Department of the Treasury 

Treasury Inspector General for 

Tax Administration 

Congressional Budget 

Justification and Annual 

Performance Plan and Report 

FY 2023 
TIGTA - 2 

Table of Contents 

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

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

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

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

1.2 – Budget Adjustments ................................................................................................................ 4

C – Budget Increases and Decreases Description ................................................................................. 4

1.3 - Object Classification (Schedule O) Obligations ........................................................................... 5

D – Appropriations Language and Explanation of Changes ................................................................ 6

E – Legislative Proposals ...................................................................................................................... 6

Section II – Annual Performance Plan and Report ........................................................................ 7

A – Strategic Alignment ....................................................................................................................... 7

B – Budget and Performance by Budget Activity ................................................................................ 8

2.1.1 – Audit Resources and Measures ............................................................................................... 8

Audit Budget and Performance ............................................................................................................. 8

2.1.2 – Investigations Resources and Measures ................................................................................ 11

Investigations Budget and Performance ............................................................................................. 11

Inspections and Evaluations ................................................................................................................ 13

C – Changes in Performance Measures .............................................................................................. 14

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

A – Summary of Capital Investments ................................................................................................. 14
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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) 2023 

budget request of $182,409,000 represents an increase of seven percent above its FY 2022 

Annualized Continuing Resolution (CR) budget level. Funding TIGTA’s FY 2023 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 6(f)(1) of the Inspector General Act of 1978 

(as amended),1

 TIGTA submits the following information related to its FY 2023 budget 

request: 

 The aggregate budget request for TIGTA operations is $182,409,000;

 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 $656,672.

Funding for TIGTA allows its oversight efforts to continue, and for each dollar invested over 

the five-year period covering FY 2017 - FY 2021, TIGTA has produced an average annual 

return of $119. 

1.1 – Appropriations Detail 

Dollars in Thousands 

Treasury Inspector General for Tax 

Administration 

 

FY 2021 FY 2022 FY 2023 FY 2022 to FY 2023 

Appropriated Resources Operating Plan Annualized CR Request % Change 

New Appropriated Resources FTE AMOUNT FTE AMOUNT FTE AMOUNT FTE AMOUNT 

Audits 330 $64,851 341 $64,851 341 $67,491 0% 4% 

Investigations 409 $105,399 419 $105,399 419 $114,918 0% 9% 

Subtotal New Appropriated Resources 739 $170,250 760 $170,250 760 $182,409 0% 7% 

Other Resources 

Reimbursables 2 $502 2 $700 2 $700 0% 0% 

Unobligated Balances from Prior Years 0 $3,729 0 $1,469 0 $1,500 NA 2% 

Subtotal Other Resources 2 $4,231 2 $2,169 2 $2,200 0% 1% 

Total Budgetary Resources 741 $174,481 762 $172,419 762 $184,609 0% 7% 

FY 2021 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 (ARP) (P.L.117-2) which is available for 

expenditure through FY 2023. 

1

 5 U.S.C. app. 3 § 6(f)(1). 
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1.2 – Budget Adjustments 

C – Budget Increases and Decreases Description 

 Maintaining Current Levels (MCLs) .......................................................+$12,159,000 / +0 FTE 

Pay Annualization, (2.7%) +$975,000 / +0 FTE 

Funds are requested for annualization of the January 2022 2.7% average pay raise. 

Pay Raise, (4.6%) +$5,018,000 / +0 FTE 

Funds are requested for a 4.6% average pay raise in January 2023. 

Non-Pay, +$626,000 / +0 FTE 

Funds are requested for non-labor expenses such as travel, contracts, rent, supplies, and equipment. 

Other Adjustments.................................................................+5,540,000 / +0 FTE 

Adjustments to Meet Current Operating Levels, +$5,540,000 / +0 FTE 

Treasury requests adjustments to realize current services operating levels. Current Operating 

Levels include the annualization of the January 2021 1.0% average pay raise, 2.7% average pay 

raise in January 2022, FY 2022 FERS contribution increases and FY 2022 non-labor expenses 

self-funded from FY 2021 enacted levels. Funds are requested for costs realized in FY 2022 

under the enacted appropriation, but not included under an annualized CR. 

 

FTE Amount

FY 2022 Annualized CR 760 $170,250 

Changes to Base: 

 Maintaining Current Levels (MCLs): 0 $6,619

 Pay Annualization (2.7% average pay raise) $975

 Pay Raise (4.6% average pay raise) $5,018

 Non-Pay $626

 Other Adjustments: 0 $5,540

 Adjustments to Meet Current Operating Levels 0 $5,540

Subtotal Changes to Base 0 $12,159

FY 2023 Current Services 760 $182,409 

FY 2023 President's Budget Request 760 $182,409 

Dollars in Thousands
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1.3 - Object Classification (Schedule O) Obligations 

Dollars in Thousands 

Object Classification 

FY 2021 

Actual 

Obligations 

FY 2022 

Estimated 

Obligations 

FY 2023 

Estimated 

Obligations 

11.1 - Full-time permanent $88,050 $88,165 $94,443 

11.3 - Other than full-time permanent $414 $414 $484 

11.5 - Other personnel compensation $8,764 $8,757 $9,495 

11.9 - Personnel Compensation (Total) $97,228 $97,336 $104,421 

12.0 - Personnel benefits $42,533 $42,635 $46,083 

Total Personnel and Compensation Benefits $139,761 $139,971 $150,504 

21.0 - Travel and transportation of persons $830 $1,427 $3,064 

22.0 - Transportation of things $0 $24 $39 

23.1 - Rental payments to GSA $9,047 $7,855 $7,986 

23.2 - Rental payments to others $441 $441 $169 

23.3 - Communications, utilities, and miscellaneous charges $788 $788 $851 

24.0 - Printing and reproduction $1 $1 $4 

25.1 - Advisory and assistance services $2,371 $1,892 $1,860 

25.2 - Other services from non-Federal sources $518 $518 $557 

25.3 - Other goods and services from Federal sources $11,235 $11,489 $11,934 

25.4 - Contractual Services - Other $1 $1 $0 

25.7 - Operation and maintenance of equipment $1,909 $1,909 $1,845 

26.0 - Supplies and materials $515 $515 $748 

31.0 - Equipment $4,891 $3,903 $3,321 

91.0 - Unvouchered Expenses $216 $216 $224 

Total Non-Personnel $32,763 $30,979 $32,605 

New Budgetary Resources $172,524 $170,950 $183,109 

 

Full-time Equivalents (FTE) 739 760 760 

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

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 $2.4M was obligated in FY 2021. 
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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; $182,409,000, of which $5,000,000 shall 

remain available until September 30, 2024; 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. 

Note.--A full-year 2022 appropriation for this account was not 

enacted at the time the budget was prepared; therefore, the budget 

assumes this account is operating under the Continuing 

Appropriations Act, 2022 (Division A of P.L. 117-43, as 

amended). The amounts included for 2022 reflect the annualized 

level provided by the continuing resolution. 

E – Legislative Proposals 

TIGTA has no legislative proposals. 
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Section II – Annual Performance Plan and Report 

A – Strategic Alignment 

TIGTA, an independent office within the Treasury, was established by Congress under the 

Internal Revenue Service (IRS) Restructuring and Reform Act of 1998.2

 It provides 

oversight of IRS activities 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 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 also 

has the unique responsibility of protecting the IRS and its employees. This year, TIGTA is 

working to align budget activities and performance measures to the new objectives in the 

Treasury FY 2022 – 2026 Strategic Plan. This work will include benchmarking performance 

and may result in changes to performance measures in the FY 2024 budget. 

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

with the following goals in Treasury’s Strategic Plan for Fiscal Years (FY) 2022 - 2026: 

 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: 

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

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

 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 law. TIGTA’s comprehensive independent 

audits of IRS programs and operations focus on mandated reviews and on high-risk 

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. 

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 such extraordinary demand on Federal resources, 

2

 Pub. L. No. 105-206, 112 Stat. 685. 
TIGTA - 8 

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

and that the tax laws are being uniformly and impartially enforced. TIGTA is committed to 

support and work 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 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 to 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 2020, for 

instance, TIGTA placed 76th out of 411 subcomponent agencies. 

B – Budget and Performance by Budget Activity 

2.1.1 – Audit Resources and Measures 

Dollars in Thousands 

 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 

 Resource Level Actual Actual Actual Actual Actual* Annualized 

CR Request 

Appropriated Resources $64,240 $61,099 $62,676 $65,308 $63,863 $64,851 $67,491 

Reimbursable Resources 0 0 0 $88 $4 0 0 

Unobligated Balances 

Brought Forward $1,524 $1,674 $1,947 $1,908 $1,389 $544 $557 

Budget Activity Total $65,764 $62,773 $64,623 $67,304 $65,256 $65,395 $69,341 

Full-time Equivalents (FTE) 339 328 323 328 322 341 341 

 

Performance Measure FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2021 FY 2022 FY 2023 

Actual Actual Actual Actual Actual Target Target Target 

Percentage of Audit Products 

Delivered When Promised to 

Stakeholders 

79 81 84 79 93 70 70 70 

Percentage of New Audit 

Reports with 

Recommendations to Improve 

Tax Administration 

NA NA NA NA NA B 70 70 

Key: NA-Not Applicable; B – Baseline 

*Excludes ARP Act of 2021 obligations. 

Audit Budget and Performance 

($67,491,000 from direct appropriations): 

TIGTA’s Office of Audit (OA) strives to promote the economy, efficiency, and 

effectiveness of tax administration. TIGTA provides recommendations to improve IRS 
TIGTA - 9 

systems and operations and to ensure the fair and equitable treatment of taxpayers. 

TIGTA’s comprehensive and independent performance and financial-related audits of 

the IRS’s programs and operations primarily address statutorily mandated reviews and 

high-risk challenges the IRS faces. 

In FY 2021 - 2022, OA publicly released many reports on critical areas of IRS operations, 

including issuance and reconciliation of Recovery Rebate Credits and Advanced Child Tax 

Credit payments, tax processing backlogs, customer service, cyber security, and tax compliance. 

These audits, along with the accompanying recommendations, have the potential to significantly 

benefit millions of taxpayers and improve IRS service and enforcement efforts. Annually, 

TIGTA OA expends significant resources evaluating the 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. Since 2020, the IRS has experienced significant 

delays in processing taxpayer correspondence and meeting customer service demands due to 

shortfalls in hiring personnel for the Submission Processing functions. These delays negatively 

impact taxpayers and could potentially affect voluntary compliance. Additionally, the 

complexity and changes in the international tax environment require the IRS to collaborate with 

tax administrations of foreign countries to enforce compliance. The IRS must balance tax 

compliance activities to enforce with upholding taxpayer rights. 

IRS systems withstand approximately 1.4 billion cyberattacks annually (including denial-ofservice attacks, unsuccessful intrusion attempts, probes or scans, and other unauthorized 

connectivity attempts).3

 Many of these attempts are sophisticated in nature or represent 

advanced, persistent threats. TIGTA’s OA plays an important role in assessing the actions taken 

by the IRS to protect its infrastructure in an effort to reduce the risk of internal and external 

attacks on IRS assets that could potentially expose taxpayer data and information. TIGTA’s OA 

plans to evaluate IRS 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. 

Lastly, the IRS has issued billions of dollars in recovery rebates and child tax credits over the last 

two years, which increases the likelihood of scams and identity theft. TIGTA OA will continue 

to review IRS efforts to prevent identity theft and ensure only eligible taxpayers receive accurate 

benefits. 

The IRS’s implementation of audit recommendations results in: 

 Cost savings; 

 Increased or protected revenue; 

 Protection of taxpayers’ rights and entitlements; and 

 More efficient use of resources. 

 

3

 Written testimony of Charles Rettig, Commissioner, IRS, On the IRS Budget and Current Operations, Senate 

Appropriations Committee, Subcommittee on Financial Services and General Government (May 15, 2019). 
TIGTA - 10 

In FY 2021, TIGTA OA issued 81 final audit reports and other products, that: 

 Addressed a variety of high-risk issues, such as the IRS’s administration of tax law changes 

including provisions in the Tax Cuts and Jobs Act, Coronavirus Aid, Relief, and Economic 

Security (CARES) Act, Consolidated Appropriations Act of 2021 and the American Rescue 

Plan Act of 2021, enhancement of security of taxpayer data, improvement of tax reporting 

and payment compliance to reduce the tax gap, improvement of customer service and 

taxpayer experience, efforts to increase international tax compliance and reduce fraudulent 

claims and improper payments; 

 Reported potential financial benefits totaling approximately $16 billion, including increased 

and/or protected revenue in the amount of $11 billion; and cost savings of $4.9 billion; 

 Affected approximately 5.2 million taxpayer accounts; and 

 Returned an estimated $241 for every dollar invested in TIGTA’s audit program. 

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 will 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 2021, the actual Percentage of Audit Products Delivered When 

Promised to Stakeholders was 93 percent, which exceeded the full-year target of 70 percent. 

TIGTA exceeded this target as a result 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 recommendations by TIGTA to improve the economy and efficiency of IRS programs. 

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 contained 

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

management during the reporting period. 

 
TIGTA - 11 

2.1.2 – Investigations Resources and Measures 

Dollars in Thousands 

 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 

 Resource Level Actual Actual Actual Actual Actual* Annualized 

CR Request 

Appropriated Resources $100,819 $107,501 $106,866 $106,143 $108,158 $105,399 $114,918 

Reimbursable Resources $357 $414 $797 $536 $498 $700 $700 

Unobligated Balances Brought Forward $2,392 $3,326 $3,053 $3,104 $2,340 $925 $943 

Budget Activity Total $103,568 $111,241 $110,716 $109,783 $110,996 $107,024 $116,561 

Full-time Equivalents (FTE) 464 438 415 403 409 419 419 

Performance Measure 

FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2021 FY 2022 FY 2023 

Actual Actual Actual Actual Actual Target Target Target 

Percentage of Closed 

Investigations Resulting in a 

Criminal, Administrative or 

Law Enforcement Action 

90 89 91 92 90 85 85 79 

*Excludes ARP Act of 2021 obligations. 

Investigations Budget and Performance 

($114,918,000 from direct appropriations, $700,000 from reimbursable sources): 

TIGTA is statutorily mandated to protect the integrity of Federal tax administration. TIGTA 

accomplishes this mission through the investigative work conducted by the Office of 

Investigations (OI). 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 uses a performance model that focuses on three primary areas of investigative 

responsibility: 

 Employee integrity;

 Employee and infrastructure security; and

 External attempts to corrupt tax administration.

The performance model uses a ratio of those investigations that have the greatest impact on 

IRS operations or the protection of Federal tax administration to the total number of 

investigations conducted. 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 2020 and FY 2021 as a baseline, OI projects that it 

will receive approximately 7,000 complaints, open 2,600 investigations, close 2,500 

investigations, and obtain approximately 125 criminal prosecutions in FY 2023. TIGTA’s 

OI conducts investigations with the intent of securing an actionable outcome, such as a 

clearance letter, or a criminal, civil, or administrative action. However, not all 

investigations result in an actionable outcome due to numerous, uncontrollable variables. 

Based on the total investigative hours logged in 2021, OI invested an average of 290.9 hours 

to successfully generate an actionable outcome. 
TIGTA - 12 

TIGTA’s OI expects employee integrity investigations to increase in FY 2023 to preCoronavirus pandemic levels as IRS increases staff levels and employees return to office 

workplaces. Examples of TIGTA investigations into employee misconduct during FY 2021 

include an IRS employee sentenced to 36 months imprisonment for obstructing the 

administration of an IRS criminal investigation. In another case, an IRS employee was 

sentenced to 30 months imprisonment for wire fraud and identity theft after using items 

obtained through an investigation to create a false identity and open a corporate entity.4

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

IRS personnel and physical infrastructure. From FY 2012 through FY 2021, TIGTA 

processed more than 18,667 threat-related complaints and investigated more than 10,940 

threats against IRS employees. In FY 2021, TIGTA responded to 16 percent more threatrelated incidents than in FY 2020. For example, in FY 2021 a threat-related investigation 

involved the arrest of a man for assault on a Federal agent and felony possession of a 

firearm. The man fired a weapon at IRS Federal agents who were attempting to serve a 

subpoena at his residence. 

TIGTA investigates criminal activity originating outside the IRS, such as impersonation of an 

IRS employee, attempted bribery of IRS employees, international cybercrime and identity 

theft, and procurement fraud. Since March 2020, TIGTA has seen an increase in external 

investigative activity resulting from the CARES Act and the ARP Act. TIGTA has oversight 

over the IRS’s issuance of over $800 billion in Economic Impact Payments (EIP) in addition 

to the Paycheck Protection Program (PPP), Emergency Impact Disaster Loans, Recovery 

Rebates, and Payroll Protection Plan Loans through the CARES Act and ARP Act. During 

FY 2021, these types of cases represented 27 percent of OI’s investigative work hours, an 

increase of 15 percent from FY 2020. From March 2020 to February 2022, these 

investigative efforts resulted in the initiation of 876 investigations, 301 indictments, 72 

convictions, sentencing of over 149 years of incarceration, and more than $39 million in 

monetary recoveries and penalties. 

An example of OI’s investigations into criminal activity outside of the IRS is the fraudulent 

use of the IRS’s Modernized Internet Employer Identification Number (MODIEIN) system 

to obtain CARES Act funding for fictitious businesses. Individuals used the EINs and other 

falsified IRS tax forms in order to submit applications to financial institutions to obtain PPP 

funding. In one example, a group of 22 coconspirators obtained EINs from the IRS and 

submitted loan applications, including multiple false documents, to obtain approximately $4 

million through the PPP. 

The manipulation and unauthorized access of IRS systems has been an increasing focus for 

TIGTA. For example, in FY 2022, an individual pled guilty to wire fraud and aggravated 

identity theft after he was identified as fraudulently accessing the IRS’s eAuthentication Online 

Taxpayer System to unlawfully obtain personally identifiable information of taxpayers. 

The individual then filed fraudulent tax returns with the IRS using the unlawfully obtained 

4

 The facts in the summarized cases on this page come from court documents of the respective jurisdiction. 
TIGTA - 13 

information. 

Investigations into telephonic IRS impersonation remain a high-priority area that resulted in 284 

individuals charged in Federal court by the end of FY 2021. For example, an Indian-based Voice 

over Internet Protocol provider and its director were indicted in a first-of-its-kind indictment for 

conspiracy to commit wire fraud and wire fraud in connection with facilitating tens of millions of 

scam calls to American taxpayers on behalf of India-based phone scammers, causing a financial 

loss of more than $20 million. In FY 2021, TIGTA’s investigative efforts resulted in more than 

$53.8 million in court ordered fines, penalties, and restitution. 

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 2021, performance of this measure was 90 percent, which exceeded the 

full-year target of 85 percent. OI exceeded the FY 2021 target as a result of the diligent work 

of experienced executives, managers, and special agents. 

Starting in FY 2022, TIGTA’s OI will transition 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 is 

reduced to 79 percent. The target may be revised at a later date as the results of the revised 

performance model are evaluated. 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 its employees, facilities, and data infrastructure. In addition, OI 

will maintain highly trained personnel available to address the significant vulnerabilities of 

taxpayer and IRS data and effectively combat compromises of IRS computer systems in the 

expanding digital environment of Federal tax administration, all of which contribute to 

maintaining the public’s confidence in the safe, fair, and effective administration of the 

Federal tax system. 

Inspections and Evaluations 

TIGTA’s Office of Inspections and Evaluations (I&E) identifies opportunities for 

improvement in IRS and TIGTA programs by performing inspections and evaluations that 

report timely, useful, and reliable information to decision makers and stakeholders. 

Inspections are intended to provide factual and analytical information, monitor compliance, 

measure performance, assess the effectiveness and efficiency of programs and operations, share 

best practices, and inquire into allegations of waste, fraud, abuse and mismanagement. 

Evaluations are intended to provide in-depth reviews of specific management issues, policies and 
TIGTA - 14 

programs, address Government-wide or multi-agency issues, and develop recommendations to 

streamline operations, enhance data quality, and minimize inefficient and ineffective procedures. 

In FY 2021, I&E produced five external reports: 

 Health and Safety Measures at Select IRS Facilities; 

 Health and Safety Measures at Select Taxpayer Assistance Centers; 

 Prior Recommendation Implementation; 

 IRS’s Oversight of Reported Sexual Harassment Allegations; and 

 IRS’s Pandemic Telework Program. 

C – Changes in Performance Measures 

TIGTA has no changes in performance measures. 

Section III – Additional Information 

A – Summary of Capital Investments 

In addition to the funds requested in TIGTA’s Congressional Justification, funds for TIGTA’s IT 

operations are also requested through the Treasury Department Cybersecurity Enhancement 

Account. Please see the FY 2023 Cybersecurity Enhancement Account Congressional 

Justification for further information regarding the following initiative: 

Data Logging and Retention, +$700,000 / +0 FTE 

This investment supports TIGTA’s plans to meet EO 14028, “Improving the Nation’s 

Cybersecurity” and subsequent OMB M-21-31, “Improving the Federal Government’s 

Investigative and Remediation Capabilities Related to Cybersecurity Incidents.” TIGTA will 

continue strengthening and operating its enterprise logging solution to meet current and future 

demands to: 

 Collect security event and system logs in real time for threat detection and compliance use 

cases; 

 Analyze logs in real time and detect attacks and other activities of interest; 

 Investigate incidents to determine their potential severity and impact on a business; 

 Report on these activities; and 

 Store relevant events and logs. 

The investment will also enable TIGTA to perform the data collection needed to meet the 

requirements and help TIGTA to automate the identification of unauthorized disclosure or access 

(UNAX) while also vastly improving the cyber detection capabilities, as well as meeting the ongoing demands for improved efficiencies around cyber incident detection and response. The 

request will fund 12 months and operations is contingent on continued funding; however, this 

will only fund one of the many unfunded cybersecurity demands for TIGTA. 

Technology Investments – TIGTA has no major information technology investments. A 

summary of capital investments, including major information technology and non-technology 

investments, can be accessed at: investments.aspxhttps://www.treasury.gov/about/budgetperformance/Pages/summary-of-capital-investments.aspx.