Treasury Inspector General for Tax Administration

Program Summary by Budget Activity

Dollars in Thousands

 FY 2015 FY 2016 FY 2017 FY 2016 TO FY 2017

Budget Activity Enacted Enacted Request $ Change % Change

Audit $61,572 $65,100 $66,020 $920 1.41%

Investigations $96,638 $102,175 $103,614 $1,439 1.41%

Subtotal, Treasury Inspector General for 

Tax Administration $158,210 $167,275 $169,634 $2,359 1.41%

Offsetting Collections - Reimbursables $1,500 $1,500 $1,500 $0 0.00%

Total Program Operating Level $159,710 $168,775 $171,134 $2,359 1.40%

Direct FTE 835 859 859 0 0.00%

Reimbursable FTE 2 2 2 0 0.00%

Total FTE 837 861 861 0 0.00%

Summary

The FY 2017 President’s Budget request for 

the Treasury Inspector General for Tax 

Administration (TIGTA) will be used to provide

high quality professional audit, investigative, 

and inspection and evaluation services that

promote integrity, economy, and efficiency in

the administration of the Nation’s tax system.

TIGTA’s Fiscal Year 2013 – 2016 Strategic 

Plan guides program and budget activities and 

supports the Department of the Treasury’s

FY 2014-2017 Strategic Plan (the Plan), which 

includes Strategic Goal 3: “Fairly and 

effectively reform and modernize federal

financial management, accounting, and tax 

systems.”

Specifically, TIGTA’s vision is consistent with 

Objective 3.2 of the Plan, “Improve the 

disbursement and collection of federal funds,

and reduce improper payments made by the U.S. 

Government.” Likewise, TIGTA’s vision 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” supports Objective 3.3 of the 

Plan, “Pursue tax reform, implement the

Patient Protection and Affordable Care Act

(ACA) and the Foreign Account Tax 

Compliance Act, and improve the execution of

the Internal Revenue Code.” While there are a 

number of critical areas where TIGTA will

provide oversight, its FY 2017 priorities 

include:

• Identifying opportunities to improve the 

administration of the Nation’s tax laws and 

achieve program efficiencies and cost 

savings;

• Mitigating risks associated with security 

of taxpayer data and IRS 

employees; tax systems and online services; 

identity theft; oversight of tax-exempt 

organizations; tax compliance; the 

implementation of tax law changes; and 

human capital challenges facing the IRS in

its domestic and/or international operations;

• Develop advanced analysis and innovative 

approaches to help prevent and detect the 

flow of dollars fraudulently obtained by 

criminals and IRS employees to ensure the 

security of IRS and TIGTA data;

• Providing the IRS with the investigative 

coverage and the information necessary to 

mitigate threats against its employees, 

facilities, and data systems;

• Responding to domestic and foreign 

threats to, and attacks against, 
 IRS employees, property, data infrastructure, 

and sensitive information;

• Rapidly and effectively responding to 

attempts to impersonate the IRS for 

fraudulent purposes;

• Improving the integrity of IRS operations 

by detecting and deterring waste, fraud, 

abuse, and misconduct, including the 

unauthorized disclosure of confidential 

taxpayer information by IRS employees;

• Conducting comprehensive audits and 

inspections and evaluations that provide 

recommendations for achieving monetary 

benefits, addressing erroneous and improper

payments, and enhancing the service the IRS

provides to taxpayers;

• Informing the American people, Congress, 

and the Secretary of the Treasury of 

problems on a timely basis once all facts

are known;

• Overseeing the IRS’s efforts to administer 

tax provisions of the ACA; and

• Overseeing the IRS’s efforts to increase 

international tax compliance.

its employees and to ensure that the IRS protects 

and secures taxpayers’ data. TIGTA’s 

inspections and evaluations provides responsive, 

timely, and cost-effective inspections and 

evaluations of challenging areas in IRS

programs. TIGTA’s oversight is essential to the 

efficiency and equity of the IRS’s tax 

administration system. TIGTA ensures that 

taxpayers can have confidence that the IRS 

collects more than $3.1 trillion in tax revenue 

in an effective and efficient manner.

Total resources required to support TIGTA 

activities for FY 2017 are $171,134,000, 

including $169,634,000 from direct 

appropriations and $1,500,000 from offsetting 

collections and reimbursable programs.

TIGTA FY 2017 Budget Highlights

Dollars in Thousands

TIGTA was created by Congress as a part of 

the Internal Revenue Service Restructuring and

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

investigations, inspections, and evaluations

protect and promote the fair administration of 

the U.S. tax system. TIGTA conducts audits

that advise the public, Congress, the Secretary 

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

the administration of IRS programs and 

operations. TIGTA’s audit recommendations 

improve the administration of the federal tax 

system. TIGTA’s administrative and criminal

investigations help to protect the IRS and

2017 Request 859 $169,634

FY 2017 Budget Adjustments 

Adjustments to Request 

Maintaining Current Level (MCLs)

Pay-Raise +$1,315,000 / +0 FTE

Funds are requested for the proposed January

2017 pay-raise.

Pay Annualization +$437,000 / +0 FTE

Funds are requested for annualization of the

January 2016 pay-raise.

Treasury Inspector General for Tax 

Administration FTE Amount

FY 2016 Enacted 859 $167,275

Changes to Base:

Maintaining Current Levels (MCLs): - $2,376

Pay-Raise - $1,315

Pay Annualization - $437

Non-Pay - $624

Efficiency Savings: - ($17)

Personnel Security Background 

Investigations - ($17)

Subtotal Changes to Base - $2,359

Total FY 2017 Base 859 $169,634

Total FY 2017 Request 859 $169,634
Non-Pay +$624,000 / +0 FTE

Funds are requested for inflation adjustments

in non-labor costs such as travel, contracts, rent, 

and equipment.

Efficiency Savings

Personnel Security Background Investigations 

-$17,200 / +0 FTE

TIGTA will generate a savings from a

reduction in the number of personnel 

investigations it will need to conduct based on 

the results of an ongoing position sensitivity 

designation review.

Explanation of Budget Activities

Audit ($66,020,000 from direct appropriations;

$600,000 from reimbursable resources)

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

strategic goals. TIGTA strategically evaluates

IRS programs, activities, and functions so that

resources are expended in the areas of highest

vulnerability of the Nation’s system of tax

administration. TIGTA’s audit program

includes both statutory audit requirements and

specific audits identified through TIGTA’s riskassessment process. By focusing on the most

critical areas, TIGTA identifies and 

recommends improvements that add value while

addressing high-risk tax administration issues. 

TIGTA’s audits and recommendations help

promote the economy, efficiency, and 

effectiveness of IRS programs; ensure the fair

and equitable treatment of taxpayers; and detect

and deter waste, fraud, and abuse.

During FY 2015, the Office of Audit (OA) 

issued 92 audit reports that included potential 

financial benefits of approximately $26.6

billion, an increase of $10 billion over FY 2014

and affected approximately 5.3 million

taxpayer accounts. In FY 2014, several key

ACA provisions became effective. Beginning 

in Calendar Year 2014, most individuals were

required to maintain minimum essential

coverage, and some low to

middle-income individuals will be eligible to

receive the Premium Tax Credit. As such,

FY 2015 and FY 2016 will be significant years

for oversight of ACA provisions. TIGTA’s

independent oversight plays a key role in 

ensuring that these provisions are implemented

and administered in accordance with the law

and the intent of Congress.

Investigations ($103,614,000 from direct 

appropriations; $900,000 from reimbursable 

resources)

TIGTA has a statutory responsibility to protect

the integrity of tax administration and to 

protect the ability of the IRS to collect revenue 

for the federal government. To accomplish this,

TIGTA investigates allegations of serious 

administrative and criminal misconduct 

committed by IRS employees. TIGTA’s 

investigative resources focus on three primary 

areas of investigation: Employee Integrity; 

Employee and Infrastructure Security; and 

External Attempts to Corrupt Tax 

Administration.

Employee Integrity: IRS employee misconduct, 

real or perceived, can erode public trust and

impede the IRS’s ability to enforce tax laws

effectively. This misconduct manifests itself in

a variety of ways, including misuse of IRS

resources or authority; theft; fraud; extortion;

taxpayer abuses; and unauthorized access to, and

disclosure of, tax return information. During 

FY 2015, 49 percent of TIGTA’s investigative 

body of work involved alleged employee 

misconduct. TIGTA’s special agents possess the 

knowledge, skills, and expertise to investigate 

such matters. TIGTA’s investigation of 

employee misconduct conveys a message to IRS

employees that these types of activities will

not go unchecked. TIGTA promotes employee

integrity by conducting proactive investigative 

initiatives to detect criminal activity and other

serious misconduct in the administration of IRS

programs.
Employee and Infrastructure Security: Physical 

violence, harassment, and intimidation of IRS

employees pose some of the most significant

challenges to the implementation of a fair and

effective system of tax administration. 

TIGTA’s investigative efforts place high

priority on its oversight of IRS employee

safety and physical security, protecting 

approximately 91,000 employees and 601 

facilities throughout the country. TIGTA 

maintains IRS employee and infrastructure

security by conducting investigations into 

incidents that threaten IRS employees, facilities, 

and infrastructure. The Inspector General

Reform Act of 2008 allows TIGTA to provide

physical security to protect IRS employees 

against external threats. TIGTA works

aggressively and takes swift action to protect

IRS employees, including providing armed

escorts to IRS employees in dangerous 

situations.

External Attempts to Corrupt Tax 

Administration: TIGTA is statutorily mandated 

to investigate external attempts to corrupt tax

administration, which includes criminal 

misconduct by non-employees such as

attempted bribery of IRS employees and the 

impersonation of the IRS. 

Many IRS employees are in direct contact with

taxpayers and often encounter situations in 

which a taxpayer may challenge the employee’s 

integrity with a bribe. Bribery, or attempted 

bribery, of a public official is a criminal offense,

and an attack on the integrity of the entire IRS 

organization and the Nation’s system of tax

administration. TIGTA is currently 

investigating nationwide IRS impersonation 

schemes in which criminals are pretending to be

IRS employees and are attempting to collect

phantom tax liabilities from innocent taxpayers. 

In FY 2015, TIGTA received more than 

896,000 reports related to this type of contact;

and more than 5000 taxpayers have been

defrauded out of more than $26.5 million as a

result of impersonation scams.

In May 2015, the IRS originally reported to 

TIGTA that criminals used taxpayer-specific 

data acquired from non-IRS sources to

successfully gain unauthorized access to more 

than 100,000 tax accounts through IRS’s “Get 

Transcript” application. In August 2015, as a 

result of TIGTA’s investigative findings, the 

IRS conducted a deeper analysis in which it

identified an additional 220,000 successful 

attempts to clear the “Get Transcript” 

verification process by individuals with 

taxpayer-specific sensitive data. The updated 

review also identified an additional 170,000 

suspected attempts that failed to clear the 

authentication processes. Following TIGTA’s 

advice, the IRS disabled the “Get Transcript” 

application until this matter is investigated. As 

of February 2016, the “Get Transcript” 

application is still disabled.

As part of its overall investigation into the data 

breach, the Office of Investigations (OI) is 

conducting an in-depth forensic review of more 

than 300,000 accounts to determine if they 

were used for any other type of identity theft. 

The investigation will also identify the 

vulnerabilities that allowed the accounts to be 

stolen and will generate the evidence necessary 

to bring the responsible individuals to justice.

Legislative Proposals

TIGTA has no legislative proposals.
TIGTA Performance by Budget Activity

Key: DISC – Discontinued

Description of Performance

• For FY 2015, OA issued 9 2 audit reports

identifying approximately $26.6 billion in

potential financial benefits (i.e., costs

savings, increased or protected revenue,

taxpayer rights and entitlements, and 

inefficient use of resources).

• For FY 2015, TIGTA surpassed its target of

6 8 percent of Audit Products Delivered 

when Promised to Stakeholders. TIGTA 

achieved 80 percent as a result of

monitoring the execution of its audit

programs. The FY 2015 actual percentage 

of Recommendations Made that Have Been 

Implemented was 92 percent. TIGTA 

exceeded its target as a result of continued 

discussions with the IRS throughout the

audit process, both on the findings and on

the potential recommended solutions, to

ensure that feasible alternatives were

identified.

• For FY 2017, OA’s performance 

targets are 68 percent of Audit Products 

Delivered when Promised to Stakeholders 

and 85 percent of Recommendations Made 

that Have Been Implemented.

• During FY 2015, TIGTA initiated 37 

proactive investigative initiatives to detect 

systemic weaknesses or potential IRS 

program vulnerabilities. TIGTA received

12,080 complaints and opened 2,726

investigations in FY 2015. During this time 

period, TIGTA also closed 2,797 

investigations, which included 1,185 cases of 

employee misconduct referred for IRS action

and 146 cases of all types of investigations

accepted for criminal prosecution.

• For FY 2017, OI’s performance target is 81 

percent of Results from Investigative 

Activities.

Budget Activity Performance Measure FY 2013 FY 2014 FY 2015 FY 2016 FY 2017

Actual Actual Actual Target Target

Audit Percentage of Audit Products 

Delivered when Promised to 

Stakeholders

84.0 65.0 80.0 68.0 68.0

Audit Percentage of Recommendations 

Made that Have Been Implemented

87.0 89.0 92.0 85.0 85.0

Investigations Percentage of Results from

Investigative Activities

90.0 92.0 93.0 81.0 81.0