Appropriation FY 2009 FY 2010 FY 2011 

ARRA Enacted Enacted Request $ Change % Change

 Audit $5,600 $55,186 $57,421 $58,725 $1,304 2.3%

 Investigations $1,400 $90,897 $94,579 $96,727 $2,148 2.3% 

Offsetting Collections - Reimbursables $0 $900 $1,300 $1,300 $0 -

Total Program Operating Level $7,000 $146,983 $153,300 $156,752 $3,452 2.3% 

Subtotal, Inspector General for Tax 

Administration $7,000 $146,083 $152,000 $155,452 $3,452 2.3% 

Inspector General for Tax Administration 

Program Summary by Budget Activity 

(Dollars in thousands) 

Explanation of Request 

The FY 2011 President’s Budget request for 

Treasury Inspector General for Tax 

Administration (TIGTA) will be used to 

continue to provide critical audit, 

investigative, and inspection and evaluation 

services, ensuring the integrity of tax 

administration on behalf of the nation’s 

taxpayers. While there are a number of critical 

areas where TIGTA will provide oversight, 

highlights of TIGTA’s investigative and audit 

priorities include: 

•	 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; 

•	 Responding to 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, Congress, 

and the Secretary of the Treasury of 

problems and progress made to resolve 

them; and. 

•	 Overseeing IRS efforts to implement the 

56 tax provisions of the American 

Recovery and Reinvestment Act of 2009. 

Total resources required in FY 2011 to support 

TIGTA’s mission are $156,752,000, including 

$155,452,000 from direct appropriations, and 

approximately $1,300,000 from reimbursable 

agreements. 

Purpose of Program 

TIGTA was created by Congress as a part of 

the Internal Revenue Service Restructuring 

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

audits, investigations, inspections and 

evaluations protect and promote the fair 

administration of the American tax system. 

TIGTA conducts audits that advise the 

American people, Congress, the Secretary of 

the Treasury, and IRS management of highrisk issues, problems, and deficiencies related 

to the administration of IRS programs and 

operations. TIGTA’s audit recommendations 

improve IRS systems and operations, while 

maintaining fair and equitable treatment of 

taxpayers. TIGTA’s investigations ensure the 

integrity of IRS employees, contractors, and 

other 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 

Department of the Treasury - Budget in Brief FY 2011 Page 29
Appropriation Amount 

FY 2010 Enacted 152,000 

Changes to Base: 

Maintaining Current Levels (MCLs): $2,942 

FERS % Change 46 

Non-pay Inflation Adjustment 343 

Pay Annualization 636 

Pay Inflation Adjustment 1,917 

Efficiencies Savings: ($276) 

Procurement Savings (276) 

Total FY 2011 Base 154,666

Subtotal FY 2011 Changes to Base $2,666 

Program Changes: 

Program Increases: $786 

CIGIE Fees 332 

Increase Related to IRS Growth 454 

Total FY 2011 Budget Request 155,452 

Subtotal FY 2011 Program Changes $786 

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 IRS’s tax 

administration system. TIGTA ensures that 

taxpayers can have confidence that the IRS 

collects more than $2 trillion in tax revenue in 

an effective and efficient manner. 

TIGTA FY 2011 Budget Highlights

(Dollars in thousands) 

FY 2011 Budget Adjustments 

FY 2010 Enacted 

The FY 2010 enacted direct appropriation for 

TIGTA is $152,000,000. 

Maintaining Current Levels (MCLs) 

Adjustments Necessary to Maintain Current 

Levels +$2,942,000 / +0 FTE 

Funds are requested for: FERS % Change of 

+$46,000; non-labor related items such as 

contracts, travel, supplies, equipment and GSA 

rent adjustments of $343,000; FY 2011 cost of 

the January 2010 pay increase of $636,000; 

and proposed January 2011 pay raise of 

$1,917,000. 

Efficiencies Savings 

Procurement Savings -$276,000 / +0 FTE 

TIGTA continues to work with procurement 

staff and vendors to identify procurement 

savings without compromising program 

quality. 

Program Increases 

CIGIE Fees +$332,000 / +0 FTE 

Funds for Council of Inspectors General on 

Integrity and Efficiency (CIGIE) will 

specifically support coordinated governmentwide activities that identify and review areas 

of weakness and vulnerability in federal 

programs and operations with respect to fraud, 

waste and abuse. 

Increase Related to IRS Growth +$454,000 / 

+0 FTE 

Since TIGTA is charged with overseeing the 

IRS, increasing the size and workload of the 

IRS generates additional work for TIGTA. Just 

as the IRS will need additional agents and 

specialists to accomplish their work, TIGTA 

will use the FY 2011 program increase to 

enhance critical oversight responsibilities. In 

addition, the Admin-istration is placing an 

renewed emphasis on addressing illegal 

overseas tax evasion and closing tax 

loopholes and make it more profitable for 

companies to create jobs in the United States. 

The $454,000 program increase would help 

fund this effort. 

Explanation of Budget Activities 

Salaries and Expenses 

Audit ($58,725,000 from direct appropriations 

and $551,000 from reimbursable programs) 

The Office of Audit’s (OA) mission is to 

provide comprehensive coverage and oversight 

of all aspects of the IRS’s daily operations. 

Audits 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. In FY 

2009, audit reports produced potential 

financial benefits of approximately $14.7 

billion, and potentially impacted approximately 23 million taxpayer accounts in areas 

such as taxpayer burden, rights and 

entitlements, taxpayer privacy and security, 

protection/use of resources, reliability of 

information, and increased revenue/revenue 

protected. Each fiscal year, OA develops an 

annual audit plan that communicates oversight 

priorities to Congress, the Department of the 

Treasury, and the IRS. This plan strikes a 

balance between statutory audit coverage and 

high risk audit work. The statutory coverage 

includes audits mandated by the IRS 

Restructuring and Reform Act of 1998, as well 

as reviews that address computer security and 

financial management. The high-risk workload includes issues pertaining to the IRS's 

modernization efforts, its major management 

challenges, its progress in achieving its 

strategic goals, as well as Congressional and 

other stakeholder requests for audit coverage. 

Investigations ($96,727,000 from direct 

appropriations and $749,000 from reimburseable programs) 

While most Offices of Inspectors General 

focus primarily on fraud, waste, and abuse, 

TIGTA’s mission is more extensive. TIGTA 

has the statutory respon-sibility 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 

violations and administrative misconduct by 

IRS employees, protects the IRS against 

external attempts to corrupt tax administration, 

and ensures IRS employee safety and IRS 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. Fifty percent of TIGTA’s 

current investigations involve alleged 

employee misconduct. In addition to unauthorized access (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 IRS 

employees who might be committing fraud 

and other misconduct. From October 1, 2008 

to September 30, 2009, TIGTA initiated 41 

proactive investigative initiatives. 

Employee and Infrastructure Security: 

Congressional concern regarding the 

magnitude of uncollected revenue has 

prompted the IRS to intensify enforcement 

activities. Heightened enforcement is likely to 

cause a rise in external threats to IRS 

employees and infrastructure. Both TIGTA’s 

proactive and reactive investigations are 

critical to mitigating future risks. 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, to include the providing of 

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 FBI sponsored Joint Terrorism 

Task Forces nationwide. In addition, TIGTA 

has a System Intrusion and Network Attack 

Response Team to defend against hackers who 

Department of the Treasury - Budget in Brief FY 2011 Page 31
attempt to compromise the data integrity of 

taxpayer information stored in IRS computer 

systems. From October 2008 through 

September 2009, OI closed 331 investigations 

of assaults and/or threats made against IRS 

employees and facilities. 

External Attempts to Corrupt Tax 

Administration: 

TIGTA is statutorily mandated to investigate 

external attempts to corrupt tax administration, 

which includes criminal misconduct by nonemployees, such as, impersonation of IRS 

employees, interference with the administration of internal revenue laws, bribery, 

TIGTA Performance by Budget Activity 

misuse of Treasury names, symbols, etc., 

contract fraud, and tax practitioner fraud 

relating to thefts of taxpayer remittances and 

refunds. 

Legislative Proposals 

TIGTA has no legislative proposals for FY 

2011. 

Budget Activity Performance Measure 

FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 

Actual Actual Target Actual Target 

Met? Target Target 

Audit Percentage of Audit Products Delivered 

When Promised to Stakeholders (Oe) 

68 65 65 81 Y 65 65 

Audit Percentage of Recommendations Made 

That Have Been Implemented (Oe) 

90 84^ 83 91 Y 83 83 

Investigations Percentage of Results from Investigative 

Activities (Oe) 

81 78 78 83 Y 79 79 

Key: Oe - Outcome Measure, E - Efficiency Measure, and Ot - Output/Workload Measure 

^This number has been updated since the Fiscal Year 2010 Budget in Brief. 

Description of Performance 

•	 Issued 142 audit, inspection, and 

evaluation reports, identifying 

approximately $14.7 billion in 

potential financial benefits (i.e., costs 

savings, increased or protected 

revenue, reliability of management 

information, taxpayer rights and 

entitlements, and inefficient use of 

resources). 

•	 Closed 83 percent of the 3,325 final 

closed investigations which generated 

results, including 1,427 cases of 

employee misconduct referred for 

action and 171 cases accepted for 

criminal prosecution with final legal 

action. 

Department of the Treasury - Budget in Brief FY 2011 Page 32