Department of the Treasury 

Treasury Inspector General for 

Tax Administration 

Congressional Budget 

Justification and Annual 

Performance Plan and Report 

FY 2024 
TIGTA-2 

Table of Contents

Section I – Budget Request........................................................................................................... 3

A – Mission Statement ................................................................................................................ 3

B – Summary of the Request ...................................................................................................... 3

1.1 – Appropriations Detail Table ............................................................................................... 3

1.1.B – IRA Resource Detail Table ............................................................................................ 4

1.2 – Budget Adjustments Table ................................................................................................. 5

C – Budget Increases and Decreases Description ....................................................................... 5

1.3 – Object Classification (Schedule O) Obligations ................................................................ 6

D – Appropriations Language and Explanation of Changes ...................................................... 7

E – Legislative Proposals ............................................................................................................ 7

Section II – Annual Performance Plan and Report ................................................................... 8

A – Strategic Alignment ............................................................................................................. 8

2.1.1 – Audit Resources and Measures ....................................................................................... 9

Audit Budget and Performance ................................................................................................. 10

2.1.2 – Investigations Resources and Measures ........................................................................ 12

Investigations Budget and Performance .................................................................................... 12

Section III – Additional Information ........................................................................................ 14

A – Summary of Capital Investments ....................................................................................... 14

 
TIGTA-3 

Section I – Budget Request 

A – Mission Statement 

Provide quality professional audit, investigative, and inspection and evaluation services that 

promote integrity, economy, and efficiency in the administration of the Nation’s tax system. 

B – Summary of the Request 

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. Funding TIGTA’s FY 2024 budget request will enable TIGTA to conduct 

critical audit, investigative, and inspection and evaluation services to protect the integrity of the 

Nation’s Federal tax system. 

In accordance with the requirements of Section 406(g)(1) of the Inspector General Act of 1978 

(as amended),1

 TIGTA submits the following information related to its FY 2024 budget request: 

 The aggregate budget request for TIGTA operations is $187,368,000; 

 The portion of the request needed for TIGTA training is $1,800,000; and 

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

Integrity and Efficiency is $749,472. 

Funding allows TIGTA’s oversight efforts to continue, and for each dollar invested over the fiveyear period covering FY 2018 – FY 2022, TIGTA has produced an average annual return of $32 

per dollar spent. 

 

1.1 – Appropriations Detail Table 

Dollars in Thousands 

 FY 2022 FY 2023 FY 2024 FY 2023 to FY 2024 

Appropriated Resources Operating Plan Operating Plan Request % Change 

New Appropriated Resources FTE AMOUNT FTE AMOUNT FTE AMOUNT FTE AMOUNT 

Audits 315 $65,093 330 $65,120 334 $70,023 1% 8% 

Investigations 387 $109,157 405 $109,130 408 $117,345 1% 8% 

Subtotal New Appropriated Resources 702 $174,250 735 $174,250 742 $187,368 1% 8% 

Other Resources 

Reimbursables 2 $494 2 $750 2 $750 0% 0% 

Recovery from Prior Years 0 $0 0 $139 0 $0 NA -100% 

Unobligated Balances from Prior Years 0 $1,469 0 $4,800 0 $0 NA -100% 

IRA Funding Usage 0 $0 59 $20,150 129 $40,300 119% 100% 

Subtotal Other Resources 2 $1,963 61 $25,839 131 $41,050 115% 59% 

Total Budgetary Resources 704 $176,213 796 $200,089 873 $228,418 10% 14% 

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

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

expenditure through FY 2023, of which $5M was obligated in FY 2022. 

1

 5 U.S.C. § 406(g)(1). 
TIGTA-4 

1.1.B – IRA Resource Detail Table 

Dollars in Thousands FY 2022 FY 2022 FY 2023 FY 2024 

Budgetary Resources Enacted 

Actuals 

Obligations 

Estimated 

Obligations 

Estimated 

Obligations 

Inflation Reduction Act Oversight and Implementation 403,000 - 20,150 40,300 

FTE 0 59 129 

Note: Outyear spending is expected to be consistent with the FY 2024 levels and taper down as IRA programs sunset. 

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

use Inflation Reduction Act (IRA) funds to provide enhanced oversight of Internal Revenue 

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

systems modernization, and reporting requirements. TIGTA’s OA and OIE will use IRA funds 

to monitor IRS efforts to: 

 Establish governance structure over IRA funding; 

 Reduce processing/correspondence backlogs; 

 Ensure enforcement and compliance activities are focused on high wealth individuals and 

large corporations; 

 Implement tax provisions related to energy credits; 

 Develop the new tax filing portal on IRS.gov, projected to serve millions of taxpayers; 

 Impose excise taxes on stock buybacks and alternative minimum tax on corporations; 

 Improve telephone and in-person assistance to taxpayers; 

 Study free e-file programs; 

 Provide filing and account services; 

 Improve cybersecurity activities; 

 Provide adequate security for its employees and facilities; and 

 Enhance pre-filing assistance and education efforts. 

TIGTA’s OI expects that IRS efforts to implement IRA provisions will necessitate significant 

investigative oversight. As the IRS on-boards new staff, implements new provisions, and 

expands existing programs, OI expects increasing activity in oversight areas, including threats 

against IRS staff and infrastructure, abuse of position allegations, impersonation schemes, and 

bribery efforts. TIGTA’s OI also anticipates a significant increase in workload as the IRS 

deploys additional online resources to enable taxpayers to obtain information related to their 

Federal tax accounts and respond to IRS notices and letters. Investigative oversight is expected 

to increase in other areas tangential to IRS’s staff increase, such as employee misconduct, 

embezzlement, and unauthorized access. The demand for these investigative capabilities will be 

dependent on the method and speed of IRS implementation efforts. 

TIGTA has contingency plans to operate within the funding provided by the IRA, which it is 

prepared to implement as the IRS continues its IRA implementation efforts. The funds also will 

allow TIGTA to timely respond to Congressional inquiries, as well as monitor IRS progress in 

meeting various IRA reporting requirements. 
TIGTA-5 

 1.2 – Budget Adjustments Table 

Dollars in Thousands 

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 Estimate 742 $187,368 

C – Budget Increases and Decreases Description 

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 expenses such as travel, 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 adaption 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 access. 
TIGTA-6 

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. 

1.3 – Object Classification (Schedule O) Obligations 

Dollars in Thousands 

Object Classification 

FY 2022 

Actual 

Obligations 

FY 2023 

Estimated 

Obligations 

FY 2024 

Estimated 

Obligations 

11.1 - Full-time permanent $88,418 $89,737 $95,215 

11.3 - Other than full-time permanent $453 $415 $443 

11.5 - Other personnel compensation $8,669 $8,856 $9,407 

11.9 - Personnel Compensation (Total) $97,540 $99,008 $105,065 

12.0 - Personnel benefits $44,215 $43,405 $46,078 

Total Personnel and Compensation Benefits $141,755 $142,413 $151,143 

21.0 - Travel and transportation of persons $1,986 $3,064 $3,141 

22.0 - Transportation of things $17 $39 $40 

23.1 - Rental payments to GSA $7,440 $7,406 $7,554 

23.2 - Rental payments to others $186 $197 $201 

23.3 - Communications, utilities, and miscellaneous charges $744 $759 $774 

24.0 - Printing and reproduction $0 $1 $1 

25.1 - Advisory and assistance services $1,549 $1,580 $3,826 

25.2 - Other services from non-Federal sources $874 $649 $662 

25.3 - Other goods and services from Federal sources $12,403 $11,934 $12,173 

25.4 - Operation and maintenance of facilities $10 $0 $0 

25.7 - Operation and maintenance of equipment $3,087 $2,150 $2,193 

26.0 - Supplies and materials $710 $724 $724 

31.0 - Equipment $5,784 $3,869 $5,452 

42.0 - Insurance Claims and Indemnities $3 $2 $2 

91.0 - Unvouchered Expenses $128 $213 $217 

Total Non-Personnel $34,921 $32,587 $36,960 

New Budgetary Resources $176,676 $175,000 $188,103 

 FTE 704 737 744 

Amounts reflect actual and anticipated obligations of annually appropriated resources, carryover balances, 

reimbursables, and transfers. 

Table includes $8M in funding provided through the ARP Act of 2021 (P.L. 117-2), which is available for 

expenditure through FY 2023, of which $5M was obligated in FY 2022. The table excludes $403M in funding provided through the 

Inflation Reduction Act (P.L. 117-169), which is available for expenditure through FY 2031. 
TIGTA-7 

D – Appropriations Language and Explanation of Changes 

Appropriations Language Explanation of Changes 

DEPARTMENT OF THE TREASURY 

TREASURY INSPECTOR GENERAL FOR 

TAX ADMINISTRATION 

Federal Funds 

SALARIES AND EXPENSES 

For necessary expenses of the Treasury Inspector General for 

Tax Administration in carrying out the Inspector General Act of 

1978, as amended, including purchase and hire of passenger 

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

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

Inspector General for Tax Administration; 

[$174,250,000]$187,368,000, of which $5,000,000 shall remain 

available until September 30, [2024] 2025; of which not to 

exceed $6,000,000 shall be available for official travel 

expenses; of which not to exceed $500,000 shall be available 

for unforeseen emergencies of a confidential nature, to be 

allocated and expended under the direction of the Inspector 

General for Tax Administration; and of which not to exceed 

$1,500 shall be available for official reception and 

representation expenses. (Department of the Treasury 

Appropriations Act, 2023.)

E – Legislative Proposals 

TIGTA has no legislative proposals. 
TIGTA-8 

Section II – Annual Performance Plan and Report 

A – Strategic Alignment 

TIGTA, an independent office within the Department of the Treasury, was established 

by Congress under the Internal Revenue Service Restructuring and Reform Act of 1998.2

It provides oversight of IRS programs and operations by conducting independent audits, 

investigations, and inspections and evaluations necessary to prevent and detect waste, 

fraud, and abuse in IRS programs and operations. TIGTA conducts audits, inspections, 

and evaluations of IRS programs and operations and makes recommendations designed 

to improve the administration of the Federal tax system. TIGTA also conducts 

administrative and criminal investigations into allegations of waste, fraud, and abuse 

while helping to ensure that the IRS protects and secures taxpayer data. TIGTA has the 

unique responsibility of protecting the IRS and its employees. 

TIGTA’s primary functions of investigations, audits, 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. 

TIGTA’s Strategic Goals: 

 Goal 1: Promote the economy, efficiency, and effectiveness of Federal tax administration; 

 Goal 2: Protect the integrity of Federal tax administration from internal and external threats; 

and 

 Goal 3: Sustain an inclusive work environment where employees are valued. 

Goal 1: Promote the Economy, Efficiency, and Effectiveness of Federal Tax 

Administration. 

TIGTA’s audits, investigations, and inspections and evaluations identify opportunities to 

improve the administration of the Nation’s tax laws. TIGTA’s comprehensive 

independent audits of IRS programs and operations focus on mandated reviews and highrisk management and performance challenges that confront the IRS. These audits address 

a variety of IRS issues relating to security of taxpayer data and user authentication, tax 

systems, implementation of tax laws, tax compliance, meeting customer service demands, 

and improper payments. TIGTA’s recommendations not only result in cost savings, but 

have other quantifiable impacts, such as revenue protection, improving IRS systems and 

operations, and ensuring fair and equitable treatment of taxpayers. 

 

2

 Pub. L. No. 105-206, 112 Stat. 685 (codified as amended in scattered sections of 2, 5, 16, 19, 22, 23, 26, 31, 38, 

and 49 U.S.C.). 
TIGTA-9 

Goal 2: Protect the Integrity of Federal Tax Administration from Internal and External 

Threats. 

The successful operation of the Federal Government depends on an effective, efficient, and 

equitable tax system. During these times of extraordinary demand on Federal resources, 

Americans must have confidence that their tax dollars are being fairly assessed and 

collected, and that tax laws are uniformly and impartially enforced. TIGTA is committed 

to supporting and working with the IRS, Congress, and other stakeholders to ensure that 

these goals are achieved. Consistent with this commitment, TIGTA is constantly striving 

to carry out its statutory mandate to detect and prevent waste, fraud, and abuse in IRS 

programs and operations. TIGTA also undertakes investigative initiatives designed to 

protect the IRS against external threats that could impede the efficient and effective 

administration of its operations. These investigative initiatives identify individuals who 

perpetrate violence against IRS employees, or who otherwise could pose a threat to the 

safety of IRS employees, facilities, or data infrastructure. TIGTA provides crucial 

intelligence to help IRS officials make anticipatory or proactive operational decisions about 

potential terrorist attacks or other activities that could pose a threat to IRS systems, 

operations, and people. 

Goal 3: Sustain an Inclusive Work Environment Where Employees Are Valued. 

TIGTA recognizes that the key driving forces in a successful organization are the 

knowledge, skills, and abilities of its employees. This recognition is supported by 

sustaining an inclusive work environment where employees are valued. Accordingly, 

TIGTA’s employees play a critical role in the organization’s growth and performance. 

TIGTA is committed to promoting a workplace environment devoted to operational 

excellence and supporting the development of a highly skilled and valued workforce. One 

benchmark for measuring TIGTA’s success in achieving its strategic goal of being an 

organization that values its people is its consistently high placement in the Partnership for 

Public Service’s “Best Places to Work” rankings. In 2021, for instance, TIGTA placed 100th

out of 432 subcomponent agencies. 

B – Budget and Performance by Budget Activity 

2.1.1 – Audit Resources and Measures 

Dollars in Thousands FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 

 Resource Level Actual Actual Actual Actual Actual Operating 

Plan Request 

Appropriated Resources $61,099 $62,676 $65,308 $63,863 $64,468 $65,120 $70,023 

Reimbursable Resources 0 0 $88 $4 $1 0 0 

Unobligated Balances Brought Forward $1,674 $1,947 $1,908 $1,389 $549 $1,794 0 

Budget Activity Total $62,773 $64,623 $67,304 $65,256 $65,018 $66,914 $70,023 

Full-time Equivalents (FTE) 339 328 323 328 315 330 334 

 

Performance Measure FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2022 FY 2023 FY 2024 

Actual Actual Actual Actual Actual Target Target Target 

Percentage of Audit Products 

Delivered When Promised to 

Stakeholders 

81 84 79 93 92 70 70 70 

Percentage of New Audit 

Reports with 

Recommendations to 

Improve Tax Administration 

NA NA 81 82 84 70 70 70 
TIGTA-10 

Audit Budget and Performance 

($70,023,000 from direct appropriations): 

TIGTA’s OA and OIE strive to promote the economy, efficiency, and effectiveness of tax 

administration. TIGTA provides recommendations to improve IRS systems and operations and 

to ensure the fair and equitable treatment of taxpayers. TIGTA’s comprehensive and 

independent performance and financial audits and evaluations of the IRS’s programs and 

operations primarily address statutorily mandated reviews and high-risk challenges the IRS 

faces. Due to the increase in mandatory reporting requirements which may result in audit reports 

without recommendations, TIGTA’s performance goal was set at 70 percent. In FY 2023, 

TIGTA’s OA will issue reports addressing over 20 mandatory reporting requirements, as well as 

ad hoc congressional requests. These mandatory requirements represent over 25 percent of 

TIGTA’s annual report inventory. 

Upon passage of the IRA, TIGTA developed a comprehensive strategy to ensure adequate 

oversight of the approximately $80 billion in funding available to the IRS over the next decade. 

TIGTA will oversee whether the IRS can deliver on its goals to improve customer service during 

the 2023 filing season. This includes monitoring tax processing backlogs, the level of telephone 

service, in-person help at taxpayer assistance centers, and improvements to online notices. 

TIGTA will play a key role in ensuring that the IRS does not increase audits beyond historical 

levels for households or small businesses earning less than $400,000. TIGTA will also continue 

evaluating IRS efforts to sustain and improve taxpayer compliance because small declines in 

compliance cost the Nation billions of dollars in lost revenue and further exacerbate the tax gap. 

TIGTA’s efforts will help ensure that IRS resources are focused on audits of high wealth 

individuals and businesses who are noncompliant with the tax laws. 

Changes in tax legislation necessitate extensive TIGTA oversight to ensure they are accurately 

implemented. For instance, the IRA has numerous tax provisions for new and expanded energy 

credits for homeowners, businesses, vehicles, fuel, manufacturing, etc. It also modifies and 

extends several credits, including the tax credit for nonbusiness energy property, the new energy 

efficient home credit, and the tax credit for alternative refueling property expenditures. The 

legislation also increases the amount allowed for certain small business credits. These tax law 

changes resulted in the creation or revision of 24 tax forms, updates to 29 tax form instructions, 

and the creation of three publications for the 2023 filing season. Further, the IRS will need to 

modify 20 information technology systems (for tax return processing and compliance activities) 

to ensure that the systems can accommodate new and revised tax forms. 

The IRS continually faces increased cyberattacks and in 2022, it sustained an average of 2.4 

million attacks per day.3

 Many of these attempts are sophisticated in nature or represent 

advanced, persistent threats. TIGTA’s OA plays a role in assessing the actions that the IRS takes 

to protect its infrastructure in helping to reduce the risk of internal and external attacks on IRS 

assets that could potentially expose taxpayer data and information. TIGTA will continue to 

evaluate IRS efforts to modernize its operations, in addition to assessing whether user 

 

3

 Written Testimony of Charles P. Rettig, IRS Commissioner, before the House Ways and Means Committee, 

Subcommittee on Oversight on the Filing Season and IRS (October 12, 2022). 
TIGTA-11 

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

information. 

In addition to audits conducted by TIGTA’s OA in FY 2022, OIE performed several in-depth 

reviews of management issues that were of interest to its stakeholders. For example, OIE 

assessed the National Research Program to ensure specific taxpayers had not been unfairly 

targeted for audit. OIE also performed an evaluation of the IRS’s stand up of its IRA 

Transformation Office to ensure that the IRS was on track to meet key milestones and had 

processes in place to monitor funding. Lastly, OIE performed physical security reviews and an 

assessment regarding the IRS’s preparedness for an active shooter incident to ensure that the IRS 

is taking appropriate action to safeguard employee safety. 

TIGTA’s reports have a significant impact on tax administration, identifying $83 in potential 

financial benefits for every dollar invested in TIGTA’s audit program. 

The IRS’s implementation of recommendations has resulted in: 

 Cost savings; 

 Increased protected revenue; 

 Protection of taxpayers’ rights and entitlements; and 

 More efficient use of resources. 

Specifically, in FY 2022, OA and OIE issued 87 final reports and other products, which reported 

potential financial benefits totaling approximately $5.4 billion and impacting approximately 10.8 

million taxpayer accounts. 

Description of Performance 

TIGTA uses the following performance measures to gauge the success of its audit program: 

 Percentage of Audit Products Delivered When Promised to Stakeholders. 

TIGTA’s products have a more significant impact if they are delivered when needed to support 

congressional and IRS decision-making. To determine whether products are timely, TIGTA 

tracks the percentage of products that are delivered on or before the date promised (contract 

date). At the end of FY 2022, the actual Percentage of Audit Products Delivered When Promised 

to Stakeholders was 92 percent, which exceeded the full-year target of 70 percent. TIGTA 

exceeded this target because of ongoing supervisory monitoring of the execution of audits to 

ensure timely delivery of audit products to stakeholders. 

 Percentage of New Audit Reports with Recommendations to Improve Tax Administration. 

This measure includes the number of new audit reports issued during the reporting period that 

contain TIGTA’s recommendations to improve the economy and efficiency of IRS programs and 

operations. These recommendations enhance management practices and procedures, offer ways 

to better use agency funds, and question actual expenditures. To determine the percentage of 

new reports with recommendations to improve tax administration, TIGTA compares the total 

number of new audit reports issued to IRS management during the reporting period that 
TIGTA-12 

contained recommendations for IRS action to the total number of all new audit reports issued to 

IRS management during the reporting period. In FY 2022, the actual Percentage of New Audit 

Reports with Recommendations to Improve Tax Administration was 84 percent, which exceeded 

the full-year target of 70 percent. 

2.1.2 – Investigations Resources and Measures 

Dollars in Thousands FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 

 Resource Level Actual Actual Actual Actual Actual Operating 

Plan Request 

Appropriated Resources $107,501 $106,866 $106,143 $108,158 $111,274 $109,130 $117,345 

Reimbursable Resources $414 $797 $536 $498 $492 $750 $750 

Unobligated Balances Brought Forward $3,326 $3,053 $3,104 $2,340 $920 $3,006 0 

Budget Activity Total $111,241 $110,716 $109,783 $110,996 $112,686 $112,886 $118,095 

Full-time Equivalents (FTE) 438 415 403 409 387 405 408 

 

Performance Measure 

FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2022 FY 2023 FY 2024 

Actual Actual Actual Actual Actual Target Target Target 

Percentage of Closed 

Investigations Resulting in a 

Criminal, Administrative or 

Law Enforcement Action 

89 91 92 90 89 85 79 79 

Investigations Budget and Performance 

($117,345,000 from direct appropriations, $750,000 from reimbursable sources): 

TIGTA is statutorily mandated to protect the integrity of Federal tax administration, and it 

accomplishes this mission through the investigative work that OI conducts. Through its 

investigative programs, OI protects the integrity of the IRS and its ability to collect revenue 

owed to the Federal Government by investigating violations of criminal and civil law that 

adversely affect Federal tax administration, as well as administrative misconduct by IRS 

employees, which undermines the integrity of the Nation’s voluntary tax system. 

TIGTA’s OI focuses on three primary areas of investigative responsibility: 

 Employee integrity; 

 Employee and infrastructure security; and 

 External attempts to corrupt tax administration. 

Within each primary area of investigative responsibility, OI uses a case initiation priority model 

to triage those investigations that have the greatest impact on IRS operations and/or the 

protection of Federal tax administration. In FY 2022, TIGTA’s OI transitioned to a performance 

model that places greater emphasis on complex cases. These cases are often lengthier and require 

more time-intensive engagement from OI staff. This change in prioritization may result in a 

reduced actual for the Percentage of Closed Investigations Resulting in a Criminal, 

Administrative, or Law Enforcement Action performance measure. Therefore, the FY 2023 

target for this measure was reduced to 79 percent. TIGTA’s OI conducts investigations with the 

intent of securing an actionable outcome, such as a criminal, civil, or administrative action. 

TIGTA’s OI performance model uses a ratio of those investigations with actionable outcomes 

calculated as a percentage of the total number of investigations conducted. Due to numerous 
TIGTA-13 

uncontrollable variables, not all investigations result in an actionable outcome. These 

performance measures guide OI’s activities and demonstrate the value of TIGTA’s investigative 

accomplishments to its external stakeholders. 

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. The target 

ratio of 79 percent of investigations with actionable outcomes will be maintained in FY 2024 to 

appropriately reflect the changing and unpredictable investigative landscape introduced during 

the COVID pandemic and the expansion of IRS operations resulting from the IRA. Based on the 

total investigative hours logged in 

FY 2021 and FY 2022, OI invested an average of 306.8 hours to successfully generate an 

actionable outcome. 

OI expects employee integrity investigations, including the unauthorized access and disclosure of 

Federal tax information, to increase in FY 2024 as the IRS increases staffing levels in response 

to the $80 billion made available to the IRS by the IRA. Examples of FY 2022 employee 

integrity investigations include an ongoing TIGTA investigation of an IRS employee who 

initiated unauthorized accesses to Federal tax information to assist with an ongoing child custody 

dispute; an IRS Criminal Investigation Special Agent sentenced to 30 months imprisonment for 

wire fraud and aggravated identity theft after he misused and initiated unauthorized disclosures 

of personally identifiable information received in conjunction with his official duties; and a 

TIGTA investigation that resulted in five IRS employees being charged with schemes to defraud 

Federal programs authorized as part of the (Coronavirus Aid, Relief, and Economic Security) 

CARES Act.4

TIGTA has a statutory responsibility to identify, investigate, and respond to threats against IRS 

personnel and physical infrastructure. 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. 

TIGTA’s OI expects threat-related incidents to rise as the IRS increases staffing to meet 

customer service and enforcement objectives in response to IRA.. An example of a FY 2022 

threat-related investigation involved the arrest of a man for threatening to assault and murder an 

IRS employee during the performance of official duties. 

TIGTA’s OI also investigates criminal activity involving the IRS, such as the impersonation of 

an IRS employee, cybercrime, identity theft, and procurement fraud. Since March 2020, OI has 

reallocated resources to provide investigative oversight of programs and activities resulting from 

the CARES Act and the ARP 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 for those investigations that have processed through the judicial system. Many of the 

937 investigations initiated are still active investigations and have not been presented to a grand 

jury for indictment. Although supplemental funds were provided to TIGTA through the ARP 

4

 The facts in the summarized investigative cases on this page come from court documents of the respective 

jurisdictions. 
TIGTA-14 

Act, TIGTA did not receive any additional funds for CARES Act investigative work and OI 

undertook significant additional workload without additional resources. 

IRS impersonation investigations remain a high priority for OI. Since the IRS impersonation 

scam’s inception, 300 individuals have been charged in Federal court for violation of various 

Federal statutes related to the scam. Additionally, the 197 subjects sentenced to date have 

collectively received a total of more than 910 years imprisonment and have been ordered to pay 

financial restitution totaling more than $224 million. In FY 2022, one notable TIGTA 

investigation resulted in a subject being sentenced to 14 years of imprisonment and ordered to 

pay approximately $5.8 million dollars in restitution for his involvement in an IRS telemarketing 

scheme. A recent example of an investigation involving external attempts to corrupt Federal tax 

administration resulted in four individuals being charged with bank fraud and aggravated identity 

theft. The individuals used stolen PII to create employer identification numbers through the 

IRS’s Modernized Internet Employer Identification Number system to open business bank 

accounts that were then used for fraudulent means. 

Description of Performance 

TIGTA uses the following performance measures to gauge the success of its investigations 

program: 

 Percentage of Closed Investigations Resulting in a Criminal, Administrative, or Law 

Enforcement Action. 

At the end of FY 2022, performance of this measure was 89 percent, which exceeded the fullyear target of 79 percent. OI exceeded the FY 2022 target because of the diligent work of 

experienced executives, managers, special agents, and administrative staff. 

TIGTA’s OI will continue to provide the IRS with the investigative coverage and information 

necessary to improve the integrity of IRS operations and mitigate threats against IRS employees, 

facilities, and data infrastructure. In addition, OI will maintain highly trained personnel to 

address the significant vulnerabilities impacting taxpayer and IRS data and effectively combat 

compromises of IRS computer systems in the expanding digital environment of Federal tax 

administration. OI’s contributions in these areas help to maintain the public’s confidence in the 

safe, fair, and effective administration of the Federal tax system. 

Section III – Additional Information 

A – Summary of Capital Investments 

Technology Investments – TIGTA has no major information technology (IT) 

investments. 

Noteworthy FY 2023 and FY 2024 IT initiatives: 

 Continue to migrate IT components to the cloud and provide the necessary tools and 

support to protect TIGTA’s critical information resources, which will ultimately lead 

to better collaboration, higher resiliency, and increased security. This includes 

infrastructure modernization by transitioning to a hybrid environment (cloud and onpremises); 
TIGTA-15 

 Proceed with targeted investments consistent with Presidential Executive Order 

14028, “Improving the Nation’s Cybersecurity;” and 

 Continue to secure and improve telecommunications, network, wireless access, 

bandwidth capacity, and connectivity to enable employees to conduct business 

anywhere and anytime effectively. 

A summary of capital investments, including major information technology and nontechnology investments can be accessed at: 

https://www.treasury.gov/about/budget-performance/Pages/summary-of-capitalinvestments.aspx.