[Federal Register Volume 64, Number 16 (Tuesday, January 26, 1999)]
[Notices]
[Pages 4001-4004]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-1668]
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DEPARTMENT OF THE TREASURY
[Treasury Order Number 115-01]
Office of the Treasury Inspector General for Tax Administration
January 14, 1999.
By virtue of the authority vested in the Secretary of the Treasury
by 31 U.S.C. Sec. 321(b), 5 U.S.C. Sec. 301 and Sec. 302; and the
authority contained in the Inspector General Act of 1978, 5 U.S.C. App.
3 (the I.G. Act), and the Internal Revenue Service Restructuring and
Reform Act of 1998, Pub. L. 105-206, it is hereby ordered as follows.
1. Office of the Treasury Inspector for Tax Administration
a. There is within the Department of the Treasury an Office of the
Treasury Inspector General for Tax Administration (OTIGTA). The OTIGTA
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shall be headed by an Inspector General who is appointed by the
President and who shall report to and be under the general supervision
of the Secretary of the Treasury and the Deputy Secretary.
b. The Treasury Inspector General for Tax Administration (TIGTA)
shall exercise all duties and responsibilities of an Inspector General
with respect to the Department and the Secretary on all matters
relating to the Internal Revenue Service (IRS). The TIGTA shall have
sole authority under the I.G. Act to conduct an audit or investigation
of the IRS Oversight Board, and the Office of Chief Counsel of the IRS
(Office of Chief Counsel). (Hereafter the IRS Oversight Board and the
Office of Chief Counsel are referred to as the ``Related Entities''.)
All the powers and responsibilities of the IRS Office of Chief
Inspector, except for the conducting of background checks and the
providing of physical security, are transferred to the TIGTA.
c. The OTIGTA shall be placed organizationally within the
Departmental Offices but shall be independent of the Departmental
Offices and all other offices and bureaus within the Department.
d. It shall be the duty and responsibility of the TIGTA to:
(1) Provide policy direction for, and conduct, supervise, and
coordinate audits and investigations relating to the programs and
operations of the IRS and Related Entities;
(2) Review existing and proposed legislation and regulations
relating to the programs and operations of the IRS and Related
Entities, and make recommendations in the semiannual reports required
by Sec. 5(a) of the I.G. Act concerning the impact of such legislation
and regulations on the economy and efficiency in the administration of
programs and operations administered or financed by the IRS and Related
Entities or the prevention and detection of fraud and abuse in such
programs and operations;
(3) Recommend policies for, and conduct, supervise, or coordinate
other activities carried out or financed by the IRS and Related
Entities for the purpose of promoting economy and efficiency in the
administration of, or preventing and detecting fraud and abuse in,
their programs and operations;
(4) Recommend policies for, and conduct, supervise, or coordinate
relationships between the IRS and Related Entities and other Federal
agencies, State and local governmental agencies, and non-governmental
entities with respect to all matters relating to the promotion of
economy and efficiency in administration of, or the prevention and
detection of fraud and abuse in, the programs and operations
administered or financed by the IRS and Related Entities; or the
identification and prosecution of participants in such fraud or abuse;
(5) Recommend actions to resolve fraud and other serious problems,
abuses and deficiencies in the programs and operations of the IRS and
Related Entities; and inform the Secretary and the Congress, fully and
currently, of these problems and the progress made resolving these
problems; and,
(6) Protect the IRS and Related Entities against external attempts
to corrupt or threaten their employees except that the TIGTA shall not,
with respect to employees of the IRS and Related Entities, conduct
background checks or provide physical security.
e. The duties and responsibilities described in paragraph 1.d.
shall not be construed to impair or reduce the responsibilities of
program managers in the IRS and Related Entities to ensure that
programs are administered in an economic and efficient manner and that
such programs are protected against waste, fraud and abuse. Similarly,
paragraph 1.d. shall not be construed to prevent program managers in
the IRS and Related Entities from coordinating with other agencies in
fulfilling the managers' responsibilities for proper administration of
programs.
f. An audit or investigation conducted by the TIGTA shall not
affect the final decision of the Secretary or his delegate under 26
U.S.C. Sec. 6406.
g. The TIGTA shall not assume responsibility for any program
operating responsibility of the IRS or Related Entities.
2. Audit and Investigative Matters
a. In executing the functions of an Inspector General, the TIGTA is
authorized to:
(1) Access return and return information, as defined in 26 U.S.C.
Sec. 6103(b), only in accordance with the provisions of 26 U.S.C.
Sec. 6103 and the I.G. Act;
(2) Access all facilities of the IRS and Related Entities,
including computer facilities and computer rooms, electronic data bases
and files, electronic and paper records, reports and documents, and
other material available to the IRS and Related Entities which relate
to their programs and operations; and, when access is necessary to
execute a function of the TIGTA pertaining to a matter within the
jurisdiction of the TIGTA, all similar facilities throughout the
Department.
(3) Make such investigations and reports relating to the
administration of the programs and operations of the IRS and Related
Entities as are, in the judgment of the TIGTA, necessary or desirable;
(4) Request such information or assistance as may be necessary for
carrying out the duties and responsibilities provided by the I.G. Act
from any Federal, State, or local government agency or unit thereof;
(5) Require by subpoena the production of all information,
documents, reports, answers, records, accounts, papers, and other data
and documentary evidence necessary in the performance of functions
assigned by the I.G. Act, which subpoena, in the case of contumacy or
refusal to obey, shall be enforceable by order of any appropriate U.S.
district court: provided, that procedures other than subpoenas shall be
used by the TIGTA to obtain documents and information from Federal
agencies;
(6) Administer to or take from any person an oath, affirmation, or
affidavit whenever necessary for the performance of TIGTA functions,
which oath, affirmation, or affidavit when administered or taken by or
before a OTIGTA employee designated by the TIGTA shall have the same
force and effect as if administered or taken by or before an officer
having a seal;
(7) Enforce criminal provisions of the internal revenue laws, other
criminal provisions of law relating to internal revenue for the
enforcement of which the Secretary is responsible, or any other law for
which the Secretary has delegated investigative authority to the IRS
pursuant to section 8D(k)(1)(A) of the I.G. Act. The TIGTA and the
Commissioner of the IRS (Commissioner) will establish policies and
procedures to ensure that the TIGTA's and the Commissioner's
responsibilities to investigate alleged offenses under the internal
revenue laws and related statutes are delineated clearly;
(8) Carry firearms, and perform the following functions set out in
26 U.S.C. Sec. 7608(b)(2):
(a) Execute and serve search warrants and arrest warrants, and
serve subpoenas and summonses issued under the authority of the United
States;
(b) Make arrests without warrant for any offense against the United
States relating to the internal revenue laws committed in the OTIGTA
employee's presence, or for any felony cognizable under such laws if
there are reasonable grounds to believe that the person to be arrested
has committed or is committing any such felony; and,
(c) Make seizures of property subject to forfeiture under the
internal revenue laws;
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(9) Report any reasonable grounds believed to be a violation of
Federal criminal law to the Attorney General of the United States in
accordance with sections 4(d) and 8D(k)(2) of the I.G. Act, subject to
26 U.S.C. Sec. 6103;
(10) Investigate violations of 31 U.S.C. Sec. 333 involving the
misuse of the name or symbol of the IRS; the title of any IRS employee;
the name or symbol of the Department of the Treasury in connection with
internal revenue laws; or the title of any Treasury employee in
connection with the activities of the IRS and Related Entities;
(11) Make determinations and issue orders, pursuant to 18 U.S.C.
Sec. 6001-Sec. 6005, with the approval of the Attorney General, to
compel the testimony under a grant of immunity of any individual who
has been or may be called to testify or provide information at any
proceeding before the IRS which such individual refuses to give or
provide on the basis of the individual's privilege against self-
incrimination; and,
(12) Use the investigative, seizure and forfeiture authority under
the Money Laundering and Control Act of 1986, 18 U.S.C. Sec. 1956-
Sec. 1957, where the underlying conduct is subject to investigation
under the I.G. Act.
b. The TIGTA shall provide or arrange for audit services for
contracts awarded by the IRS and Related Entities.
c. The TIGTA shall receive, investigate and prepare final
investigative reports for the Secretary or his designate on matters
referred to the Department by the Office of Special Counsel regarding
allegations of prohibited personnel practices related to personnel of
the IRS and Related Entities.
3. Other Matters
a. The TIGTA is authorized to select, appoint, and employ such
officers and employees as may be necessary for carrying out the
functions, powers, and duties of the OTIGTA subject to the provisions
of Title 5, U.S.C., governing appointments in the competitive service,
and the provisions of chapter 51 and subchapter III of chapter 53 of
such title relating to classification and General Schedule pay rates.
b. The TIGTA may exercise any and all administrative functions
attendant upon this personnel authority except those authorities and
functions assigned by law to the Secretary which may not be delegated.
c. The TIGTA is authorized to exercise all authorities granted to
an ``appointing authority'' pursuant to Title 5, U.S.C. as those
authorities pertain to SES members or positions which are or would be
within the OTIGTA. With regard to authorities accorded by law to the
Department or the Secretary that pertain to SES members or positions,
the TIGTA shall be under the general supervision of the Secretary and
the Deputy Secretary and no other Departmental official.
d. The TIGTA is authorized to obtain services as authorized by 5
U.S.C. Sec. 3109 at daily rates not to exceed the highest rate
prescribed in the General Schedule by 5 U.S.C. Sec. 5332.
e. Each fiscal year, the TIGTA shall submit to the Secretary a
request for a separate appropriation account as contemplated by 31
U.S.C. Sec. 1105(a)(25). The staffing and funding level transmitted to
Office of Management and Budget for the TIGTA shall be subject to final
determination by the Secretary or the Deputy Secretary.
f. To the extent and in such amounts as may be provided in advance
by appropriations Acts, the TIGTA may enter into contracts and other
arrangements for audits, studies, analyses, and other services, and
make such payments as may be necessary to carry out the TIGTA's
mission.
g. The TIGTA shall take all appropriate actions in response to a
recommendation by the Office of Special Counsel with respect to TIGTA
employees.
h. The TIGTA shall issue final decisions on administrative appeals
under 5 U.S.C. Sec. 552 and Sec. 552a with respect to records that are
within the custody of the OTIGTA.
i. The Secretary shall provide the TIGTA with adequate and
appropriate office space at the Departmental Offices, IRS headquarters
and IRS field office locations, together with such equipment, office
supplies, communications facilities and services necessary for the
effective operation of such offices, and will ensure necessary
maintenance services for such offices, equipment, and facilities.
j. Pursuant to section 8D(b)(3) of the I.G. Act, the Inspector
General of the Department of the Treasury and the TIGTA, within six
months of the appointment of the TIGTA, shall develop procedures to:
(1) Determine how audits and investigations are allocated in cases
of overlapping jurisdiction; and
(2) Provide for coordination, cooperation and efficiency in the
conduct of such audits and investigations.
4. TIGTA Reporting Requirements
a. Pursuant to Sec. 5(a) of the I.G. Act, the TIGTA shall, no later
than April 30 and October 31 of each year, prepare semiannual reports
for the Secretary to transmit to Congress.
(1) Such reports shall summarize the activities of the OTIGTA
during the immediately preceding six-month periods ending March 31 and
September 30.
(2) In addition to including the information described in Sec. 5(a)
of the I.G. Act, the semiannual reports shall contain information to
fulfill the additional reporting requirements contained in 26 U.S.C.
Sec. 7803(d).
b. In the event that the TIGTA becomes aware of a particularly
serious or flagrant problem, abuse or deficiency relating to the
administration of programs and operations of the IRS or Related
Entities, the TIGTA, pursuant to Sec. 5(d) of the I.G. Act, shall
report immediately to the Secretary or the Deputy Secretary.
(1) Such report shall be transmitted to the appropriate committees
or subcommittees of Congress, the Commissioner, and the IRS Oversight
Board (Board) within seven calendar days, together with a report from
the Secretary containing any comments the Secretary deems appropriate.
(2) The required report may be transmitted at a time determined
appropriate by the Secretary if the problem, abuse, or deficiency
relates to the performance of a law enforcement function under
Sec. 8D(k)(1)(A) of the I.G. Act, and other sensitive information as
described in Sec. 8D(a)(1)(A) through (F) of the I.G. Act.
c. In addition to these reporting requirements, the TIGTA, pursuant
to Sec. 8D(l)(2) of the I.G. Act, shall:
(1) Timely submit to the Commissioner and the Board any final
report of audit conducted by the TIGTA; and,
(2) Periodically submit to the Commissioner and the Board a list of
investigations for which a final report has been completed, and shall
provide, upon request, a copy of any such report to the Commissioner or
the Board.
d. Pursuant to 26 U.S.C. Sec. 6103(h)(5)(B), if the TIGTA or the
Commissioner prepares any report or other matter for the Board in order
to assist the Board in carrying out its duties, and the TIGTA or the
Commissioner determines it is necessary to include any return or return
information in such report or other matter to enable the Board to carry
such duties, such return or return information (other than information
regarding taxpayer identity) may be disclosed to members, employees, or
detailees of the Board solely for the purpose of carrying out the
Board's official duties.
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e. Pursuant to Executive Order No. 12863, September 13, 1993, and
No. 12333, December 4, 1981, the TIGTA, together with the General
Counsel, to the extent permitted by law, shall report to the
President's Intelligence Oversight Board concerning intelligence
activities of the IRS and Related Entities where there is reason to
believe the activities may be unlawful or contrary to Executive Order
or Presidential Directive.
5. Responsibilities of Department of Treasury Personnel
a. All employees of the Department of the Treasury, including IRS
and Office of Chief Counsel personnel, and members and staff of the
Board, shall promptly and directly report to the OTIGTA, on matters
under TIGTA authority:
(1) Complaints or information concerning the possible existence of
any activity related to the IRS or Related Entities that constitutes a
violation of law, including bribery overtures, or any other corrupt or
threatening action to the extent it is within the TIGTA's jurisdiction;
(2) Complaints or information related to programs and operations of
IRS or Related Entities concerning mismanagement; gross waste of funds;
abuse of authority or violation of a taxpayer's rights; violations of
regulations, including ethics regulations; or a substantial and
specific danger to the public health and safety;
(3) Any unauthorized request from, or unauthorized disclosure of
return or return information to, Board members, employees or detailees,
which is prohibited by 26 U.S.C. Sec. 6103(h)(5)(A);
(4) Any unlawful request by the President, Vice President,
employees of the executive offices of either the President or Vice
President, or any individual (except the Attorney General) serving in a
position specified in 5 U.S.C. Sec. 5312 (generally Cabinet level
positions), that any IRS employee conduct or terminate an audit or
other investigation of any particular taxpayer with respect to the tax
liability of such taxpayer, which is prohibited by 26 U.S.C. Sec. 7217;
and,
(5) Any matters that raise questions of propriety or legality under
Executive Orders 12863 and 12333 regarding the conduct of United States
intelligence activities with respect to IRS and Related Entities
programs and operations.
b. Any employee of the Department of the Treasury, who has
authority to take, direct others to take, recommend, or approve any
personnel action, shall not, with respect to such authority, take or
threaten to take any action against any employee as a reprisal for
making a complaint or disclosing information to the TIGTA, unless the
complaint was made or the information disclosed with the knowledge that
it was false or with willful disregard for its truth or falsity.
c. No employee of the Department of the Treasury shall prevent or
prohibit the TIGTA from initiating, carrying out, or completing any
audit or investigation of a matter within the jurisdiction of the
TIGTA, or from issuing any subpoena during the course of any such audit
or investigation.
d. In carrying out their official duties, OTIGTA personnel shall
have the full cooperation of employees of the Department of the
Treasury and shall have full and prompt access to facilities, property,
electronic or paper records, documents, correspondence, data, and
computer systems, as such access is defined in paragraph 2.a.(2) of
this Order.
e. Employees of the Department of the Treasury shall maintain in
confidence all communications with OTIGTA employees when requested to
do so, unless required or permitted by law to disclose, and shall not
discuss any pending OTIGTA investigation with the subject(s) of the
investigation or the subject's representatives unless required or
permitted by law.
6. Responsibilities of OTIGTA Personnel
a. Whenever information or assistance requested under paragraphs
2.a.(1), 2.a.(2) or 2.a.(4) of this Treasury Order is, in the judgment
of the TIGTA, unreasonably refused or not provided, the TIGTA shall
report the circumstances to the Secretary or Deputy Secretary without
delay.
b. Employees of the OTIGTA shall not, after receipt of a complaint
or information from an employee, disclose the identity of the employee
without the consent of the employee, unless the TIGTA determines such
disclosure is unavoidable during the course of an investigation.
c. Employees of the OTIGTA shall safeguard information in
accordance with 26 U.S. C. Sec. 6103(p)(4) and other applicable laws.
7. Conforming Amendments
a. Any authority or responsibility currently delegated to the
Inspector General of the Department of the Treasury in Treasury Order
101-19, dated October 24, 1994; Treasury Order 101-21, dated July 7,
1997; Treasury Order 102-13, dated January 19, 1993; Treasury Order
102-19, dated March 19, 1998; Treasury Order 105-13, dated February 19,
1997; Treasury Order 107-05, dated March 2, 1995; and Treasury Order
150-29, dated November 23, 1982, is also delegated to the TIGTA until
the listed Treasury Order is canceled or a successor Treasury Order is
issued.
b. The TIGTA is designated a ``Head of Bureau'' and is authorized,
with respect to the operations of the TIGTA, to exercise the functions
delegated from the Secretary to the ``Head of Bureau'' in Treasury
Order 101-06, dated July 7, 1980; Treasury Order 101-12, dated December
19, 1955; and Treasury Order 101-14, dated October 24, 1960, until the
listed Treasury Order is canceled or a successor Treasury Order is
issued.
c. The TIGTA may issue additional directives, delegations or
regulations regarding the operations of the OTIGTA as the TIGTA deems
appropriate.
8. Sunset Review
This Order shall be reviewed five years from the date of issuance
unless superseded or canceled prior to that date.
Robert E. Rubin,
Secretary of the Treasury.
[FR Doc. 99-1668 Filed 1-25-99; 8:45 am]
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