[Federal Register Volume 73, Number 199 (Tuesday, October 14, 2008)]
[Rules and Regulations]
[Pages 60627-60628]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-24335]


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DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 801

[TD 9426]
RIN 1545-BE45


Balanced System for Measuring Organizational and Employee 
Performance Within the Internal Revenue Service

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Final regulations.

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[[Page 60628]]

SUMMARY: This document contains final regulations relating to the 
modification of regulations governing the IRS Balanced System for 
Measuring Organizational and Employee Performance. These regulations 
affect internal operations of the IRS and the systems that the agency 
employs to evaluate the performance of organizations within the IRS and 
individuals employed by the IRS.

DATES: Effective date. These regulations are effective on October 14, 
2008. Applicability date. For dates of applicability, see Sec.  801.8.

FOR FURTHER INFORMATION CONTACT: Neil Worden, (202) 927-0900.

SUPPLEMENTARY INFORMATION:

Background

    On October 17, 2005, the IRS published in the Federal Register 
proposed regulations (REG-114444-05) at 70 FR 60256 and final and 
temporary regulations (TD 9227) at 70 FR 60214 amending 26 CFR part 
801. One written comment was received. No public hearing was requested. 
This document adopts, without modification, the proposed regulations as 
final regulations.

Summary of Comments

    The commentator suggested that modification of the regulation was 
not needed. The commentator further suggested that the Quantity measure 
``number of cases closed'' should never be used to evaluate IRS 
employees or suggest goals. The amendment of Part 801 retains the 
absolute prohibition on the use of quantity data to evaluate non-
supervisory employees who exercise judgment with respect to tax 
enforcement results. The amendment allows communicating the quantity 
goals of an organizational unit with employees, including quantity 
expectations, such as the average number of case closures needed to 
meet the unit's goal. These communications must recognize that the 
facts and circumstances of each case will affect an employee's actual 
closures, and that the employee is not being given a quota which must 
be met. Accordingly, the commentator's suggestion was not adopted.
    In addition, the inclusion of some outcome-neutral production data 
as examples of quantity measures (for example, cycle time and number or 
percentage of overage cases) (Sec.  801.6(c)) does not preclude an 
organizational unit's use of this or other outcome-neutral production 
data as quality measures.

Special Analyses

    It has been determined that this Treasury decision is not a 
significant regulatory action as defined in Executive Order 12866. 
Therefore, a regulatory assessment is not required. It also has been 
determined that the section 553(b) of the Administrative Procedure Act 
(5 U.S.C. chapter 5) does not apply to these regulations, and because 
the regulation does not impose a collection of information on small 
entities, the Regulatory Flexibility Act (5 U.S.C. chapter 6) does not 
apply. Pursuant to section 7805(f) of the Internal Revenue Code, the 
notice of proposed rulemaking preceding these regulations was submitted 
to the Chief Counsel for Advocacy of the Small Business Administration 
for comment on its impact on small business.

Drafting Information

    The principal author of these regulations is Karen F. Keller, 
Office of Associate Chief Counsel (General Legal Services). However, 
other personnel from the IRS participated in their development.

List of Subjects in 26 CFR part 801

    Organization and functions (Government agencies), Federal 
employees.

Adoption of Amendments to the Regulations

0
Accordingly, 26 CFR Part 801 is amended as follows:
0
Paragraph 1. The authority citation for Part 801 continues to read in 
part as follows:

    Authority: 5 U.S.C. 9501 * * *

PART 801--BALANCED SYSTEM FOR MEASURING ORGANIZATIONAL AND EMPLOYEE 
PERFORMANCE WITHIN THE INTERNAL REVENUE SERVICE


Sec. Sec.  801.1 through 801.7  [Removed]

0
Par. 2. The center heading and Sec. Sec.  801.1, 801.2, 801.3, 801.4, 
801.5, 801.6, and 801.7 are removed.


Sec. Sec.  801.1T through 801.8T  [Redesignated as Sec. Sec.  801.1 
through 801.8]

0
Par. 3. The center heading preceding Sec.  801.1T is removed.
0
Par. 4. Sections 801.1T, 801.2T, 801.3T, 801.4T, 801.5T, 801.6T, 
801.7T, and 801.8T are redesignated as Sec. Sec.  801.1, 801.2, 801.3, 
801.4, 801.5, 801.6, 801.7, and 801.8 and the language ``T'' following 
the section number and ``(temporary)'' is removed from each section 
heading, respectively.


Sec.  801.1  [Amended]

0
Par. 5. Newly designated Sec.  801.1(a) is amended by removing the 
language ``(Pub. L. 105-106, 112 Stat. 685, 715-716, 722)'' and adding 
the language ``(Pub. L. 105-106, 112 Stat. 685, 715-716, 722)'' in its 
place.


Sec.  801.2  [Amended]

0
Par. 6. Newly designated Sec.  801.2 is amended by removing the 
language ``Pub. L. 104-106, 110 Stat. 186, 679); the Government 
Performance and Results Act of 1993 (Pub. L. 103-62, 107 Stat. 285); 
and the Chief Financial Officers Act of 1990 (Pub. L. 101-576, 108 
Stat. 2838)'' and adding the language ``(Pub. L. 104-106, 110 Stat. 
186, 679); the Government Performance and Results Act of 1993 (Pub. L. 
103-62, 107 Stat. 285); and the Chief Financial Officers Act of 1990 
(Pub. L. 101-576, 108 Stat. 2838)'' in its place.


Sec.  801.3  [Amended]

0
Par. 7. Newly designated Sec.  801.3(e)(1) and (e)(3) is amended by 
removing the language ``Sec.  801.6T'' in each location and adding the 
language ``801.6'' in its place.


Sec.  801.7  [Amended]

0
Par. 8. Newly designated Sec.  801.7(a) introductory text is amended by 
removing the language ``Sec.  801.3T'' and adding the language ``Sec.  
801.3'' in its place.

0
Par. 9. New designated Sec.  801.8 is revised to read as follows:


Sec.  801.8  Effective/applicability dates.

    The provisions of Sec. Sec.  801.1 through 801.7 apply on or after 
October 17, 2005.

    Approved: October 7, 2008.
Linda E. Stiff,
Deputy Commissioner for Services and Enforcement.
Eric Solomon,
Assistant Secretary of the Treasury (Tax Policy).
 [FR Doc. E8-24335 Filed 10-10-08; 8:45 am]
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