1/35

APPENDIX 1

GAO-IG Act Reporting for Budget Fiscal Year 2020

GAO - Open Recommendations Reporting

Report Title Report Number Issue Date Audit Area GAO Recommendation Bureau/Office Implementation Status 

Financial Audit: Process for Preparing the 

Consolidated Financial Statements of the 

U.S. Government Needs Improvement

GAO-04-45 10/30/2003 Financial 

Statements

The Secretary of the Treasury should direct the Fiscal Assistant Secretary, working in 

coordination with the Controller of OMB's Office of Federal Financial Management, to 

establish written policies and procedures to help ensure that major treaty and other international 

agreement information is properly identified and reported in the CFS. Specifically, these 

policies and procedures should require that agencies develop a detailed schedule of all major 

treaties and other international agreements that obligate the U.S. government to provide cash, 

goods, or services, or that create other financial arrangements that are contingent on the 

occurrence or nonoccurrence of future events (a starting point for compiling these data could be 

the State Department's Treaties in Force).

Fiscal Service PCA Due Date: Sept-2019

Financial Audit: Process for Preparing the 

Consolidated Financial Statements of the 

U.S. Government Needs Improvement

GAO-04-45 10/30/2003 Financial 

Statements

The Secretary of the Treasury should direct the Fiscal Assistant Secretary, working in 

coordination with the Controller of OMB's Office of Federal Financial Management, to 

establish written policies and procedures to help ensure that major treaty and other international 

agreement information is properly identified and reported in the CFS. Specifically, these 

policies and procedures should require that agencies classify all such scheduled major treaties 

and other international agreements as commitments or contingencies.

Fiscal Service PCA Due Date: Sept-2019

Financial Audit: Process for Preparing the 

Consolidated Financial Statements of the 

U.S. Government Needs Improvement

GAO-04-45 10/30/2003 Financial 

Statements

The Secretary of the Treasury should direct the Fiscal Assistant Secretary, working in 

coordination with the Controller of OMB's Office of Federal Financial Management, to 

establish written policies and procedures to help ensure that major treaty and other international 

agreement information is properly identified and reported in the CFS. Specifically, these 

policies and procedures should require that agencies disclose in the notes to the CFS amounts 

for major treaties and other international agreements that have a reasonably possible chance of 

resulting in a loss or claim as a contingency.

Fiscal Service PCA Due Date: Sept-2019

Financial Audit: Process for Preparing the 

Consolidated Financial Statements of the 

U.S. Government Needs Improvement

GAO-04-45 10/30/2003 Financial 

Statements

The Secretary of the Treasury should direct the Fiscal Assistant Secretary, working in 

coordination with the Controller of OMB's Office of Federal Financial Management, to 

establish written policies and procedures to help ensure that major treaty and other international 

agreement information is properly identified and reported in the CFS. Specifically, these 

policies and procedures should require that agencies disclose in the notes to the CFS amounts 

for major treaties and other international agreements that are classified as commitments and 

that may require measurable future financial obligations.

Fiscal Service PCA Due Date: Sept-2019

Financial Audit: Process for Preparing the 

Consolidated Financial Statements of the 

U.S. Government Needs Improvement

GAO-04-45 10/30/2003 Financial 

Statements

The Secretary of the Treasury should direct the Fiscal Assistant Secretary, working in 

coordination with the Controller of OMB's Office of Federal Financial Management, to 

establish written policies and procedures to help ensure that major treaty and other international 

agreement information is properly identified and reported in the CFS. Specifically, these 

policies and procedures should require that agencies take steps to prevent major treaties and 

other international agreements that are classified as remote from being recorded or disclosed as 

probable or reasonably possible in the CFS.

Fiscal Service PCA Due Date: Sept-2019

Financial Audit: Process for Preparing the 

Consolidated Financial Statements of the 

U.S. Government Needs Improvement

GAO-04-45 10/30/2003 Financial 

Statements

GAO recommends that the note disclosure for stewardship responsibilities related to the risk 

assumed for federal insurance and guarantee programs meet the requirements of Statement of 

Federal Financial Accounting Standards No. 5, Accounting for Liabilities of the Federal 

Government, paragraph 106, that requires that when financial information pursuant to Financial 

Accounting Standards Board standards on federal insurance and guarantee programs 

conducted by government corporations is incorporated in general purpose financial reports of a 

larger federal reporting entity, the entity should report as required supplementary information 

what amounts and periodic change in those amounts would be reported under the "risk 

assumed" approach.

Fiscal Service PCA Due Date: Sept-2020

Financial Audit: Significant Internal Control 

Weaknesses Remain in the Preparation of 

the Consolidated Financial Statements of the 

U.S. Government

GAO-07-805 7/23/2007 Financial 

Statements

The Secretary of the Treasury should direct the Fiscal Assistant Secretary, working in 

coordination with the Controller of OMB's Office of Federal Financial Management, to 

establish effective processes and procedures to ensure that appropriate information regarding 

litigation and claims is included in the government wide legal representation letter.

Fiscal Service PCA Due Date: Sept-2019

Financial Audit: Material Weaknesses in 

Internal Control over the Processes Used to 

Prepare the Consolidated Financial 

Statements of the U.S. Government

GAO-08-748 6/17/2008 Financial 

Statements

The Secretary of the Treasury should direct the Fiscal Assistant Secretary, in coordination with 

the Controller of OMB's Office of Federal Financial Management, to develop and implement 

effective processes for monitoring and assessing the effectiveness of internal control over the 

processes used to prepare the CFS.

Fiscal Service PCA Due Date: Sept-2019
2/35

APPENDIX 1

GAO-IG Act Reporting for Budget Fiscal Year 2020

GAO - Open Recommendations Reporting

Report Title Report Number Issue Date Audit Area GAO Recommendation Bureau/Office Implementation Status 

Abusive Tax Avoidance Transactions: IRS 

Needs Better Data to Inform Decisions 

about Transactions

GAO-11-493 05/12/2011 Tax 

Administration and 

Compliance

To improve reporting on the results of examinations results on ATAT issues, the 

Commissioner of Internal Revenue should require all divisions to supply similar, consistent 

results from existing data systems; separately track the tax amount recommended, assessed, 

and collected between ATAT issues and non-ATAT issues; and establish a process to review 

the accuracy of examination data prior to its inclusion in future reports to the Joint Committee 

on Taxation.

IRS IRS initially thought that this recommendation was 

closed but recently received communication from 

GAO that this recommendation should remain 

open. IRS is working with GAO to develop 

additional PCAs for this recommendation. 

Management Report: Improvements Are 

Needed to Enhance the Internal Revenue 

Service's Internal Controls and Operating 

Effectiveness

GAO-11-494R 06/21/2011 Financial 

Statements

The Commissioner of Internal Revenue should direct the appropriate IRS officials to do the 

following: Based on a review of all existing contracts under $100,000 without an appointed 

COTR that should require contract employees to obtain favorable background investigation 

results, amend those contracts to require that favorable background investigations be obtained 

for all relevant contract employees before routine, unescorted, unsupervised physical access to 

taxpayer information is granted.

IRS Implemented. Pending auditor validation.

Management Report: Improvements Are 

Needed to Enhance the Internal Revenue 

Service's Internal Controls and Operating 

Effectiveness

GAO-11-494R 06/21/2011 Financial 

Statements

The Commissioner of Internal Revenue should direct the appropriate IRS officials to do the 

following: Revise the post orders for the SCC and lockbox bank security guards to include 

specific procedures for timely reporting exterior lighting outages to SCC or lockbox bank 

facilities management. These procedures should specify (1) whom to contact to report lighting 

outages and (2) how to document and track lighting outages until resolved.

IRS PCA Due Date: Dec-2019

Management Report: Improvements Are 

Needed to Enhance the Internal Revenue 

Service's Internal Controls and Operating 

Effectiveness

GAO-11-494R 06/21/2011 Financial 

Statements

The Commissioner of Internal Revenue should direct the appropriate IRS officials to do the 

following: Establish a policy requiring collaborative oversight between IRS's key offices in 

determining whether potential service contracts involve routine, unescorted, unsupervised 

physical access to taxpayer information, thus requiring background investigations, regardless of 

contract award amount. This policy should include a process for the requiring business unit to 

communicate to the Office of Procurement and the Human Capital Office the services to be 

provided under the contract and any potential exposure of taxpayer information to contract 

employees providing the services, and for all three units to (1) evaluate the risk of exposure of 

taxpayer information prior to finalizing and awarding the contract and (2) ensure that the final 

contract requires favorable background investigations as applicable, commensurate with the 

assessed risk.

IRS PCA Due Date: Oct-2019

INVESTMENT MANAGEMENT: IRS 

Has a Strong Oversight Process but Needs 

to Improve How It Continues Funding 

Ongoing Investments

GAO-11-587 07/20/2011 Administration of 

Program 

Operations

The Commissioner of Internal Revenue should direct the appropriate officials to take the 

following action: define and implement a process, including defined criteria, for reselecting 

ongoing projects.

IRS Implemented. Pending auditor validation.

Financial Derivatives: Disparate Tax 

Treatment and Information Gaps Create 

Uncertainty and Potential Abuse

GAO-11-750 09/20/2011 Tax 

Administration and 

Compliance

To better ensure that economically similar outcomes are taxed similarly and minimize 

opportunities for abuse, the Secretary of the Treasury should undertake a study that compares 

the current approach to alternative approaches for the taxation of financial derivatives. To 

determine if changes would be beneficial, such a study should weigh the tradeoffs to IRS and 

taxpayers that each alternative presents, including simplicity administrability, and economic 

efficiency.

Treasury - DO Rejected. Treasury disagreed with this 

recommendation. In its response, Treasury cited a 

body of literature written by academics, 

practitioners, and others that considers the subject. 

Treasury also mentioned that Congress has 

resources available, such as the Joint Committee on 

Taxation, which could advise them about alternative 

approaches to the taxation of financial derivatives. 

Dodd-Frank Act Regulations: 

Implementation Could Benefit from 

Additional Analyses and Coordination

GAO-12-151OCC 11/10/2011 Banking and 

Lending

To maximize the usefulness of the required retrospective reviews, the Comptroller of the 

Currency should develop plans that determine how OCC will measure the impact of DoddFrank Act regulations -- for example, determining how and when to collect, analyze, and report 

needed data.

OCC Implemented. Pending auditor validation.
3/35

APPENDIX 1

GAO-IG Act Reporting for Budget Fiscal Year 2020

GAO - Open Recommendations Reporting

Report Title Report Number Issue Date Audit Area GAO Recommendation Bureau/Office Implementation Status 

Dodd-Frank Act Regulations: 

Implementation Could Benefit from 

Additional Analyses and Coordination

GAO-12-151 11/10/2011 Banking and 

Lending

To enhance interagency coordination on regulations issued pursuant to the Dodd-Frank Act, the 

FSOC should work with the federal financial regulatory agencies to establish formal 

coordination policies that clarify issues such as when coordination should occur, the process 

that will be used to solicit and address comments, and what role FSOC should play in 

facilitating coordination.

Treasury - DO Rejected. Treasury disagreed with the 

recommendation. The Council member agencies 

have adopted protocols to provide a framework for 

the statutorily required consultations that are part of 

certain rulemakings required by the Dodd-Frank 

Act. Collaboration and coordination beyond the 

statutory requirements for consultation are inherent 

in the work of the Council, and occur routinely 

through the work of the Council members, Council 

committees, and agency staff. Implementation of a 

more prescriptive framework would create a risk of 

constraining the open and collaborative coordination 

that exists today. Nevertheless, the Council, the 

Deputies Committee, and Council staff will 

continue to identify ways to enhance collaboration 

as work is conducted through the Council's 

committee structure, working groups, and joint 

work products. 

2011 Tax Filing: Processing Gains, but 

Taxpayer Assistance Could Be Enhanced by 

More Self-Service Tools

GAO-12-176 12/15/2011 Tax 

Administration and 

Compliance

The Commissioner of Internal Revenue should take the following action: develop a new refund 

timeliness measure and goal to more appropriately reflect current capabilities.

IRS Implemented. Pending auditor validation.

2011 Tax Filing: Processing Gains, but 

Taxpayer Assistance Could Be Enhanced by 

More Self-Service Tools

GAO-12-176 12/15/2011 Tax 

Administration and 

Compliance

The Commissioner of Internal Revenue should take the following actions: complete an Internet 

strategy that provides a justification for the implementation of online self-service tools and 

includes an assessment of providing online self-service tools that allow taxpayers to access and 

update elements of their account online; acknowledges the cost and benefits to taxpayers of 

new online services; sets the time frame for when the online service would be created and 

available for taxpayer use; and includes a plan to update the strategy periodically.

IRS Implemented. Pending auditor validation.

Recovery Act: Housing Programs Met 

Milestones, but Asset Management 

Capabilities Need Evaluation

GAO-12-634 06/18/2012 Administration of 

Program 

Operations

To help meet the requirements of the Recovery Act's Section 1602 provisions to help ensure 

the long-term viability of the buildings, the Secretary of the Treasury should assess the extent 

to which HFAs are utilizing information provided to them by project owners during the 15-year 

compliance period, taking into account the level of investor equity in projects.

Treasury - DO Implemented. Pending auditor validation.

Management Report: Improvements Are 

Needed to Enhance the Internal Revenue 

Service's Internal Controls and Operating 

Effectiveness

GAO-12-683R 06/25/2012 Financial 

Statements

The Commissioner of Internal Revenue should direct the appropriate IRS officials to update the 

IRM to specify steps to be followed to prevent campus support clerks as well as any other 

employees who process payments through the electronic check presentment system from 

making adjustments to taxpayer accounts.

IRS Implemented. Pending auditor validation.

Financial Literacy: Overlap of Programs 

Suggests There May Be Opportunities for 

Consolidation

GAO-12-588 07/23/2012 Administration of 

Program 

Operations

To help ensure effective and efficient use of federal financial literacy resources, the Secretary of 

the Treasury and the Director of the Consumer Financial Protection Bureau, in their capacity as 

Chair and Vice Chair of the Financial Literacy and Education Commission, and in concert with 

other agency representatives of the commission should identify for federal agencies and 

Congress options for consolidating federal financial literacy efforts into the activities and 

agencies that are best suited or most effective.

Treasury - DO Implemented. Pending auditor validation.

Financial Literacy: Overlap of Programs 

Suggests There May Be Opportunities for 

Consolidation

GAO-12-588 07/23/2012 Administration of 

Program 

Operations

To help ensure effective and efficient use of federal financial literacy resources, the Secretary of 

the Treasury and the Director of the Consumer Financial Protection Bureau, in their capacity as 

Chair and Vice Chair of the Financial Literacy and Education Commission, and in concert with 

other agency representatives of the commission should revise the commission's national 

strategy to incorporate clear recommendations on the allocation of federal financial literacy 

resources across programs and agencies.

Treasury - DO Implemented. Pending auditor validation.

Financial Stability: New Council and 

Research Office Should Strengthen the 

Accountability and Transparency of Their 

Decisions

GAO-12-886 09/11/2012 Administration of 

Program 

Operations

FSOC and OFR should clarify responsibility for implementing requirements to monitor threats 

to financial stability across FSOC and OFR, including FSOC members and member agencies, 

to better ensure that the monitoring and analysis of the financial system are comprehensive and 

not unnecessarily duplicative.

Treasury - DO Implemented. Pending auditor validation.
4/35

APPENDIX 1

GAO-IG Act Reporting for Budget Fiscal Year 2020

GAO - Open Recommendations Reporting

Report Title Report Number Issue Date Audit Area GAO Recommendation Bureau/Office Implementation Status 

Financial Stability: New Council and 

Research Office Should Strengthen the 

Accountability and Transparency of Their 

Decisions

GAO-12-886 09/11/2012 Administration of 

Program 

Operations

To strengthen accountability and collaboration in FSOC's decision making, FSOC should 

establish a collaborative and comprehensive framework for assessing the impact of its decisions 

for designating FMUs and nonbank financial companies on the wider economy and those 

entities. This framework should include assessing the effects of subjecting designated FMUs 

and nonbank financial companies to new regulatory standards, requirements, and restrictions; 

establishing a baseline from which to measure the effects; and documenting the approach.

Treasury - DO Implemented. Pending auditor validation.

Financial Stability: New Council and 

Research Office Should Strengthen the 

Accountability and Transparency of Their 

Decisions

GAO-12-886 09/11/2012 Administration of 

Program 

Operations

To strengthen accountability and collaboration in FSOC's decision making, FSOC should 

develop more systematic forward-looking approaches for reporting on potential emerging 

threats to financial stability in annual reports. Such an approach should provide methodological 

insight into why certain threats to financial stability are included or excluded over time, 

separate current or past threats from those that are potentially emerging, and prioritize the 

latter.

Treasury - DO Implemented. Pending auditor validation.

Organizational Transformation: Enterprise 

Architecture (EA) Value Needs to be 

Measured and Reported

GAO-12-791 09/26/2012 Information 

Technology

To enhance federal agencies' ability to realize enterprise architecture benefits, the Secretaries of 

the Departments of Agriculture, the Air Force, the Army, Commerce, Defense, Education, 

Energy, Homeland Security, the Interior, Labor, the Navy, State, Transportation, the Treasury, 

and Veterans Affairs; the Attorney General; the Administrators of the Environmental Protection 

Agency, General Services Administration, National Aeronautics and Space Administration, and 

Small Business Administration; the Commissioners of the Nuclear Regulatory Commission and 

Social Security Administration; and the Directors of the National Science Foundation and the 

Office of Personnel Management should fully establish an approach for measuring enterprise 

architecture outcomes, including a documented method (i.e., steps to be followed) and metrics 

that are measurable, meaningful, repeatable, consistent, actionable, and aligned with the 

agency's enterprise architecture's strategic goals and intended purpose.

Treasury - DO Implemented. Pending auditor validation.

Organizational Transformation: Enterprise 

Architecture (EA) Value Needs to be 

Measured and Reported

GAO-12-791 09/26/2012 Information 

Technology

To enhance federal agencies' ability to realize enterprise architecture benefits, the Secretaries of 

the Departments of Agriculture, the Air Force, the Army, Commerce, Defense, Education, 

Energy, Homeland Security, the Interior, Labor, the Navy, State, Transportation, the Treasury, 

and Veterans Affairs; the Attorney General; the Administrators of the Environmental Protection 

Agency, General Services Administration, National Aeronautics and Space Administration, and 

Small Business Administration; the Commissioners of the Nuclear Regulatory Commission and 

Social Security Administration; and the Directors of the National Science Foundation and the 

Office of Personnel Management should periodically measure and report enterprise architecture 

outcomes and benefits to top agency officials (i.e., executives with authority to commit 

resources or make changes to the program) and to OMB.

Treasury - DO Implemented. Pending auditor validation.

Tax Gap: IRS Could Significantly Increase 

Revenues by Better Targeting Enforcement 

Resources

GAO-13-151 12/05/2012 Tax 

Administration and 

Compliance

The Commissioner of Internal Revenue should review disparities in the ratios of direct revenue 

yield to costs across different enforcement programs and across different groups of cases and 

consider this evidence as a potential basis for adjusting its allocation of enforcement resources 

each year. 

IRS Implemented. Pending auditor validation.

2012 Tax Filing: IRS Faces Challenges 

Providing Service to Taxpayers and Could 

Collect Balances Due More Effectively

GAO-13-156 12/18/2012 Tax 

Administration and 

Compliance

The Commissioner of Internal Revenue should take the following actions: outline a strategy that 

defines appropriate levels of telephone and correspondence service and wait time and lists 

specific steps to manage service based on an assessment of time frames, demand, capabilities, 

and resources.

IRS Rejected. IRS disagreed with the recommendation. 

Although IRS does not plan to pursue the specific 

actions recommended as explained in response to 

GAO dated December 13, 2012, it has other 

activities in place such as applying more Customer 

Service Representatives to answer calls, improving 

contact center efficiency, providing issue resolution 

alternatives to reduce demand, and enhancing the 

Where's My Refund (WMR) web application that 

will achieve program improvements as intended by 

the recommendation.

IRS WEBSITE: Long-Term Strategy 

Needed to Improve Interactive Services

GAO-13-435 04/16/2013 Administration of 

Program 

Operations

The Commissioner of Internal Revenue should develop business cases for all new online 

services, describing the potential benefits and costs of the project, and use them to prioritize 

future projects.

IRS Implemented. Pending auditor validation.

IRS WEBSITE: Long-Term Strategy 

Needed to Improve Interactive Services

GAO-13-435 04/16/2013 Administration of 

Program 

Operations

The Commissioner of Internal Revenue should establish a numerical or other measurable goal 

to improve taxpayer satisfaction and a timeframe for achieving it.

IRS Implemented. Pending auditor validation.
5/35

APPENDIX 1

GAO-IG Act Reporting for Budget Fiscal Year 2020

GAO - Open Recommendations Reporting

Report Title Report Number Issue Date Audit Area GAO Recommendation Bureau/Office Implementation Status 

Information Technology: Consistently 

Applying Best Practices Could Help IRS 

Improve the Reliability of Reported Cost 

and Schedule Information

GAO-13-401 04/17/2013 Information 

Technology

To improve the reliability of reported cost and schedule variance information for the seven 

major investments we reviewed, the Commissioner of IRS should direct the Chief Technology 

Officer to: improve the reliability of cost estimates by addressing the weaknesses we identified 

in this report so that each investment at least substantially meets each of the characteristics of a 

reliable cost estimate.

IRS Implemented. Pending auditor validation.

Information Technology: Consistently 

Applying Best Practices Could Help IRS 

Improve the Reliability of Reported Cost 

and Schedule Information

GAO-13-401 04/17/2013 Information 

Technology

To improve the reliability of reported cost and schedule variance information for the seven 

major investments we reviewed, the Commissioner of IRS should direct the Chief Technology 

Officer to: develop and implement guidance that specifies best practices-such as including 

evaluating critical path (for projected schedule), using earned value management data, 

evaluating the performance of completed work and comparing it to the remaining budget, 

assessing commitment values for material needed to complete remaining work, and estimating 

future conditions-to consider when determining projected cost and schedule amounts.

IRS Implemented. Pending auditor validation.

Information Technology: Consistently 

Applying Best Practices Could Help IRS 

Improve the Reliability of Reported Cost 

and Schedule Information

GAO-13-401 04/17/2013 Information 

Technology

To improve the reliability of reported cost and schedule variance information for the seven 

major investments we reviewed, we recommend that the Acting Commissioner of IRS should 

direct the Chief Technology Officer to: improve the extent to which schedules are wellconstructed and controlled by addressing the weaknesses we identified in this report so that 

each investment at least substantially meets each of these characteristics.

IRS Implemented. Pending auditor validation.

Management Report: Improvements Are 

Needed to Enhance the Internal Revenue 

Service's Internal Controls

GAO-13-420R 05/13/2013 Administration of 

Program 

Operations

The Commissioner of Internal Revenue should direct the appropriate IRS officials to take the 

following actions: Perform a risk assessment to determine the appropriate level of IDRS 

access that should be granted to employee groups that handle hard-copy taxpayer receipts and 

related sensitive taxpayer information as part of their job responsibilities.

IRS PCA Due Date: Oct-2019

Management Report: Improvements Are 

Needed to Enhance the Internal Revenue 

Service's Internal Controls

GAO-13-420R 05/13/2013 Administration of 

Program 

Operations

The Commissioner of Internal Revenue should direct the appropriate IRS officials to take the 

following actions: Based on the results of the risk assessment, update the IRM accordingly to 

specify the appropriate level of IDRS access that should be allowed for (1) remittance 

perfection technicians and (2) all other employee groups with IDRS access that handle hardcopy taxpayer receipts and related sensitive information as part of their job responsibilities.

IRS PCA Due Date: Oct-2020

Management Report: Improvements Are 

Needed to Enhance the Internal Revenue 

Service's Internal Controls

GAO-13-420R 05/13/2013 Administration of 

Program 

Operations

The Commissioner of Internal Revenue should direct the appropriate IRS officials to take the 

following actions: Establish procedures to implement the updated IRM, including required 

steps to follow to prevent (1) remittance perfection technicians and (2) all other employee 

groups that handle hard-copy taxpayer receipts and related sensitive information as part of their 

job responsibilities from gaining access to command codes not required as part of their 

designated job duties.

IRS PCA Due Date: Oct-2020

Tax Administration: IRS Could Improve 

Examinations by Adopting Certain Research 

Program Practices

GAO-13-480 05/24/2013 Tax 

Administration and 

Compliance

The Commissioner of Internal Revenue should transcribe data from paper-filed Form 1040 

Schedules C and E that are not currently transcribed and make that data available to SB/SE 

examiners for classification. If IRS has evidence that the costs related to transcribing all such 

data on Schedules C and E exceed the benefits or are otherwise prohibitive, IRS could 

transcribe less data by transcribing only the missing data for selected line items, such as certain 

large expense line items, and/or develop a budget proposal to fund an initiative for transcribing 

the Schedule C and E data.

IRS Implemented. Pending auditor validation.

Management Report: Improvements Needed 

in Controls over the Preparation of the U.S. 

Consolidated Financial Statements

GAO-13-540 6/28/2013 Financial 

Statements

To improve the reliability of the information presented in the CFS budget statements, the 

Secretary of the Treasury should direct the Fiscal Assistant Secretary, working in coordination 

with the Controller of OMB's Office of Federal Financial Management, to establish and 

implement effective procedures for reporting amounts in the CFS budget statements that are 

fully consistent with the underlying information in significant federal entities' audited financial 

statements and other financial data.

Fiscal Service PCA Due Date: Sept-2019

Management Report: Improvements Needed 

in Controls over the Preparation of the U.S. 

Consolidated Financial Statements

GAO-13-540 6/28/2013 Financial 

Statements

To improve the reliability of the information presented in the CFS budget statements, the 

Secretary of the Treasury should direct the Fiscal Assistant Secretary, working in coordination 

with the Controller of OMB's Office of Federal Financial Management, to establish and 

implement effective procedures for identifying and reporting all items needed to prepare the 

CFS budget statements.

Fiscal Service PCA Due Date: Sept-2019

Corporate Tax Compliance: IRS Should 

Determine Whether Its Streamlined 

Corporate Audit Process Is Meeting Its 

Goals

GAO-13-662 08/22/2013 Tax 

Administration and 

Compliance

The Commissioner of Internal Revenue should track savings from Compliance Maintenance 

and CAP overall and develop a plan for reinvesting any savings.

IRS Implemented. Pending auditor validation.

Information Technology: Additional OMB 

and Agency Actions Are Needed to Achieve 

Portfolio Savings

GAO-14-65 11/06/2013 Administration of 

Program 

Operations

To improve the department's implementation of Portfolio Stat, as the department finalizes and 

matures its enterprise architecture and valuation methodology, the Secretary of the Treasury 

should direct the CIO to utilize these processes to identify whether there are additional 

opportunities to reduce duplicative, low-value, or wasteful investments.

Treasury - DO Implemented. Pending auditor validation.
6/35

APPENDIX 1

GAO-IG Act Reporting for Budget Fiscal Year 2020

GAO - Open Recommendations Reporting

Report Title Report Number Issue Date Audit Area GAO Recommendation Bureau/Office Implementation Status 

Information Technology: Additional OMB 

and Agency Actions Are Needed to Achieve 

Portfolio Savings

GAO-14-65 11/06/2013 Administration of 

Program 

Operations

To improve the department's implementation of Portfolio Stat, in future reporting to OMB, the 

Secretary of the Treasury should direct the CIO to fully describe the following Portfolio Stat 

action plan elements: (1) consolidate commodity IT spending under the agency CIO and (2) 

establish criteria for identifying wasteful, low-value, or duplicative investments.

Treasury - DO Implemented. Pending auditor validation.

Private Pensions: Clarity of Required 

Reports and Disclosures Could Be 

Improved

GAO-14-92 11/21/2013 Administration of 

Program 

Operations

To ease the burden on plan sponsors, enhance compliance, and help ensure that disclosures to 

participants are written in a manner that can be understood by the average participant, Labor, 

IRS, and PBGC should work together to: Create and regularly update a comprehensive online 

tool for plan sponsors to search for the reports and disclosures they are required to provide 

based on plan type, design, and circumstances.

IRS Implemented. Pending auditor validation.

Civilian Intelligence Community: Additional 

Actions Needed to Improve Reporting on 

and Planning for the Use of Contract 

Personnel

GAO-14-204 01/29/2014 Administration of 

Program 

Operations

To improve civilian IC elements' or their respective departments' ability to mitigate risks 

associated with the use of contractors, the Director of National Intelligence, Director of the 

Central Intelligence Agency, Attorney General of the United States, and Secretaries of Energy 

and the Treasury should direct responsible agency officials to set time frames to develop 

guidance that fully addresses the Office of Federal Procurement Policy, Policy Letter 11-01's 

requirements related to closely supporting inherently governmental functions.

Treasury - DO Implemented. Pending auditor validation.

Partnerships and S Corporations: IRS Needs 

to Improve Information to Address Tax 

Noncompliance

GAO-14-453 05/14/2014 Tax 

Administration and 

Compliance

While IRS works to improve the quality of its Schedule K-1 data, the Commissioner of Internal 

Revenue should develop a plan for conducting testing or other analysis to determine whether 

the improved Schedule K-1 data, perhaps combined with other IRS information about 

businesses and taxpayers, could be used more effectively to ensure compliance with the 

reporting of flow-through income.

IRS Rejected. IRS disagreed with the recommendation. 

IRS understands the objective of this 

recommendation and, at such time that resources 

are available to enhance capabilities, we would 

consider this methodology of advanced testing. 

However, currently we will not be pursing the 

actions recommended. IRS views this GAO 

recommendation as not providing a sufficient return 

on investment to warrant allocating limited 

resources for implementing the recommendation. 

Federal Software Licenses: Better 

Management Needed to Achieve Significant 

Savings Government-Wide

GAO-14-413 05/22/2014 Information 

Technology

To ensure the effective management of software licenses, the Secretary of the Treasury should 

establish a comprehensive inventory of software licenses using automated tools for the majority 

of agency software license spending and/or enterprise-wide licenses.

Treasury - DO PCA Due Date: Dec-2019

Federal Software Licenses: Better 

Management Needed to Achieve Significant 

Savings Government-Wide

GAO-14-413 05/22/2014 Information 

Technology

To ensure the effective management of software licenses, the Secretary of the Treasury should 

regularly track and maintain a comprehensive inventory of software licenses using automated 

tools and metrics.

Treasury - DO PCA Due Date: Dec-2019

Federal Software Licenses: Better 

Management Needed to Achieve Significant 

Savings Government-Wide

GAO-14-413 05/22/2014 Information 

Technology

To ensure the effective management of software licenses, the Secretary of the Treasury should 

analyze agency-wide software license data, such as costs, benefits, usage, and trending data, to 

identify opportunities to reduce costs and better inform investment decision making.

Treasury - DO PCA Due Date: Dec-2019

Federal Software Licenses: Better 

Management Needed to Achieve Significant 

Savings Government-Wide

GAO-14-413 05/22/2014 Information 

Technology

To ensure the effective management of software licenses, the Secretary of the Treasury should 

provide software license management training to appropriate agency personnel addressing 

contract terms and conditions, negotiations, laws and regulations, acquisition, security planning, 

and configuration management.

Treasury - DO PCA Due Date: Dec-2019

IRS Correspondence Audits: Better 

Management Could Improve Tax 

Compliance and Reduce Taxpayer Burden

GAO-14-479 06/05/2014 Tax 

Administration and 

Compliance

To clarify the desired results of the correspondence audit program and its linkages to IRS-wide 

activities, the Commissioner of Internal Revenue should establish formal program objectives, 

ensure that the program measures reflect those objectives and clearly link those measures with 

strategic IRS-wide goals on ensuring compliance in a cost effective way while minimizing 

taxpayer burden.

IRS Implemented. Pending auditor validation.

IRS 2015 BUDGET: Long-Term Strategy 

and Return on Investment Data Needed to 

Better Manage Budget Uncertainty and Set 

Priorities

GAO-14-605 06/12/2014 Administration of 

Program 

Operations

Because ROI provides insights on the productivity of a program and is one important factor in 

making resource allocation decisions, the Commissioner of Internal Revenue should calculate 

actual ROI for implemented initiatives, compare the actual ROI to projected ROI, and provide 

the comparison to budget decision makers for initiatives where IRS allocated resources.

IRS Implemented. Pending auditor validation.

IRS 2015 BUDGET: Long-Term Strategy 

and Return on Investment Data Needed to 

Better Manage Budget Uncertainty and Set 

Priorities

GAO-14-605 06/12/2014 Administration of 

Program 

Operations

Because ROI provides insights on the productivity of a program and is one important factor in 

making resource allocation decisions, the Commissioner of Internal Revenue should use actual 

ROI calculations as part of resource allocation decisions.

IRS Implemented. Pending auditor validation.
7/35

APPENDIX 1

GAO-IG Act Reporting for Budget Fiscal Year 2020

GAO - Open Recommendations Reporting

Report Title Report Number Issue Date Audit Area GAO Recommendation Bureau/Office Implementation Status 

Debt Management: Floating Rate Notes Can 

Help Treasury Meet Borrowing Goals, but 

Additional Actions Needed to Help Manage 

Risk

GAO-14-535 06/16/2014 Banking and 

Lending

To help minimize Treasury borrowing costs over time by better understanding and managing 

the risks posed by Treasury floating rate notes and by enhancing demand for Treasury 

securities, the Secretary of the Treasury should track and report an additional measure of the 

length of the portfolio that captures the interest rate reset frequency of securities in the 

portfolio.

Treasury - DO PCA Due Date: Sep-2019

Management Report: Improvements Needed 

in Controls over the Processes Used to 

Prepare the U.S. Consolidated Financial 

Statements

GAO-14-543 6/19/2014 Financial 

Statements

The Secretary of the Treasury should direct the Fiscal Assistant Secretary, working in 

coordination with the Controller of OMB, to establish and implement policies and procedures 

for accounting for and reporting all significant General Fund activity and balances, obtaining 

assurance on the reliability of the amounts, and reconciling the activity and balances between 

the General Fund and federal entities.

Fiscal Service PCA Due Date: Sept-2019

Management Report: Improvements Needed 

in Controls over the Processes Used to 

Prepare the U.S. Consolidated Financial 

Statements

GAO-14-543 6/19/2014 Financial 

Statements

The Secretary of the Treasury should direct the Fiscal Assistant Secretary, working in 

coordination with the Controller of OMB, to establish a formalized process to require the 

performance of additional audit procedures specifically focused on intragovernmental activity 

and balances between federal entities to provide increased audit assurance over the reliability of 

such information.

Fiscal Service Rejected. Treasury disagreed with the 

recommendation. The Office of Management and 

Budget (OMB) and Treasury do not think they need 

to place additional audit burden on agencies. With 

respect to this recommendation’s reference to a 

need for additional agency audit procedures for 

intragovernmental activity and balances, Treasury’s 

plan already contains multiple corrective actions 

aimed at increasing the quality of intragovernmental 

data. These actions are proving effective, as 

reflected by a reduction of over 80 percent in 

elimination differences of intragovernmental data 

submitted by federal entities from FY 2015 to FY 

2016. Moreover, in alignment with the current 

administration’s efforts to reduce agency burden, 

we do not support encumbering agencies with the 

cost and burden of the additional audit procedures 

being recommended. However, Treasury will 

continue to work collaboratively with OMB and the 

federal agency community on existing corrective 

actions.

Private Pensions: Targeted Revisions Could 

Improve Usefulness of Form 5500 

Information

GAO-14-441 07/07/2014 Administration of 

Program 

Operations

To improve the usefulness, reliability, and comparability of Form 5500 data for all stakeholders 

while limiting the burden on the filing community, the Secretaries of DOL and Treasury, and 

the Director of PBGC should consider implementing the findings from our panel when 

modifying plan investment and service provider fee information, including: Revise Schedule H 

plan asset categories to better match current investment vehicles and provide more 

transparency into plan investments.

IRS Implemented. Pending auditor validation.

Private Pensions: Targeted Revisions Could 

Improve Usefulness of Form 5500 

Information

GAO-14-441 07/07/2014 Administration of 

Program 

Operations

To improve the usefulness, reliability, and comparability of Form 5500 data for all stakeholders 

while limiting the burden on the filing community, the Secretaries of DOL and Treasury, and 

the Director of PBGC should consider implementing the findings from our panel when 

modifying plan investment and service provider fee information, including: Revise the Schedule 

of Assets attachments to create a standard searchable format.

IRS Implemented. Pending auditor validation.

Private Pensions: Targeted Revisions Could 

Improve Usefulness of Form 5500 

Information

GAO-14-441 07/07/2014 Administration of 

Program 

Operations

To improve the usefulness, reliability, and comparability of Form 5500 data for all stakeholders 

while limiting the burden on the filing community, the Secretaries of DOL and Treasury, and 

the Director of PBGC should consider implementing the findings from our panel when 

modifying plan investment and service provider fee information, including: Clarify Schedule C 

instructions for direct, eligible indirect, and reportable indirect compensation so plan fees are 

reported more consistently and, as we recommended in the past, better align with the 408(b)(2) 

fee disclosures.

IRS Rejected. IRS disagreed with the recommendation. 

The collection of information via Schedule C is 

within the exclusive jurisdiction of the Department 

of Labor (DOL) pursuant to Title I of ERISA. 

Accordingly, IRS must defer to the DOL on the 

action and timing for those recommendations.

Private Pensions: Targeted Revisions Could 

Improve Usefulness of Form 5500 

Information

GAO-14-441 07/07/2014 Administration of 

Program 

Operations

To improve the usefulness, reliability, and comparability of Form 5500 data for all stakeholders 

while limiting the burden on the filing community, the Secretaries of DOL and Treasury, and 

the Director of PBGC should consider implementing the findings from our panel when 

modifying plan investment and service provider fee information, including: Simplify and clarify 

Schedule C service provider codes to increase reporting consistency.

IRS Rejected. IRS disagreed with the recommendation. 

The collection of information via Schedule C is 

within the exclusive jurisdiction of the Department 

of Labor (DOL) pursuant to Title I of ERISA. 

Accordingly, IRS must defer to the DOL on the 

action and timing for those recommendations.
8/35

APPENDIX 1

GAO-IG Act Reporting for Budget Fiscal Year 2020

GAO - Open Recommendations Reporting

Report Title Report Number Issue Date Audit Area GAO Recommendation Bureau/Office Implementation Status 

Private Pensions: Targeted Revisions Could 

Improve Usefulness of Form 5500 

Information

GAO-14-441 07/07/2014 Administration of 

Program 

Operations

To improve the usefulness, reliability, and comparability of Form 5500 data for all stakeholders 

while limiting the burden on the filing community, the Secretaries of DOL and Treasury, and 

the Director of PBGC should consider implementing the findings from our panel when 

modifying plan investment and service provider fee information, including: Develop a central 

repository for EIN and PN numbers for filers and service providers to improve the 

comparability of form data across filings.

IRS Rejected. IRS disagreed with the recommendation. 

IRS currently does not have the funding and 

staffing needed to develop the type of electronic 

repository that GAO has recommended. Further, 

IRS views this GAO recommendation as not 

providing a sufficient return on investment to 

warrant allocating limited resources for 

implementing the recommendation.

New Markets Tax Credit: Better Controls 

and Data Are Needed to Ensure 

Effectiveness

GAO-14-500 07/10/2014 Administration of 

Program 

Operations

The Secretary of the Treasury should issue guidance on how funding or assistance from other 

government programs can be combined with the NMTC including the extent to which other 

government funds can be used to leverage the NMTC by being included in the qualified equity 

investment.

Treasury - DO PCA Due Date: Feb-2019. Treasury's CDFI 

program is working with GAO to close out this 

recommendation.

LARGE PARTNERSHIPS: With Growing 

Number of Partnerships, IRS Needs to 

Improve Audit Efficiency

GAO-14-732 09/18/2014 Tax 

Administration and 

Compliance

The Commissioner of Internal Revenue should track the results of large partnerships audits: (a) 

define a large partnership based on asset size and number of partners; (b) revise the activity 

codes to align with the large partnership definition; and (c) separately account for field audits 

and campus audits.

IRS Implemented. Pending auditor validation.

LARGE PARTNERSHIPS: With Growing 

Number of Partnerships, IRS Needs to 

Improve Audit Efficiency

GAO-14-732 09/18/2014 Tax 

Administration and 

Compliance

The Commissioner of Internal Revenue should analyze the audit results by these activity codes 

and types of audits to identify opportunities to better plan and use IRS resources in auditing 

large partnerships.

IRS PCA Due Date: Sep-2019

Troubled Asset Relief Program: Treasury 

Could Better Analyze Data to Improve 

Oversight of Servicers' Practices

GAO-15-5 10/06/2014 Administration of 

Program 

Operations

To improve monitoring and oversight of Treasury's HAMP, the Secretary of the Treasury 

should conduct periodic evaluations using analytical methods, such as econometric modeling as 

appropriate, to help explain differences among MHA servicers in redefault rates that may 

inform its compliance reviews of individual servicers, identify areas of weaknesses and best 

practices, and determine the potential need for additional program policy changes.

Treasury - DO Implemented. Pending auditor validation.

Individual Retirement Accounts: IRS Could 

Bolster Enforcement on Multimillion Dollar 

Accounts, but More Direction from 

Congress Is Needed

GAO-15-16 10/20/2014 Tax 

Administration and 

Compliance

To improve IRS's ability to detect and pursue noncompliance associated with undervalued 

assets sheltered in IRAs and prohibited transactions, the Commissioner of Internal Revenue 

should conduct research using the new Form 5498 data to identify IRAs holding nonpublic 

asset types, such as profits interests in private equity firms and hedge funds, and use that 

information for an IRS-wide strategy to target enforcement efforts.

IRS Implemented. Pending auditor validation.

Individual Retirement Accounts: IRS Could 

Bolster Enforcement on Multimillion Dollar 

Accounts, but More Direction from 

Congress Is Needed

GAO-15-16 10/20/2014 Tax 

Administration and 

Compliance

To improve IRS's ability to detect and pursue noncompliance associated with undervalued 

assets sheltered in IRAs and prohibited transactions, the Commissioner of Internal Revenue 

should work in consultation with the Department of the Treasury on a legislative proposal to 

expand the statute of limitations on IRA noncompliance to help IRS pursue valuation-related 

misreporting and prohibited transactions that may have originated outside the current statute's 3-

year window.

IRS Implemented. Pending auditor validation.

Individual Retirement Accounts: IRS Could 

Bolster Enforcement on Multimillion Dollar 

Accounts, but More Direction from 

Congress Is Needed

GAO-15-16 10/20/2014 Tax 

Administration and 

Compliance

To help taxpayers better understand compliance risks associated with certain IRA choices and 

improve compliance, the Commissioner of Revenue should, building on research data on IRAs 

holding nonpublic assets, identify options to provide outreach targeting taxpayers with 

nonpublic IRA assets and their custodians, such as reminder notices that engaging in prohibited 

transactions can result in loss of the IRA's tax-favored status.

IRS Implemented. Pending auditor validation.

Financial Stability Oversight Council: 

Further Actions Could Improve the 

Nonbank Designation Process

GAO-15-51 11/20/2014 Administration of 

Program 

Operations

To help ensure that FSOC is comprehensively identifying and considering companies, the 

Secretary of the Treasury in consultation with FSOC members, should establish procedures to 

evaluate companies in Stage 2 and Stage 3 under both statutory determination standards when 

an evaluation in either stage concludes that a company does not meet one of the standards, or 

document--on a company-specific or more general basis--why the second determination 

standard is not relevant for determination evaluations.

Treasury - DO Implemented. Pending auditor validation.

Financial Stability Oversight Council: 

Further Actions Could Improve the 

Nonbank Designation Process

GAO-15-51 11/20/2014 Administration of 

Program 

Operations

To help ensure that FSOC is comprehensively identifying and considering companies, the 

Secretary of the Treasury in consultation with FSOC members, should develop a process to 

collect information necessary for Stage 1 analysis, as appropriate, from certain nonbank 

financial companies for which public or regulatory information is otherwise unavailable. For 

example, FSOC could have companies for which such information is unavailable and that meet 

certain characteristics (such as quantitative thresholds similar to those used in Stage 1) report 

necessary information to the Office of Financial Research.

Treasury - DO Implemented. Pending auditor validation.
9/35

APPENDIX 1

GAO-IG Act Reporting for Budget Fiscal Year 2020

GAO - Open Recommendations Reporting

Report Title Report Number Issue Date Audit Area GAO Recommendation Bureau/Office Implementation Status 

Private Pensions: Participants Need Better 

Information When Offered Lump Sums 

That Replace Their Lifetime Benefits

GAO-15-74 01/27/2015 Administration of 

Program 

Operations

To provide participants with useful information and to provide for lump sums that are based on 

up-to-date assumptions, Treasury should review its regulations governing the information 

contained in relative value statements to ensure these statements provide a meaningful 

comparison of all benefit options, especially in instances where the loss of certain additional 

plan benefits may not be disclosed.

Treasury - DO No Action Taken. 

Private Pensions: Participants Need Better 

Information When Offered Lump Sums 

That Replace Their Lifetime Benefits

GAO-15-74 01/27/2015 Administration of 

Program 

Operations

To provide participants with useful information and to provide for lump sums that are based on 

up-to-date assumptions, Treasury should review the applicability and appropriateness of 

allowing sponsors to select a "lookback" interest rate for use in calculating lump sums 

associated with a lump sum window that can serve to advantage the interests of the sponsor.

Treasury - DO No Action Taken. 

Private Pensions: Participants Need Better 

Information When Offered Lump Sums 

That Replace Their Lifetime Benefits

GAO-15-74 01/27/2015 Administration of 

Program 

Operations

To provide participants with useful information and to provide for lump sums that are based on 

up-to-date assumptions, Treasury should establish a process and a timeline for periodically 

updating the mortality tables used to determine minimum required lump sums-- including a 

means for monitoring when experts' views may indicate that mortality tables may have become 

outdated, and for taking expedited action if warranted.

Treasury - DO No Action Taken. 

Critical Technologies: Agency Initiatives 

Address Some Weaknesses, but Additional 

Interagency Collaboration Is Needed

GAO-15-288 02/10/2015 Administration of 

Program 

Operations

To ensure a consistent and more collaborative approach to the protection of critical 

technologies, the Secretaries of the Departments of Commerce, Defense, Homeland Security, 

State, and the Treasury; as well as the Attorney General, who have lead and stakeholder 

responsibilities for the eight programs within the critical technologies portfolio, take steps to 

promote and strengthen collaboration mechanisms among their respective programs while 

ongoing initiatives are implemented and assessed. These steps need not be onerous; for 

example, they could include conducting an annual meeting to discuss their programs, including 

the technologies they are protecting, their programs' intent, any new developments or changes 

planned for their programs, as well as defining consistent critical technologies terminology and 

sharing important updates.

Treasury - DO Implemented. Pending auditor validation.

Information Technology: Management 

Needs to Address Reporting of IRS 

Investments' Cost, Schedule, and Scope 

Information

GAO-15-297 02/25/2015 Information 

Technology

To improve the reliability and reporting of investment performance information and 

management of selected major investments, the Commissioner of the IRS should direct the 

Chief Technology Officer to take the following action: Modify reporting of ACA testing status 

to senior management to include a comprehensive report on all impacted systems-including an 

explanation for why impacted systems were not tested at a particular level-and ensure this 

reporting is aligned with the manner in which testing is being performed.

IRS Rejected. IRS disagreed with the recommendation. 

We followed a rigorous risk-based process for 

planning the tests of Affordable Care Act (ACA) 

impacted systems, including the types and levels of 

testing. ACA Release 5.0 was complex and highrisk, thus reporting for testing within and outside 

IRS was frequent (sometimes daily), with test 

progress formally delivered via planned crossorganizational checkpoints and the Filing Season 

readiness assessment. 

Information Security: IRS Needs to 

Continue Improving Controls over Financial 

and Taxpayer Data

GAO-15-337 03/19/2015 Information 

Technology

The Commissioner of Internal Revenue should take the following action to effectively 

implement key elements of the IRS information security program: Update the remedial action 

verification process to ensure actions are fully implemented.

IRS Implemented. Pending auditor validation.

Information Security: IRS Needs to 

Continue Improving Controls over Financial 

and Taxpayer Data

GAO-15-337 03/19/2015 Information 

Technology

The Commissioner of Internal Revenue should take the following action to effectively 

implement key elements of the IRS information security program: Ensure that control testing 

methodology and results fully meet the intent of the control objectives being tested.

IRS Implemented. Pending auditor validation.

Telecommunications: Agencies Need better 

Controls to Achieve Significant Savings on 

Mobile Devices and Services

GAO-15-431 05/21/2015 Information 

Technology

The Secretary of Treasury should ensure an inventory of mobile devices and services is 

established department-wide (i.e. all components' devices and associated services are 

accounted for).

Treasury - DO Implemented. Pending auditor validation.

Telecommunications: Agencies Need better 

Controls to Achieve Significant Savings on 

Mobile Devices and Services

GAO-15-431 05/21/2015 Information 

Technology

The Secretary of the Treasury should ensure procedures to monitor and control spending are 

established department-wide. Specifically ensure: procedures include assessing devices for 

zero, under and over usage; personnel with authority and responsibility for performing the 

procedures are identified and the specific steps to be taken to perform the process are 

documented.

Treasury - DO Implemented. Pending auditor validation.

Management Report: Improvements Are 

Needed to Enhance the Internal Revenue 

Service's Internal Control over Financial 

Reporting

GAO-15-480R 05/29/2015 Financial 

Statements

The Commissioner of Internal Revenue should direct the appropriate IRS officials to determine 

why staff did not consistently comply with IRS's existing requirements for the final candling of 

receipts at SCCs and lockbox banks, including logging remittances found during final candling 

on the final candling log at the time of discovery, safeguarding the remittances at the time of 

discovery, transferring the remittances to the deposit unit promptly, and passing one envelope 

at a time over the light source, and based on this determination, establish a process to better 

enforce compliance with these requirements.

IRS Implemented. Pending auditor validation.
10/35

APPENDIX 1

GAO-IG Act Reporting for Budget Fiscal Year 2020

GAO - Open Recommendations Reporting

Report Title Report Number Issue Date Audit Area GAO Recommendation Bureau/Office Implementation Status 

Management Report: Improvements Are 

Needed to Enhance the Internal Revenue 

Service's Internal Control over Financial 

Reporting

GAO-15-480R 05/29/2015 Financial 

Statements

The Commissioner of Internal Revenue should direct the appropriate IRS officials to take the 

following action: Establish procedures to monitor whether non-IRS contractors with unescorted 

physical access to IRS facilities are receiving unauthorized access awareness training.

IRS Implemented. Pending auditor validation.

Management Report: Improvements Are 

Needed to Enhance the Internal Revenue 

Service's Internal Control over Financial 

Reporting

GAO-15-480R 05/29/2015 Financial 

Statements

The Commissioner of Internal Revenue should direct the appropriate IRS officials to take the 

following action: Establish a process to ensure that the requirement for unauthorized access 

awareness training is explicitly communicated to non-IRS contractors who have unescorted 

access to IRS facilities.

IRS Implemented. Pending auditor validation.

IRS EXAMINATION SELECTION

Internal Controls for Exempt Organization 

Selection Should Be Strengthened

GAO-15-514 07/13/2015 Tax 

Administration and 

Compliance

To better ensure the Exempt Organization (EO) unit's adherence to the Tax Exempt and 

Government Entities (TE/GE) division's mission of "applying the tax law with integrity and 

fairness to all" in selecting exempt organizations to review or examine, the Commissioner of 

Internal Revenue should direct EO: Develop, document, and implement additional monitoring 

procedures in order to ensure case selection controls, including ensuring that procedures for 

obtaining required signatures and documenting explanations for selection decisions, are being 

followed.

IRS Implemented. Pending auditor validation.

Mortgage Reforms: Actions Needed to Help 

Assess Effects of New Regulations

GAO-15-185 07/27/2015 Banking and 

Lending

To enhance the effectiveness of their preparations for conducting a retrospective review of the 

QRM regulations, the agencies responsible for the QRM regulations--Federal Deposit 

Insurance Corporation, Federal Housing Finance Agency, Board of Governors of the Federal 

Reserve System, HUD, Office of the Comptroller of the Currency, and Securities and 

Exchange Commission--should develop a plan that identifies the metrics, baselines, and 

analytical methods to be used and specify the roles and responsibilities of each agency in the 

review process. Furthermore, to account for and help mitigate limitations of existing data and 

the uncertain availability of enhanced datasets, the six agencies should include in their plan 

alternate metrics, baselines, and analytical methods that could be used if data were to remain 

unavailable.

OCC Implemented. Pending auditor validation.

Patient Protection and Affordable Care Act: 

IRS Needs to Strengthen Oversight of Tax 

Provisions for Individuals

GAO-15-540 07/29/2015 Tax 

Administration and 

Compliance

To strengthen oversight of the individual shared responsibility and premium tax credit 

provisions, the Commissioner of Internal Revenue should take the following action: Assess 

whether or not the data received from the health insurance marketplaces are sufficiently 

complete and accurate to enable effective correction of tax returns at-filing based on matching 

with the marketplace data and, if the assessment determines that such corrections would be 

effective, seek legislative authority to correct tax returns at-filing based on the marketplace 

data.

IRS Implemented. Pending auditor validation.

Patient Protection and Affordable Care Act: 

IRS Needs to Strengthen Oversight of Tax 

Provisions for Individuals

GAO-15-540 07/29/2015 Tax 

Administration and 

Compliance

To strengthen oversight of the individual shared responsibility and premium tax credit 

provisions, the Commissioner of Internal Revenue should take the following action: Evaluate 

IRS efforts to collaborate and communicate with key external stakeholders to inform efforts 

related to implementation of the new 2015 PPACA requirements.

IRS Implemented. Pending auditor validation.

Patient Protection and Affordable Care Act: 

IRS Needs to Strengthen Oversight of Tax 

Provisions for Individuals

GAO-15-540 07/29/2015 Tax 

Administration and 

Compliance

To strengthen oversight of the individual shared responsibility and premium tax credit 

provisions, the Commissioner of Internal Revenue should take the following action: Work with 

CMS to get the total amount of advance PTC paid for the 2014 tax year and establish, as a 

baseline, the aggregate amount of the gap between advance PTC paid and advance PTC 

reported for the 2014 tax year, and track this aggregate gap for future tax years to help in 

evaluating the effectiveness of IRS's PTC education and compliance efforts.

IRS Implemented. Pending auditor validation.

IRS CASE SELECTION: Collection 

Process Is Largely Automated, but Lacks 

Adequate Internal Controls

GAO-15-647 07/29/2015 Tax 

Administration and 

Compliance

The Commissioner of Internal Revenue should establish, document, and implement clear 

objectives for the collection program and enterprise-wide case categorization and routing 

processes, and define key terms, such as "fairness" and "risk."

IRS Implemented. Pending auditor validation.

IRS CASE SELECTION: Collection 

Process Is Largely Automated, but Lacks 

Adequate Internal Controls

GAO-15-647 07/29/2015 Tax 

Administration and 

Compliance

The Commissioner of Internal Revenue should build upon existing Enterprise Risk 

Management (ERM) guidance to help managers identify internal and external risks to 

collection program objectives, and better understand how long-standing risk processes integrate 

with new ERM approaches; incorporate this guidance into existing or future ERM or collection 

program risk assessment processes.

IRS Implemented. Pending auditor validation.

IRS CASE SELECTION: Collection 

Process Is Largely Automated, but Lacks 

Adequate Internal Controls

GAO-15-647 07/29/2015 Tax 

Administration and 

Compliance

The Commissioner of Internal Revenue should clearly establish, document, and implement case 

categorization and routing procedures-such as those for IDS, high priority case selection, and 

any other important processes-to support collection program objectives and IRS goals.

IRS Implemented. Pending auditor validation.

IRS CASE SELECTION: Collection 

Process Is Largely Automated, but Lacks 

Adequate Internal Controls

GAO-15-647 07/29/2015 Tax 

Administration and 

Compliance

The Commissioner of Internal Revenue should establish, document, and implement procedures 

for the periodic evaluation of the efficiency and effectiveness of collection-wide case 

categorization, routing rules, and case selection processes.

IRS Implemented. Pending auditor validation.

IRS CASE SELECTION: Collection 

Process Is Largely Automated, but Lacks 

Adequate Internal Controls

GAO-15-647 07/29/2015 Tax 

Administration and 

Compliance

The Commissioner of Internal Revenue should establish, document, and implement procedures 

for periodic updates of dollar thresholds for categorizing case selection, including those 

identified as "high risk."

IRS Implemented. Pending auditor validation.
11/35

APPENDIX 1

GAO-IG Act Reporting for Budget Fiscal Year 2020

GAO - Open Recommendations Reporting

Report Title Report Number Issue Date Audit Area GAO Recommendation Bureau/Office Implementation Status 

IRS CASE SELECTION: Automated 

Collection System Lacks Key Internal 

Controls Needed to Ensure the Program 

Fulfills Its Mission

GAO-15-744 09/10/2015 Tax 

Administration and 

Compliance

The Commissioner of Internal Revenue should establish, document, and implement objectives 

for the collection program and ACS, and define the key term of "fairness" as it applies to 

collection activities, which can be communicated to IRS staff.

IRS Implemented. Pending auditor validation.

Information Technology Reform: Billions of 

Dollars in Savings Have Been Realized, but 

Agencies Need to Complete Reinvestment 

Plans

GAO-15-617 09/15/2015 Information 

Technology

To improve the department's IT savings reinvestment plans, the Secretary of the Treasury 

should direct the CIO, as part of any future update to the department's IRM strategic plan or 

equivalent document, to include information regarding the approach to reinvesting savings from 

the consolidation of commodity IT resources (including data centers) in accordance with 

OMB's guidance.

Treasury - DO Implemented. Pending auditor validation.

Information Technology Reform: Billions of 

Dollars in Savings Have Been Realized, but 

Agencies Need to Complete Reinvestment 

Plans

GAO-15-617 09/15/2015 Information 

Technology

To improve the department's IT savings reinvestment plans, the Secretary of the Treasury 

should direct the CIO to ensure that the department's integrated data collection submission to 

OMB includes, for all reported initiatives, complete plans to use any resulting cost savings and 

avoidances from OMB-directed IT reform-related efforts.

Treasury - DO Implemented. Pending auditor validation.

Retirement Security: Federal Action Could 

Help State Efforts to Expand Private Sector 

Coverage

GAO-15-556 09/29/2015 Administration of 

Program 

Operations

To facilitate state efforts to expand coverage in workplace retirement savings programs, the 

Secretary of Labor and Secretary of the Treasury should consider their authority and review 

and revise, if necessary, existing regulations and guidance causing uncertainty for state efforts.

Treasury - DO No Action Taken. 

Critical Infrastructure Protection:

Sector-Specific Agencies Need to Better 

Measure Cybersecurity Progress

GAO-16-79 11/19/2015 Information 

Technology

To better monitor and provide a basis for improving the effectiveness of cybersecurity risk 

mitigation activities, informed by the sectors' updated plans and in collaboration with sector 

stakeholders, the Secretary of the Treasury should direct responsible officials to develop 

performance metrics to provide data and determine how to overcome challenges to monitoring 

the financial services sector's cybersecurity progress.

Treasury - DO Implemented. Pending auditor validation.

2015 Tax Filing Season GAO-16-151DO 01/14/2016 Tax 

Administration and 

Compliance

To improve performance management of taxpayer services, the Secretary of the Treasury 

should update the Department's performance plan to include overage rates for handling 

taxpayer correspondence as a part of Treasury's performance goals.

Treasury - DO Implemented. Pending auditor validation.

IRS Referral Programs: Opportunities Exist 

to Strengthen Controls and Increase 

Coordination across Overlapping Programs

GAO-16-155 02/23/2016 Tax 

Administration and 

Compliance

The Commissioner of Internal Revenue should direct the referral programs to establish a 

mechanism to coordinate on a plan and timeline for developing a consolidated, online referral 

submission in order to better position IRS to leverage specialized expertise while exploring 

options to further consolidate the initial screening operations.

IRS Implemented. Pending auditor validation.

IRS Referral Programs: Opportunities Exist 

to Strengthen Controls and Increase 

Coordination across Overlapping Programs

GAO-16-155 02/23/2016 Tax 

Administration and 

Compliance

The Commissioner of Internal Revenue should ensure that the Internal Revenue Manual (IRM) 

has internal controls for processing information referrals by establishing, documenting, and 

implementing procedures for maintaining and communicating the information referral 

screening and routing guidelines to the Image Control Team (ICT) and IRS units receiving 

information referrals as well as procedures for ICT screening and routing operations.

IRS Implemented. Pending auditor validation.

IRS Referral Programs: Opportunities Exist 

to Strengthen Controls and Increase 

Coordination across Overlapping Programs

GAO-16-155 02/23/2016 Tax 

Administration and 

Compliance

The Commissioner of Internal Revenue should ensure that the IRM has internal controls for 

processing information referrals by establishing, documenting, and implementing ongoing 

monitoring of information referrals retained for destruction, including a mechanism for tracking 

the reasons referrals were retained prior to destruction.

IRS Implemented. Pending auditor validation.

IRS Referral Programs: Opportunities Exist 

to Strengthen Controls and Increase 

Coordination across Overlapping Programs

GAO-16-155 02/23/2016 Tax 

Administration and 

Compliance

The Commissioner of Internal Revenue should ensure that the IRM has internal controls for 

processing information referrals by establishing, documenting, and implementing procedures 

for each IRS operating unit receiving information referrals to provide feedback on the number 

and types of referrals misrouted and on their disposition, and a mechanism to analyze patterns 

of misroute errors.

IRS Implemented. Pending auditor validation.

IRS Referral Programs: Opportunities Exist 

to Strengthen Controls and Increase 

Coordination across Overlapping Programs

GAO-16-155 02/23/2016 Tax 

Administration and 

Compliance

The Commissioner of Internal Revenue should ensure that the IRM has internal controls for 

processing information referrals by establishing, documenting, and implementing supervisory 

review and segregation of duties for inventory management reporting procedure.

IRS Implemented. Pending auditor validation.

IRS Referral Programs: Opportunities Exist 

to Strengthen Controls and Increase 

Coordination across Overlapping Programs

GAO-16-155 02/23/2016 Tax 

Administration and 

Compliance

The Commissioner of Internal Revenue should establish a coordination mechanism to facilitate 

communication and information sharing across IRS referral programs on crosscutting tax 

issues and ways to improve efficiency in the mechanisms for public reporting of possible tax 

violations.

IRS Implemented. Pending auditor validation.

IRS Referral Programs: Opportunities Exist 

to Strengthen Controls and Increase 

Coordination across Overlapping Programs

GAO-16-155 02/23/2016 Tax 

Administration and 

Compliance

The Commissioner of Internal Revenue should establish, document, and implement an 

organizational structure identifying responsibility for defining objectives with an appropriate 

line of reporting for measuring costs and results for information referrals.

IRS Implemented. Pending auditor validation.
12/35

APPENDIX 1

GAO-IG Act Reporting for Budget Fiscal Year 2020

GAO - Open Recommendations Reporting

Report Title Report Number Issue Date Audit Area GAO Recommendation Bureau/Office Implementation Status 

Data Center Consolidation: Agencies 

Making Progress, but Planned Savings 

Goals Need to Be Established

GAO-16-323 03/04/2016 Information 

Technology

The Secretaries of the Departments of Agriculture, Commerce, Defense, Education, Energy, 

Health and Human Services, Homeland Security, Housing and Urban Development, the 

Interior, Labor, State, Transportation, the Treasury, and Veterans Affairs; the Attorney General 

of the United States; the Administrators of the Environmental Protection Agency, General 

Services Administration, National Aeronautics and Space Administration, and U.S. Agency for 

International Development; the Director of the Office of Personnel Management; the Chairman 

of the Nuclear Regulatory Commission; and the Commissioner of the Social Security 

Administration should take action to improve progress in the data center optimization areas that 

we reported as not meeting OMB's established targets, including addressing any identified 

challenges.

Treasury - DO PCA Due Date: Jun-2019

Information Security: IRS Needs to Further 

Improve Controls over Financial and 

Taxpayer Data

GAO-16-398 03/28/2016 Financial 

Statements

The Commissioner of Internal Revenue should update system and application audit plans based 

on the current version of referenced policies and guidelines and when significant changes are 

made to a system or application.

IRS PCA Due Date: Dec-2019

Cloud Computing: Agencies Need to 

Incorporate Key Practices to Ensure 

Effective Performance

GAO-16-325 04/07/2016 Information 

Technology

To help ensure continued progress in the implementation of effective cloud computing SLAs, 

the Secretaries of Health and Human Services, Homeland Security, Treasury, and Veterans 

Affairs should direct appropriate officials to develop SLA guidance and ensure key practices 

are fully incorporated as the contract and associated SLAs expire.

Treasury - DO PCA Due Date: Jun-2019

Low-Income Housing Tax Credit: Some 

Agency Practices Raise Concerns and IRS 

Could Improve Noncompliance Reporting 

and Data Collection

GAO-16-360 05/11/2016 Improper 

Payments 

To improve IRS's processes for identifying the most significant noncompliance issues, the 

Commissioner of Internal Revenue should evaluate how IRS could use HUD's Real Estate 

Assessment Center databases, including how the information might be used to reassess 

reporting categories on the Form 8823 and to reassess which categories of noncompliance 

information have to be reviewed for audit potential.

IRS Implemented. Pending auditor validation.

Low-Income Housing Tax Credit: Some 

Agency Practices Raise Concerns and IRS 

Could Improve Noncompliance Reporting 

and Data Collection

GAO-16-360 05/11/2016 Improper 

Payments 

To receive more consistent information on LIHTC noncompliance, the Commissioner of 

Internal Revenue should collaborate with the allocating agencies to clarify when allocating 

agencies should report such information on the Form 8823 (report of noncompliance or 

building disposition). The IRS Commissioner should collaborate with the Department of the 

Treasury in drafting such clarifications to help ensure that any new guidance is consistent with 

Treasury regulations.

IRS Implemented. Pending auditor validation.

Management Report: Improvements Are 

Needed to Enhance the Internal Revenue 

Service's Internal Control over Financial 

Reporting

GAO-16-457R 05/18/2016 Financial 

Statements

The Commissioner of Internal Revenue should design a process to reasonably assure the 

adequacy of detailed supporting information for tangible P&E amounts recorded in the general 

ledger.

IRS Implemented. Pending auditor validation.

Management Report: Improvements Are 

Needed to Enhance the Internal Revenue 

Service's Internal Control over Financial 

Reporting

GAO-16-457R 05/18/2016 Financial 

Statements

The Commissioner of Internal Revenue should determine the reason(s) why staff did not 

always comply with IRS's established policies and procedures related to initiating, monitoring, 

and reviewing the monitoring of manual refunds and, based on this determination, establish a 

process to better enforce compliance with these requirements.

IRS Implemented. Pending auditor validation.

Management Report: Improvements Are 

Needed to Enhance the Internal Revenue 

Service's Internal Control over Financial 

Reporting

GAO-16-457R 05/18/2016 Financial 

Statements

The Commissioner of Internal Revenue should develop and provide training, on a recurring 

basis, to all Facilities Management and Security Services specialists and managers involved in 

the duress alarm validation and testing process to reinforce the related policies and procedures.

IRS Implemented. Pending auditor validation.

Management Report: Improvements Are 

Needed to Enhance the Internal Revenue 

Service's Internal Control over Financial 

Reporting

GAO-16-457R 05/18/2016 Financial 

Statements

The Commissioner of Internal Revenue should establish a policy and procedures requiring IRS 

officials to review and address situations in which it is later discovered that an employee 

deemed unsuitable for employment during the prescreening process was erroneously allowed 

to enter on duty.

IRS Implemented. Pending auditor validation.

Management Report: Improvements Are 

Needed to Enhance the Internal Revenue 

Service's Internal Control over Financial 

Reporting

GAO-16-457R 05/18/2016 Financial 

Statements

The Commissioner of Internal Revenue should establish a process to prevent Employment 

Operations staff from allowing potential employees to enter on duty without favorable 

determinations of suitability by Personnel Security adjudicators.

IRS Implemented. Pending auditor validation.

Management Report: Improvements Are 

Needed to Enhance the Internal Revenue 

Service's Internal Control over Financial 

Reporting

GAO-16-457R 05/18/2016 Financial 

Statements

The Commissioner of Internal Revenue should establish and implement monitoring procedures 

designed to reasonably assure that the key detailed information for tangible capitalized P&E is 

properly recorded and updated in the KISAM system.

IRS Implemented. Pending auditor validation.

Management Report: Improvements Are 

Needed to Enhance the Internal Revenue 

Service's Internal Control over Financial 

Reporting

GAO-16-457R 05/18/2016 Financial 

Statements

The Commissioner of Internal Revenue should enhance the training program provided to COs 

to address all the job responsibilities related to certifying manual refunds for payment, 

including the required review of supporting documentation for manual refunds.

IRS PCA Due Date: Aug-2019

Management Report: Improvements Are 

Needed to Enhance the Internal Revenue 

Service's Internal Control over Financial 

Reporting

GAO-16-457R 05/18/2016 Financial 

Statements

The Commissioner of Internal Revenue should identify the cause of and implement a solution 

for dealing with the periodic backlogs of ICO inventory that is hampering the performance of 

quality reviews.

IRS PCA Due Date: Aug-2019
13/35

APPENDIX 1

GAO-IG Act Reporting for Budget Fiscal Year 2020

GAO - Open Recommendations Reporting

Report Title Report Number Issue Date Audit Area GAO Recommendation Bureau/Office Implementation Status 

Identity Theft and Tax Fraud: IRS Needs to 

Update Its Risk Assessment for the 

Taxpayer Protection Program

GAO-16-508 05/24/2016 Tax 

Administration and 

Compliance

To further deter noncompliance in the Taxpayer Protection Program, the Commissioner of 

Internal Revenue should, in accordance with OMB and NIST e-authentication guidance, 

implement appropriate actions to mitigate risks identified in the assessment.

IRS Implemented. Pending auditor validation.

Identity Theft and Tax Fraud: IRS Needs to 

Update Its Risk Assessment for the 

Taxpayer Protection Program

GAO-16-508 05/24/2016 Tax 

Administration and 

Compliance

To improve the quality of the Taxonomy's IDT refund fraud estimates, the Commissioner of 

Internal Revenue should utilize return-level data--where available to reduce over-counting and 

improve the quality and accuracy of the refunds-prevented estimates.

IRS Implemented. Pending auditor validation.

Information Technology: Federal Agencies 

Need to Address Aging Legacy Systems

GAO-16-468 05/25/2016 Information 

Technology

To monitor whether existing investments are meeting the needs of their agencies, the 

Secretaries of Commerce and the Treasury should direct the respective agency CIO to ensure 

that required analyses are performed on investments in the operations and maintenance phase.

Treasury - DO Implemented. Pending auditor validation.

Information Technology: Federal Agencies 

Need to Address Aging Legacy Systems

GAO-16-468 05/25/2016 Information 

Technology

To address obsolete IT investments in need of modernization or replacement, the Secretaries of 

Agriculture, Commerce, Defense, Energy, Health and Human Services, Homeland Security, 

State, the Treasury, Transportation, and Veterans Affairs; the Attorney General; and the 

Commissioner of Social Security should direct their respective agency CIOs to identify and 

plan to modernize or replace legacy systems as needed and consistent with OMB's draft 

guidance, including time frames, activities to be performed, and functions to be replaced or 

enhanced.

Treasury - DO Rejected. Treasury disagreed with the 

recommendation. Treasury will develop the 

corresponding policy once OMB finalizes its 

guidance.

Refundable Tax Credits: Comprehensive 

Compliance Strategy and Expanded Use of 

Data Could Strengthen IRS's Efforts to 

Address Noncompliance

GAO-16-475 05/27/2016 Tax 

Administration and 

Compliance

To strengthen efforts to identify and address noncompliance with the EITC, ACTC, and 

AOTC, the Commissioner of Internal Revenue should direct Refundable Credits Policy and 

Program Management (RCPPM) to, take necessary steps to ensure the reliability of collections 

data and periodically review those data to (a) compute a collections rate for post-refund 

enforcement activities and (b) determine what additional analyses would provide useful 

information about compliance results and costs of post-refund audits and document-matching 

reviews.

IRS Rejected. IRS disagreed with the recommendation. 

The Wage and Investment compliance workload is 

predominantly pre-refund audits, where taxpayer 

claims for refundable credits are not paid prior to 

the conclusion of the examination. By holding 

potential refunds, revenue is protected and any 

subsequent disallowance of the claimed credits, 

generally, does not result in balances due that 

require follow-up collection activity. The level of 

effort to complete the recommended analysis would 

consume limited resources and would not justify the 

results. Further, it would not provide meaningful 

data to the program. IRS views this GAO 

recommendation as not providing a sufficient return 

on investment to warrant allocating limited 

resources for implementing the recommendation. 

Managing for Results: Agencies Need to 

Fully Identify and Report Major 

Management Challenges and Actions to 

Resolve them in their Agency Performance 

Plans

GAO-16-510 06/15/2016 Administration of 

Program 

Operations

To improve the public reporting of major management challenges and to ensure performance 

information is useful, transparent, and complete, the Secretary of the Treasury should include 

performance goals, performance measures, milestones, and an agency official responsible for 

resolving major management challenges as part of the Department of the Treasury's agency 

performance plan.

Treasury - DO PCA Due Date: Nov-2019

Information Technology: IRS Needs to 

Improve Its Processes for Prioritizing and 

Reporting Performance of Investments

GAO-16-545 06/29/2016 Information 

Technology

To help IRS improve its process for determining IT funding priorities and to provide timely 

information on the progress of its investments, the Commissioner of IRS should direct the 

Chief Technology Officer to establish, document, and implement policies and procedures for 

selecting new and reselecting ongoing business systems modernization activities, consistent 

with IRS's process for prioritizing operations support priorities, which addresses (1) 

prioritization and comparison of IT assets against each other, (2) criteria for making selection 

and prioritization decisions, and (3) ensuring IRS executives' final funding decisions on IT 

proposals are based on IRS's prioritization process.

IRS Implemented. Pending auditor validation.

Information Technology: IRS Needs to 

Improve Its Processes for Prioritizing and 

Reporting Performance of Investments

GAO-16-545 06/29/2016 Information 

Technology

To help IRS improve its process for determining IT funding priorities and to provide timely 

information on the progress of its investments, the Commissioner of IRS should direct the 

Chief Technology Officer to modify existing processes for Foreign Account Tax Compliance 

Act (FATCA) and Return Review Program (RRP) for measuring work performed by IRS staff 

to incorporate best practices, including accounting for actual work performed and using the 

level of effort measure sparingly.

IRS Implemented. Pending auditor validation.

IRS Could Improve Presentation of Budget 

Data in Its Congressional Justification

GAO-16-695 07/21/2016 Administration of 

Program 

Operations

To enhance the budget process and to improve transparency, the Commissioner of Internal 

Revenue, to the extent feasible, should ensure that the CJ includes data by appropriation 

account on the amount of funding requested to maintain current services for each future state 

theme.

IRS Implemented. Pending auditor validation.
14/35

APPENDIX 1

GAO-IG Act Reporting for Budget Fiscal Year 2020

GAO - Open Recommendations Reporting

Report Title Report Number Issue Date Audit Area GAO Recommendation Bureau/Office Implementation Status 

INLAND WATERWAYS FUEL TAX: 

Additional Data Could Enhance IRS's 

Efforts to Ensure Taxpayer Compliance

GAO-16-682 07/29/2016 Tax 

Administration and 

Compliance

To maximize resources for the Inland Waterways Trust Fund, the Commissioner of Internal 

Revenue should consult with the U.S. Army Corps of Engineers to explore options to obtain 

proprietary data to enhance IRS's efforts to ensure taxpayer compliance with the inland 

waterways fuel tax.

IRS Implemented. Pending auditor validation.

Tax Debt Collection: IRS Needs to Define 

Field Program Objectives and Assess Risks 

in Case Selection

GAO-16-787 09/13/2016 Tax 

Administration and 

Compliance

The Commissioner of Internal Revenue should develop, document, and communicate control 

procedures guidance for group managers to exercise professional judgment in the Field 

Collection program case selection process to achieve fairness and other program and collection 

case selection objectives.

IRS Implemented. Pending auditor validation.

Tax Debt Collection: IRS Needs to Define 

Field Program Objectives and Assess Risks 

in Case Selection

GAO-16-787 09/13/2016 Tax 

Administration and 

Compliance

The Commissioner of Internal Revenue should develop, document, and communicate Field 

Collection program and case selection objectives, including the role of fairness, in clear and 

measurable terms sufficient for use in internal control.

IRS Implemented. Pending auditor validation.

Tax Debt Collection: IRS Needs to Define 

Field Program Objectives and Assess Risks 

in Case Selection

GAO-16-787 09/13/2016 Tax 

Administration and 

Compliance

The Commissioner of Internal Revenue should develop, document, and implement 

performance measures clearly linked to the Field Collection program and case selection 

objectives.

IRS Implemented. Pending auditor validation.

Tax Debt Collection: IRS Needs to Define 

Field Program Objectives and Assess Risks 

in Case Selection

GAO-16-787 09/13/2016 Tax 

Administration and 

Compliance

The Commissioner of Internal Revenue should develop, document, and implement procedures 

to periodically monitor and assess the design and operational effectiveness of both automated 

and manual control procedures for collection case selection to assure their continued 

effectiveness in achieving program objectives.

IRS Implemented. Pending auditor validation.

Tax Debt Collection: IRS Needs to Define 

Field Program Objectives and Assess Risks 

in Case Selection

GAO-16-787 09/13/2016 Tax 

Administration and 

Compliance

The Commissioner of Internal Revenue should incorporate program and case selection 

objectives into existing risk management systems or use other approaches to identify and 

analyze potential risks to achieving those objectives so that Field Collection can establish risk 

tolerances and appropriate control procedures to address risks.

IRS Implemented. Pending auditor validation.

Information Technology Reform: Agencies 

Need to Increase Their Use of Incremental 

Development Practices

GAO-16-469 09/15/2016 Information 

Technology

To improve the quality of the seven departments' information on project incremental delivery 

reported to the IT Dashboard, the Secretaries of Commerce, Defense, Education, Health and 

Human Services, Homeland Security, Transportation, and the Treasury should direct their 

CIOs to review major IT investment project data reported on the IT Dashboard and update the 

information as appropriate in the following areas: (1) whether the project is in-progress or 

complete; (2) whether the project is a software development project or not; and (3) the status of 

the delivery of functionality every 6 months, ensuring that these data are consistent across all 

reporting channels.

Treasury - DO Implemented. Pending auditor validation.

Information Technology Reform: Agencies 

Need to Increase Their Use of Incremental 

Development Practices

GAO-16-469 09/15/2016 Information 

Technology

To improve the certification of adequate incremental development, the Secretaries of Defense, 

Education, Health and Human Services, and the Treasury should direct their CIOs to establish 

a department policy and process for the certification of major IT investments' adequate use of 

incremental development, in accordance with OMB's guidance on the implementation of the 

Federal Information Technology Acquisition Reform Act.

Treasury - DO Implemented. Pending auditor validation.

Information Technology: Agencies Need to 

Improve Their Application Inventories to 

Achieve Additional Savings

GAO-16-511 09/26/2016 Information 

Technology

To improve federal agencies' efforts to rationalize their portfolio of applications, the heads of 

the Departments of Agriculture, Commerce, Education, Energy, Health and Human Services, 

Housing and Urban Development, the Interior, Labor, State, Transportation, the Treasury, and 

Veterans Affairs; and heads of the Environmental Protection Agency; National Aeronautics and 

Space Administration; National Science Foundation; Nuclear Regulatory Commission; Office 

of Personnel Management; Small Business Administration; Social Security Administration; and 

U.S. Agency for International Development should direct their Chief Information Officers 

(CIOs) and other responsible officials to improve their inventories by taking steps to fully 

address the practices we identified as being partially met or not met.

Treasury - DO Implemented. Pending auditor validation.

Improper Payments - Strategy and 

Additional Actions Needed to Help Ensure 

Agencies Use the Do Not Pay Working 

System as Intended

GAO-17-15 11/14/2016 Information 

Technology

The Secretary of the Treasury should direct the Fiscal Assistant Secretary to modify the 

working system to track adjudication of matches obtained through all functionalities.

Fiscal Service Implemented. Pending auditor validation.

Improper Payments - Strategy and 

Additional Actions Needed to Help Ensure 

Agencies Use the Do Not Pay Working 

System as Intended

GAO-17-15 11/14/2016 Information 

Technology

The Secretary of the Treasury should direct the Fiscal Assistant Secretary to revise Treasury's 

Do Not Pay Agency Implementation Guide to clearly describe the payment integration process, 

including the data sources used and timing of the matching.

Fiscal Service Implemented. Pending auditor validation.

401(K) Plans: Effects of Eligibility and 

Vesting Policies on Workers' Retirement 

Savings

GAO-17-69 11/21/2016 Administration of 

Program 

Operations

To ensure that current vesting policies appropriately balance plans' needs and interests with the 

needs of workers to have employment mobility while also saving for retirement, Treasury 

should evaluate the appropriateness of existing maximum vesting policies for account-based 

plans, considering today's mobile labor force, and seek legislative action to revise vesting 

schedules, if deemed necessary. The Department of Labor could provide assistance with such 

an evaluation.

Treasury - DO No Action Taken. 
15/35

APPENDIX 1

GAO-IG Act Reporting for Budget Fiscal Year 2020

GAO - Open Recommendations Reporting

Report Title Report Number Issue Date Audit Area GAO Recommendation Bureau/Office Implementation Status 

IT Workforce: Key Practices Help Ensure 

Strong Integrated Program Teams; Selected 

Departments Need to Assess Skill Gaps

GAO-17-8 11/30/2016 Information 

Technology

To facilitate the analysis of gaps between current skills and future needs, the development of 

strategies for filling the gaps, and succession planning, the Secretary of the Treasury should 

require the Chief Information Officer, Chief Human Capital Officer, and other senior managers 

as appropriate to address the shortfalls in IT workforce planning noted in this report, including 

the following actions: (1) establish and maintain a workforce planning process; (2) develop 

competency and staffing requirements for all positions; (3) assess competency and staffing 

needs regularly; (4) assess gaps in competencies and staffing for all components of the 

workforce; (5) develop strategies and plans to address gaps in competencies and staffing for all 

components of the workforce; (6) implement activities that address gaps, including a career 

path for program managers and special hiring authorities, if justified and cost-effective; (7) 

monitor the department's progress in addressing competency and staffing gaps; and (8) report 

to department leadership on progress in addressing competency and staffing gaps for all 

components of the workforce.

Treasury - DO PCA Due Date: Sep-2020

Retirement Security: Improved Guidance 

Could Help Account Owners Understand 

the Risks of Investing in Unconventional 

Assets

GAO-17-102 01/09/2017 Tax 

Administration and 

Compliance

The Commissioner of Internal Revenue should provide guidance to IRA owners and custodians 

on how to determine and document fair market value (FMV) for certain categories of hard-to -

value unconventional assets. For example, IRS could consider updating Form 5498 

instructions to custodians on how to document FMV for hard-to-value assets (e.g., last-known 

FMV based on independent appraisal, acquisition price) and provide guidance directed at 

account owners that provides examples of how to ascertain FMV for different types of 

unconventional assets.

IRS Implemented. Pending auditor validation.

2016 Filing Season: IRS Improved 

Telephone Service but Needs to Better 

Assist Identity Theft Victims and Prevent 

Release of Fraudulent Refunds

GAO-17-186 01/31/2017 Tax 

Administration and 

Compliance

The Commissioner of Internal Revenue should develop and maintain an online dashboard to 

display customer service standards and performance information such that it is easily accessible 

and improves the transparency of its taxpayer service.

IRS Implemented. Pending auditor validation.

2016 Filing Season: IRS Improved 

Telephone Service but Needs to Better 

Assist Identity Theft Victims and Prevent 

Release of Fraudulent Refunds

GAO-17-186 01/31/2017 Tax 

Administration and 

Compliance

The Commissioner of Internal Revenue should review its document retrieval and scanning 

processes to identify potential training or guidance needs or other potential efficiencies.

IRS Implemented. Pending auditor validation.

2016 Filing Season: IRS Improved 

Telephone Service but Needs to Better 

Assist Identity Theft Victims and Prevent 

Release of Fraudulent Refunds

GAO-17-186 01/31/2017 Tax 

Administration and 

Compliance

The Commissioner of Internal Revenue should revise IRS's notices to IDT refund fraud victims 

to include information such as (1) whether any dependents were claimed on the fraudulent 

return, (2) to the extent possible, if those dependents match any of those the taxpayer claimed 

the same tax year, and (3) how to request a redacted copy of the fraudulent return.

IRS PCA Due Date: Dec-2019

IRS RETURN SELECTION: Improved 

Planning, Internal Controls, and Data Would 

Enhance Large Business Division Efforts to 

Implement New Compliance Approach

GAO-17-324 03/28/2017 Tax 

Administration and 

Compliance

The Commissioner of Internal Revenue should ensure that the documentation gaps in policies 

and procedures are addressed for the following internal control principles for the selection 

method: communicate internally the necessary quality information about the objectives

IRS Implemented. Pending auditor validation.

IRS RETURN SELECTION: Improved 

Planning, Internal Controls, and Data Would 

Enhance Large Business Division Efforts to 

Implement New Compliance Approach

GAO-17-324 03/28/2017 Tax 

Administration and 

Compliance

The Commissioner of Internal Revenue should ensure that the documentation gaps in policies 

and procedures are addressed for the following internal control principles for the selection 

method: define objectives to identify risk and define risk tolerances.

IRS Implemented. Pending auditor validation.

IRS RETURN SELECTION: Improved 

Planning, Internal Controls, and Data Would 

Enhance Large Business Division Efforts to 

Implement New Compliance Approach

GAO-17-324 03/28/2017 Tax 

Administration and 

Compliance

The Commissioner of Internal Revenue should ensure that the documentation gaps in policies 

and procedures are addressed for the following internal control principles for the selection 

method: design control activities to achieve objectives and respond to risks.

IRS Implemented. Pending auditor validation.

IRS RETURN SELECTION: Improved 

Planning, Internal Controls, and Data Would 

Enhance Large Business Division Efforts to 

Implement New Compliance Approach

GAO-17-324 03/28/2017 Tax 

Administration and 

Compliance

The Commissioner of Internal Revenue should ensure that the documentation gaps in policies 

and procedures are addressed for the following internal control principles for the selection 

method: evaluate issues and remediate identified internal control deficiencies on a timely basis.

IRS Implemented. Pending auditor validation.

IRS RETURN SELECTION: Improved 

Planning, Internal Controls, and Data Would 

Enhance Large Business Division Efforts to 

Implement New Compliance Approach

GAO-17-324 03/28/2017 Tax 

Administration and 

Compliance

The Commissioner of Internal Revenue should ensure that the documentation gaps in policies 

and procedures are addressed for the following internal control principles for the selection 

method: identify, analyze, and respond to risks to achieving the objectives.

IRS Implemented. Pending auditor validation.
16/35

APPENDIX 1

GAO-IG Act Reporting for Budget Fiscal Year 2020

GAO - Open Recommendations Reporting

Report Title Report Number Issue Date Audit Area GAO Recommendation Bureau/Office Implementation Status 

IRS RETURN SELECTION: Improved 

Planning, Internal Controls, and Data Would 

Enhance Large Business Division Efforts to 

Implement New Compliance Approach

GAO-17-324 03/28/2017 Tax 

Administration and 

Compliance

The Commissioner of Internal Revenue should ensure that the documentation gaps in policies 

and procedures are addressed for the following internal control principles for the selection 

method: use quality information to achieve objectives.

IRS Implemented. Pending auditor validation.

IRS RETURN SELECTION: Improved 

Planning, Internal Controls, and Data Would 

Enhance Large Business Division Efforts to 

Implement New Compliance Approach

GAO-17-324 03/28/2017 Tax 

Administration and 

Compliance

To further ensure that the new campaigns under LB&I's new approach for addressing tax 

compliance are implemented successfully, the Commissioner of Internal Revenue should create 

a timetable with specific dates for implementing its new compliance approach.

IRS Implemented. Pending auditor validation.

IRS RETURN SELECTION: Improved 

Planning, Internal Controls, and Data Would 

Enhance Large Business Division Efforts to 

Implement New Compliance Approach

GAO-17-324 03/28/2017 Tax 

Administration and 

Compliance

To further ensure that the new campaigns under LB&I's new approach for addressing tax 

compliance are implemented successfully, the Commissioner of Internal Revenue should 

develop and document criteria to use in choosing selection methods for campaigns using audits.

IRS Implemented. Pending auditor validation.

IRS RETURN SELECTION: Improved 

Planning, Internal Controls, and Data Would 

Enhance Large Business Division Efforts to 

Implement New Compliance Approach

GAO-17-324 03/28/2017 Tax 

Administration and 

Compliance

To further ensure that the new campaigns under LB&I's new approach for addressing tax 

compliance are implemented successfully, the Commissioner of Internal Revenue should 

document lessons learned from stakeholder input and past performance.

IRS Implemented. Pending auditor validation.

IRS RETURN SELECTION: Improved 

Planning, Internal Controls, and Data Would 

Enhance Large Business Division Efforts to 

Implement New Compliance Approach

GAO-17-324 03/28/2017 Tax 

Administration and 

Compliance

To further ensure that the new campaigns under LB&I's new approach for addressing tax 

compliance are implemented successfully, the Commissioner of Internal Revenue should 

establish metrics to help determine whether the campaign effort overall meets LB&I's goals.

IRS Implemented. Pending auditor validation.

IRS RETURN SELECTION: Improved 

Planning, Internal Controls, and Data Would 

Enhance Large Business Division Efforts to 

Implement New Compliance Approach

GAO-17-324 03/28/2017 Tax 

Administration and 

Compliance

To further ensure that the new campaigns under LB&I's new approach for addressing tax 

compliance are implemented successfully, the Commissioner of Internal Revenue should 

finalize and document plans to evaluate the human resources expended on campaign activities.

IRS Implemented. Pending auditor validation.

IRS RETURN SELECTION: Improved 

Planning, Internal Controls, and Data Would 

Enhance Large Business Division Efforts to 

Implement New Compliance Approach

GAO-17-324 03/28/2017 Tax 

Administration and 

Compliance

To further ensure that the new campaigns under LB&I's new approach for addressing tax 

compliance are implemented successfully, the Commissioner of Internal Revenue should 

monitor overall performance across future campaigns, not just individual compliance projects, 

and in doing so ensure that the data used for monitoring accounts for the costs beyond the 

auditor's time can clearly be linked with specific selection methods, including the Discriminant 

Analysis System (DAS) method, to the extent that the selection methods continue to operate.

IRS Implemented. Pending auditor validation.

IRS RETURN SELECTION: Improved 

Planning, Internal Controls, and Data Would 

Enhance Large Business Division Efforts to 

Implement New Compliance Approach

GAO-17-324 03/28/2017 Tax 

Administration and 

Compliance

To further ensure that the new campaigns under LB&I's new approach for addressing tax 

compliance are implemented successfully, the Commissioner of Internal Revenue should set a 

timetable to analyze and mitigate risks and document specific metrics for assessing mitigation 

of identified risks.

IRS Implemented. Pending auditor validation.

IRS RETURN SELECTION: Improved 

Planning, Internal Controls, and Data Would 

Enhance Large Business Division Efforts to 

Implement New Compliance Approach

GAO-17-324 03/28/2017 Tax 

Administration and 

Compliance

In accordance with federal internal control standards, the IRS Commissioner should direct 

LB&I to adopt a standard process for monitoring audit selection decisions in the field, such as 

by modifying the existing quality control system.

IRS PCA Due Date: Oct-2019

Management Report: Improvements Are 

Needed to Enhance the Internal Revenue 

Service's Internal Control over Financial 

Reporting

GAO-17-454R 05/17/2017 Financial 

Statements

The Commissioner of Internal Revenue should develop and implement a process to reasonably 

assure that IRS operating divisions and the IT organization effectively coordinate with the CFO 

organization when making programming changes to information systems affecting financial 

reporting.

IRS Implemented. Pending auditor validation.

Management Report: Improvements Are 

Needed to Enhance the Internal Revenue 

Service's Internal Control over Financial 

Reporting

GAO-17-454R 05/17/2017 Financial 

Statements

The Commissioner of Internal Revenue should establish and implement procedures to 

periodically review the process for determining the intragovernmental costs and costs with the 

public for each major program reported in the notes to the financial statements to provide 

reasonable assurance that these amounts are reliable and fairly presented.

IRS Implemented. Pending auditor validation.

Management Report: Improvements Are 

Needed to Enhance the Internal Revenue 

Service's Internal Control over Financial 

Reporting

GAO-17-454R 05/17/2017 Financial 

Statements

The Commissioner of Internal Revenue provide clear guidelines as to what events constitute 

removal from IRS premises and the disposal date that should be recorded in its inventory 

system, either through an update of the IRM or other property and equipment-related desk 

guides.

IRS Implemented. Pending auditor validation.
17/35

APPENDIX 1

GAO-IG Act Reporting for Budget Fiscal Year 2020

GAO - Open Recommendations Reporting

Report Title Report Number Issue Date Audit Area GAO Recommendation Bureau/Office Implementation Status 

Management Report: Improvements Are 

Needed to Enhance the Internal Revenue 

Service's Internal Control over Financial 

Reporting

GAO-17-454R 05/17/2017 Financial 

Statements

The Commissioner of Internal Revenue should research and determine the reason the IT 

organization did not follow IRS policy to thoroughly test programming changes related to the 

automation of specific penalty abatement procedures to reasonably assure that they worked as 

intended before implementation. Based on this determination, establish a process to better 

ensure compliance with existing policies for testing programming changes, including the use 

and review of the Applications Development transmittal checklist when developing program 

changes and retention of test results.

IRS Implemented. Pending auditor validation.

Management Report: Improvements Are 

Needed to Enhance the Internal Revenue 

Service's Internal Control over Financial 

Reporting

GAO-17-454R 05/17/2017 Financial 

Statements

The Commissioner of Internal Revenue should update the respective (1) Privacy, 

Governmental Liaison and Disclosure and (2) CFO IRM sections related to the definition of the 

tax gap to align with the current understanding followed by IRS personnel.

IRS Implemented. Pending auditor validation.

Management Report: Improvements Are 

Needed to Enhance the Internal Revenue 

Service's Internal Control over Financial 

Reporting

GAO-17-454R 05/17/2017 Financial 

Statements

The Commissioner of Internal Revenue should revise the applicable IRM sections pertaining to 

manual refunds to require employees to verify the validity of the digital signatures on the 

manual refund request forms and the manual refund signature authorization forms.

IRS PCA Due Date: Aug-2019

Management Report: Improvements Are 

Needed to Enhance the Internal Revenue 

Service's Internal Control over Financial 

Reporting

GAO-17-454R 05/17/2017 Financial 

Statements

The Commissioner of Internal Revenue should strengthen the process for reasonably assuring 

that the IRM is reviewed annually to align with the current control procedures and guidance 

being implemented by agency personnel. This should include a mechanism for reasonably 

assuring that program owner directors (1) review their respective program control activities 

and related guidance annually and timely update the IRM as needed, (2) document their 

reviews, and (3) utilize interim guidance and supplemental guidance correctly for their intended 

purposes.

IRS PCA Due Date: Dec-2019

Employment Taxes: Timely Use of National 

Research Program Results Would Help IRS 

Improve Compliance and Tax Gap 

Estimates

GAO-17-371 05/18/2017 Tax 

Administration and 

Compliance

The Commissioner of Internal Revenue should develop and document plans to analyze the 

results in 2017 of the NRP employment tax study to identify the major issues of 

noncompliance.

IRS Implemented. Pending auditor validation.

Employment Taxes: Timely Use of National 

Research Program Results Would Help IRS 

Improve Compliance and Tax Gap 

Estimates

GAO-17-371 05/18/2017 Tax 

Administration and 

Compliance

The Commissioner of Internal Revenue should regularly remind employment tax examiners 

how they can access and request the CP2100 and cash transaction data for operational 

employment tax examinations.

IRS Implemented. Pending auditor validation.

Data Center Optimization: Agencies Need 

to Complete Plans to Address 

Inconsistencies in Reported Savings

GAO-17-388 05/18/2017 Information 

Technology

The Secretaries of the Departments of Commerce, Defense, Energy, Health and Human 

Services, Interior, Labor, State, Transportation, Treasury, and Veterans Affairs; the Attorney 

General; and the Administrators of the Environmental Protection Agency, National Aeronautics 

and Space Administration, Small Business Administration, and U.S. Agency for International 

Development; the Chairman of the Nuclear Regulatory Commission; and the Commissioner of 

the Social Security Administration) should each take action to complete the missing elements in 

their respective DCOI strategic plan, including addressing any identified challenges, and 

submit their completed strategic plan to OMB.

Treasury - DO Implemented. Pending auditor validation.

Data Center Optimization: Agencies Need 

to Complete Plans to Address 

Inconsistencies in Reported Savings

GAO-17-388 05/18/2017 Information 

Technology

The following 11 agencies (the Secretaries of the Departments of Commerce, Education, 

Health and Human Services, Interior, Labor, State, Transportation, and Treasury; the 

Administrators of the Environmental Protection Agency, General Services Administration, and 

the U.S. Agency for International Development) should also each take action to ensure that the 

amounts of achieved data center cost savings and avoidances are consistent across all reporting 

mechanisms, including the quarterly data submissions and DCOI strategic plans.

Treasury - DO Implemented. Pending auditor validation.

Employment Taxes: Timely Use of National 

Research Program Results Would Help IRS 

Improve Compliance and Tax Gap 

Estimates

GAO-17-371 05/18/2017 Tax 

Administration and 

Compliance

The Commissioner of Internal Revenue should develop and document plans for addressing the 

noncompliance identified in IRS's analysis of the NRP employment tax results.

IRS PCA Due Date: Dec-2019

Employment Taxes: Timely Use of National 

Research Program Results Would Help IRS 

Improve Compliance and Tax Gap 

Estimates

GAO-17-371 05/18/2017 Tax 

Administration and 

Compliance

The Commissioner of Internal Revenue should develop and document plans for assessing the 

results of the NRP employment tax study to estimate the current state of the employment tax 

gap.

IRS PCA Due Date: Jan-2020
18/35

APPENDIX 1

GAO-IG Act Reporting for Budget Fiscal Year 2020

GAO - Open Recommendations Reporting

Report Title Report Number Issue Date Audit Area GAO Recommendation Bureau/Office Implementation Status 

Management Report: Improvements Needed 

in Controls over the Processes Used to 

Prepare the U.S. Consolidated Financial 

Statements

GAO-17-524 7/12/2017 Financial 

Statements

The Secretary of the Treasury should direct the Fiscal Assistant Secretary to develop and 

implement a sufficient process for working with federal entities to reduce or resolve the need 

for significant adjustments to federal entity data submitted for the CFS.

Fiscal Service Rejected. Treasury disagreed with the 

recommendation as it considers this 

recommendation more of best practices and would 

not contribute to audibility. Treasury will continue 

to evolve its processes as deemed necessary to 

ensure that appropriate and effective metrics are 

deployed to measure and monitor agency 

performance. Ultimate responsibility for the desired 

outcome of minimizing the occurrence of 

intragovernmental differences rests with the agency 

community and their auditors, and is dependent on 

the quality and completeness of agency data 

provided to Treasury.

Management Report: Improvements Needed 

in Controls over the Processes Used to 

Prepare the U.S. Consolidated Financial 

Statements

GAO-17-524 7/12/2017 Financial 

Statements

The Secretary of the Treasury should direct the Fiscal Assistant Secretary, working in 

coordination with the Controller of OMB, to improve corrective action plans for (1) treaties and 

international agreements, (2) additional audit procedures for intragovernmental activity and 

balances, and (3) the Reconciliation Statements so that they include sufficient information to 

address the control deficiencies in these areas effectively.

Fiscal Service Rejected. Treasury disagreed with the 

recommendation as it considers this 

recommendation redundant to existing open 

recommendations issued in previous years. 

Treasury will continue to work with agencies to 

facilitate improvement of processes, minimizing the 

need for Treasury adjustments to agency reporting. 

Ultimate responsibility for the desired outcome of 

minimizing the need for Treasury adjustments rests 

with the agency community and their auditors, and 

is dependent on the quality and completeness of 

agency data provided to Treasury.

Improper Payments: Improvements Needed 

in CMS and IRS Controls over Health 

Insurance Premium Tax Credit

GAO-17-467 07/13/2017 Improper 

Payments 

The Commissioner of Internal Revenue should assess the program against applicable IPIAdefined thresholds and conclude on its susceptibility to significant improper payments, and 

revise the scope of its improper payments susceptibility assessment for the PTC program to 

include instances in which advance PTC is greater than or equal to the amount of PTC claimed 

on the tax return. If the program meets the IPIA definition for being susceptible to significant 

improper payments based on this assessment, estimate and report improper payments 

associated with the PTC program consistent with IPIA requirements.

IRS Implemented. Pending auditor validation.

Improper Payments: Improvements Needed 

in CMS and IRS Controls over Health 

Insurance Premium Tax Credit

GAO-17-467 07/13/2017 Improper 

Payments 

The Commissioner of Internal Revenue should design and implement procedures in the IRM to 

regularly notify nonfilers of the requirement to file tax returns in order to continue to receive 

advance PTC in the future.

IRS Implemented. Pending auditor validation.

Improper Payments: Improvements Needed 

in CMS and IRS Controls over Health 

Insurance Premium Tax Credit

GAO-17-467 07/13/2017 Improper 

Payments 

The Commissioner of Internal Revenue should assess whether IRS should require its 

examiners to verify health care coverage of individuals to determine eligibility for PTC. To do 

this, IRS should complete its evaluation on the level of noncompliance related to duplicate 

health insurance coverage. Based on this evaluation and if cost effective, IRS should design and 

implement formal policies and procedures to routinely identify individuals inappropriately 

receiving PTC because of their eligibility for or enrollment in health care programs outside of 

the marketplaces and notify such individuals of their ineligibility for PTC.

IRS PCA Due Date: Oct-2020

Improper Payments: Improvements Needed 

in CMS and IRS Controls over Health 

Insurance Premium Tax Credit

GAO-17-467 07/13/2017 Improper 

Payments 

The Commissioner of Internal Revenue should assess and document the feasibility of 

approaches for incorporating information from the marketplaces on individuals who did not 

demonstrate that they met the eligibility requirements for citizenship or lawful presence in the 

tax compliance process. If determined feasible, IRS should work with Treasury to require 

marketplaces to periodically provide such information on individuals and use such information 

to recover advance PTC made for those individuals.

IRS PCA Due Date: Sept-2019

Information Security: Control Deficiencies 

Continue to Limit IRS's Effectiveness in 

Protecting Sensitive Financial and Taxpayer 

Data

GAO-17-395 07/26/2017 Financial 

Statements

The Commissioner of Internal Revenue should develop an enterprise-wide system owner 

procedural document to control critical mainframe operating system commands.

IRS Implemented. Pending auditor validation.

Information Security: Control Deficiencies 

Continue to Limit IRS's Effectiveness in 

Protecting Sensitive Financial and Taxpayer 

Data

GAO-17-395 07/26/2017 Financial 

Statements

The Commissioner of Internal Revenue should develop, document, and implement the use of 

detailed procedures to facilitate the periodic review and analysis of audit records for its 

financial systems.

IRS Implemented. Pending auditor validation.
19/35

APPENDIX 1

GAO-IG Act Reporting for Budget Fiscal Year 2020

GAO - Open Recommendations Reporting

Report Title Report Number Issue Date Audit Area GAO Recommendation Bureau/Office Implementation Status 

Information Security: Control Deficiencies 

Continue to Limit IRS's Effectiveness in 

Protecting Sensitive Financial and Taxpayer 

Data

GAO-17-395 07/26/2017 Financial 

Statements

The Commissioner of Internal Revenue should ensure that all known significant audit findings 

and recommendations related to financial reporting, which includes those in GAO's public and 

limited official use only reports, that directly relate to the objective of A-123 internal control 

tests are reviewed and monitored.

IRS Implemented. Pending auditor validation.

Information Security: Control Deficiencies 

Continue to Limit IRS's Effectiveness in 

Protecting Sensitive Financial and Taxpayer 

Data

GAO-17-395 07/26/2017 Financial 

Statements

The Commissioner of Internal Revenue should ensure that approved risk-based decisions 

pertaining to database configurations are based on suitable justification.

IRS Implemented. Pending auditor validation.

Information Security: Control Deficiencies 

Continue to Limit IRS's Effectiveness in 

Protecting Sensitive Financial and Taxpayer 

Data

GAO-17-395 07/26/2017 Financial 

Statements

The Commissioner of Internal Revenue should ensure that system administrators and security 

operations analysts are alerted in the event of audit processing failures.

IRS Implemented. Pending auditor validation.

Information Security: Control Deficiencies 

Continue to Limit IRS's Effectiveness in 

Protecting Sensitive Financial and Taxpayer 

Data

GAO-17-395 07/26/2017 Financial 

Statements

The Commissioner of Internal Revenue should regularly update configuration standards and 

guidelines for network devices to incorporate recommendations from industry leaders, security 

agencies, and key practices from IRS partners to address known vulnerabilities applicable to 

IRS's environment.

IRS Implemented. Pending auditor validation.

Information Security: Control Deficiencies 

Continue to Limit IRS's Effectiveness in 

Protecting Sensitive Financial and Taxpayer 

Data

GAO-17-395 07/26/2017 Financial 

Statements

The Commissioner of Internal Revenue should update information contingency plan test 

procedures to include updating contingency plans to reflect changes to the current operating 

environment.

IRS Implemented. Pending auditor validation.

Information Security: Control Deficiencies 

Continue to Limit IRS's Effectiveness in 

Protecting Sensitive Financial and Taxpayer 

Data

GAO-17-395 07/26/2017 Financial 

Statements

The Commissioner of Internal Revenue should implement the audit plans for the 12 systems 

and applications that we reviewed in the production computing environment.

IRS PCA Due Date: Dec-2019

Information Security: Control Deficiencies 

Continue to Limit IRS's Effectiveness in 

Protecting Sensitive Financial and Taxpayer 

Data

GAO-17-395 07/26/2017 Financial 

Statements

The Commissioner of Internal Revenue should implement a compliance verification 

application, or other appropriate process, to ensure configuration policies are comprehensively 

tested on the mainframe.

IRS PCA Due Date: Jan-2020

Information Security: Control Deficiencies 

Continue to Limit IRS's Effectiveness in 

Protecting Sensitive Financial and Taxpayer 

Data

GAO-17-395 07/26/2017 Financial 

Statements

The Commissioner of Internal Revenue identify and review service organizations' listing of user 

controls that are deemed relevant and test those controls to appropriately draw conclusions 

about the operating effectiveness of controls.

IRS PCA Due Date: Nov-2019

Data Center Optimization:

Agencies Need to Address Challenges and 

Improve Progress to Achieve Cost Savings 

Goal

GAO-17-448 09/06/2017 Information 

Technology

The Secretaries of Agriculture, Commerce, Defense, Homeland Security, Energy, HHS, 

Interior, Labor, State, Transportation, Treasury, and VA; the Attorney General of the United 

States; the Administrators of EPA, GSA, and SBA; the Director of OPM; and the Chairman of 

NRC should take action to, within existing OMB reporting mechanisms, complete plans 

describing how the agency will achieve OMB's requirement to implement automated 

monitoring tools at all agency-owned data centers by the end of fiscal year 2018.

Treasury - DO Implemented. Pending auditor validation.

Small Business Contracting: Actions 

Needed to Demonstrate and Better Review 

Compliance with Select Requirements for 

Small Business Advocates

GAO-17-675 09/25/2017 Acquisition and 

Procurement

To address demonstrated noncompliance with section 15(k) of the Small Business Act, as 

amended, the Secretary of the Treasury should comply with sections 15(k)(8) and (k)(11) or 

report to Congress on why the agency has not complied, including seeking any statutory 

flexibilities or exceptions believed appropriate.

Treasury - DO Implemented. Pending auditor validation.

DATA Act: OMB, Treasury, and Agencies 

Need to Improve Completeness and 

Accuracy of Spending Data and Disclose 

Limitations

GAO-18-138 11/08/2017 Information 

Technology

The Secretary of the Treasury should reasonably assure that the process for determining 

whether required agencies are submitting spending data is in place and operating as designed.

Treasury - DO Implemented. Pending auditor validation.

DATA Act: OMB, Treasury, and Agencies 

Need to Improve Completeness and 

Accuracy of Spending Data and Disclose 

Limitations

GAO-18-138 11/08/2017 Information 

Technology

The Secretary of the Treasury should reasonably assure that ongoing monitoring controls to 

help ensure the completeness and accuracy of agency submissions are designed, implemented, 

and operating as designed.

Treasury - DO Implemented. Pending auditor validation.

DATA Act: OMB, Treasury, and Agencies 

Need to Improve Completeness and 

Accuracy of Spending Data and Disclose 

Limitations

GAO-18-138 11/08/2017 Information 

Technology

The Secretary of the Treasury should disclose known data quality issues and limitations on the 

new USAspending.gov.

Treasury - DO Implemented. Pending auditor validation.

Identity Theft: Improved Collaboration 

Could Increase Success of IRS Initiatives to 

Prevent Refund Fraud

GAO-18-20 11/28/2017 Tax 

Administration and 

Compliance

The Commissioner of Internal Revenue should ensure that the Information Sharing and 

Analysis Center (ISAC) pilot better aligns with leading practices for effective pilot design. This 

should include (1) establishing criteria for assessing whether the pilot's objectives have been 

met before making decisions about its scalability and whether, how, and when to when to 

proceed to full implementation; and (2) developing a data analysis plan that identifies data 

sources and criteria necessary for effectively evaluating the pilot.

IRS Implemented. Pending auditor validation.
20/35

APPENDIX 1

GAO-IG Act Reporting for Budget Fiscal Year 2020

GAO - Open Recommendations Reporting

Report Title Report Number Issue Date Audit Area GAO Recommendation Bureau/Office Implementation Status 

Identity Theft: Improved Collaboration 

Could Increase Success of IRS Initiatives to 

Prevent Refund Fraud

GAO-18-20 11/28/2017 Tax 

Administration and 

Compliance

The Commissioner of Internal Revenue should ensure that the ISAC Partnership develops an 

outreach plan to expand membership and improve states' and industry partners' understanding 

of the ISAC's benefits.

IRS Implemented. Pending auditor validation.

IRS Needs Specific Goals and Strategies for 

Improving Compliance

GAO-18-39 11/30/2017 Tax 

Administration and 

Compliance

The Commissioner of Internal Revenue should instruct the appropriate officials to develop and 

document a strategy that outlines how IRS will use National Research Program data to update 

compliance strategies that could help address the tax gap.

IRS PCA Due Date: Jun-2019

IRS Needs Specific Goals and Strategies for 

Improving Compliance

GAO-18-39 11/30/2017 Tax 

Administration and 

Compliance

The Commissioner of Internal Revenue should re-establish long-term, quantitative goals for 

improving voluntary compliance.

IRS Rejected. IRS disagreed with the recommendation. 

By remaining committed to estimating the tax gap 

and voluntary compliance rate, the IRS will be able 

to ascertain whether it is broadly making progress 

toward the goal of increasing voluntary compliance, 

without a quantitative target. The voluntary 

compliance/tax gap data are not effective for 

making strategic, operational decisions. They are 

all-encompassing measures, affected by IRS actions 

and non-IRS factors; therefore, it will be next to 

impossible to isolate the effects of any given action.

Information Technology: Agencies Need to 

Involve Chief Information Officers in 

Reviewing Billions of Dollars in 

Acquisitions

GAO-18-42 01/10/2018 Acquisition and 

Procurement

The Secretary of the Treasury should ensure that IT acquisition plans or strategies are reviewed 

and approved according to OMB's guidance.

Treasury - DO PCA Due Date: Jun-2019

Tax Fraud and Noncompliance: IRS Can 

Strengthen Pre-refund Verification and 

Explore More Uses

GAO-18-224 01/30/2018 Tax 

Administration and 

Compliance

Based on the benefits and costs assessment the Commissioner of Internal Revenue should use 

IRS's existing authority to modify the refund hold such that it minimizes the risk of releasing 

fraudulent or noncompliant refunds.

IRS Implemented. Pending auditor validation.

Tax Fraud and Noncompliance: IRS Can 

Strengthen Pre-refund Verification and 

Explore More Uses

GAO-18-224 01/30/2018 Tax 

Administration and 

Compliance

The Commissioner of Internal Revenue should collect data to track late W-2 filing penalty 

notices and the extent to which they are associated with fraud and noncompliant returns.

IRS Implemented. Pending auditor validation.

Tax Fraud and Noncompliance: IRS Can 

Strengthen Pre-refund Verification and 

Explore More Uses

GAO-18-224 01/30/2018 Tax 

Administration and 

Compliance

The Commissioner of Internal Revenue should develop an evaluation plan to fully assess the 

benefits and costs, including taxpayer burden, of modifying the February 15 refund hold, and 

determine how this effort informs IRS's overall compliance strategy for refundable tax credits 

and fraud risk management.

IRS Implemented. Pending auditor validation.

Tax Fraud and Noncompliance: IRS Can 

Strengthen Pre-refund Verification and 

Explore More Uses

GAO-18-224 01/30/2018 Tax 

Administration and 

Compliance

The Commissioner of Internal Revenue should implement any identified changes to improve 

pre-refund compliance checks.

IRS PCA Due Date: Jun-2019

Tax Fraud and Noncompliance: IRS Can 

Strengthen Pre-refund Verification and 

Explore More Uses

GAO-18-224 01/30/2018 Tax 

Administration and 

Compliance

The Commissioner of Internal Revenue should assess the benefits and costs of additional uses 

and applications of W-2 data for pre-refund compliance checks, such as addressing 

underreporting, employment fraud, and other fraud or noncompliance before issuing refunds.

IRS PCA Due Date: Jun-2019

Tax Fraud and Noncompliance: IRS Can 

Strengthen Pre-refund Verification and 

Explore More Uses

GAO-18-224 01/30/2018 Tax 

Administration and 

Compliance

The Commissioner of Internal Revenue should assess options for improving enforcement of 

late W-2 filing penalties, for example, by mailing notices before the next filing deadline.

IRS Rejected. IRS disagreed with the recommendation. 

Penalties for late-filed, incorrect media, and 

missing/incorrect TINs are assessable systemically 

under IRC 6721 for various information returns 

including the Forms W-2. IRC 6721 has a 

maximum limitation for each payer and a penalty 

notice cannot be issued for each information return 

(Forms W-2 as recommended in this case) because 

it will ignore the maximum limitation required by 

law. In addition, SSA provides to IRS a drop-file in 

December of the year the Forms W-2 are due. IRS 

needs this file to exclude these payers from 

receiving an erroneous penalty notice.
21/35

APPENDIX 1

GAO-IG Act Reporting for Budget Fiscal Year 2020

GAO - Open Recommendations Reporting

Report Title Report Number Issue Date Audit Area GAO Recommendation Bureau/Office Implementation Status 

Procedures for Reviews Under Regulatory 

Flexibility Act Need to Be Enhanced

GAO-18-256 01/31/2018 Banking and 

Lending

The Comptroller of the Currency should develop and implement specific policies and 

procedures for how it will consistently comply with RFA requirements and key aspects of the 

Small Business Administration's (SBA) Office of Advocacy and OMB guidance.

OCC Implemented. Pending auditor validation.

Procedures for Reviews Under Regulatory 

Flexibility Act Need to Be Enhanced

GAO-18-256 01/31/2018 Banking and 

Lending

The Comptroller of the Currency should coordinate with the Office of Advocacy on whether 

the Economic Growth and Regulatory Paperwork Reduction Act (EGRPRA) review process 

satisfies the requirements of section 610 and, if not, what steps should be taken to align the 

process with section 610 requirements.

OCC PCA Due Date: Dec-2018. This is a joint 

recommendation. OCC is coordinating with the 

other regulators to determine a new due date.

Committee on Foreign Investment in the 

United States: Treasury Should Coordinate 

Assessments of Resources Needed to 

Address Increased Workload

GAO-18-249 02/14/2018 Administration of 

Program 

Operations

Treasury, as CFIUS lead, should coordinate member agencies' efforts to better understand the 

staffing levels needed to address the current and projected CFIUS workload associated with 

core committee functions.

Treasury - DO Implemented. Pending auditor validation.

Additional Actions Are Essential for 

Assessing Cybersecurity Framework 

Adoption

GAO-18-211 02/15/2018 Information 

Technology

The Secretary of Treasury should take steps to consult with respective sector partner(s), such 

as the SCC, DHS and NIST, as appropriate, to develop methods for determining the level and 

type of framework adoption by entities across their respective sector. 

Treasury - DO Implemented. Pending auditor validation.

Bank Secrecy Act - De-risking along the 

Southwest Border Highlights Need for 

Regulators to Enhance Retrospective 

Reviews

GAO-18-263OCC 02/26/2018 Banking and 

Lending

The Comptroller of the Currency work jointly with FinCEN, the FDIC and the FRB to conduct 

a retrospective review of BSA/AML regulations and their implementation for banks, focusing 

on how banks' regulatory concerns may be influencing their willingness to provide services to 

certain populations. The GAO is recommending further that the FDIC, the FRB, the OCC and 

FinCEN take steps, as appropriate, to revise the BSA regulations or the way they are being 

implemented to help ensure BSA/AML regulatory objectives are being met in the most 

effective and least burdensome way.

OCC Implemented. Pending auditor validation.

Bank Secrecy Act - De-risking along the 

Southwest Border Highlights Need for 

Regulators to Enhance Retrospective 

Reviews

GAO-18-263 02/28/2018 Banking and 

Lending

The Director of FinCEN should jointly conduct a retrospective review of BSA/AML 

regulations and their implementation for banks with FDIC, the Federal Reserve, and OCC. 

This review should focus on how banks' regulatory concerns may be influencing their 

willingness to provide services. In conducting the review, FDIC, the Federal Reserve, OCC, 

and FinCEN should take steps, as appropriate, to revise the BSA regulations or the way they 

are being implemented to help ensure that BSA/AML regulatory objectives are being met in 

the most effective and least burdensome way.

FinCEN Implemented. Pending auditor validation.

Workplace Retirement Account: Better 

Guidance and Information Could Help Plan 

Participants at Home and Abroad Manage 

Their Retirement Savings

GAO-18-19 03/03/2018 Administration of 

Program 

Operations

The Commissioner of Internal Revenue should clarify how U.S. individuals are to report their 

foreign retirement accounts. The clarification could include addressing how these accounts 

should be designated and how the taxpayer should report contributions, earnings, and 

distributions made from the account.

IRS PCA Due Date: Oct-2020

Workplace Retirement Account: Better 

Guidance and Information Could Help Plan 

Participants at Home and Abroad Manage 

Their Retirement Savings

GAO-18-19 03/03/2018 Administration of 

Program 

Operations

The Commissioner of Internal Revenue should review taxation issues relating to distributions 

involving incorrect participant addresses and uncashed benefit checks and clarify for the public 

the Internal Revenue Code's requirements in these circumstances.

IRS PCA Due Date: Oct-2021

Workplace Retirement Account: Better 

Guidance and Information Could Help Plan 

Participants at Home and Abroad Manage 

Their Retirement Savings

GAO-18-19 03/03/2018 Administration of 

Program 

Operations

The Commissioner of Internal Revenue should take steps to improve the likelihood that the 

Notice of Potential Private Pension Benefit Information corresponds to actual retirement 

benefits in the future, for example, by working with the Social Security Administration as 

necessary.

IRS PCA Due Date: Oct-2021

Workplace Retirement Account: Better 

Guidance and Information Could Help Plan 

Participants at Home and Abroad Manage 

Their Retirement Savings

GAO-18-19 03/03/2018 Administration of 

Program 

Operations

The Commissioner of Internal Revenue should consider revising the letter forwarding program 

in a cost effective manner to again provide information on behalf of plan sponsors on unclaimed 

retirement accounts to participants.

IRS Rejected. IRS disagreed with the recommendation. 

Guidance the Department of Labor issued in 2014 

affirms the steps plan administrators can take to 

locate missing participants which is based on 

widespread use of commercially available locator 

services. With limited IRS staff and resources and 

the many locator services commercially available 

today, it is not feasible for the IRS to reinstate this 

program. Further, IRS views this GAO 

recommendation as not providing a sufficient return 

on investment to warrant allocating limited 

resources for implementing the recommendation. 
22/35

APPENDIX 1

GAO-IG Act Reporting for Budget Fiscal Year 2020

GAO - Open Recommendations Reporting

Report Title Report Number Issue Date Audit Area GAO Recommendation Bureau/Office Implementation Status 

Workplace Retirement Account: Better 

Guidance and Information Could Help Plan 

Participants at Home and Abroad Manage 

Their Retirement Savings

GAO-18-19 03/03/2018 Administration of 

Program 

Operations

The Commissioner of Internal Revenue should systematically analyze data reported through 

Form 8938 filings on foreign retirement accounts owned by U.S. individuals with the goal of 

developing an evidence-based understanding of how these accounts change over time and what 

level of risk these accounts pose for tax evasion. To assist with this analysis, IRS should 

consider revising Form 8938 to more clearly distinguish between retirement accounts and other 

types of accounts or assets being reported by taxpayers under current reporting requirements.

IRS Rejected. IRS disagreed with the recommendation. 

The modification to the Form 8938 suggested in 

this recommendation may seem minor, but 

systemically collecting and analyzing the data 

would require resources beyond those currently 

available to IRS. Further, IRS views this GAO 

recommendation as not providing a sufficient return 

on investment to warrant allocating limited 

resources for implementing the recommendation. 

Remittances to Fragile Countries: Treasury 

Should Assess Risks from Shifts to NonBanking Channels

GAO-18-313 03/08/2018 Banking and 

Lending

Treasury should assess the extent to which shifts in remittance flows to non-banking channels 

for fragile countries may affect Treasury's ability to monitor for financial crimes and, if 

necessary, should identify corrective actions.

Treasury - DO Implemented. Pending auditor validation.

Financial Technology: Additional Steps by 

Regulators could Better Protect Consumers 

and Aid Regulatory Oversight

GAO-18-254 03/22/2018 Information 

Technology

The Comptroller of the Currency should engage in collaborative discussions with other relevant 

financial regulators to help market participants address issues surrounding reimbursement for 

consumers who use financial account aggregators and experience unauthorized transactions in 

a group that incorporates leading practices.

OCC Implemented. Pending auditor validation.

Note: Financial Statements audits older than the seven (7) year threshold are included to provide additional reference on these annual audits. 
23/35

APPENDIX 2

GAO-IG Act Reporting for Budget Fiscal Year 2020

Treasury OIG - Open Recommendations Reporting

Report Title Report Number Issue Date Audit Area Treasury OIG Recommendation Bureau/Office Implementation Status

RESTORE ACT: Alabama's Center of 

Excellence Was Not Selected through 

Competitive Award

OIG-15-036 06/10/2015 Administration of 

Program 

Operations

OIG recommends that the Fiscal Assistant Secretary ensures that the Alabama Council selects 

its Centers of Excellence through a competitive process in accordance with the RESTORE Act 

and Treasury regulations prior to disbursing grant funds to the Alabama Council for funding 

Centers of Excellence.

Treasury - DO PCA Due: Apr-2019

OSP Needs to Promptly Inform OIG of 

Potential Illegal Activity and Improve Other 

Processes

OIG-15-040 07/27/2015 Administration of 

Program 

Operations

OIG recommends that the Assistant Secretary for Intelligence and Analysis conduct, in 

conjunction with the Office of the Chief Information Officer, a resource analysis of the Office 

of Security Programs to determine the proper information technology software, equipment, and 

support needed to comply with Central Verification System requirements.

Treasury - DO PCA Due: Apr-2019

OSP Needs to Promptly Inform OIG of 

Potential Illegal Activity and Improve Other 

Processes

OIG-15-040 07/27/2015 Administration of 

Program 

Operations

OIG recommends that the Assistant Secretary for Intelligence and Analysis ensure that the 

Office of Security Programs works with the Office of the Chief Information Officer and Office 

of Personnel Management, as appropriate, to resolve the Office of Security Programs system 

and data issues with the Central Verification System so that Treasury employee security 

clearance data is provided to and maintained in the Central Verification System on a complete, 

current, and accurate basis going forward.

Treasury - DO PCA Due: Apr-2019

Libyan Sanctions Case Study OIG-16-001 10/26/2015 Administration of 

Program 

Operations

OIG recommends that the Director of the Office of Foreign Assets Control implement a 

methodology to identify blocked assets that have been released by license type (general or 

directive).

Treasury - DO PCA Due: Jun-2018

Libyan Sanctions Case Study OIG-16-001 10/26/2015 Administration of 

Program 

Operations

OIG recommends that the Director of the Office of Foreign Assets Control develop a lessonslearned process to capture and communicate acquired knowledge from past sanctions programs 

at a time appropriate for each sanctions program.

Treasury - DO PCA Due: Sep-2018

INFORMATION TECHNOLOGY: 

Department of the Treasury Federal 

Information Security Modernization Act 

Fiscal Year 2015 Performance Audit

OIG-16-010MNT 11/12/2015 Information 

Technology

OIG recommends that United States Mint management, for the selected system, ensure access 

forms are completed, properly reviewed by the help desk prior to granting access, and centrally 

retained by the help desk. 

Mint Implemented. Pending auditor 

validation.

INFORMATION TECHNOLOGY: 

Department of the Treasury Federal 

Information Security Modernization Act 

Fiscal Year 2015 Performance Audit

OIG-16-010MNT 11/12/2015 Information 

Technology

OIG recommends that United States Mint management. for the selected system, ensure that its 

third-party cloud service provider provides Federal Information Security Modernization Act of 

2014 (FISMA)-related artifacts to demonstrate FISMA compliance to the U.S. Mint security 

compliance team. 

Mint PCA Due: Aug-2019

INFORMATION TECHNOLOGY: 

Department of the Treasury Federal 

Information Security Modernization Act 

Fiscal Year 2015 Performance Audit

OIG-16-010MNT 11/12/2015 Information 

Technology

OIG recommends that United States Mint management, for the selected system, ensure that 

control implementation statements and statuses for all National Institute of Standards and 

Technology Special Publication 800-53 Revision 4 controls and control enhancements are fully 

addressed in the system security plan.

Mint PCA Due: Jul-2019

GENERAL MANAGEMENT: Treasury 

Has Policies and Procedures to Safeguard 

Classified Information but They Are Not 

Effectively Implemented

OIG-16-059 09/29/2016 Administration of 

Program 

Operations

OIG recommends that the Assistant Secretary for Intelligence and Analysis direct the Deputy 

Assistant Secretary for Security to emphasize to derivative classifiers the importance of 

properly marking classification decisions, including adding a note in classified emails to remind 

employees to properly portion mark emails before sending.

Treasury - DO PCA Due: Sep-2018

GENERAL MANAGEMENT: Treasury 

Has Policies and Procedures to Safeguard 

Classified Information but They Are Not 

Effectively Implemented

OIG-16-059 09/29/2016 Administration of 

Program 

Operations

OIG recommends that the Assistant Secretary for Intelligence and Analysis direct the Deputy 

Assistant Secretary for Security to update the Treasury Security Manual to include the Office 

of Security Program responsibilities to (i) follow-up timely with Departmental Offices and 

bureaus on their SF 311 submissions; (ii) review the SF 311s for completeness and accuracy; 

(iii) implement a mechanism such as a checklist or reconciliation to ensure complete and 

accurate reporting of SF 311 information; and (iv) document explanations for corrections made 

to the Department Offices' and bureaus' SF 311 reporting if OSP makes any changes.

Treasury - DO PCA Due: Sep-2018

GENERAL MANAGEMENT: Treasury 

Has Policies and Procedures to Safeguard 

Classified Information but They Are Not 

Effectively Implemented

OIG-16-059 09/29/2016 Administration of 

Program 

Operations

OIG recommends that the Assistant Secretary for Intelligence and Analysis direct the Deputy 

Assistant Secretary for Security to update the Treasury Security Manual to include procedures 

requiring the Office of Security Programs to follow-up and obtain all bureau self-inspection 

reports.

Treasury - DO PCA Due: Sep-2018

TERRORIST FINANCING/MONEY 

LAUNDERING: Federal Agencies Are 

Generally Satisfied with TFFC's 

Collaboration Efforts, but Enhancements 

Can Be Made

OIG-17-044 05/23/2017 Banking and 

Lending

OIG recommends that the Assistant Secretary for Terrorist Financing address areas of concern 

expressed by Federal agencies regarding the Office of Terrorist Financing and Financial 

Crimes' (TFFC) collaboration that includes feedback, intersessional meetings, and invitations to 

participate in bilateral meetings with foreign countries during the Financial Action Task Force 

(FATF) Plenary.

Treasury - DO TFFC agreed with the 

recommendation and is in the 

process of developing PCAs.

TERRORIST FINANCING/MONEY 

LAUNDERING: Federal Agencies Are 

Generally Satisfied with TFFC's 

Collaboration Efforts, but Enhancements 

Can Be Made

OIG-17-044 05/23/2017 Banking and 

Lending

OIG recommends that the Assistant Secretary for Terrorist Financing develop policies and 

procedures to ensure continuity and consistency in collaboration efforts with interagency task 

forces and workgroups.

Treasury - DO TFFC agreed with the 

recommendation and is in the 

process of developing PCAs.
24/35

APPENDIX 2

GAO-IG Act Reporting for Budget Fiscal Year 2020

Treasury OIG - Open Recommendations Reporting

Report Title Report Number Issue Date Audit Area Treasury OIG Recommendation Bureau/Office Implementation Status

TERRORIST FINANCING/MONEY 

LAUNDERING: Federal Agencies Are 

Generally Satisfied with TFFC's 

Collaboration Efforts, but Enhancements 

Can Be Made

OIG-17-044 05/23/2017 Banking and 

Lending

OIG recommends that the Assistant Secretary for Terrorist Financing develop and implement a 

mechanism to monitor, evaluate, and report on the effectiveness of the Office of Terrorist 

Financing and Financial Crimes' (TFFC) interagency collaboration.

Treasury - DO TFFC agreed with the 

recommendation and is in the 

process of developing PCAs.

TERRORIST FINANCING/MONEY 

LAUNDERING: Federal Agencies Are 

Generally Satisfied with TFFC's 

Collaboration Efforts, but Enhancements 

Can Be Made

OIG-17-044 05/23/2017 Banking and 

Lending

OIG recommends that the Assistant Secretary for Terrorist Financing develop meaningful 

performance measures specific to the Office of Terrorist Financing and Financial Crimes 

(TFFC) collaboration.

Treasury - DO TFFC agreed with the 

recommendation and is in the 

process of developing PCAs.

RESTORE ACT: Gulf County's Policies 

and Procedures Did Not Reflect All 

Uniform Guidance Requirements

OIG-17-046 06/05/2017 Administration of 

Program 

Operations

OIG recommends that the Fiscal Assistant Secretary considers the County's need to further 

develop and strengthen its policies and procedures to fully document the Uniform Guidance. 

This consideration should be part of Treasury's oversight and administration of the County's 

Multiyear Implementation Plan (MYIP) Planning Assistance award as well as risk assessments 

required by the Uniform Guidance for future awards.

Treasury - DO PCA Due: May-2019

INFORMATION TECHNOLOGY: 

Department of the Treasury Federal 

Information Security Modernization Act 

Fiscal Year 2017 Performance Audit for 

Collateral National Security Systems

OIG-18-005 10/27/2017 Information 

Technology

OIG recommends that DO management establish a process to review at a defined frequency 

the DO Collateral NSS user accounts. 

Treasury - DO Implemented. Pending auditor 

validation.

INFORMATION TECHNOLOGY: 

Department of the Treasury Federal 

Information Security Modernization Act 

Fiscal Year 2017 Performance Audit for 

Collateral National Security Systems

OIG-18-005 10/27/2017 Information 

Technology

OIG recommends that DO management disable terminated or inactive DO employees' or 

contractors' DO Collateral NSS accounts accordingly. 

Treasury - DO Implemented. Pending auditor 

validation.

INFORMATION TECHNOLOGY: 

Department of the Treasury Federal 

Information Security Modernization Act 

Fiscal Year 2017 Performance Audit

OIG-18-004FS 10/27/2017 Information 

Technology

OIG recommends that Bureau of the Fiscal Service (Fiscal Service) management implement an 

enterprise-wide Software Asset Management (SAM) tool to discover and identify installed 

software on the Fiscal Service network, manage software product signatures, analyze software 

use (i.e., license consumption), and facilitate software asset management reporting. 

Fiscal Service PCA Due: Jun-2019

INFORMATION TECHNOLOGY: 

Department of the Treasury Federal 

Information Security Modernization Act 

Fiscal Year 2017 Performance Audit

OIG-18-004DO 10/27/2017 Information 

Technology

OIG recommends that Departmental Offices (DO) management update the DO Information 

Technology (IT) Security Policy Handbook (DO P-910), Version 3.3, specifically the RA (Risk 

Assessment)-5 and SI (System and Information Integrity)-2 security controls, to establish 

actionable timeframes for remediating vulnerabilities using a risk-based approach or develop a 

continuous monitoring program to determine and set agreed upon timeframes to remediate 

organizational defined vulnerabilities. 

Treasury - DO PCA Due: May-2019

INFORMATION TECHNOLOGY: 

Department of the Treasury Federal 

Information Security Modernization Act 

Fiscal Year 2017 Performance Audit

OIG-18-004DO 10/27/2017 Information 

Technology

OIG recommends that Departmental Offices (DO) management update the Information 

Technology (IT) Security Policy Handbook (DO P-910) and supporting patch management 

policies and procedures to enforce a patch management process for the operating systems 

supporting selected system 1, selected system 2, and other moderate or high risk information 

systems to test, document, and approve patches prior to installation. 

Treasury - DO PCA Due: May-2019

INFORMATION TECHNOLOGY: 

Department of the Treasury Federal 

Information Security Modernization Act 

Fiscal Year 2017 Performance Audit

OIG-18-004DO 10/27/2017 Information 

Technology

OIG recommends that Departmental Offices (DO) management perform and document a cost 

benefit analysis to determine if a complete test environment is warranted for all DO systems to 

include tracking of all patch management decisions. 

Treasury - DO PCA Due: May-2019

INFORMATION TECHNOLOGY: 

Department of the Treasury Federal 

Information Security Modernization Act 

Fiscal Year 2017 Performance Audit

OIG-18-004DO 10/27/2017 Information 

Technology

OIG recommends that Departmental Offices (DO) management test patches in adherence to 

the updates to Information Technology (IT) Security Handbook and supporting patch 

management policies and procedures. 

Treasury - DO PCA Due: May-2019

INFORMATION TECHNOLOGY: 

Department of the Treasury Federal 

Information Security Modernization Act 

Fiscal Year 2017 Performance Audit for 

Collateral National Security Systems

OIG-18-005 10/27/2017 Information 

Technology

OIG recommends that DO management evaluate the current test environment to determine if 

management needs to enhance the environment to allow for adequate testing of changes and 

patches, and, if necessary, implement a cost-effective solution. 

Treasury - DO PCA Due: Sep-2019

TERRORIST FINANCING/MONEY 

LAUNDERING: Audit of the Office of 

Intelligence and Analysis' Mgmt. of the 

Office of Terrorism and Fin Intel 

Employees' Intel Community Public Key 

Infrastructure Certificates

OIG-18-006 10/30/2017 Administration of 

Program 

Operations

OIG recommends that the Under Secretary for Terrorism and Financial Intelligence (TFI) 

ensures that the Office of Intelligence and Analysis (OIA) and the Financial Crimes 

Enforcement Network (FinCEN) officials work together to ensure that they understand their 

roles and responsibilities.

Treasury - DO PCA Due: Mar-2019
25/35

APPENDIX 2

GAO-IG Act Reporting for Budget Fiscal Year 2020

Treasury OIG - Open Recommendations Reporting

Report Title Report Number Issue Date Audit Area Treasury OIG Recommendation Bureau/Office Implementation Status

TERRORIST FINANCING/MONEY 

LAUNDERING: Audit of the Office of 

Intelligence and Analysis' Mgmt. of the 

Office of Terrorism and Fin Intel 

Employees' Intel Community Public Key 

Infrastructure Certificates

OIG-18-006 10/30/2017 Administration of 

Program 

Operations

OIG recommends that the Under Secretary for Terrorism and Financial Intelligence (TFI) 

ensures that an assessment is performed to determine the adequacy of staffing and system 

resources, as well as cross-training of Office of Special Security Programs (SSP) employees 

responsible for reviewing and renewing intelligence community public key infrastructure (IC 

PKI) certificates.

Treasury - DO PCA Due: Mar-2019

Treasury Continues to Make Progress in 

Meeting DATA Act Reporting 

Requirements, But Data Quality Concerns 

Remain

OIG-18-010R 11/08/2017 Administration of 

Program 

Operations

OIG recommends the Department of the Treasury's (Treasury) Assistant Secretary for 

Management, working as needed with Treasury's senior accountable official (SAO), reporting 

entities, and the Government-wide Program Management Office (PMO), as well as the Office 

of Management and Budget (OMB) continue to monitor the resolution for issues identified in 

corrective action plans including, but not limited to, ARC's process to report procurement data 

on behalf of its customer agencies.

Treasury - DO PCA Due: Nov-2019

TERRORIST FINANCING/MONEY 

LAUNDERING: OFAC Human Resources 

Practices Need Improvement

OIG-18-018 11/27/2017 Administration of 

Program 

Operations

The Office of Foreign Assets Control (OFAC) Director should work with the Office of the 

Deputy Assistant Secretary for Human Resources and Chief Human Capital Officer 

(DASHR/CHCO) to ensure that required records are included in the electronic Official 

Personnel Folders (e OPF).

Treasury - DO OFAC agreed with the 

recommendation and is in the 

process of developing PCAs.

TERRORIST FINANCING/MONEY 

LAUNDERING: OFAC Human Resources 

Practices Need Improvement

OIG-18-018 11/27/2017 Administration of 

Program 

Operations

OIG recommends that the Office of Foreign Assets Control (OFAC) Director ensure that 

career ladder promotions of legacy employees are based on equitable, consistent, and 

supportable methodologies, including alignment with the official Office of Personnel 

Management (OPM) ratings categories, Treasury and OFAC requirements, and the duties and 

responsibilities of the employees' assigned position descriptions.

Treasury - DO OFAC agreed with the 

recommendation and is in the 

process of developing PCAs.

TERRORIST FINANCING/MONEY 

LAUNDERING: OFAC Human Resources 

Practices Need Improvement

OIG-18-018 11/27/2017 Administration of 

Program 

Operations

OIG recommends that the Office of Foreign Assets Control (OFAC) Director ensure that 

legacy employees' current position descriptions are evaluated to ensure that the documented 

promotion potential of these non-supervisory employees is consistent with OFAC's current 

promotion practices.

Treasury - DO OFAC agreed with the 

recommendation and is in the 

process of developing PCAs.

TERRORIST FINANCING/MONEY 

LAUNDERING: OFAC Human Resources 

Practices Need Improvement

OIG-18-018 11/27/2017 Administration of 

Program 

Operations

OIG recommends that the Office of Foreign Assets Control (OFAC) Director ensure that 

considerations and justifications used for promotions are documented when promotion 

decisions are inconsistent with established policies.

Treasury - DO OFAC agreed with the 

recommendation and is in the 

process of developing PCAs.

TERRORIST FINANCING/MONEY 

LAUNDERING: Financial Institutions Used 

FinCEN Guidance Designed To Avoid 

Duplicate Filing of Reports With OFAC and 

FinCEN, but BSA Data Users Did Not 

Have Access to All Data

OIG-18-032 12/19/2017 Banking and 

Lending

OIG recommends that the Director of the Financial Crimes Enforcement Network (FinCEN), 

in collaboration with the Director of the Office of Foreign Assets Control (OFAC), review the 

2004 guidance and information sharing agreement based on changes to sanctions programs and 

update accordingly.

FinCEN PCA Due: Jul-2019

FINANCIAL REGULATION AND 

OVERSIGHT: Treasury OIG Review of the 

Office of Financial Research's Government 

Purchase Card Program

OIG-18-038 02/08/2018 Administration of 

Program 

Operations

OIG recommends that the Director of the Office of Financial Research (OFR) ensures a review 

of purchase cardholder files are completed to ensure that all documents required by policy and 

procedures are included in the files.

Treasury - DO PCA Due: Jan-2019

FINANCIAL REGULATION AND 

OVERSIGHT: Treasury OIG Review of the 

Office of Financial Research's Government 

Purchase Card Program

OIG-18-038 02/08/2018 Administration of 

Program 

Operations

OIG recommends that the Director of the Office of Financial Research (OFR) develop and 

implement a policy for storing and maintaining government purchase card (GPC) transaction 

documentation in a centralized location.

Treasury - DO PCA Due: Jan-2019

FINANCIAL REGULATION AND 

OVERSIGHT: Treasury OIG Review of the 

Office of Financial Research's Government 

Purchase Card Program

OIG-18-038 02/08/2018 Administration of 

Program 

Operations

OIG recommends that the Director of the Office of Financial Research (OFR), when 

Approving Official (AO) duties are transferred to OFR employees in 2018, develop and 

implement a policy to require OFR AOs to review purchase card transactions for potential split 

purchases on a monthly basis.

Treasury - DO PCA Due: Jan-2019
26/35

APPENDIX 2a

GAO-IG Act Reporting for Budget Fiscal Year 2020

Treasury OIG - Reconciliation Report with OIG SAR Fall 2018

Reports in the table below were included in the SAR Fall FY 2018 issued under "Reports With Unimplemented Recommendations" and have since closed in Treasury's audit tracking system.

Report Title Report Number Issue Date Audit Area Treasury OIG Recommendation Bureau/Office Implementation Status

Information Technology: Department of the 

Treasury Federal Information Security 

Modernization Act Fiscal Year 2016 

Performance Audit

OIG-17-003DO 11/9/2016 Information 

Technology

OIG recommends that DO, for the selected system, should configure the system to disable user 

accounts automatically after 120 days of inactivity. Management agreed with the recommendation.

Treasury - DO Implemented: April-2019

Audit of the Department of the Treasury’s 

Consolidated Financial Statements for Fiscal 

Years 2016 and 2015

OIG-17-012 11/15/2016 Financial 

Statements

OIG recommends that the Assistant Secretary for Management (ASM) and the Deputy Chief 

Financial Officer (DCFO) should ensure that the (1) Bureau of the Fiscal Service (Fiscal Service) 

takes corrective action to resolve control deficiencies over its information systems.

Treasury - DO Implemented: Feb-2019

RESTORE Act: MDEQ's Compliance with Its 

Use of the Planning Assistance Award to 

Develop the Multiyear Implementation Plan

OIG-18-009 11/7/2017 Administration of 

Program 

Operations

OIG recommends that the Fiscal Assistant Secretary should consider the Mississippi Department of 

Environment Quality’s (MDEQ) need to further develop and strengthen documentation of its policies 

and procedures to align with the OMB’s Uniform Guidance. This consideration should be part of 

Treasury's oversight and administration of the MDEQ's Multiyear Implementation Plan Planning 

Assistance award as well as risk assessments required by the Uniform Guidance for future awards.

Treasury - DO Implemented: Mar-2019

Financial Management: Management Letter for 

the Audit of the Federal Financing Bank's Fiscal 

Years 2017 and 2016 Financial Statements

OIG-18-013 11/9/2017 Financial 

Statements

OIG recommends that the Federal Finance Bank management should implement a process to monitor 

DO's performance of Loan Management and Control System security controls, including the rotation 

of backup media to an offsite location, on an ongoing basis.

Treasury - DO Implemented: Dec-2018

Financial Management: Audit of the Department 

of the Treasury's Consolidated Financial 

Statements for Fiscal Years 2017 and 2016

OIG-18-015 11/15/2017 Financial 

Statements

OIG recommends that the ASM and the DCFO should ensure that the (1) Internal Revenue Service 

(IRS) takes corrective action to improve controls over financial reporting; (2) Fiscal Service increase 

its focus on assessing risks associated with continued change, design and implement effective 

controls to address such risks, and monitor the effectiveness of controls; and (3) Fiscal Service 

implement requisite corrective actions to resolve control deficiencies over its debt management 

information systems; and (4) IRS implements its remediation plan outlining actions to be taken to 

resolve noncompliance with the Federal Financial Management Improvement Act of 1996 

requirements and the resources and responsible organizational units for such planned actions. 

Treasury - DO Implemented: Feb-2019

Resource Management: Treasury's Office of 

Budget and Travel Potentially Violated the 

Antideficiency Act and Needs to Improve Its 

Reimbursable Agreement Process

OIG-18-024 12/8/2017 Administration of 

Program 

Operations

OIG recommends that the ASM should (1) within 60 days of the issuance of this report, finalize the 

Office of Budget and Travel's (OBT) internal review of its fiscal year 2015 records and request a 

Government Accountability Office decision to determine if the Antideficiency Act violations 

occurred; and (2) analyze OBT’s fiscal year 2016 and 2017 records to determine whether 

Antideficiency Act violations occurred. For findings 4 to 11, the ASM should (3) ensure OBT 

develops, revises, and/or finalizes office-wide manuals, policies, and SOPs to ensure: a. adequate 

documentation of all processes and procedures for budget formulation and execution, as well as 

reimbursable agreements; b. the signing of reimbursable agreements before periods of performance 

begin; c. timely billing of and revenue collection from DO customers (requesting agencies); d. 

recording of DO's reimbursable budget authority in the appropriate funds and timely recording of 

obligations and expenditures of reimbursable funds related to its requesting agencies subsequent to 

the signing of reimbursable agreements; e. ongoing communication between OBT and DO customers 

to effectively monitor OBT's execution of the goods and services provided, available funding, and 

collection of revenues against reimbursable agreements; and f. adequate supervision of OBT staff in 

the performance of budget formulation and execution duties, as well as the monitoring of 

reimbursable agreements that OBT is responsible for executing and servicing; (4) ensure OBT 

performs an analysis to determine whether advances should be obtained from DO customers at the 

time reimbursable services are ordered; (5) ensure OBT distributes to OBT management and staff, 

and provides training on, new or revised OBT policies and SOPs and timely notifies them of any 

modifications to the reimbursable agreement process; (6) ensure OBT complies with DO 

“Reimbursable Agreement Policy” (October 2010) by reviewing and updating a procedural manual 

that addresses roles, responsibilities, and activities associated with each phase of the reimbursable 

agreement lifecycle, as necessary, at least once every 2 years; and (7) ensure OBT develops a 

mandatory training program to ensure that all OBT management and staff are properly trained on 

budget execution and formulation, the reimbursable agreement process, and the requirements of 

applicable laws, regulations, policies, and guidance. 

Treasury - DO Implemented: Oct-2018

FINANCIAL MANAGEMENT: Management 

Letter for the Audit of the U.S. Mint's Fiscal 

Years 2017 and 2016 Financial Statements

OIG-18-026 12/12/2017 Financial 

Statements

OIG recommends that United States Mint's (Mint) management implement an oversight process to 

ensure that Mint personnel are complying with Mint account management policies and procedures.

Mint Implemented: May-2019

FINANCIAL MANAGEMENT: Management 

Letter for the Audit of the U. S. Mint's Fiscal 

Years 2017 and 2016 Financial Statements

OIG-18-026 12/12/2017 Financial 

Statements

OIG recommends that Mint management update Mint HR Connect policies and procedures to specify 

the period to remove the access of terminated users from the HR Connect system.

Mint Implemented: May-2019
27/35

APPENDIX 2a

GAO-IG Act Reporting for Budget Fiscal Year 2020

Treasury OIG - Reconciliation Report with OIG SAR Fall 2018

Reports in the table below were included in the SAR Fall FY 2018 issued under "Reports With Unimplemented Recommendations" and have since closed in Treasury's audit tracking system.

Report Title Report Number Issue Date Audit Area Treasury OIG Recommendation Bureau/Office Implementation Status

FINANCIAL MANAGEMENT: Management 

Letter for the Audit of the U.S. Mint's Fiscal 

Years 2017 and 2016 Financial Statements

OIG-18-026 12/12/2017 Financial 

Statements

OIG recommends that Mint management configure the Wide Area Network (WAN)/Local Area 

Network (LAN) to disable user accounts automatically after 90 days of inactivity.

Mint Implemented: May-2019

FINANCIAL MANAGEMENT: Management 

Letter for the Audit of the U.S. Mint's Fiscal 

Years 2017 and 2016 Financial Statements

OIG-18-026 12/12/2017 Financial 

Statements

OIG recommends that Mint management develop formal procedures for completing and submitting 

the annual Web Time and Attendance (WebTA) user access review and recertification.

Mint Implemented: May-2019

FINANCIAL MANAGEMENT: Management 

Letter for the Audit of the U.S. Mint's Fiscal 

Years 2017 and 2016 Financial Statements

OIG-18-026 12/12/2017 Financial 

Statements

OIG recommends that Mint management validate that the existing WAN/LAN and Order 

Management System (OMS) II user accounts are still appropriate.

Mint Implemented: May-2019

FINANCIAL MANAGEMENT: Management 

Letter for the Audit of the U.S. Mint's Fiscal 

Years 2017 and 2016 Financial Statements

OIG-18-026 12/12/2017 Financial 

Statements

OIG recommends that Mint management evaluate the WebTA users defined to the Philadelphia site 

and ensure that the current user access and privileges are still appropriate.

Mint Implemented: May-2019

FINANCIAL MANAGEMENT: Management 

Letter for the Audit of the U.S. Mint's Fiscal 

Years 2017 and 2016 Financial Statements

OIG-18-026 12/12/2017 Financial 

Statements

OIG recommends that Mint management remove terminated user access for WebTA. Mint Implemented: May-2019

FINANCIAL MANAGEMENT: Management 

Letter for the Audit of the U.S. Mint's Fiscal 

Years 2017 and 2016 Financial Statements

OIG-18-026 12/12/2017 Financial 

Statements

OIG recommends that Mint management validate that the existing three WAN/LAN user accounts 

are still appropriate.

Mint Implemented: May-2019

FINANCIAL REGULATION AND 

OVERSIGHT: Material Loss Review of 

Guaranty Bank

OIG-18-034 12/29/2017 Banking and 

Lending

OIG recommends that the Comptroller of the Currency develop and document examination 

procedures, for banks subject to prompt corrective action (PCA) restrictions, that are designed to 

identify and track all types of compensation paid to executive officers (as defined in Regulation O). 

The implementation of documented examination procedures for identifying and tracking executive 

officer compensation (salary, bonuses, etc.) will enhance compliance monitoring of compensation 

restrictions.

OCC Implemented: April-2019

Bill and Coin Manufacturing: BEP Needs To 

Finalize Its COOP Plan

OIG-18-037 2/7/2018 Administration of 

Program 

Operations

OIG recommends that the Director of the Bureau of Engraving and Printing (BEP) should work with 

the Board of Governors of the Federal Reserve System, in consultation with the Federal Emergency 

Management Agency's National Continuity Programs Office as necessary, to determine BEP's 

Mission Essential Functions (MEF) and if any of those functions support other organizations' MEFs.

BEP Implemented: Feb-2019
28/35

APPENDIX 3

GAO-IG Act Reporting for Budget Fiscal Year 2020

TIGTA/IRS - Open Recommendations Reporting

Report Title Report Number Issue Date Audit Area TIGTA Recommendation Bureau/Office Implementation Status

Contractor's Fiscal Year 2007 Incurred Cost 

Proposal

2012-1C-003 12/02/2011 Administration of 

Program 

Operations

The contracting officer should use the DCAA report in the administration of the contract 

and determine whether the questioned costs should be recovered.

IRS PCA Due: Sep-2019

The Taxpayer Advocate Service Can 

Improve The Processing Of Systemic 

Burden Cases

2014-10-033 06/24/2014 Tax 

Administration and 

Compliance

The National Taxpayer Advocate should reissue guidance to TAS personnel explaining the 

requirement to only contact authorized representatives, when applicable, and emphasize 

this requirement in future training.

IRS PCA Due: Jun-2019

The Taxpayer Advocate Service Can 

Improve The Processing Of Systemic 

Burden Cases

2014-10-033 06/24/2014 Tax 

Administration and 

Compliance

The National Taxpayer Advocate should review the results of sample findings and, where 

appropriate, incorporate lessons learned into future training for TAS personnel.

IRS PCA Due: Jun-2019

A Service-Wide Strategy Is Needed To 

Increase Business Tax Return Electronic 

Filing

2014-40-084 09/24/2014 Administration of 

Program 

Operations

The Commissioner, Wage and Investment Division, should develop a less burdensome 

electronic signature process for businesses e-filing employment tax returns using the MeF 

system.

IRS PCA Due: Dec-2020

Revising Tax Debt Identification 

Programming And Correcting Procedural 

Errors Could Improve The Tax Refund 

Offset Program

2016-40-028 03/31/2016 Tax 

Administration and 

Compliance

The Commissioner, Wage and Investment Division, should revise computer programming 

to ensure that credit elects are offset to any associated tax debt on the NMF.

IRS On Hold. Agreed with the 

recommendation. Due to funding 

constraints, the recommendation is put 

on hold.

Revising Tax Debt Identification 

Programming And Correcting Procedural 

Errors Could Improve The Tax Refund 

Offset Program

2016-40-028 03/31/2016 Tax 

Administration and 

Compliance

The Deputy Commissioner for Services and Enforcement should revise computer 

programming to use the LLC indicator on the business tax account to ensure that 

individual tax refunds are not offset to the associated LLC's business tax debt.

IRS On Hold. Agreed with the 

recommendation. Due to funding 

constraints, the recommendation is put 

on hold.

Revising Tax Debt Identification 

Programming And Correcting Procedural 

Errors Could Improve The Tax Refund 

Offset Program

2016-40-028 03/31/2016 Tax 

Administration and 

Compliance

The Deputy Commissioner for Services and Enforcement should revise identification 

processes to include sole proprietor information from Form SS-4 to identify individual tax 

refunds to offset to business tax debt.

IRS On Hold. Agreed with the 

recommendation. Due to funding 

constraints, the recommendation is put 

on hold.

The Large Business And International 

Division's Strategic Shift To Issue-Focused 

Examinations Would Benefit From Reliable 

Information On Compliance Results

2016-30-089 09/14/2016 Tax 

Administration and 

Compliance

The Commissioner, Large Business and International Division, should develop and 

implement plans to streamline the Uniform Issue List (UIL) codes available to examiners, 

provide additional guidance for the appropriate use of UIL codes, and include UIL code 

accuracy in program and evaluative quality reviews.

IRS PCA Due: Jul-2019

Information Technology: SharePoint 

Controls Need Improvement To Mitigate 

Risks And To Ensure That Possible 

Duplicate Costs Are Avoided

2016-20-075 09/15/2016 Information 

Technology

The Chief Information Officer should ensure that an automated tool is identified, deployed, 

and routinely executed to identify SharePoint sites containing PII and SBU data.

IRS PCA Due: Oct-2019

Information Technology: SharePoint 

Controls Need Improvement To Mitigate 

Risks And To Ensure That Possible 

Duplicate Costs Are Avoided

2016-20-075 09/15/2016 Information 

Technology

The Chief Information Officer should ensure that SharePoint site collections containing PII 

or SBU data have approved PCLIAs.

IRS PCA Due: Oct-2019

Employees Sometimes Did Not Adhere To 

E-Mail Policies Which Increased The Risk 

Of Improper Disclosure Of Taxpayer 

Information

2017-30-010 10/14/2016 Tax 

Administration and 

Compliance

The Chief Technology Officer should update the EEFax system to allow encrypted 

messages to be sent to the EEFax system server.

IRS PCA Due: Oct-2020

Actions Can Be Taken To Improve 

Processes Of A Newly Developed Program 

That Enables Victims Of Identity Theft To 

Request Copies Of Fraudulent Tax Returns

2017-40-011 11/08/2016 Tax 

Administration and 

Compliance

The Commissioner, Wage and Investment Division, should implement an automated 

process to redact Personally Identifiable Information on copies of fraudulent returns 

provided to identity theft victims.

IRS On Hold. Agreed with the 

recommendation. Due to funding 

constraints, the recommendation is put 

on hold.

Status Of Digital Accountability And 

Transparency Act Implementation Efforts

2017-10-018 03/17/2017 Administration of 

Program 

Operations

The Chief Procurement Officer should pursue methods of automating the capture of data 

for 10 procurement-related elements required for DATA Act reporting in its successor 

procurement system.

IRS PCA Due: Apr-2019

Inconsistent Processes And Procedures 

Result In Many Victims Of Identity Theft 

Not Receiving Identity Protection Personal 

Identification Numbers

2017-40-026 03/23/2017 Tax 

Administration and 

Compliance

The Commissioner, Wage and Investment Division, should ensure that all functions have 

consistent procedures for adding identity theft markers that create an IP PIN for all 

confirmed victims of identity theft whose current address cannot be confirmed.

IRS PCA Due: Sep-2019

Improvements Are Needed To Ensure That 

Tax Accounts On The Automated NonMaster File Are Accurately Processed

2017-40-037 05/25/2017 Tax 

Administration and 

Compliance

The Commissioner, Wage and Investment Division, should correct ANMF programming 

to compute and assess the Failure to File penalty on Form 1040NR, U.S. Nonresident 

Alien Income Tax Return, accounts in which the Taxpayer Identification Number is an 

Employer Identification Number.

IRS On Hold. Agreed with the 

recommendation. Due to funding 

constraints, the recommendation is put 

on hold.

Improvements Are Needed To Ensure That 

Tax Accounts On The Automated NonMaster File Are Accurately Processed

2017-40-037 05/25/2017 Tax 

Administration and 

Compliance

The Commissioner, Wage and Investment Division, should Correct ANMF programming 

to use the correct date when computing the Failure to Pay penalty. In addition, 

programming should be corrected to ensure that the proper penalty rate is used to compute 

the penalty amount.

IRS On Hold. Agreed with the 

recommendation. Due to funding 

constraints, the recommendation is put 

on hold.
29/35

APPENDIX 3

GAO-IG Act Reporting for Budget Fiscal Year 2020

TIGTA/IRS - Open Recommendations Reporting

Report Title Report Number Issue Date Audit Area TIGTA Recommendation Bureau/Office Implementation Status

Information Technology: Improvements 

Are Needed In Enterprise-Wide Disaster 

Recovery Planning And Testing

2017-20-024 06/01/2017 Information 

Technology

The Chief Information Officer should collaborate with the IRS business operating 

divisions to reach consensus regarding the maximum tolerable downtime or recovery time 

objective for each mission essential function.

IRS PCA Due: Jul-2020

The Number Of Employment-Related 

Identity Theft Victims Is Significantly 

Greater Than Identified

2017-40-031 06/20/2017 Tax 

Administration and 

Compliance

The Commissioner, Wage and Investment Division, should correct programming as 

needed to ensure that the employment identity theft marker is placed on all victims' tax 

accounts for ITIN/SSN mismatches on e-filed tax returns.

IRS On Hold. Agreed with the 

recommendation. Due to funding 

constraints, the recommendation is put 

on hold.

Further Actions Are Needed To Reduce The 

Risk Of Employment Tax Fraud To 

Businesses That Use The Services Of 

Professional Employer Organizations

2017-40-085 09/13/2017 Tax 

Administration and 

Compliance

The Commissioner, Wage and Investment Division, should establish processes and 

procedures to reduce unnecessary resources expended notifying employers of an address 

change when programming incorrectly identifies an address change resulting from minor 

formatting revisions.

IRS On Hold. Agreed with the 

recommendation but currently on hold 

awaiting input from other agencies.

The Internal Revenue Services Is Not In 

Compliance With Federal Requirements For 

Software Asset Management

2017-20-062 09/18/2017 Information 

Technology

The Chief Information Officer should assess current SAM practices to identify gaps within 

the IRS's management of software licenses and take necessary corrective actions to resolve 

issues using the SAM framework. This should include establishing centralized 

management for SAM, developing a centralized inventory, and implementing a tool(s) 

necessary to perform other aspects of SAM such as discovery, metering, and entitlement 

analysis.

IRS PCA Due: Sep-2019

The Internal Revenue Services Is Not In 

Compliance With Federal Requirements For 

Software Asset Management

2017-20-062 09/18/2017 Information 

Technology

The Chief Information Officer should establish a SAM framework using Federal 

requirements and industry best practices as guidelines.

IRS PCA Due: Sep-2019

The Internal Revenue Services Is Not In 

Compliance With Federal Requirements For 

Software Asset Management

2017-20-062 09/18/2017 Information 

Technology

The Chief Information Officer should establish executive governance for SAM within the 

IRS which acts as a centralized group to ensure that effective and knowledgeable 

decisions are being made timely by authorized personnel.

IRS PCA Due: Sep-2019

Fiscal Year 2017 Digital Accountability 

And Transparency Act Reporting 

Compliance

2018-10-006 11/07/2017 Administration of 

Program 

Operations

The Chief Financial Officer, in coordination with the Chief, Procurement, and the National 

Taxpayer Advocate, should develop and implement policies and procedures that: 1) 

clarify the definition of DATA Act elements and associated data fields in the Procurement 

for Public Sector function (successor system to the IRS Integrated Procurement System), 

the Award Submission Portal, and the Federal Procurement Data System-Next Generation 

(FPDS-NG), 2) specify documentation that should be maintained in support of these 

elements in grant and contract files, and 3) provide mandatory training to all contracting 

officers and grant program staff to ensure understanding.

IRS PCA Due: May-2019

Fiscal Year 2017 Digital Accountability 

And Transparency Act Reporting 

Compliance

2018-10-006 11/07/2017 Administration of 

Program 

Operations

The Chief Financial Officer, in coordination with the Chief, Procurement, and the National 

Taxpayer Advocate, should enhance quality assurance procedures to improve the accuracy 

of the Data Act procurement and grant attribute information and provide additional 

assurance that contract and grant files contain current and appropriate documentation.

IRS PCA Due: May-2019

Some Legal Requirements To Deactivate 

Individual Taxpayer Identification Numbers 

Have Not Been Met

2018-40-011 01/29/2018 Improper 

Payments 

The Commissioner, Wage and Investment Division, should revise computer programming 

to deactivate ITINs when the Form W-7, Application for IRS Individual Taxpayer 

Identification Number, was rejected and the ITIN status field in the ITIN RTS is blank.

IRS On Hold. Agreed with the 

recommendation. Due to funding 

constraints, the recommendation is put 

on hold.

Some Legal Requirements To Deactivate 

Individual Taxpayer Identification Numbers 

Have Not Been Met

2018-40-011 01/29/2018 Improper 

Payments 

The Commissioner, Wage and Investment Division, should deactivate the 89,105 ITINs 

TIGTA identified that should have been deactivated.

IRS PCA Due: Aug-2019

Some Legal Requirements To Deactivate 

Individual Taxpayer Identification Numbers 

Have Not Been Met

2018-40-011 01/29/2018 Improper 

Payments 

The Commissioner, Wage and Investment Division, should ensure that the IRS Master 

File accounts associated with the remaining 2,808 ITINs with an active IRS Master File 

Account are updated to reflect the inactive status of the ITIN.

IRS PCA Due: Aug-2019

Results Of The 2017 Filing Season 2018-40-012 01/31/2018 Tax 

Administration and 

Compliance

The Commissioner, Wage and Investment Division, should establish processes to use its 

math error authority to deny all e-filed and paper AOTC claims for which the taxpayer 

does not provide the institution EIN for each student claimed on the return.

IRS On Hold. Agreed with the 

recommendation. Due to funding 

constraints, the recommendation is put 

on hold.

Results Of The 2017 Filing Season 2018-40-012 01/31/2018 Tax 

Administration and 

Compliance

The Commissioner, Wage and Investment Division, should modify Form 2441 to ask 

taxpayers whether or not they fall under one of the exceptions to be able to file as Married 

Filing Separately and revise computer programs to allow the credit only when a taxpayer 

attests that he or she meets the exception by checking the applicable box.

IRS On Hold. Agreed with the 

recommendation. Due to funding 

constraints, the recommendation is put 

on hold.
30/35

APPENDIX 3

GAO-IG Act Reporting for Budget Fiscal Year 2020

TIGTA/IRS - Open Recommendations Reporting

Report Title Report Number Issue Date Audit Area TIGTA Recommendation Bureau/Office Implementation Status

Most Employment Identity Theft Victims 

Have Not Been Notified That Their 

Identities Are Being Used By Others For 

Employment

2018-40-016 02/12/2018 Tax 

Administration and 

Compliance

The Commissioner, Wage and Investment Division, should revise ITIN/SSN mismatch 

programming to ensure that it does not place the employment identity theft marker on the 

accounts of SSN owners who are spouses of ITIN holders.

IRS On Hold. Agreed with the 

recommendation. Due to funding 

constraints, the recommendation is put 

on hold.

Most Employment Identity Theft Victims 

Have Not Been Notified That Their 

Identities Are Being Used By Others For 

Employment

2018-40-016 02/12/2018 Tax 

Administration and 

Compliance

The Commissioner, Wage and Investment Division, should identify instances, prior to 

Processing Year (PY) 2017, in which the ITIN/SSN mismatch process erroneously placed 

the employment identity theft marker on the tax accounts of SSN owners who are spouses 

of ITIN holders. The marker should be reversed on those accounts.

IRS PCA Due: Apr-2019

Most Employment Identity Theft Victims 

Have Not Been Notified That Their 

Identities Are Being Used By Others For 

Employment

2018-40-016 02/12/2018 Tax 

Administration and 

Compliance

The Commissioner, Wage and Investment Division, should reverse the employment 

identity theft marker placed on the 15,168 taxpayers' accounts and notify them that the 

prior notice was sent erroneously.

IRS PCA Due: Apr-2019

Additional Actions Are Needed To Make 

The Worker Misclassification Initiative With 

The Department Of Labor A Success

2018-IE-R002 02/20/2018 Tax 

Administration and 

Compliance

The Commissioner, Small Business/Self-Employed Division, should evaluate whether 

provisions of the MOU require amendment, revision, or termination and ensure that the 

duties and responsibilities of the IRS, as outlined in the MOU, are executed as required.

IRS PCA Due: Mar-2020

Additional Actions Are Needed To Make 

The Worker Misclassification Initiative With 

The Department Of Labor A Success

2018-IE-R002 02/20/2018 Tax 

Administration and 

Compliance

The Commissioner Small Business/Self-Employed Division should establish measurable 

goals and related performance measures as part of a revised Joint Worker Classification 

Initiative MOU.

IRS PCA Due: Sep-2019

Employer Noncompliance With Wage 

Reporting Requirements Significantly 

Reduces The Ability To Verify Refundable 

Tax Credit Claims Before Refunds Are Paid

2018-40-015 02/26/2018 Improper 

Payments 

The Commissioner, Wage and Investment Division, should correct programming errors 

that resulted in the incorrect calculation of ITIN issuance dates and ensure that the RTS 

and the NAP are updated with the correct issuance date.

IRS On Hold. Agreed with the 

recommendation. Due to funding 

constraints, the recommendation is put 

on hold.

Employer Noncompliance With Wage 

Reporting Requirements Significantly 

Reduces The Ability To Verify Refundable 

Tax Credit Claims Before Refunds Are Paid

2018-40-015 02/26/2018 Improper 

Payments 

The Commissioner, Wage and Investment Division, should identify all ITINs with a 

missing issuance date on the NAP and ensure that the NAP is updated with the correct 

issuance date.

IRS On Hold. Agreed with the 

recommendation. Due to funding 

constraints, the recommendation is put 

on hold.

Affordable Care Act: Processes To Identify 

Employers Subject To The Employer 

Shared Responsibility Payment Need 

Improvement

2018-43-022 03/21/2018 Tax 

Administration and 

Compliance

The Commissioner, Small Business/Self-Employed Division, and the Commissioner, 

Wage and Investment Division, should work with the Chief Information Officer to develop 

a Service-wide Taxpayer Identification Number (TIN) validation strategy to reduce the 

number of TIN validation systems and programs to streamline and consolidate TIN 

validation efforts.

IRS PCA Due: Feb-2020

Affordable Care Act: Processes To Identify 

Employers Subject To The Employer 

Shared Responsibility Payment Need 

Improvement

2018-43-022 03/21/2018 Tax 

Administration and 

Compliance

The Commissioner, Small Business/Self-Employed Division, should improve the mail 

sorting process and provide additional training and guidance to employees to ensure that 

related paper Forms 1094 and Forms 1095 remain together during processing.

IRS PCA Due: May-2019

The Uncertain Tax Position Statement Does 

Not Contain Sufficient Information To Be 

Useful In Compliance Efforts

2018-30-023 03/23/2018 Tax 

Administration and 

Compliance

The Commissioner, Large Business and International (LB&I) Division, in coordination 

with the Department of the Treasury's Office of Tax Policy, should consider the feasibility 

of either modifying Schedule UTP to include information needed to be useful for its 

intended purpose or removing the Schedule UTP filing requirement.

IRS PCA Due: Jul-2019
31/35

APPENDIX 3a

GAO-IG Act Reporting for Budget Fiscal Year 2020

TIGTA/IRS - Reconciliation Report with TIGTA SAR Fall 2018

Reports in the table were included in the SAR Fall FY 2018 issued under "Reports With Significant Unimplemented Corrective Actions" and have since closed in Treasury's audit tracking system. 

Report Title Report Number Issue Date Audit Area TIGTA Recommendation Bureau/Office Implementation Status

Proposed Amounts On Unsettled Flexibly 

Priced Contracts For Fiscal Year 2008

2015-1C-040 07/01/2015 Acquisition and 

Procurement

The contracting officer should use the DCAA report in administering and closing out contracts. IRS Implemented: Feb-2019

Due To The Lack Of Enforcement, 

Taxpayers Are Avoiding Billions Of Dollars 

In Backup Withholding

2016-40-078 09/14/2016 Tax 

Administration and 

Compliance

The Commissioner, Small Business/Self-Employed Division, should update payer identification 

and notification processes to include Forms 1099-G with missing or incorrect payee TINs.

IRS Implemented: Nov-2018

Affordable Care Act: Verification Of 

Premium Tax Credit Claims During The 

2016 Filing Season

2017-43-022 03/02/2017 Tax 

Administration and 

Compliance

The Commissioner, Wage and Investment Division, should modify nonfiler identification 

processes to use the most current data available at the time notices are sent to ensure that 

resources are not wasted alerting individuals of nonfiling when in fact a return or request for an 

extension has been received.

IRS Implemented: Dec-2018

The Internal Revenue Service Does Not 

Have A Cloud Strategy And Did Not 

Adhere To Federal Policy When Deploying 

A Cloud Service

2017-20-032 08/07/2017 Information 

Technology

The Chief Information Officer should ensure that the process of managing the IRS's cloud 

inventory is formalized using automated methods and updated on a periodic and ongoing basis 

as part of the enterprise-wide cloud strategy.

IRS Implemented: Dec-2018

While Release 1.0 Of The Web 

Applications System Was Successfully 

Deployed, Several Factors Contributed To 

Implementation Delays

2017-20-057 09/07/2017 Information 

Technology

The Chief Information Officer should streamline the current UWR process by incorporating 

processes that support the needs of the Agile development methodology.

IRS Implemented: Oct-2018

The External Network Perimeter Was 

Generally Secure, Though The Security Of 

Supporting Components Could Be 

Improved

2017-20-061 09/20/2017 Information 

Technology

The Chief Information Officer should improve processes to ensure that all vulnerability findings 

are reviewed, analyzed, and appropriately addressed within the required time frames.

IRS Implemented: Mar-2019

The External Network Perimeter Was 

Generally Secure, Though The Security Of 

Supporting Components Could Be 

Improved

2017-20-061 09/20/2017 Information 

Technology

The Chief Information Officer should ensure that the SRCO group improves its remediation 

tracking processes to include tracking the age of the vulnerability, creating monthly metrics to 

be used by management to assess the IRS's progress in vulnerability remediation, and 

implementing an escalation process that provides management visibility.

IRS Implemented: Dec-2018

Improvements Are Needed To Ensure That 

The Volunteer Income Tax Assistance 

Grant Program Extends Tax Return 

Preparation To Underserved Populations 

2017-40-088 09/20/2017 Tax 

Administration and 

Compliance

The Commissioner, Wage and Investment Division, should develop processes and procedures 

to measure the extent to which the Volunteer Income Tax Assistance (VITA) Grant Program 

increases coverage to underserved populations.

IRS Implemented: Oct-2018

Improvements Are Needed To Ensure That 

The Volunteer Income Tax Assistance 

Grant Program Extends Tax Return 

Preparation To Underserved Populations 

2017-40-088 09/20/2017 Tax 

Administration and 

Compliance

The Commissioner, Wage and Investment Division, should ensure that VITA Grant Program 

internal guidelines are current and consistent with publications for VITA grantees.

IRS Implemented: Oct-2018

A Significantly Reduced Automated 

Substitute For Return Program Negatively 

Affected Collection And Filing Compliance

2017-30-078 09/29/2017 Tax 

Administration and 

Compliance

The Director, Collection, Small Business/Self-Employed (SB/SE) Division, should monitor 

abatement and refund cases regularly to determine if any additional criteria can be added to the 

case creation process to eliminate these cases for ASFR inventory selection purposes.

IRS Implemented: Oct-2018

A Significantly Reduced Automated 

Substitute For Return Program Negatively 

Affected Collection And Filing Compliance

2017-30-078 09/29/2017 Tax 

Administration and 

Compliance

The Director, SB/SE Division, should track and measure the ASFR closure results for 

abatement rates, refund rates, and collection rates and should categorize the results by types of 

closures, including Refund Hold and high-net tax due, to better measure ASFR productivity.

IRS Implemented: Oct-2018

Improved Controls Are Needed To Account 

For The Return Of Contractor Employee 

Identification Cards

2018-10-004 11/01/2017 Acquisition and 

Procurement

The Chief, Agency-Wide Shared Services, should develop a process to provide reasonable 

assurance that Smart ID card serial numbers are documented on Forms 13716-A and 

destruction logs when contractor employees separate, retain this documentation to enable 

reconciling unreturned Smart ID cards, and require managers to assure this process is 

followed.

IRS Implemented: Oct-2018

Processes Do Not Always Ensure That 

Electronic Filing Identification Numbers 

Are Assigned To Qualified Applicants Or 

Deactivated When Required

2018-40-003 11/15/2017 Tax 

Administration and 

Compliance

The Commissioner, Wage and Investment Division, should develop a process to verify 

citizenship status for all prior and current Principals and Responsible Officials for whom SSA 

citizenship records are blank, including the 1,494 individuals TIGTA identified.

IRS Implemented: Oct-2018

Processes Do Not Always Ensure That 

Electronic Filing Identification Numbers 

Are Assigned To Qualified Applicants Or 

Deactivated When Required

2018-40-003 11/15/2017 Tax 

Administration and 

Compliance

The Commissioner, Wage and Investment Division, should develop processes to verify the 

accuracy of partnership reporting on prior e-file applications as well as new partnership e-file 

applications to ensure compliance with program requirements.

IRS Implemented: Oct-2018

The Internal Revenue Service Has 

Implemented Some Screening Procedures, 

But Employees With Recent Tax And 

Conduct Issues Continue To Receive 

Awards

2018-10-005 01/31/2018 Administration of 

Program 

Operations

The Human Capital Officer should expand misconduct screening to consider employees with 

any level of disciplinary action prior to issuing awards.

IRS Implemented: Mar-2019
32/35

APPENDIX 3a

GAO-IG Act Reporting for Budget Fiscal Year 2020

TIGTA/IRS - Reconciliation Report with TIGTA SAR Fall 2018

Reports in the table were included in the SAR Fall FY 2018 issued under "Reports With Significant Unimplemented Corrective Actions" and have since closed in Treasury's audit tracking system. 

Report Title Report Number Issue Date Audit Area TIGTA Recommendation Bureau/Office Implementation Status

The Internal Revenue Service Has 

Implemented Some Screening Procedures, 

But Employees With Recent Tax And 

Conduct Issues Continue To Receive 

Awards

2018-10-005 01/31/2018 Administration of 

Program 

Operations

The Human Capital Officer should examine the Federal tax compliance status of all employees 

before issuing awards.

IRS Implemented: Mar-2019
33/35

Appendix A: Glossary of Abbreviations

Abbreviation Description

ACA Affordable Care Act Administration 

ACS Automated Collection System 

ACTC Additional Child Tax Credit

ANMF Automated Non-Master File

AO Approving Official 

AOTC American Opportunity Tax Credit

ASFR Automated Substitute For Return 

ASM Assistant Secretary for Management

ATAT Abusive Tax Avoidance Transactions 

BEP Bureau of Engraving and Printing

BSA Bank Secrecy Act

BSA/AML Bank Secrecy Act/anti-money laundering 

CAP Compliance Assurance Process

CDFI Community Development Financial Institutions 

CFIUS Committee on Foreign Investment in the United States

CFS Consolidated Financial Statements

CIO Chief Information Officer

CJ Congressional Justification

CMS Centers for Medicare & Medicaid Services

COTR Contracting Officer's Technical Representative 

DATA Act Digital Accountability And Transparency Act

DCAA Defense Contract Audit Agency

DCFO Deputy Chief Financial Officer 

DCOI Data Center Optimization Initiative

DHS Department of Homeland Security

DO Treasury Departmental Office

Dodd-Frank Act Dodd-Frank Wall Street Reform and Consumer Protection Act

DOL Department of Labor

e OPF electronic Official Personnel Folders

EEFax Enterprise e-Fax 

EIN Employer Identification Number

EITC Earned Income Tax Credit

EPA Environmental Protection Agency

FATF Financial Action Task Force

FDIC Federal Deposit Insurance Corporation

Federal Reserve Board of Governors of the Federal Reserve System

FinCEN Financial Crimes Enforcement Network

FISMA Federal Information Security Modernization Act 

FMU Financial Market Utility

FPDS-NG Federal Procurement Data System-Next Generation 

FSOC Financial Stability Oversight Council

GAO U.S. Government Accountability Office

GPC Government Purchase Card 

GSA General Services Administration
34/35

Appendix A: Glossary of Abbreviations

Abbreviation Description

HAMP Home Affordable Modification Program 

HFA Housing Finance Agency

HHS Department of Health and Human Services

HUD Department of Housing and Urban Development 

IC Intelligence Community

IC PKI Intelligence Community Public Key Infrastructure 

ICO Input Correction Operation

ICT Image Control Team

IDRS Integrated Data Retrieval System 

IDS Inventory Delivery System 

IDT Identity Theft

IP PIN Identity Protection Personal Identification Numbers

IPIA Improper Payments Information Act 

IRA Individual Retirement Accounts 

IRM Internal Revenue Manual

IRS Internal Revenue Service

ISAC Information Sharing and Analysis Center 

IT Information Technology

ITIN Individual Taxpayer Identification
Number 

KISAM Knowledge Incident/Problem Service Asset Management 

LAN Local Area Network

LB&I Large Business and International division

LIHTC Low-Income Housing Tax Credit

LLC Limited Liability Companies

MeF Modernized e-File processing system

MHA Making Home Affordable 

Mint The United States Mint

MOU Memorandum of Understanding 

NAP National Account Profile

NIST National Institute of Standards and Technology

NMF Non–Master File system

NMTC New Markets Tax Credit

NRC Nuclear Regulatory Commission

NRP National Research Program 

NSS National Security Systems

OBT Office of Budget and Travel

OCC Office of the Comptroller of the Currency

OFAC Office of Foreign Assets Control 

OFR Office of Financial Research

OIA Office of Intelligence and Analysis

OIG Office of the Inspector General

OMB Office of Management and Budget

OPM Office of Personnel Management

OSP Office of Security Program
35/35

Appendix A: Glossary of Abbreviations

Abbreviation Description

P&E Property and Equipment 

PBGC Pension Benefit Guaranty Corporation 

PCA Planned Corrective Action

PCLIA Privacy and Civil Liberties Impact Assessment

PII Personally Identifiable Information

PMO Program Management Office 

PN Plan Number

PPACA Patient Protection and Affordable Care Act

PTC Premium Tax Credit

QRM Qualified Residential Mortgage

Recovery Act American Recovery and Reinvestment Act

RESTORE Act 

Resources and Ecosystems Sustainability, Tourist Opportunities, and 

Revived Economies of the Gulf Coast States Act

RFA Regulatory Flexibility Act

ROI Return On Investment

RTS Real-Time System

SAM Software Asset Management

SAO Senior Accountable Official 

SAR Semi-annual Report to Congress

SB/SE Small Business/Self-Employed division

SBA Small Business Administration

SBU Sensitive But Unclassified

SCC Sector Coordinating Council

SCC IRS Service Center Campus

Schedule UTP Schedule UTP, Uncertain Tax Position Statement

SCRO Security Regulatory
Compliance Operations

SLA Service Level Agreement

SOP Standard Operating Procedures

SSN Social Security Numbers

SSP Office of Special Security Programs 

TAS Taxpayer Advocate Service 

TFFC Office of Terrorist Financing and Financial Crimes

TFI Office of Terrorism and Financial Intelligence

TIGTA Treasury Inspector General for Tax Administration

TIN Taxpayer Identification Number

UIL Uniform Issue List 

UWR Unified Work Request

VA Department of Veterans Affairs

VITA Volunteer Income Tax Assistance 

WAN Wide Area Network

WebTA Web Time and Attendance