Mission Statement

Maintain a strong economy and create economic and job opportunities by promoting conditions 

that enable economic growth and stability at home and abroad, strengthen national security by 

combating threats and protecting the integrity of the financial system, and manage the U.S. 

Government’s finances and resources.

Executive Summary

FY 2014 President’s Budget by Function

Dollars in thousands

 FY 2013 

FY 2012 Annualized FY 2014 Increase/ Percent

Enacted CR Rate Request Decrease Change

Management & Financial $1,346,631 $1,361,921 $1,315,533 ($31,098) -2.31%

Departmental Offices Salaries and Expenses $308,388 $310,275 $311,775 $3,387 1.10%

Department-wide Systems and Capital Investments Program $0 $0 $2,725 $2,725 0.00%

Office of Inspector General $29,641 $29,822 $31,351 $1,710 5.77%

Treasury Inspector General for Tax Administration $151,696 $152,624 $149,538 ($2,158) -1.42%

Special Inspector General for TARP $41,800 $42,056 $34,923 ($6,877) -16.45%

Community Development Financial Institutions Fund $221,000 $222,353 $224,936 $3,936 1.78%

Financial Crimes Enforcement Network $110,788 $111,466 $103,909 ($6,879) -6.21%

Alcohol and Tobacco Tax and Trade Bureau $99,878 $100,489 $101,211 $1,333 1.33%

Program Cap Adjustment Included in IRS Budget Request $0 $0 ($5,000) ($5,000) 0.00%

Net, Alcohol and Tobacco Tax and Trade Bureau $99,878 $100,489 $96,211 ($3,667) -3.67%

Bureau of the Fiscal Service $391,440 $393,836 $360,165 ($31,275) -7.99%

Legacy Treasury Direct User Fees ($8,000) ($1,000) $0 $8,000 -100.00%

Net, Bureau of the Fiscal Service $383,440 $392,836 $360,165 ($23,275) -6.07%

Tax Administration $11,816,696 $11,887,741 $12,861,033 $1,044,337 8.84%

IRS Taxpayer Services $2,239,703 $2,253,510 $2,412,576 $172,873 7.72%

IRS Enforcement $5,299,367 $5,331,000 $5,666,787 $367,420 6.93%

IRS Operations Support $3,947,416 $3,971,000 $4,480,843 $533,427 13.51%

IRS Business Systems Modernization $330,210 $332,231 $300,827 ($29,383) -8.90%

Subtotal, Treasury Appropriations Committee $13,163,327 $13,249,662 $14,176,566 $1,013,239 7.70%

Treasury Forfeiture Fund ($950,000) ($950,000) ($950,000) $0 0.00%

Total, Treasury Appropriations Committee $12,213,327 $12,299,662 $13,226,566 $1,013,239 8.30%

Treasury International Programs $2,661,388 $2,677,667 $2,899,279 $237,891 8.94%

Economic Growth, National Security and Poverty Reduction (MDBs) $1,958,538 $1,970,525 $2,103,029 $144,491 7.38%

Food Security $165,000 $166,010 $165,000 $0 0.00%

World Bank Environmental Trust Funds $324,350 $326,335 $427,450 $103,100 31.79%

Debt Relief $186,500 $187,641 $175,300 ($11,200) -6.01%

Office of Technical Assistance (OTA) $27,000 $27,156 $23,500 ($3,500) -12.96%

Middle East Transition Fund $0 $0 $5,000 $5,000 0.00%

Total $14,874,715 $14,977,329 $16,125,845 $1,251,130 8.41%

FY 2012 to FY 2014
Overview

The Department of the Treasury’s FY 2014 request includes the resources to lead a multitude of actions 

that help strengthen the U.S. economy, create job opportunities, and improve the housing market by 

taking important steps to restore confidence in the financial system while reinforcing U.S. international 

competitiveness. The Department is implementing the Dodd-Frank Wall Street Reform and Consumer 

Protection Act (the Dodd-Frank Act); taking aggressive actions in the fight against financial crimes, 

money laundering, and threats to national security; promoting free trade and open markets; continuing its 

pursuit of comprehensive tax and fiscal reform; and strengthening efforts to improve stewardship over the 

U.S. Government’s financial resources. Treasury is working to encourage lending to small businesses, 

promote economic prosperity, and monitor risk in the financial system. Treasury is also driving a 

departmental management agenda focused on governing strategically, working smarter, and leveraging 

advances in technology to gain greater cost savings for the American public, increase productivity, 

modernize operations, and support the Administration’s management agenda. 

Treasury’s FY 2014 request reflects the Department’s commitment to finding operational savings while 

including key investments in support of the Administration’s goals. The Department proposes $2.9 

billion for our International programs in order to promote our national security, open new markets for 

U.S. exporters, and address key global challenges such as food security and the environment and $14.2 

billion for our operating accounts including substantial new investments in improved tax administration. 

The FY 2014 Budget request for Treasury’s operating bureaus is 2.3 percent below the FY 2012 enacted 

level, excluding the IRS. The Budget identifies $354 million in efficiency savings and $29 million in 

program reductions. 

The Budget was developed to align with the Department’s FY 2012 to 2015 Strategic Plan, Agency 

Priority Goals, and Federal Priority Goals.1 This submission also serves as the Department’s Annual 

Performance Report and Plan. 

Treasury Strategic Goal: Repair and Reform the Financial System and Support Recovery in the 

Housing Market

Since the fall of 2008, Treasury has executed a range of new programs to help stimulate economic 

recovery and balanced growth while working to repair the credit and housing markets.

Supporting Small Businesses

The Small Business Jobs Act of 2010 created the Small Business Lending Fund (SBLF) and the State 

Small Business Credit Initiative (SSBCI). The SBLF helps increase the availability of credit to small 

businesses by providing capital to community banks and community development loan funds with assets 

under $10 billion. As of September 30, 2012, SBLF participants have increased their small business 

lending by $7.4 billion over a $36.5 billion baseline and by $740 million over the prior quarter. Over 

three-quarters of program participants (78 percent) have increased their small business lending by 10 

percent or more. The SSBCI program supports state-level, small-business lending programs. In FY 2012, 

SSBCI approved $137 million for disbursement to states. SSBCI estimates disbursing cumulative totals 

of approximately $1.1 billion by the end of FY 2013 and the remaining $360 million by the end of FY 

2014. 

 

1

Per the GPRA Modernization Act, P.L. 111-352, requirement to address Federal Goals in the agency Strategic Plan and Annual Performance Plan, please 

refer to Performance.gov for information on Federal Priority Goals and the agency's contributions to those goals, where applicable.
Implementing Financial Reform

During FY 2012, Treasury continued to implement the comprehensive financial reforms included in the 

Dodd-Frank Act. These reforms place tougher limits on risk-taking by financial institutions in order to 

stabilize the financial system and protect American taxpayers and consumers. 

In FY 2012, full operation of Treasury’s new financial regulatory and oversight entities established by the 

Dodd-Frank Act commenced, including the Financial Stability Oversight Council (FSOC), the Federal 

Insurance Office (FIO), the Office of Financial Research (OFR), and the Office of Minority and Women 

Inclusion (OMWI). 

The FSOC, chaired by the Secretary of the Treasury, monitors threats to financial stability and facilitates 

coordination across the financial regulatory community. The Secretary coordinates the federal regulators’ 

risk retention rulemaking process. This rule will help align interests among mortgage originators, 

securitizers (i.e., firms that create and sell groups of mortgage loans as securities), and other investors that 

participate in the housing finance market. The Secretary also coordinates the rulemaking to implement 

the Volcker Rule and is actively engaged in activities to identify risks, promote market discipline, and 

respond to emerging threats to U.S. financial stability. 

Treasury is represented at the international Financial Stability Board (FSB) by the Under Secretary of 

International Affairs. At the FSB, Treasury supports a leveling up of financial regulatory standards 

globally. This will decrease the risk of regulatory arbitrage to the global financial system, avoid an undue 

regulatory burden for U.S. firms, and protect our economy from risks emanating beyond our shores. 

The FIO monitors all aspects of the insurance industry and advises the Secretary on insurance matters of 

national and international importance, as well as representing the United States on prudential aspects of 

international insurance matters, where, previously, the United States had not been represented by any 

specifically designated individual, office, or agency. In FY 2012, the FIO Director was elected to serve 

on the International Association of Insurance Supervisors (IAIS) Executive Committee and as Chair of its 

Technical Committee. Among other projects, FIO is actively engaged in the FSOC and the IAIS.

OFR provides data and analysis relating to the designation of nonbank financial companies for 

supervision by the Federal Reserve Board and enhanced prudential standards. The OFR is also 

continuing to enhance its Financial Stability Monitor—a dashboard of financial stability metrics and 

indicators—and has played a central role in the international initiative to establish a global Legal Entity 

Identifier (LEI). 

Winding Down the Troubled Asset Relief Program

The actions taken under TARP, along with other emergency measures put in place by the Board of 

Governors of the Federal Reserve System and the Federal Deposit Insurance Corporation (FDIC) helped 

prevent the collapse of the U.S. financial system and stabilize the economy. Today, Treasury is focused 

on winding down TARP by exiting the remaining TARP investments as soon as possible in a manner that 

maximizes returns to the taxpayer and promotes financial stability. 

Taxpayers have realized a significant positive return on TARP’s investments in banks. By the end of FY 

2012, taxpayers had recovered more than $267 billion in repayments and other income - more than $21.5 

billion above the total funds that were invested under TARP’s bank programs. 
Stabilizing the Housing Market

Using authority granted under the Emergency Economic Stabilization Act (EESA), Treasury established 

two central housing programs under TARP, the Making Home Affordable (MHA) program and the 

Hardest Hit Fund (HHF). Treasury also used its authority to support the Federal Housing 

Administration’s (FHA) Short Refinance Program. Combined, Treasury committed $45.6 billion to fund 

these housing programs under TARP. MHA and HHF have disbursed $5.5 billion from inception through 

the end of FY 2012. More funds are expected to be disbursed over time as incentive payments are made 

for current participants and new homeowners entering into the programs.

For the FY 2014 Budget, Treasury has reduced the obligation to the FHA Short Refinance Program by $7 

billion, which reduces the overall commitment to housing programs under TARP to $38.6 billion. 

Treasury Strategic Goal: Enhance U.S. Competitiveness and Promote International Financial 

Stability and Balanced Global Growth

Supporting Economic Growth and Opportunity

In FY 2012, Treasury focused on bolstering economic growth for local communities and small businesses 

through funding for projects that would encourage job creation and further investment in distressed 

communities. The FY 2014 Budget of $225 million for the Community Development Financial 

Institutions (CDFI) Fund provides funding to promote economic development investments in low-income 

and underserved communities. Of the total request, up to $35 million for the Healthy Food Financing 

Initiative will support increased availability of affordable, healthy food options, as part of the 

Administration’s goal of eradicating food deserts by 2017.

Treasury proposes to implement Pay for Success, a new program that aims to reward nonprofit and other 

investors who finance preventive social programs that can post savings to the federal government while 

achieving better outcomes for their target population. Emerging Pay for Success projects are hampered 

by an inability to leverage savings across levels of government and a lack of rigorous data that could help 

investors evaluate the risk associated with these ventures. A Pay for Success Fund will be designed to 

ensure that taxpayers get the best possible returns for funds expended, government assets are protected, 

and losses are minimized in relation to social benefits provided by paying exclusively for projects that 

show measurable outcomes resulting in greater federal savings and programmatic efficiency. In order to 

qualify, these projects will be required to utilize evidence-based approaches and provide data for program 

and policy evaluation. The budget proposes $300 million in new capped mandatory funding for this 

program.

Treasury’s FY 2014 budget provides $5 million to administer a Financial Capability Innovation Fund that 

will support development of financial access and financial capability tools that facilitate and encourage 

saving among, and improve financial knowledge of, low and moderate-income families. As part of this 

effort, Federal agencies may partner with state and local governments to conduct pilots and similar 

activities to develop innovations in these areas.

Encouraging International Economic Growth and Stability

Treasury works bilaterally and multilaterally to foster strong, sustainable, and balanced global growth; to 

support free trade and open markets; to promote a level playing field for U.S. financial institutions; to 

maintain stable international financial markets; to encourage foreign investment in the U.S. while 

protecting national security; and to use our leadership positions in the International Financial Institutions 

in pursuit of U.S. policy goals. The Budget includes funding for Treasury to continue advancing these 
economic and national security policy priorities around the world, including those supporting the 

President’s National Export Initiative to double exports by 2014. 

Through Treasury’s active and sustained engagement with China, the U.S.: improved market access for 

U.S. companies in China’s financial services market; obtained commitments from China to negotiate and 

ultimately abide by international rules on export financing to provide a level playing field for U.S. 

companies; and secured commitments to provide nondiscriminatory treatment to all enterprises in China 

including state-owned enterprises. In 2012, U.S. exports to China reached historic highs increasing nearly 

36 percent over the 2009 levels.

In 2012 Treasury also worked through the Group of Twenty (G-20) to promote strong, sustainable, and 

balanced growth, including efforts to foster more flexible, market-determined exchanges rates and to 

boost domestic demand in surplus economies, notably China. China’s current account surplus has fallen 

from a peak of over 10 percent of GDP before this administration took office to under 3 percent as of 

March 2013. The renminbi has appreciated on a real bilateral basis over 16 percent against the United 

States dollar since June 2010.

Treasury serves an integral role at the International Monetary Fund (IMF), which is the most important 

tool for the U.S. in promoting global financial stability. As the leading financial crisis first responder, the 

IMF promotes growth, reduces poverty, and helps prevent and resolve financial crises. In order to 

preserve U.S. leadership in the IMF, the Administration seeks legislation for a U.S. quota increase with a 

corresponding roll back in the U.S. participation in the IMF’s New Arrangements to Borrow (NAB), as 

well as for governance reforms that will preserve the U.S. veto on the IMF’s Executive Board. U.S. 

support for the quota and governance reforms reinforces the central position of the IMF in the 

international monetary system at a time when emerging economies explore establishing new and parallel 

financial institutions. 

In 2012 financial instability in Europe continued to pose a risk to the strength of the U.S. and global 

recoveries. Treasury worked with its European counterparts to encourage the establishment of two 

powerful tools to help stem the contagion to the larger economies in Europe and restore confidence in the 

European banking system: the European Stability Mechanism and the Outright Monetary Transactions 

loan facility. Recent turmoil in Cyprus, however, demonstrates the need to remain vigilant.

Treasury’s $2.9 billion FY 2014 International Programs budget request provides a cost-effective way to 

promote our national security, support the next generation of export markets, and address key global 

challenges like environmental degradation and food security, while fostering private sector development 

and entrepreneurship.

Of the total, $2.1 billion is requested for General Capital Increases (GCIs) and replenishments at the 

Multilateral Development Banks (MDB). Our investments in these institutions represent outstanding 

value for money, leveraging scarce development resources to advance key U.S. national security and 

economic objectives. Treasury’s investments in the MDBs represent roughly $3 billion of the 

Administration’s Function 150 budget request yet they leverage nearly $100 billion in annual 

development commitments. 

The FY 2014 request includes funding for complex global challenges. This includes $135 million for the 

Global Agriculture and Food Security Program (GAFSP), $30 million for the International Fund for 

Agricultural Development (IFAD) and $427.5 million for Environmental Trust Funds administered by the 

World Bank. 
The FY 2014 request also includes $23.5 million for the Office of Technical Assistance (OTA). OTA 

works with finance ministries and central banks of developing countries strengthen their capacity to 

manage public finances, which encourages stability abroad, supports broad U.S. development, foreign 

policy, and national security objectives ultimately, reducing these countries’ reliance on development 

assistance. 

Finally, the request includes $5 million for a portion of the U.S. contribution to the Deauville Partnership 

Transition Fund, a multi-donor trust fund administered by the World Bank and created under the U.S. 

chairmanship of the G-7. This is a new request to assist Arab countries that are members of the Deauville 

Partnership with Arab Countries in Transition (currently Egypt, Tunisia, Jordan, Morocco, Libya, and 

Yemen). The fund will help promote a broad reform agenda, to anchor these historic political transitions 

with an economic foundation that secures inclusive growth. 

Treasury Strategic Goal: Protect Our National Security through Targeted Financial Actions

The Department’s financial intelligence and enforcement activities have had a significant impact in 

combating money laundering and terrorist financing.

Successful Implementation of International Sanctions

In 2012, the Office of Foreign Assets Control (OFAC) continued to aggressively pursue investigations of 

both U.S. and foreign financial institutions that appeared to have violated U.S. economic sanctions. 

OFAC’s $619 million settlement with ING Bank N.V. constituted the U.S. Department of the Treasury’s 

largest sanctions-related enforcement action to date. OFAC also concluded its investigations and entered 

into settlements with Standard Chartered Bank, HSBC Holdings Plc, and Bank of Tokyo-Mitsubishi UFJ 

for a combined $515.5 million. Those four cases alone targeted more than 23,840 apparent violations of 

U.S. sanctions programs involving Burma, Cuba, Sudan, Iran, and Libya. OFAC’s enforcement actions, 

in concert with parallel actions by federal and state prosecutors and domestic and foreign regulators, 

promoted compliance with the regulations administered by OFAC throughout the global financial 

industry. Additionally, the Department has engaged in an aggressive international outreach campaign 

since the passage of Comprehensive Iran Sanctions, Accountability, and Divestment Act of 2010 

(CISADA) involving foreign governments, regulators, and financial institutions throughout the world to 

warn about the potential consequences of engaging in sanctionable activity. As a result of Treasury’s 

efforts, most foreign financial institutions have chosen to dramatically reduce their business with Iran.

Collection of Major Asset Forfeitures Supports Deficit Reduction

The Treasury Forfeiture Fund received over $1 billion in forfeitures and recoveries in FY 2012 and is 

projected to collect close to $2 billion in FY 2013. The success of Treasury’s asset forfeiture program 

allows the Department to make priority investments in law enforcement and national security, without 

requesting additional resources from taxpayers. Further, it enables Treasury to contribute to deficit 

reduction with a proposed permanent cancellation of $950 million from the Forfeiture Fund’s unobligated 

balances.

Treasury Strategic Goal: Pursue Comprehensive Tax and Fiscal Reform

Treasury is committed to shrinking the deficit over the next decade through a balanced mix of spending 

reductions and tax reforms. 
Agency Priority Goal: Increase Voluntary Tax Compliance 

Treasury continues to work to increase voluntary tax compliance through the fair and uniform application 

of the tax code. Improvement of both service and enforcement, along with reforms to simplify the tax 

law, are essential to ensure that the U.S. tax system remains the most effective and fairest voluntary 

compliance system in the world. 

The FY 2014 budget supports this goal through targeted investments in taxpayer services and web-based 

technology that will facilitate self-service transactions and simplify the taxpayer experience. 

Additionally, the budget requests resources for additional tax law enforcement and implementation of 

recent tax legislation, including resources to assist taxpayers in understanding the tax law changes 

included in the Affordable Care Act and other recent tax code changes.

Enforcement of the Tax Code

The 2014 Budget includes an Enforcement account increase of $367 million from the 2012 enacted level 

to help close the tax gap through various strategic investments. The enforcement program will protect 

revenue by identifying fraud and preventing issuance of questionable refunds including tax-related 

identify theft; increase compliance by addressing offshore tax evasion; make use of new information 

reporting to reduce underreporting; strengthen examination and collection programs; expand enforcement 

efforts on noncompliance among corporate and high-wealth taxpayers; and strengthen return preparer 

compliance. This increase is supported by a $412 million program integrity cap adjustment, including a 

$5 million transfer to the Alcohol and Tobacco Tax and Trade Bureau (TTB). The IRS investments in 

these enforcement activities will return $6 for every $1 invested once new hires reach full potential in FY 

2016. The 10-year (FYs 2104-2023) tax enforcement program integrity cap adjustment proposal will 

generate $46.5 billion in additional revenue and cost $13.8 billion for a net deficit savings of $32.7 

billion.

Taxpayer Services

The FY 2014 Budget includes a Taxpayer Services account increase of $173 million from the FY 2012 

enacted level to support targeted investments in services that help taxpayers understand and meet their tax 

obligations. Taxpayer Services plays a key role in lowering the tax gap. Activities in IRS Taxpayer 

Services appropriation support voluntary compliance by addressing millions of taxpayers’ questions in 

their efforts to comply with the law and are an integral component of IRS’s compliance activities. For 

example, during the 2012 tax season, IRS taxpayer service representatives answered over 19 million 

phone calls and 50 million automated calls. The 2014 Budget also provides $301 million for the Business 

Systems Modernization Program to invest strategically in state-of-the art capabilities, such as online 

taxpayer services, that utilize and leverage the database infrastructure that is now in place. The IRS 

budget request reflects a concerted effort to expand the self-service and alternate service options available 

to taxpayers, increasing the accuracy of information provided to taxpayers while decreasing taxpayer 

reliance on expensive in-person and over-the-phone IRS assistance. 

Treasury Strategic Goal: Manage the Government’s Finances in a Fiscally Responsible Manner

In FY 2014, Treasury will implement a number of initiatives to improve operational efficiency and 

effectiveness.

Government-wide Financial Management

The FY 2014 Budget includes additional funding for the Office of Financial Innovation and 

Transformation (FIT) which is working in coordination with the Government-wide CFO Council to 

improve financial management, reduce costs, increase transparency, and improve delivery of agencies’ 

missions within Treasury and across the federal government. Treasury also proposes to transfer FIT from 
the Departmental Offices to The Bureau of the Fiscal Service (Fiscal Service) to allow closer 

collaboration with the bureau that most closely aligns with its mission. 

Restoring Gulf Coast Communities

The budget includes resources to administer the Resources and Ecosystems Sustainability, Tourist 

Opportunities, and Revived Economies of the Gulf Coast States Act of 2012 (RESTORE Act) which 

established the Gulf Coast Restoration Trust Fund to maintain the civil and administrative penalties 

arising from the Deepwater Horizon oil spill. Treasury will serve oversight, administrative, compliance, 

and audit roles to help ensure that funds are expended as required by the RESTORE Act, and will work 

with the newly established Gulf Coast Restoration Council to administer these funds in supporting 

economic and environmental restoration in the Gulf Coast region. 

Agency Priority Goal: Increase Electronic Transactions with the Public to Improve Service, 

Prevent Fraud, and Reduce Costs

Treasury has implemented a multi-pronged effort to expand the use of electronic transactions in 

conducting the business of government, including through electronic payroll savings bonds, electronic 

benefit payments, and electronic tax collection. These efforts have resulted in reduced costs, improved 

customer service, and decreased susceptibility to fraud. The payroll sale of paper savings bonds and the 

sale of paper savings bonds at financial institutions have already been discontinued, and businesses are 

now required to pay taxes electronically rather than by paper coupon. The Department will continue to 

make progress toward its “Paperless Treasury” initiative by paying benefits electronically and working to 

increase the electronic filing (e-file) rate. Treasury’s paperless initiatives are estimated to save $500 

million over five years from FY 2011 to FY 2015. The IRS’s e-file program has been highly successful, 

saving the department millions of dollars every year. For example, in 2012, it costs 23 cents to process an 

e-filed return—a fraction of the $3.36 it takes to process a paper return. With e-file, taxpayers get their 

refund faster, with fewer data processing errors. The individual tax e-file rate is now over 80 percent.

The Fiscal Service

In FY 2014, Fiscal Service will continue functional integration of the former Financial Management 

Service (FMS) and Bureau of the Public Debt (BPD) to include the FIT transfer. This will improve the 

planning and implementation of FIT’s initiatives by more closely aligning strategic direction with 

operational implementation, which is performed by Fiscal Service. Under this structure, the Fiscal 

Assistant Secretary will maintain high-level policy guidance and oversight of FIT. 

Achieving Small Business Procurement Goals

In FY 2014, the Department will build on its success in achieving small business contracting goals. In FY 

2012, Treasury met or exceeded all of its small business contracting goals and exceeded its overall Small 

Business contracting goal. The Department more than doubled its contracting goals for Women Owned 

Small Businesses and for Small Disadvantaged Businesses. During FY 2012, Treasury awarded $890 

million in contracts to small businesses, which is an increase of $80 million above the FY 2011 total.

Securing Americans Value and Efficiency (SAVE)

The Administration held its fourth SAVE Award contest for federal employees to submit ideas to improve 

the operations of government. Treasury plans to adopt two ideas: savings in postage from an electronic 

transcript delivery process, and replacing existing interior lighting with LED technology for energy 

savings. 
Savings Proposals

Treasury’s FY 2014 Budget includes efficiency savings of $354 million and program reductions of $29 

million. Treasury’s bureaus have found savings from: space optimization for the IRS, manufacturing 

support systems and spoilage reduction for the BEP, payment reorganization for the Fiscal Service, and 

numerous administrative and personnel efficiencies across multiple bureaus.

ORGANIZATION

The Department of the Treasury is the executive agency responsible for promoting economic prosperity and ensuring the 

financial security of the United States. The Department is organized into the Departmental Offices, eight operating bureaus, and 

three inspectors general. The Departmental Offices are primarily responsible for policy formulation, while the bureaus are 

primarily the operating units of the organization.

DEPARTMENTAL OFFICES

Domestic Finance advises and assists in areas of domestic 

finance, banking, and other related economic matters. In 

addition, this office develops policies and guidance for 

Treasury Department responsibilities in the areas of financial 

institutions, federal debt finance, financial regulation, capital 

markets, financial management, fiscal policy, and cash 

management decisions. The staffs of the Financial Stability 

Oversight Council, Office of Financial Research (OFR) and 

the Federal Insurance Office (FIO), created under the DoddFrank Act, reside within Domestic Finance, as does the Office 

of Financial Stability (OFS), which is responsible for 

overseeing the Troubled Asset Relief Program (TARP). The 

Office of Financial Institutions oversees the Community 

Development Financial Institutions (CDFI) Fund, the Small 

Business Lending Fund (SBLF), and the State Small Business 

Credit Initiative (SSBCI) within Domestic Finance.

International Affairs protects and supports U.S. 

economic prosperity by working bilaterally and multilaterally 

to foster strong and balanced global growth; to promote 

stable international financial markets, high-quality financial 

regulatory standards, and a level playing field for U.S. 

businesses and financial institutions internationally; to 

encourage foreign investment in the U.S. while protecting 

national security; and to enhance U.S. competitiveness and 

job creation.

Terrorism and Financial Intelligence (TFI) marshals 

the Department’s intelligence, enforcement, and economic 

sanction functions with the twin aims of safeguarding the 

financial system against illicit use and combating rogue 

regimes, terrorist facilitators, weapons of mass destruction 

(WMD) proliferators, money launderers, drug kingpins, and 

other national security and foreign policy threats.

Economic Policy reports on current and prospective 

economic developments and assists in the determination of 

appropriate economic policies. The office is responsible for 

the review and analysis of domestic economic issues and 

developments in the financial markets.

Tax Policy develops and implements tax policies and 

programs, reviews regulations and rulings to administer the 

Internal Revenue Code and the tariff laws, negotiates tax 

treaties, and provides economic and legal policy analysis for 

domestic and international tax policy decisions. Tax Policy 

also provides revenue estimates for the President’s Budget.

Treasurer of the United States has direct oversight 

over the United States Mint and the Bureau of Engraving and 

Printing, and is a key liaison with the Federal Reserve. In 

addition, the Treasurer serves as a senior advisor to the 

Secretary in the areas of community development and public 

engagement.

Other Offices

Internally, Treasury’s Departmental Offices are responsible 

for overall management of the Department. The Office of 

Management and the Chief Financial Officer is responsible 

for managing the Department’s financial resources and 

oversees Treasury-wide programs, including human capital, 

information technology (IT), and minority and women 

inclusion.
Other support offices include General Counsel, Legislative 

Affairs, and Public Affairs. Also, three inspectors general—

the Office of the Inspector General (OIG), the Treasury 

Inspector General for Tax Administration (TIGTA), and the 

Special Inspector General for the Troubled Asset Relief 

Program (SIGTARP) — provide independent audits, 

investigations, and oversight of the Department of the 

Treasury and its programs. While SIGTARP is 

organizationally placed in Treasury, it is not under the 

general supervision of the Secretary.

BUREAUS

Bureaus employ 98 percent of Treasury’s workforce and are 

responsible for carrying out specific operations assigned to 

the Department.

The Alcohol and Tobacco Tax and Trade Bureau 

(TTB) collects federal excise taxes on alcohol, tobacco,

firearms, and ammunition, and assures compliance with 

tobacco permitting and alcohol permitting, labeling, and 

marketing requirements to protect consumers.

The Bureau of Engraving and Printing (BEP)

develops and produces U.S. currency notes that are trusted 

worldwide.

The Bureau of the Public Debt (BPD) borrows the 

money needed to operate the U.S. Government through the 

sale of marketable, savings, and special purpose U.S. 

Treasury securities. It accounts for and services the public 

debt and provides reimbursable administrative support 

services to federal agencies.

The Financial Management Service (FMS) provides 

central payment services to federal program agencies, 

operates the U.S. Government’s collections and deposit 

systems, provides government-wide accounting and 

reporting services, and manages the collection of delinquent 

debt owed to the U.S. Government. 

Effective October 2012, the BPD and FMS operating bureaus 

consolidated to form the Bureau of the Fiscal Service. The 

Department anticipates Congress to enact legislation to fund 

the new bureau’s salaries and expenses through a single 

appropriation. 

The Financial Crimes Enforcement Network 

(FinCEN) enhances the integrity of the financial system by 

facilitating the detection and deterrence of financial crime.

The Internal Revenue Service (IRS) is the largest of 

the Department’s bureaus and determines, assesses, and 

collects tax revenue for the U.S. Government.

The United States Mint designs, mints, and issues 

circulating and bullion coins, prepares and distributes 

numismatic coins and other items, and strikes Congressional 

Gold Medals and other medals of national significance. The 

United States Mint maintains physical custody and 

protection of most of the nation’s gold and all of its silver 

reserves.

The Office of the Comptroller of the Currency 

(OCC) charters, regulates, and supervises all national banks 

and federal savings associations to help ensure that they 

operate in a safe and sound manner and in compliance with 

laws requiring fair treatment of their customers and fair 

access to credit and financial products. 
THE DEPARTMENT OF THE TREASURY ORGANIZATIONAL CHART
TREASURY’S FISCAL YEARS 2012-2015 STRATEGIC FRAMEWORK

The Treasury’s Strategic Framework is a summary of the department’s goals and objectives. This framework provides the basis 

for performance planning and continuous improvement. Economic

Strategic Goals Strategic Objectives Indicators and Measures

Goal 1

Repair and 

Reform the 

Financial System 

and Support the 

Recovery of the 

Housing Market

Lead the Administration’s efforts to 

continue to implement comprehensive 

regulatory reform to increase stability and 

strengthen accountability in the financial 

system

Effectively manage and exit emergency 

programs

Reform and strengthen the housing 

finance system

Help prevent avoidable foreclosures and 

support the availability of affordable 

mortgage credit

TARP lifetime cost estimate

Income received from dividends, interest, warrants, and repayments of 

TARP investments

Rolling percent of investments remaining (overall and bank-only)

Monthly mortgage-backed securities statement

Housing scorecard indicators

Goal 2

Enhance U.S. 

Competitiveness 

and Promote 

International 

Financial Stability 

and Balanced 

Global Growth

Protect global economic and financial 

stability and encourage marketdetermined exchange rates

Promote strong international financial 

standards and a level playing field for 

U.S. financial institutions

Pursue free trade and open markets 

Encourage foreign investment in the U.S. 

economy

Enter into bilateral and multilateral tax 

agreements that encourage cross-border 

trade and investment

Use leadership positions in the 

multilateral development banks and the 

International Monetary Fund to advance 

U.S. national security and economic 

interests

Provide direct assistance to developing 

countries working to improve public 

financial management and strengthen 

their financial systems

Timely review of Committee on Foreign Investment in the United 

States (CFIUS) cases

Percentage of grant and loan proposals containing performance 

measures

Percentage of timely reviews of Multilateral Development Bank (MDB) 

grant and loan proposals

Percentage of timely reviews of International Monetary Fund (IMF) 

lending proposals

Traction and impact of technical assistance
Security

Strategic Goals Strategic Objectives Indicators and Measures

Goal 3

Protect our 

National Security 

through Targeted 

Financial Actions

Collect, analyze, and disseminate 

financial and other information 

concerning illicit financing and national 

security threats

Disrupt and dismantle the financial 

networks of those who threaten national 

security or engage in illicit financing

Shape policy, laws, and regulations to 

safeguard the U.S. and international 

financial systems

Coordinate with partners, both at home 

and abroad, including the foreign policy, 

law enforcement, and intelligence 

communities, to combat illicit finance 

Assist partner countries in developing 

and implementing anti-money 

laundering and counter terrorist 

financing regimes compliant with 

international standards

Impact of economic sanctions

Impact of policymaking, outreach, and diplomacy

Impact of activities to create safer and more transparent financial 

systems

Ability to effectively collect, disseminate, and analyze financial 

intelligence

Strategic Goals Strategic Objectives Indicators and Measures

Financial

Goal 4

Pursue 

Comprehensive 

Tax and Fiscal 

Reform

Develop comprehensive proposals to 

reform and simplify the tax code

Increase voluntary tax compliance

Promote policies to ensure a sound fiscal 

footing over the medium term

Voluntary tax compliance

Number of tax proposals partially or completely enacted into law

Number of administrative initiatives implemented

Effects of fiscal policy

Goal 5

Manage the 

Government’s 

Finances in a 

Fiscally 

Responsible 

Manner

Optimize the cash and debt portfolio to 

manage the Government’s borrowing 

costs effectively

Expand the use of electronic transactions

Modernize financial systems and 

standardize accounting practices

Continuously improve our operations 

and processes to generate efficiency 

savings

Attract and retain an exceptional 

workforce

Percentage of Treasury payments made electronically

Percentage of vendor invoices processed electronically by Treasury

Percentage of total federal government receipts collected electronically

Percentage of individual tax returns filed electronically

Amount of delinquent debt collected

Mean absolute monthly forecast error on a cumulative basis for budget 

receipts, outlays, and non-marketable debt and mean absolute daily error 

in cash balance projections

Percentage of small business procurement targets met

Best Places to Work ranking

Percentage of new hires retained after two years
TREASURY’S FISCAL YEAR 2012-2013 AGENCY PRIORITY 

GOALS AND STATUS

The Treasury Department established two APGs to support improvements in near-term outcomes related to the 

Strategic Plan.

INCREASE VOLUNTARY TAX COMPLIANCE

Helping taxpayers understand their obligations under the tax law is critical to improving compliance and addressing 

the tax gap. Therefore, the IRS is committed to making tax law easier to access and understand. The IRS remains 

committed to improving voluntary compliance and reducing the tax gap through both taxpayer service and 

enforcement programs.

The IRS continued to increase the amount of tax information and services available to taxpayers online and through 

social media. IRS.gov provides alternative online and self-help service options. Through September 30, 2012, 

taxpayers viewed IRS.gov web pages more than 1.7 billion times as they used the website to: 

 Get forms and publications. Beginning in fiscal year 2011, the IRS reduced the number of forms and 

publications that were mailed to taxpayers. For this reason, during the fiscal year 2012 filing season, more 

than 347 million tax products were downloaded, an increase of 51 percent from fiscal year 2011

 Link to the Electronic Federal Tax Payment System (EFTPS). EFTPS processed more than 132.4 million 

electronic tax payments totaling $2.1 trillion

 Get answers. More than 1.1 million visits to the Interactive Tax Assistant introduction page where taxpayers 

can receive answers to tax law questions

 Use “Where’s My Refund?” Taxpayers used “Where’s My Refund?” more than 132.3 million times to check 

on the status of their tax refunds

The IRS is increasing communications with taxpayers who may not get their information from traditional sources, 

such as newspapers and broadcast cable news. By employing social and new media, such as YouTube, Twitter, and 

iTunes, the IRS can reach these taxpayers and provide important service and compliance messages. In February 

2012, the IRS released a new version of IRS2Go, a Smartphone application that lets taxpayers check on the status of 

their tax refund and obtain tax information including requesting their tax return or account transcripts. Since its 

February 2012 release, the new features helped attract more than 6.2 million application launches from IRS2GO. 

In October 2011, the IRS began a pilot of Virtual Service Delivery (VSD) to test a new means of service delivery in 

Taxpayer Assistance Centers (TACs) and partner sites. VSD provided face-to-face contact with more than 16,000 

taxpayers at 15 IRS locations using video communication technology. Preliminary participant feedback from the 

survey through December 31, 2011 indicated they were very satisfied with VSD technology and 92 percent reported 

they would be willing to use video assistance again during a future visit. 

During the 2012 filing season, through September 30, 2012, the IRS received more than 147.6 million individual 

returns (113.8 million electronically filed) and issued more than 121.6 million refunds totaling $333 billion.

In fiscal year 2012, the IRS continued to implement its Return Preparer Initiative, the foundation of which is 

mandatory registration for all paid tax return preparers. Through September 2012, more than 860,000 preparers 

requested Preparer Tax Identification numbers (PTINs) using the online registration system. The process gives the 
IRS an important and improved view of the return preparer community from which the IRS can leverage information 

to improve communications, analyze trends, spot anomalies, and detect potential fraud. The IRS also leveraged real 

time data during the 2012 filing season to improve the compliance of more than 1,400 preparers with high numbers 

of Earned Income Tax Credit (EITC) errors.

The IRS also launched the Registered Tax Return Preparer (RTRP) competency test in November 2011 for all paid tax 

return preparers except attorneys, certified public accountants, and enrolled agents. More than 31,000 tests were 

conducted, and applications from approximately 570 continuing education providers were approved. All RTRPs are 

also required to complete 15 hours of Continuing Education (CE) courses annually beginning in 2012. To address this 

requirement, the IRS deployed a registration system for CE providers, issued Revenue Procedures outlining the IRS 

standards for CE accreditors and providers, and launched a webpage for CE accreditors, providers, and preparers. 

In January 2012, the IRS announced a third Offshore Voluntary Disclosure Program due to continued interest from 

taxpayers after the closure of the 2011 and 2009 programs. As part of an overall strategy to improve offshore 

compliance, taxpayers who voluntarily come forward and file all original and amended tax returns and pay taxes, 

interest, and accuracy-related and/or delinquency penalties, can avoid criminal prosecution. The offshore voluntary 

disclosure programs have resulted in over 38,000 disclosures and the collection of more than $5.5 billion in back 

taxes, interest, and penalties. 

The IRS modernization efforts focus on building and deploying advanced IT systems, processes, and tools to improve 

efficiency and productivity. In 2012, the IRS delivered the most significant update to its core tax processing system in 

decades with the deployment of the initial phase of the Customer Account Data Engine 2 (CADE 2), modernizing tax 

processing. After more than 50 years of posting returns and transactions on a weekly batch cycle, in January 2012,

CADE 2 moved the IRS to a daily cycle for tax processing of individual taxpayer accounts. For the first time, the IRS 

processing systems are accepting all 1040-related schedules and forms electronically through a modernized e-filing 

capability, which will feed into a single consolidated taxpayer account database, and reduce the handling/mailing of 

voluminous paper returns. In the coming years CADE 2 will provide the IRS with significantly expanded service and 

enforcement capabilities that will drive additional voluntary compliance.

INCREASE ELECTRONIC TRANSACTIONS WITH THE PUBLIC TO 

IMPROVE SERVICE, PREVENT FRAUD, AND REDUCE COSTS

The safety, security, efficiency, and reliability of Treasury transactions are paramount to maintaining public trust. 

Billions of transactions, including payments to federal benefits recipients, savings bonds purchases, and tax 

collections, are executed by Treasury each year. The paper processes associated with these transactions can be slow, 

unsecure, inaccurate, and wasteful. In an effort to improve customer service, decrease the public’s vulnerability to 

fraud, and efficiently manage resources, the Secretary of the 

Treasury approved several initiatives to move towards electronic transactions, including discontinuing the sale of 

paper savings bonds, increasing electronic benefit payments, and increasing electronic tax collection. Treasury has 

already discontinued the issuance of paper savings bonds through traditional employer-sponsored payroll savings 

plans, and the sale of over-the-counter paper savings bonds ended on December 31, 2011. Treasury will continue to 
make progress toward a fully paperless set of processes by paying benefits electronically and encouraging businesses 

to pay taxes electronically rather than by paper coupon. This priority goal is related to the strategic goal of “Manage 

the Government’s Finances in a Fiscally Responsible Manner.”

PAYMENTS

In support of the goal to increase electronic payments government-wide, the FMS has a number of efforts underway. 

In December 2010, Treasury announced a final rule to extend the safety and convenience of electronic payments to all 

Americans receiving federal benefit and non-tax payments. Anyone who applied for benefits on or after May 1, 2011, 

was required to begin receiving their payments electronically, while those who were already receiving paper checks 

need to switch to direct deposit by March 1, 2013. This important change will provide significant savings to American 

taxpayers who will no longer incur the price tag associated with paper checks. 

As a result of the final rule, the Go Direct® campaign shifted from a marketing focus to a national public education 

effort building on previous successes to provide federal benefit recipients with the tools and resources they need to 

transition to Electronic Funds Transfer payments. The campaign reaches current check recipients as well as people 

who will apply for federal benefits soon. Benefit checks have declined from 10.3 million per month in January 2011 to 

5.5 million as of August 2012, saving millions of dollars for the United States Treasury and taxpayers in the years to 

come. 

A big part of the success of the All-Electronic Treasury is the Direct Express® card. The Direct Express® card offers 

the convenience and security of receiving benefit payments electronically for those who prefer a debit card or do not 

have a bank account. Instead of receiving a paper check, the benefit payment is automatically deposited into the 

recipient’s card account on the payment date. It is currently available to Social Security, Supplemental Security 

Income, Veterans, and other federal benefit types. To date, more than 3.8 million benefit recipients have signed up 

for the Direct Express® card. 

The U.S. Debit Card Program has expanded to 36 separate and distinct uses by federal agencies, including uses in 

criminal investigations, Native American trust disbursements, and international student per diem reimbursements, 

since program inception in 2000. At present, the program that has delivered the largest savings to the taxpayer has 

been the Department of Transportation’s TRANServe debit card for the disbursement of federal transit subsidies 

encouraging federal workers to utilize public transportation. Since Program inception (July 2011) TRANServe has 

deployed 60,000 cards and has recouped $11.9 million in unspent funds. 

The Stored Value Card (SVC) Program is a joint program by the Departments of Treasury and Defense with major 

goals to enhance security, improve processing of financial transactions, and reduce the float loss associated with the 

coin and currency in circulation at military bases in the U.S. and overseas, on ships at sea, and at other "closed" 

Government locations around the world. SVCs reduce the high costs of securing, transporting, and accounting for 

cash. Through fiscal year 2012, SVCs have replaced more than $6 billion in cash or other paper payment mechanisms 

used in military environments. Additionally, SVCs streamline and help automate the otherwise manually intensive 

back end operations that were necessary to support cash and cash equivalents. The SVC Program has saved the 

Government more than $48 million in operating costs. 

Treasury is also exploring the feasibility of extending E-Wallet and mobile payment technology to our payments area. 

As payment technology advances, Treasury is looking to meet the expectations of citizens in how they wish to interact 

with the U.S. Government. 
Also in support of President Obama’s “Campaign to Cut Waste” across the U.S. Government, Treasury has mandated 

the IPP for all Treasury offices and bureaus. IPP will reduce Treasury’s invoice processing costs by 50 percent, saving 

approximately $7 million annually. Implementation by all Treasury bureaus will be complete by November 2012. 

OFIT estimates that adopting electronic invoicing across the U.S. Government will reduce the cost of entering 

invoices and responding to invoice inquiries by $450 million annually. In addition to Treasury, IPP currently 

supports 45 agencies, with eight additional agencies beginning implementation. The program continues to advocate 

its cloud-based shared service government-wide to improve government efficiency and cut costs for taxpayers. 

COLLECTIONS

As part of this effort to increase electronic collections, FMS has undertaken the Non-Tax Paperless Initiative (NTPI), 

aimed at moving all collections and remittances processed by FMS to electronic means, resulting in greater 

efficiencies for FMS and its agency partners and greater convenience for the public. Working with the Federal 

Reserve Banks and a consultant, cash flows (including both collections and remittances, processes, and remitter 

databases) will be analyzed to develop a transition strategy. Best practices in government and the private sector and 

emerging payment technologies (online banking, mobile payments, E-Wallets) will be investigated as part of the 

project. NTPI also will include a high-level communications strategy.

Debt Collections 

FMS collects delinquent Government and child support debt by providing centralized debt collection, oversight, and 

operational services to Federal Program Agencies (FPAs) and states pursuant to the Debt Collection Improvement Act 

of 1996 and related legislation. FMS uses two debt collection programs: Treasury Offset Program and Cross 

Servicing.

In fiscal year 2012, FMS increased debt collections by (1) repurposing the Austin Payment Center as a debt collection 

center, (2) undertaking three management and administrative reforms, which include improving the offset match 

process, improving analytic tools, and expanding Administrative Wage Garnishment, (3) enhancing the FedDebt 

system, and (4) expanding offset services by increasing debt referral, adding new debt types such as unemployment 

insurance compensation debts and expanding the usage to federal agencies and states.

Finally, FMS, in partnership with OFIT, is developing a CRS Pilot. Treasury’s long-term vision is to provide a 

centralized receivables service to federal agencies that will increase collections on current receivables and delinquent 

debt. 

Government-wide Accounting (GWA) and Reporting 

The GWA Program supports the FMS’s strategic goal to produce timely and accurate financial information that 

contributes to the improved quality of financial decision making by operating and overseeing the Government’s 

central accounting and reporting system. The GWA Program also works with FPAs to adopt uniform accounting and 

reporting standards and systems. It provides support, guidance, and training to assist FPAs in improving their 

Government-wide accounting and reporting responsibilities. The FMS collects, analyzes, and publishes Governmentwide financial information, which is used by the U.S. Government to establish fiscal and debt management policies 

and by the public and private sectors to monitor the Government’s financial status. Publications include the Daily 

Treasury Statement, the Monthly Treasury Statement, the Treasury Bulletin, the Combined Statement of the United 

States Government, and the Financial Report of the U.S. Government.