Fiscal Year 2017 Statutory Audit of Compliance With Legal Guidelines Restricting the Use of Records of Tax Enforcement Results


 

TREASURY INSPECTOR GENERAL FOR TAX ADMINISTRATION

Office of Audit

Fiscal Year 2017 Statutory Audit of Compliance With Legal Guidelines Restricting the Use of Records of Tax Enforcement Results

Final Report Issued on September 5, 2017

Highlights

Highlights of Reference Number:  2017-30-071 to the Internal Revenue Service Deputy Commissioner for Operations Support.

IMPACT ON TAXPAYERS

The IRS Restructuring and Reform Act of 1998 (RRA 98) requires the IRS to ensure that managers do not evaluate enforcement employees using any record of tax enforcement results (ROTER) or base employee successes on meeting ROTER goals or quotas.  Use of ROTERs may create the misperception that safeguarding taxpayer rights is secondary to IRS enforcement results.

WHY TIGTA DID THE AUDIT

TIGTA is required under Internal Revenue Code Section 7803(d)(1) to annually determine whether the IRS complied with restrictions on the use of enforcement statistics to evaluate employees as set forth in RRA 98 Section 1204.

WHAT TIGTA FOUND

TIGTA found instances of noncompliance with RRA 98 Section 1204 requirements.  TIGTA identified instances of noncompliance with each of the following subsections of the law:

·       Section 1204(a) – five potential violations in which an IRS manager used a ROTER to evaluate an employee and/or suggest a production quota or goal.

·       Section 1204(b) – eight instances of noncompliance in which six IRS managers either failed to maintain the retention standard documentation or ensure that it was appropriately signed and/or dated.

·       Section 1204(c) – 12 instances of noncompliance in which seven IRS managers did not properly certify in writing to the IRS Commissioner or provide documentation as to whether ROTERs and/or production quotas or goals were used in a prohibited manner.

TIGTA also identified four Code of Federal Regulations § 430.206 policy violations in which pertinent documents pertaining to Section 1204(b) were not signed and/or dated within the rating period and five Internal Revenue Manual policy violations in which Section 1204 managers' and employees' self‑assessments contained at least one ROTER and were not returned to the employee for the removal of the ROTER.

TIGTA also noted that 11 managers were missing from the Fiscal Year 2016 Section 1204 employee and manager listing and that a total of 231 employees and managers did not timely complete the mandatory Section 1204 training.

WHAT TIGTA RECOMMENDED

TIGTA recommended that the IRS ensure that:  potential RRA 98 Section 1204(a), (b), and (c) violations, documentation requirements, and noncompliance related to self-assessments identified in this report are discussed with the responsible managers and employees; managers identified in this report are notified to properly designate their employees and/or themselves as Section 1204 personnel; and the mandatory Section 1204 briefing includes examples of tax enforcement results or prohibited data directly on the slides.

In response to the report, the IRS agreed with all seven recommendations; however, management did not address part of recommendation six to ensure that the managers identified in this report are notified to properly designate their employees and/or themselves as Section 1204 personnel within HR Connect.

READ THE FULL REPORT

To view the report, including the scope, methodology, and full IRS response, go to:

https://www.treasury.gov/tigta/auditreports/2017reports/201730071fr.pdf.

 

 

 

 


 

This email was sent to cetinkayaadem.1021@blogger.com using GovDelivery Communications Cloud on behalf of: Treasury Inspector General for Tax Administration · 1125 15th St NW · Washington, DC 20005 · (800) 366-4484 GovDelivery logo

We work across the world

From London to San Francisco, to our home base in (Saint Helier) Jersey, we’re looking for extraordinary and creative scientists to help us drive the field forward.

AC Investment Inc. currently does not act as an equities executing broker or route orders containing equities securities. If AC Invest’s business model were to change and it begins routing non-directed orders in NMS securities, it will comply with the disclosure requirement of Rule 606.

77 Massachusetts Avenue Cambridge, MA 02139 617-253-1000 pr@ademcetinkaya.com