS employees. TIGTA’s 

contract fraud work has produced significant results, including over $158 million in recovered 

penalties during FY 2010.

 

Investigative work in these three core areas is imperative to protect the integrity of tax 

administration. The results of this work help ensure that the public has confidence in its dealings 

with the IRS. 

3.2.2 Investigations Budget and Performance Plan

Investigations Budget Activity

Resource Level FY 2008 FY 2009 FY 2010 FY 2011 FY 2012

Obligated Obligated Enacted Annualized CR 

Level

Request

 Appropriated Resources $89,161 $91,979 $94,579 $94,579 $95,474

 Reimbursable Resources $727 $582 $749 $749 $749

Total Resources $89,888 $92,561 $95,328 $95,328 $96,223

Budget Activity Total $89,888 $92,561 $95,328 $95,328 $96,223

Measure FY 2008 FY 2009 FY 2010 FY 2011 FY 2012

Actual Actual Actual Target Target

Percentage of Results from Investigative Activities (Oe) 78.0 83.0 86.0 79.0 80.0

Key: Oe - Outcome Measure, E - Efficiency Measure, Ot - Output/Workload Measure, M - Management/Cust. Satisfaction, DISC -

Discontinued, and B - Baseline

Description of Performance: Investigative results include cases referred for prosecution, arrests, 

indictments, and convictions. Examples of the types of criminal activity investigated are: bribes 

offered by taxpayers to compromise IRS employees; manipulation of IRS systems and programs 

through the use of bogus liens and IRS financial reporting instruments; and impersonation of IRS 

officials. For FY 2010, actual performance has exceeded expectations (actual performance was 

86 percent, while the target was 79 percent). These results are indicative of OI’s continuous 

focus on quality investigative activities. 

For detailed information about each performance measure, including definition, verification and 

validation, please go to: http://www.treasury.gov/offices/management/dcfo/accountabilityreports/
TIGTA - 23

Section 4 – Supporting Materials

4A – Human Capital Strategy Description

Hiring Reform

TIGTA is revamping its hiring process to comply with the President’s ambitious recruitment and 

hiring initiative. TIGTA has identified potential barriers, one of which is training. Training 

opportunities will be available to educate hiring managers/supervisors on improvements to the 

federal hiring process. TIGTA will also address recruiting and hiring highly qualified veterans 

and assist hiring officials in finding the best talent.

Furthermore, TIGTA has revised its vacancy announcement wording to meet the five- page 

length requirement; updated its tracking system for recruiting actions to include new date fields 

for tracking the 80-day model; created 80-day tracking reports; and are considering the use of 

category rating.

Veterans’ Employment

To enhance recruitment of and promote employment opportunities for veterans, TIGTA supports 

the Wounded Warriors Program by providing employment assistance for program participants. 

On February 24, 2010, TIGTA presented an informational session at the National Naval Medical 

Center in Bethesda, Maryland. The informational session was designed to educate 

soldiers/veterans on TIGTA’s mission and assistance with job placement for soldiers/veterans 

with disabilities.

TIGTA also plans to provide detailed resume writing workshops, mock interviews, and tips on 

how to navigate the government hiring process. TIGTA continually solicits resumes from

qualified soldiers and veterans interested in becoming part of the TIGTA Wounded Warrior 

Intern Program. 

To provide annual mandatory training to hiring managers/supervisors on veterans’ preference 

and special authorities for the hiring of veterans, TIGTA is coordinating with Treasury’s 

Veterans Employment Office. This will provide hiring managers/supervisors training on 

effective, efficient, and timely ways to recruit and hire well-qualified individuals. TIGTA is also 

preparing a Leadership and Manager Supervisor Training manual that outlines each manager’s 

responsibility to ensure training on veteran hiring.

Hiring of Individuals with Disabilities

TIGTA actively participates in The Treasury’s disABILITY and IT Accessibility Summit and 

Career Fairs. Participation in the Summit emphasizes TIGTA’s commitment to a diverse 

workforce, increases recruiting efforts to employ persons with disabilities, and supports 

TIGTA’s leadership role to reach an underrepresented group in the federal government. TIGTA 

also conducts outreach activities targeted at recruitment of groups identified as under-represented 

and makes direct hire appointments under non-competitive authorities for individuals with 

disabilities. 
TIGTA - 24

Employee Engagement

TIGTA relies on the results from OPM’s Employee Viewpoint Survey (EVS) to measure 

employee engagement. The EVS focuses on employee perceptions regarding critical areas of 

their work life, areas which drive employee satisfaction, commitment, and ultimately retention in 

the workforce. 

TIGTA’s response rate for 2010 was 79 percent, higher than the overall government average and 

second place among Treasury bureaus. The survey is distributed to all TIGTA permanent 

employees. The survey found that TIGTA employees continue to be happy with their jobs and 

feel their work is important; in addition, employees are satisfied with the Telework program at 

TIGTA. The vast majority believe TIGTA is accomplishing its mission and would recommend it 

as a good place to work. 

TIGTA’s EVS trends for 2006, 2008 and 2010

TIGTA’s leaders have taken the survey results very seriously. From the Department-wide report 

provided by OPM, TIGTA completed a more thorough analysis and developed individual reports 

specifically for each of the functions. TIGTA uses the survey results to continually improve how 

the workforce is managed and to meet its strategic human capital management goals. The below 

snapshot shows overview of TIGTA’s survey findings: 

• 0 items increased by 5 percentage points since 2008;

• 4 items decreased by 5 percentage points since 2008;

• 53 items had positive ratings of 65% or greater (strengths); and

• 24 items had positive ratings of 35% or less (weaknesses).

Action plans for continued employee satisfaction and increased employee engagement are in the 

process of being developed for FY 2011.

Action plans for FY 2010 centered on two broad themes of communication and training:

Improved Communication

• Formalize employee suggestion programs and create mechanism for feedback.

83%

81%

76%

75%

86%

82%

76%

77%

86%

84%

80%

87%

79%

(13) The work I do is

important.

(5) I like the kind of

work I do.

(73) How satisfied

are you with the

Telework program in

your agency?

(39) My agency is

successful at

accomplishing its

mission.

(40) I recommend

my organization as

a good place to

work.

FHCS 

2006

FHCS 

2008

EVS 

2010

N/A N/A
TIGTA - 25

• Utilize electronic medium to facilitate electronic discussion threads and a voluntary photo 

directory. These improvements are important given the geographic dispersion of TIGTA 

staff.

• Develop succession plans that emphasize leadership competencies.

• Hold regular town-hall style meetings so that employees can be certain they will be given 

an opportunity to publically raise concerns.

• Initiate new employee orientation curriculum so that new employees can learn that 

TIGTA is committed to maintaining diversity, flexibility and integrity in its workforce. 

• Hold conferences when necessary to communicate decisions and solicit input from staff 

working in remote field offices.

Targeted Training

• Develop a staff-wide training plan that identifies core training needs as well as continued 

development Improve new employees’ understanding of TIGTA’s critical mission 

through the new employee orientation program.

• Train managers in leadership skills designed to develop, improve, build and maintain 

trust in working relationships.

• Conduct 360 self-assessments that provide managers with insight on their strengths and 

weaknesses.

• Implement employee rotation program that allows employees an opportunity to diversify 

their experience, discover their strengths and explore new areas of interest.

• Develop a skills assessment program that allows employees an opportunity to identify 

competency gaps and needed development opportunities designed to close those gaps.

• Empower staff who identify technical training needs to work on related projects in order 

to develop the needed skills. This allows staff to assume leadership and direction roles 

outside the normal manager/staff relationship.

Wellness

TIGTA’s Wellness Program Initiative reflects aspects of the framework provided in the 

“Elements of a Comprehensive Worksite Wellness Program” and “Healthy People Guidelines.” 

TIGTA has also integrated federal government requirements from OPM. Specifically, the plan 

incorporates and highlights the five elements for an effective worksite wellness program:

• Health and Wellness Education Programs;

• Social, Physical and Environment Support;

• Integration of Worksite Wellness Program into Organizational Structure;

• Linkages with Related Programs; and

• Screenings.

TIGTA is an organization that values its workforce and the wellness initiative will complement 

its renowned work-life balance program. TIGTA's leadership and management support this 

program and are committed to providing the resources necessary to promote health and enhance 

the lives of its talented and dedicated team. 
TIGTA - 26

4.1 – Summary of IT Resources Table

Dollars in Thousands

Major IT Investments / 

Funding Source Budget Activity

FY 2009 

Enacted

FY 

2010 

Enacted

% Change 

from FY09 to 

FY10

FY 2011 

CR

% Change 

from FY10 

to FY11

FY 2012 

Request

% Change 

from FY11 

to FY12

Subtotal, Major IT Investments NA NA NA NA NA NA NA

Performance and Results 

Information System (PARIS)

TIGTA: Audit and 

Investigations Activity $1,000 $574 -42.6% $574 0.0% $426 -25.8%

PARIS Property Module 

(PPM)

TIGTA: Audit and 

Investigations Activity $500 $149 -70.2% $149 0.0% $117 -21.5%

Non-Major IT Investments $1,500 $723 -51.8% $723 0.0% $543 -24.9%

TIGTA End User Systems 

and Services 

TIGTA: Audit and 

Investigations Activity $8,293 $2,678 -67.7% $2,678 0.0% $2,808 4.9%

Telecommunications Systems 

and Services

TIGTA: Audit and 

Investigations Activity $3,300 $2,465 -25.3% $2,465 0.0% $2,543 3.2%

Data Center Systems and 

Services 

TIGTA: Audit and 

Investigations Activity $1,000 $4,003 300.3% $4,003 0.0% $4,003 0.0%

Infrastructure Investments

TIGTA: Audit and 

Investigations 

Activity $12,593 $9,146 -27.4% $9,146 0.0% $9,355 2.3%

Consolidated Enterprise 

Content Management 

TIGTA: Audit and 

Investigations 

Activity $129 $0 -100.0% $0 0.0% $0 0.0%

Consolidated Identity 

Management 

TIGTA: Audit and 

Investigations 

Activity $128 $0 -100.0% $0 0.0% $0 0.0%

Enterprise Architecture

TIGTA: Audit and 

Investigations 

Activity $250 $275 10.0% $275 0.0% $275 0.0%

Total IT Investments $14,600 $10,144 -30.5% $10,144 0.0% $10,173 0.3%
TIGTA - 27

4B – Information Technology Strategy

TIGTA's IT Strategy is to:

• Deliver a full set of IT Infrastructure services commensurate with TIGTA's independence 

requirements to allow employee access to TIGTA resources wherever they may be working;

• Work with the IRS to maintain a secure pathway for TIGTA employees to access IRS 

systems that meets TIGTA's needs and expectations and supports IRS's responsibility to 

maintain system security; 

• Provide and maintain application systems to support the creation, management, and 

improvement of products related to TIGTA business mission;

• Maintain technology competencies needed to adapt to changes in the internal and external 

environments of U.S. tax administration;

• Deploy IT securely to assure the privacy of the vast amounts of taxpayer and law 

enforcement information in TIGTA's possession;

• Work with the rest of the Department to deploy and maintain IT infrastructure in an efficient, 

effective, sustainable manner.

By the end of Fiscal Year 2012, TIGTA plans to refresh its client computing hardware and 

software platforms to use the most efficient power management settings on the most efficient 

hardware platform available during the refreshment acquisition period.

With changes and improvements in information technology, TIGTA is faced with the constant 

challenge to maintain IT operational capability and make progress on new IT investment. In FY 

2009, TIGTA committed to improving its governance of IT investments by establishing a 

Program Management directorate to support selection of IT investment on total cost and positive 

organizational impact and assure selected IT investments are delivered within cost, on schedule, 

and deliver the expected business performance. 

In FY 2010, TIGTA stood up its new IT governance program. All new IT requests pass through 

a Program Management Board (PMB) chaired by the Associate Inspector General for Mission 

Support. Requests must present a total cost picture, a positive business case and high-level work 

breakdown schedule adjusted for risks, especially TIGTA’s pervasive IT resource risks, to gain 

PMB approval to commence work. Projects involving significant financial commitments or high 

mission visibility to TIGTA require approval from the Investment Review Board, composed of 

TIGTA's senior executives. 

By the end of FY 2010, TIGTA plans to undertake one or more performance reviews of existing 

business application investments to determine if reinvestment is in order. 

By FY 2012, TIGTA plans to extend its new governance process to all TIGTA business units to 

help them manage projects and priorities.

Under TIGTA’s program-management process, milestones for all projects are established and 

tracked. At any point, projects that have cost overruns, are behind schedule and/or are not 

delivering at anticipated business performance levels will be analyzed for cause, to be followed 

by an appropriate continue or stop governance action.