Treasury Inspector General for Tax Administration 

Program Summary by Budget Activity

Dollars in Thousands

FY 2017* FY 2018 FY 2019 FY 2018 TO FY 2019

Budget Activity Enacted Annualized 

CR Request $ Change % Change

Audit $66,020 $65,572 $62,704 ($2,868) -4.37%

Investigations $103,614 $102,910 $98,409 ($4,501) -4.37%

Subtotal, TIGTA $169,634 $168,482 $161,113 ($7,369) -4.37%

Reimbursable Resources $357 $600 $600 $0 0.00%

Unobligated Balances Brought Forward $3,916 $4,300 $5,000 $700 16.28%

Total Program Operating Level $173,907 $173,382 $166,713 ($6,669) -3.85%

Direct FTE 800 800 800 0 0.00%

Reimbursable FTE 2 2 2 0 0.00%

Total FTE 802 802 802 0 0.00%

* This column reflects levels appropriated in H.R. 255, the Consolidated Appropriations Act of 2017. For further details on the 

execution of these resources see the 2019 Budget Appendix chapter for the Department of the Treasury.

Summary

The Treasury Inspector General for Tax 

Administration’s (TIGTA) Fiscal Year (FY) 

2019 budget request of $161,113,000

represents a decrease of 4.4 percent below its 

FY 2018 Annualized Continuing Resolution 

amount. 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 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.” While there are a number of 

critical areas where TIGTA will provide 

oversight, its FY 2019 priorities include:

 Identifying opportunities to improve the 

administration of the Nation’s tax laws, 

improve tax compliance, and achieve 

program efficiencies and cost savings;

 Overseeing the Internal Revenue Service’s

(IRS) efforts to implement tax law 

changes;

 Assessing the IRS’s efforts to address taxrelated identity theft;

 Mitigating security risks affecting taxpayer 

data, tax systems, and IRS employees;

 Protecting the integrity of the IRS by 

effectively investigating the international 

IRS impersonation scam that has impacted 

more than 2.1 million Americans;

 Conducting criminal investigations of 

individuals and groups who impersonate 

the IRS in order to victimize senior 

citizens and other vulnerable Americans;

 Developing advanced analytics and 

innovative approaches to help prevent and 

detect the flow of dollars fraudulently 

obtained by criminals and dishonest IRS 

employees;

 Providing the IRS with the investigative 

coverage and the information necessary to 

mitigate domestic and foreign threats 

against its employees, facilities, and data 

systems;

 Improving the integrity of IRS operations 

by detecting and deterring waste, fraud, 

abuse, and misconduct, including the 

unauthorized disclosure of confidential 

taxpayer information by IRS employees;

 Conducting comprehensive audits and 

inspections and evaluations that provide 
Department of the Treasury – Budget in Brief

recommendations for achieving monetary 

benefits, addressing erroneous and 

improper payments, and enhancing the 

service the IRS provides to taxpayers;

 Rapidly and effectively responding to 

attempts to impersonate the IRS for 

fraudulent purposes; and

 Overseeing the IRS’s efforts to increase 

international tax compliance.

TIGTA was created by Congress as a part of 

the Internal Revenue Service Restructuring 

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

audits, investigations, and inspections and 

evaluations protect and promote the fair 

administration of the U.S. tax system. TIGTA 

conducts audits that advise the public, 

Congress, the Secretary of the Treasury, and 

IRS management of high-risk issues, 

problems, and deficiencies related to the 

administration of IRS programs and 

operations. TIGTA’s audit recommendations 

improve the administration of the Federal tax 

system. TIGTA’s administrative and criminal 

investigations ensure the integrity of IRS 

employees, protect the IRS and its employees,

and help the IRS protect and secure taxpayer 

data. TIGTA’s inspections and evaluations 

provide responsive, timely, and cost-effective 

inspections and evaluations of challenging 

areas in IRS programs. TIGTA’s oversight is

essential to the efficiency and equity of the

IRS’s tax administration system. TIGTA 

ensures that taxpayers can have confidence 

that the IRS collects more than $3.4 trillion in

tax revenue in an effective and efficient 

manner.

TIGTA’s primary functions of investigations, 

audit, inspections, and evaluations align with 

the following Department of the Treasury 

FY 2018- 2022 Strategic Plan goals:

 Goal 1: Boost U.S. Economic Growth;

 Goal 4: Transform Government-wide 

Financial Stewardship; and

 Goal 5: Achieve Operational Excellence.

TIGTA FY 2019 Budget Highlights

Dollars in Thousands

Treasury Inspector General for Tax 

Administration FTE Amount

FY 2018 Annualized CR 800 $168,482 

Changes to Base:

Maintaining Current Levels (MCLs): 0 $1,233 

 Pay Annualization 0 $620 

 Non-Pay 0 $613 

Subtotal Changes to Base 0 $1,233 

Total FY 2019 Base 800 $169,715 

Program Changes:

 Program Decreases 0 ($8,602)

 Operating Costs Reductions 0 ($8,602)

Total FY 2019 Request 800 $161,113 

FY 2019 Budget Adjustments

Adjustments to Request

Maintaining Current Level (MCLs)

Pay Annualization +$620,000 / +0 FTE

Funds are required for annualization of the 

January 2018 pay-raise.

Non-Pay +$613,000 / +0 FTE

Funds are requested for non-labor expenses 

such as travel, contracts, rent, supplies, and 

equipment.

Program Decreases

Operating Cost Reductions -$8,602,000 / 

+0 FTE

Audit and Investigations activity levels will be 

reduced for operational costs. Reaching this 

savings target without impacting the quality of 

TIGTA’s programs will require a combination 

of actions to include specialized training and 

travel reductions for investigators and auditors, 

contract and interagency agreement 

reductions, and rent reductions. TIGTA will 

continue to look for contract efficiencies by 

evaluating contracts for strategic sourcing and 

by negotiating more advantageous contract 

terms. Additionally, TIGTA will pursue 

opportunities to reduce its footprint and lower 

its rent costs.
Department of the Treasury – Budget in Brief

Explanation of Budget Activities

Audit ($62,704,000 from direct 

appropriations)

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

its strategic goals. TIGTA strategically 

evaluates IRS programs, activities, and 

functions so that resources are expended in the 

areas of highest vulnerability of the Nation’s 

system of tax administration. TIGTA’s audit 

program includes both statutory audit 

requirements and specific audits identified

through TIGTA’s risk-assessment process. By 

focusing on the most critical areas, TIGTA 

identifies and recommends improvements that 

add value while addressing high-risk tax 

administration issues. TIGTA’s audits and 

recommendations help promote the economy, 

efficiency, and effectiveness of IRS programs; 

ensure the fair and equitable treatment of 

taxpayers; and detect and deter waste, fraud, 

and abuse.

During FY 2017, OA issued 104 audit reports, 

and other products, that included potential 

financial benefits of approximately $9.1 billion 

a n d affected approximately 34 million

taxpayer accounts. For FY 2019, OA

anticipates its audit work will focus on key 

areas challenging the IRS, including security 

over taxpayer data, prevention and detection of

fraud such as identity theft, and providing

high-quality taxpayer service. In addition, 

TIGTA will address IRS efforts to implement 

tax law changes that may result from ongoing 

tax reform efforts. TIGTA’s independent 

oversight plays a key role in ensuring that 

updated or new tax law provisions are

implemented and administered in accordance

with the law and the intent of Congress.

Investigations ($98,409,000 from direct 

appropriations, $600,000 from 

reimbursable resources)

TIGTA has a statutory responsibility to protect

the integrity of tax administration and to 

protect the ability of the IRS to collect revenue 

for the Federal Government. To accomplish 

this, TIGTA’s investigative resources focus on 

three primary areas of investigation: 

Employee Integrity; Employee and 

Infrastructure Security; and External Attempts 

to Corrupt Tax Administration. 

Employee Integrity: IRS employee 

misconduct, real or perceived, can erode public

trust and impede the IRS’s ability to enforce

tax laws effectively. This misconduct 

manifests itself in a variety of ways, including

misuse of IRS resources or authority; theft; 

fraud; extortion; taxpayer abuses; and 

unauthorized access to, and disclosure of, tax 

return information. During FY 2017, 46

percent of TIGTA’s body of investigative work

involved alleged employee misconduct. 

TIGTA’s special agents possess the 

knowledge, skills, and expertise to investigate 

such matters. TIGTA’s investigation of 

employee misconduct conveys a message to 

IRS employees that these types of activities 

will not go unchecked. TIGTA promotes 

employee integrity by conducting proactive 

investigative initiatives to detect criminal 

activity and other serious misconduct in the 

administration of IRS programs.

Employee and Infrastructure Security:

Physical violence, harassment, and 

intimidation of IRS employees pose some of 

the most significant challenges to the 

implementation of a fair and effective system 

of tax administration. TIGTA’s investigative 

efforts place high priority on its oversight of 

IRS employee safety and physical security, 

protecting approximately 81,000 employees 

and 542 facilities throughout the country. 

TIGTA maintains IRS employee and 

infrastructure security by conducting 

investigations into incidents that threaten IRS 

employees, facilities, and infrastructure. This 

work is critically important as it ensures that 

IRS employees and the taxpaying public can 

conduct business in a safe and secure
Department of the Treasury – Budget in Brief

environment. The Inspector General Reform 

Act of 2008 authorizes TIGTA to provide

physical security to protect IRS employees 

against external threats. TIGTA works

aggressively and takes swift action to protect

IRS employees, including providing armed

escorts to IRS employees in dangerous 

situations.

External Attempts to Corrupt Tax 

Administration: TIGTA is statutorily 

mandated to investigate external attempts to 

corrupt tax administration, including criminal 

misconduct by nonemployees, such as 

impersonation of the IRS, attempted bribery 

of IRS employees, international cybercrime 

and identity theft, and procurement fraud. 

Many IRS employees are in direct contact with 

taxpayers and encounter situations in which a 

taxpayer may challenge the employee’s 

integrity with a bribe. Bribery or attempted 

bribery of a public official is a criminal 

offense and a threat to the integrity of the IRS 

and the Nation’s system of tax administration. 

Additionally, TIGTA is investigating 

nationwide IRS impersonation schemes, in 

which criminals are pretending to be IRS 

employees and are attempting to collect

phantom tax liabilities from innocent

taxpayers. A s o f S e p t e m b e r 3 0 , 2 0 1 7 , 

TIGTA received more than 2.1 million reports 

related to this type of contact; and more than 

12,027 taxpayers have been defrauded out of

more than $60.7 million as a result of

impersonation scams.

As cybersecurity threats against the Federal 

Government continue to grow, protecting the 

confidentiality of taxpayer information will 

continue to be a top concern for the IRS and 

for TIGTA. 

The increasing number of data breaches in the 

private and public sectors means more 

personally identifying information than ever 

before is available to unscrupulous individuals. 

Due to the $400 billion dollars the IRS issues 

in refunds and the 246 million tax returns it 

processes each year that contain extremely 

valuable information for identity thieves, the 

IRS has become a favorite target of 

cybercriminals located all over the world.

For example, in May 2015, criminals launched 

a coordinated attack on the IRS eAuthentication portal that resulted in the 

exploitation of the IRS Get Transcript 

Application, as well as the IRS IP PIN 

application. It is estimated that more than 

110,000 taxpayers were impacted by this 

attack. 

A subsequent review of all of the activity on 

the system revealed that more than 700,000 

taxpayers were impacted by similar abuses of 

the system by multiple bad actors over an 

extended period of time. In January 2016, a 

coordinated criminal effort was launched that 

exploited the IRS Electronic Filing PIN (e-File 

PIN) tool. The e-File PIN tool was created to 

provide taxpayers with a special PIN number 

that would allow the taxpayer to electronically 

file a Federal tax return. The IRS estimates 

the exploitation resulted in the issuance of 

over 100,000 e-File PINs that were used to file 

over $100 million of fraudulent tax returns. As 

a result of this exploitation, on June 23, 2016, 

the IRS announced that it had disabled the eFile PIN application. Numerous investigations

are underway on the individuals who obtained

taxpayer information from both of these 

attacks.

Legislative Proposals

TIGTA has no legislative proposals.
Department of the Treasury – Budget in Brief

TIGTA Performance Highlights

FY 2015 FY 2016 FY 2017 FY 2018 FY 2019

Budget Activity Performance Measures Actual Actual Actual Target Target

Audit

Percentage of Audit Products 

Delivered When Promised to 

Stakeholders

80.0 75.0 79.0 68.0 68.0

Audit

Percentage of Recommendations 

Made That Have Been 

Implemented

92.0 97.0 92.0 85.0 85.0

Investigations Percentage of Results From 

Investigative Activities 93.0 90.0 90.0 79.0 79.0

Description of Performance

 For FY 2017, OA issued 104 audit reports, 

and other products, identifying 

approximately $9.1 billion in potential 

financial benefits.

 For FY 2017, the actual Percentage of 

Audit Products Delivered When Promised 

to Stakeholders was 79 percent. TIGTA 

exceeded the full-year target of 68 percent 

by 11 percentage points. 

 For FY 2017 the actual Percentage of 

Recommendations Made That Have Been 

Implemented was 92 percent. TIGTA 

exceeded the full-year target of 85 percent

by seven percentage points. TIGTA 

exceeded its target as a result of 

continuous discussions with the IRS

throughout the audit process, both on the 

findings and on the potential recommended

solutions, to ensure that feasible

alternatives were identified.

 For FY 2019, OA’s p e r f o r m a n c e 

targets are 68 percent of Audit Products 

Delivered When Promised to Stakeholders 

and 85 percent of Recommendations Made 

That Have Been Implemented.

 During FY 2017, TIGTA initiated 22

proactive investigative initiatives to detect 

systemic weaknesses or potential IRS 

program vulnerabilities. TIGTA 

processed 10,638 complaints, opened 

2,835 investigations, and closed 2,876

investigations in FY 2017. During this 

period, TIGTA referred for IRS action 

1,119 cases of employee misconduct, and 

168 cases of all types of investigations 

were accepted for criminal prosecution.

 For FY 2017, the Percentage of Results 

From Investigative Activities was 90

percent, which exceeded the full-year 

target of 81 percent by nine percentage 

points. The Office of Investigations

exceeded the FY 2017 performance 

measure as a result of the hard work of 

experienced executives, managers, and 

special agents.

 For FY 2019, OI’s performance target is 

79 percent of Results from Investigative 

Activities. This number reflects the 

anticipated reduced number of experienced 

FTE which will decrease the total number 

of results OI will achieve as a result of its 

investigative activities.