[Federal Register Volume 79, Number 219 (Thursday, November 13, 2014)]
[Rules and Regulations]
[Pages 67351-67352]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-26739]


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DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 801

[TD 9703]
RIN 1545-BL89


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

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Temporary and final regulations.

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SUMMARY: This document contains temporary and final regulations 
relating

[[Page 67352]]

to the IRS system for measuring organizational and employee performance 
within the IRS, by measuring customer satisfaction, employee 
satisfaction, and business results. The temporary regulation will 
eliminate the requirement that information measuring employee 
satisfaction must be reported to the first-level supervisor in addition 
to other levels throughout the organization, thus permitting the IRS to 
stop using the IRS-specific Workforce Questionnaire and, instead, use 
the same employee satisfaction survey that is used government-wide. The 
text of the temporary regulation also serves as the text of proposed 
regulation set forth in the notice of proposed rulemaking on this 
subject in the Proposed Rules section in this issue of the Federal 
Register.

DATES: Effective date: November 13, 2014.
    Applicability date: These regulations are applicable for reporting 
of employee satisfaction information within the meaning of 26 CFR 
801.5T that occurs on or after November 13, 2014.

FOR FURTHER INFORMATION CONTACT: Karen Keller, at (202) 317-5772 (not a 
toll free number).

SUPPLEMENTARY INFORMATION: 

Background

    This document amends regulations at 26 CFR Part 801 that 
implemented sections 1201 and 1204 of the Internal Revenue Service 
Restructuring and Reform Act of 1998, Public Law 105-206, 112 Stat. 
685, 713 (1998) (the Act), and provided rules relating to the 
establishment of a performance management system.

Explanation of Provision

    The temporary regulation contained in this document relates to the 
Employee Satisfaction Measure, Section 801.5. When the existing 
regulations were promulgated in 1999, the employee satisfaction measure 
incorporated the features of an existing employee satisfaction survey, 
which measured and reported the satisfaction of employees in ``pay and 
duty status'' (non-seasonal employees) to first-level supervisors and 
up through the organization. Other surveys, such as OPM's Federal 
Employee Viewpoint Survey (FEVS), which did not exist in 1999 but are 
now administered government-wide, required reporting of employee 
satisfaction data to a higher level of agency leadership than first-
level supervisors. Although the IRS began conducting the FEVS when it 
was created by OPM, the IRS modified its pre-existing survey to enable 
the continued reporting of data to first-level supervisors as required 
by the regulation. Currently, the IRS conducts both the FEVS and the 
survey that complies with Section 801.5. The administration of both 
surveys has resulted in an undue burden on employees and duplication of 
effort by the IRS. Accordingly, the temporary regulation eliminates the 
requirement to use the IRS' pre-existing survey and permits the 
reporting of employee satisfaction data from the FEVS to agency 
leadership, alleviating ``survey fatigue'' and the unnecessary 
expenditure of resources and promoting consistency between the IRS and 
other government agencies when reporting employee satisfaction 
information.
    This regulation is published as a temporary regulation to 
immediately eliminate the unnecessary requirement for the IRS to 
administer a second employee satisfaction survey in addition to FEVS. 
This temporary regulation does not affect taxpayers or taxpayer rights. 
The temporary regulation only impacts the internal operations of the 
IRS by eliminating unnecessary burden and expenditure of limited 
resources.

Special Analyses

    It has been determined that as this is not a significant regulatory 
action as defined in Executive Order 12866, as supplemented by 
Executive Order 13563, a regulatory assessment is not required, and it 
has been determined that section 553(b) of the Administrative Procedure 
Act (5 U.S.C. chapter 5) does not apply to this regulation. Because 
this regulation does not impose a collection of information on small 
entities, the provisions of the Regulatory Flexibility Act (5 U.S.C. 
chapter 6) do not apply. Pursuant to section 7805(f) of the Internal 
Revenue Code, this regulation will be submitted to the Chief Counsel 
for Advocacy of the Small Business Administration for comment on its 
impact on small businesses.

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

    Federal employees, Organization and functions (Government 
agencies).

Amendment to the Regulations

    Accordingly, 26 CFR part 801 is amended as follows:

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

0
Paragraph 1. The authority citation for Part 801 continues to read in 
part as follows:

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


0
Par. 2. Section 801.5 is revised to read as follows:


Sec.  801.5  [Reserved]. For further guidance see Sec.  801.5T.

0
Par. 3. Section 801.5T is added to read as follows:


Sec.  801.5T  Employee satisfaction measures (temporary).

    (a) The employee satisfaction numerical ratings to be given to a 
Business Operating Division (BOD) or equivalent office within the IRS 
will be determined on the basis of information gathered through various 
methods. For example, questionnaires, surveys, and other information 
gathering mechanisms may be employed to gather data regarding 
satisfaction. The information gathered will be used to measure, among 
other factors bearing upon employee satisfaction, the quality of 
supervision, and the adequacy of training and support services. All 
full and part-time permanent employees of a BOD or equivalent office 
who are in pay and duty status will have an opportunity to provide 
information regarding employee satisfaction under conditions that 
guarantee them confidentiality.
    (b) Effective date. Section 801.5T is effective on or after 
November 13, 2014 and expires on or before November 10, 2017.

John Dalrymple,
Deputy Commissioner for Services and Enforcement.
    Approved: October 14, 2014.
Mark J. Mazur,
Assistant Secretary of the Treasury (Tax Policy).
[FR Doc. 2014-26739 Filed 11-12-14; 8:45 am]
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