Treasury Inspector General for Tax Administration

Program Summary by Budget Activity 

Dollars in Thousands 

 FY 2021 FY 2022 FY 2023 FY 2022 to FY 2023 

Budget Activity Operating Plan Annualized 

CR Request $ Change % Change 

Audits $64,851 $64,851 $67,491 $2,640 4.07% 

Investigations $105,399 $105,399 $114,918 $9,519 9.03% 

Subtotal, TIGTA $170,250 $170,250 $182,409 $12,159 7.14% 

Offsetting Collections - Reimbursable $502 $700 $700 $0 0.00% 

Unobligated Balances Brought Forward $3,729 $1,469 $1,500 $31 2.11% 

Total Program Operating Level $4,231 $2,169 $2,200 $31 1.43% 

Direct FTE 739 760 760 0 0.00% 

Reimbursable FTE 2 2 2 0 0.00% 

Total Full-time Equivalents (FTE) 741 762 762 0 0.00% 

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. 

Summary 

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. 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.” TIGTA will provide oversight in a number of critical areas 

including: 

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

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

compliance, and achieve program efficiencies and cost savings; 

 Evaluating the Internal Revenue Service’s (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; 

 Overseeing IRS efforts to implement tax law changes. Monitoring IRS efforts to timely

process taxpayer correspondence and meet customer service demands. Assessing the IRS’s 

efforts to address tax-related identity theft; 

 Protecting the integrity of the IRS by effectively investigating individuals and groups who 

victimize senior citizens, other vulnerable Americans and the international IRS 

impersonation scam; 

 Conducting advanced analytics and innovative approaches to help prevent and detect the flow 

of dollars fraudulently obtained by criminals; 
 Enhancing taxpayer confidence in electronic Federal tax systems through investigation and 

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

service portals as well as the IRS network; 

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

and misconduct, including the unauthorized disclosure of confidential taxpayer 

information by IRS employees; and 

 Conducting comprehensive audits, inspections and evaluations that provide recommendations 

for achieving monetary benefits, addressing erroneous and improper payments, and enhancing 

the service the IRS provides to taxpayers. 

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 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 Office of Inspections and Evaluations provides responsive, 

timely, and cost- effective inspections and evaluations of challenging areas in IRS programs. 

TIGTA’s oversight is essential to the efficiency and fairness of the IRS’s tax administration 

system. 

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

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

 Goal 1: Promote Equitable Economic Growth and Recovery; 

 Goal 2: Enhance National Security; 

 Goal 4: Combat Climate Change; and 

 Goal 5: Modernize Treasury Operations. 

Budget Highlights 

Treasury Inspector General for Tax Administration 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
Budget Adjustments 

Maintaining Current Levels... .................................................................+$6,619,000 / +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% in FY 2023) +$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. 

Legislative Proposals 

TIGTA has no legislative proposals. 

Performance Highlights FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 

Budget 

Activity Performance Measure Actual Actual Actual Target Target 

Audit Percentage of Audit Product Delivered When 

Promised to Stakeholders 84 79 93 70 70 

Audit

Percentage of New Audit Reports with 

Recommendations to Improve Tax 

Administration 

N/A N/A B 70 70 

Investigations 

Percentage of Closed Investigations Resulting in 

a Criminal, Administrative, or Law Enforcement 

Action 

91 92 90 85 79 

Key: N/A – Not Applicable; B – Baseline 

Description of Performance 

 For FY 2021, the Office of Audit (OA) issued 81 audit reports and other products 

identifying approximately $16.0 billion in potential financial benefits. 

 For FY 2021, the actual Percentage of Audit Products Delivered When Promised to 

Stakeholders was 93 percent. TIGTA exceeded the full-year target by 23 percentage 

points. 

 For FY 2023, OA’s performance targets are 70 percent of Audit Products Delivered When 

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

Improve Tax Administration. 

 During FY 2021, the annual inventory of investigative work increased by 14.8 percent. 

TIGTA initiated 26 investigations to detect systemic weaknesses or potential IRS program 
vulnerabilities. TIGTA processed 7,425 complaints, opened 2,700 investigations, and closed 

2,717 investigations in FY 2021. During this period, TIGTA referred 766 cases of employee 

misconduct to the IRS for action and 285 cases, of various types of investigations, were 

accepted for criminal prosecution. 

 For FY 2021, the Percentage of Closed Investigations Resulting in a Criminal, 

Administrative, or Law Enforcement Action was 90 percent, which exceeded the full-year 

target of 85 percent by five percentage points. 

 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.