Treasury Inspector General for Tax Administration

Program Summary by Budget Activity

Dollars in Thousands

FY 2022 FY 2023 FY 2024 FY 2022 to FY 2023

Budget Activity Operating Plan Operating Plan Request $ Change % Change

Audits $65,093 $65,120 $70,023 $4,903 8%

Investigations $109,157 $109,130 $117,345 $8,215 8%

Subtotal, TIGTA $174,250 $174,250 $187,368 $13,118 8%

Offsetting Collections - Reimbursable $494 $750 $750 $0 0%

Recovery from Prior Years $0 $139 $0 ($139) -100%

Unobligated Balances Brought Forward $1,469 $4,800 $0 ($4,800) -100%

IRA Funding Usage $0 $20,150 $40,300 $20,150 100%

Subtotal Other Resources $1,963 $25,839 $41,050 $15,211 59%

Total Budgetary Resources $176,213 $200,089 $228,418 $28,329 14%

Direct FTE 702 735 742 7 1%

Reimbursable FTE 2 2 2 0 0%

IRA Funding FTE 0 59 129 70 119%

Total Full-time Equivalents (FTE) 704 796 873 77 10%

FY 2022 Other Resources and Full-time Equivalents (FTE) reflect actuals. 

Table does not include $8M in funding provided through the ARP Act of 2021 (P.L. 117-2) which is available for expenditure through 

FY 2023, of which $5.0M was obligated in FY 2022.

Summary

The Treasury Inspector General for Tax Administration’s (TIGTA) Fiscal Year (FY) 2024 

Budget Request of $187,368,000 represents an increase of eight percent above its FY 2023 

enacted budget level. These resources will fund critical audit, investigative, and inspection

and evaluation services to protect the integrity of the Nation’s system of tax administration.

TIGTA’s Offices of Audit (OA), Inspections and Evaluations (OIE), and Investigations (OI)

will use Inflation Reduction Act (IRA) funds for enhanced oversight of Internal Revenue 

Service (IRS) operations, to include taxpayer services, enforcement, operations support, 

business systems modernization, and reporting requirements.

TIGTA’s vision is to “maintain a highly skilled, proactive, and diverse Inspector General 

organization dedicated to working in a collaborative environment with key stakeholders to foster 

and promote fair tax administration.” TIGTA will provide oversight in a number of critical areas 

including:

• Investigating unauthorized access to, and disclosure of, taxpayer information;

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

tax compliance, and achieve program efficiencies and cost savings;

• Evaluating the IRS’s efforts to modernize its operations, in addition to assessing whether

user authentication for online services is secure to prevent the unauthorized disclosure of 

taxpayer information;

• Overseeing the IRS’s efforts to implement tax law changes, including monitoring the 
IRS’s efforts to timely process taxpayer correspondence and meet customer service

demands, and assessing the IRS’s efforts to address tax-related identity theft;

• Protecting the integrity of the IRS by effectively investigating individuals and groups

who victimize vulnerable Americans through the IRS impersonation scam;

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

flow of dollars fraudulently obtained by criminals;

• Enhancing taxpayer confidence in electronic Federal tax systems through investigation and 

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

taxpayer service portals as well as the IRS network;

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

abuse, and misconduct, including the unauthorized disclosure of confidential tax 

information by IRS employees; and

• Conducting comprehensive audits and inspections and evaluations that provide

recommendations for achieving monetary benefits, addressing erroneous and improper

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

TIGTA conducts audits and inspections and evaluations that advise the public, Congress, the

Secretary of the Treasury, and IRS management of high-risk issues, problems, and

deficiencies related to the administration of IRS programs and operations. TIGTA’s 

administrative and criminal investigations ensure the integrity of IRS operations, protect the 

IRS and its employees, and help the IRS protect and secure taxpayer data. TIGTA’s OIE

provides responsive, timely, and cost-effective inspections and evaluations of challenging 

areas in IRS programs. TIGTA’s oversight is essential to the efficiency and fairness of the

IRS’s tax administration system.

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

the following Department of the Treasury FY 2022 – 2026 Strategic Plan goals:

Goal 1: Promote Equitable Economic Growth and Recovery; 

Goal 2: Enhance National Security;

Goal 4: Combat Climate Change; and 

Goal 5: Modernize Treasury Operations.

Budget Highlights

Dollars in Thousands

Treasury Inspector General for Tax Administration FTE Amount

FY 2023 Operating Plan 735 $174,250

Changes to Base: 

Maintaining Current Levels (MCLs): 0 $7,869

Pay Annualization (2023 4.6% average pay raise) 0 $1,629

Pay Raise (2024 5.2% average pay raise) 0 $5,588

Non-Pay 0 $652

Subtotal Changes to Base 0 $7,869

Total FY 2024 Current Services 735 $182,119

Program Changes: 

Program Increases 7 $5,249

 Data Analytics and IT Modernization 4 $4,300

RAFE Cybersecurity Enhancements 3 $949

Subtotal Program Changes 7 $5,249

FY 2024 President’s Budget Request 742 $187,368
Budget Adjustments

Maintaining Current Levels (MCLs) ........................................................ +$7,869,000/ +0 FTE

Pay Annualization, (4.6%) +$1,629,000/ +0 FTE

Funds are requested for annualization of the January 2023 4.6% average pay raise.

Pay Raise, (5.2%) +$5,588,000/ +0 FTE

Funds are requested for a 5.2% average pay raise in January 2024.

Non-Pay, +$652,000/ +0 FTE

Funds are requested for non-labor expensessuch astravel, contracts, rent,supplies, and equipment.

Program Increases....................................................................................+$5,249,000/ +7 FTE 

Data Analytics and Information Technology (IT) Modernization +$4,300,000 / +4 FTE

This investment in TIGTA’s staff and IT infrastructure is critical to ensure that TIGTA’s data 

analytic capabilities stay commensurate with the IRS’s adoption of modern technology. It will 

support next generation infrastructure focused on rapidly changing priorities and increased 

demands implemented through advanced IT infrastructure tools and technologies. 

The amount of tax information TIGTA extracts and analyzes to meet its mission has increased 

exponentially. For example, the volume of tax data that TIGTA extracts, stores, and uses has 

grown nearly 200 percent since 2019, from approximately 100 terabytes to more than 300 

terabytes. TIGTA’s current IT infrastructure is not sufficient to absorb this type of continued 

growth. TIGTA has had to use operational storage reserves, acquire additional storage arrays, 

and restructure data management workloads to prevent increased data volumes from crippling 

TIGTA’s network and servers. TIGTA’s IT infrastructure modernization efforts will ensure that 

taxpayer data are properly protected and secured to prevent unauthorized accesses.

Research, Analysis, Forensics, and Evidence (RAFE) Cybersecurity Enhancements +$949,000/ 

+3 FTE 

TIGTA’s RAFE system is used to process data from over 63 IRS applications, electronic service 

providers, and digital information obtained during criminal investigations. RAFE houses 

millions of records with Personally Identifiable Information (PII) for use in detecting and 

investigating fraud and abuse of IRS online systems.

In an FY 2022 Security Architecture Review, the Treasury Department identified limited staffing 

as one of the biggest weaknesses in protecting RAFE’s sensitive PII information. In response to 

Treasury’s recommendations, TIGTA requests $649,000 for 3 FTE and $300,000 for improved 

circuit connection. This investment in RAFE staffing and circuits would allow TIGTA to 

support a backup strategy, in addition to identifying and fixing system weaknesses, scanning the 

system’s custom code, and managing complex network challenges.

Legislative Proposals 

TIGTA has no legislative proposals.
Performance Highlights 

FY 2020 FY 2021 FY 2022 FY 2023 FY 2024

Budget 

Activity Performance Measure Actual Actual Actual Target Target

Audit Percentage of Audit Product Delivered When 

Promised to Stakeholders 79 93 92 70 70

Audit

Percentage of New Audit Reports with 

Recommendations to Improve Tax 

Administration

81 82 84 70 70

Investigations

Percentage of Closed Investigations Resulting 

in a Criminal, Administrative, or Law 

Enforcement Action

92 90 89 79 79

Description of Performance

• In FY 2022, OA and OIE issued 87 final audit reports and other products which 

reported potential financial benefits totaling $5.4 billion and impacting 

approximately 10.8 million taxpayer accounts.

• In FY 2022, the actual Percentage of Audit Products Delivered When Promised to 

Stakeholders was 92 percent. TIGTA exceeded the full-year target by 22

percentage points.

• For FY 2024, OA’s performance targets are 70 percent of Audit Products Delivered

When Promised to Stakeholders and 70 percent of New Audit Reports with

Recommendations to Improve Tax Administration.

• In FY 2022, OI transitioned to a performance model that placed greater emphasis on 

complex cases. These cases are often lengthier and require more time-sensitive 

engagement from OI staff.

• From FY 2013 through FY 2022, TIGTA processed more than 17,080 threat-related 

complaints and investigated more than 10,391 threats against the IRS. OI expects

threat-related incidents to rise as the IRS increases staffing and enforcement under the 

IRA.

• Since March 2020, OI has reallocated resources to provide investigative oversight of 

programs and operations resulting from the Coronavirus Aid, Relief, and Economic 

Security Act and the American Rescue Plan Act. During FY 2022, these cases 

represented 24 percent of OI’s investigative work hours. From March 2020 to 

September 2022, these investigative efforts resulted in the initiation of 937

investigations, 395 indictments, 146 individuals sentenced to approximately 350 years 

of incarceration, and more than $85 million in monetary recoveries and penalties.

• Using investigative activities from FY 2021 and FY 2022 as a baseline, OI projects 

approximately 2,300 actionable outcomes will result from investigations in FY 2024. 

• In FY 2022, the Percentage of Closed Investigations Resulting in a Criminal, 

Administrative, or Law Enforcement Action was 89 percent, which exceeded the fullyear target of 79 percent by 10 percentage points.