TREASURY INSPECTOR GENERAL FOR TAX ADMINISTRATION
FIVE FAIR TAX COLLECTION PRACTICES
VIOLATIONS RESULTED IN ADMINISTRATIVE ACTIONS IN CALENDAR YEAR 2006
Issued on September 21, 2007
Highlights
Highlights of
Report Number: 2007-10-188 to the
Internal Revenue Service Chief Counsel and Chief Human Capital Officer.
IMPACT ON TAXPAYERS
The abuse or harassment of
taxpayers by Internal Revenue Service (IRS) employees while attempting to
collect taxes reflects poorly on the IRS and can have a negative impact on voluntary
tax compliance. For Calendar Year 2006,
there were five cases involving a Fair Tax Collection Practices (FTCP)
violation for which the employee received administrative disciplinary
action. However, the IRS computer system contained a
high percentage of cases that were miscoded as FTCP violations when they did
not involve these types of violations. Inaccurate data on the number of FTCP violations can impede
IRS management’s efforts to detect and correct customer service problems that
burden taxpayers.
WHY TIGTA DID THE AUDIT
Section 1102 (d)(1)(G) of the
IRS Restructuring and Reform Act of 1998 requires TIGTA to include in one of
its Semiannual Reports to Congress information regarding any administrative or
civil actions related to FTCP violations.
WHAT
TIGTA FOUND
The FTCP prohibit employees
from using abusive or harassing behavior toward taxpayers when attempting to
collect taxes. Employees who are found
to have violated the FTCP could be subject to disciplinary action. In Calendar
Year 2006, there were five cases involving an FTCP violation for which the
employee received administrative disciplinary action. Additionally, the IRS Automated Labor and Employee
Relations Tracking System, which is used to track the violations, included 26
cases that were miscoded.
TIGTA
believes the coding errors occurred because, while the labor relations staff who
work these cases must input to the Automated Labor and Employee Relations
Tracking System at least one issue code for each case, they are not required to
input all issue codes that may apply. In
addition, the distinction between unprofessional conduct and behavior that
rises to the level of an FTCP violation is not clearly explained in the
guidance provided to the labor relations staff.
No
civil actions resulted in the IRS paying monetary settlements to taxpayers
because of an FTCP violation.
WHAT TIGTA RECOMMENDED
TIGTA recommended the Chief Human
Capital Officer clarify the guidance provided to the labor relations staff to
ensure the correct issue codes, including multiple codes where appropriate, are
input to the Automated Labor and Employee Relations Tracking System and clarify
the distinction between unprofessional behavior and the types of behavior and
circumstances that rise to the level to be coded as FTCP violations. The Chief Human Capital Officer should also ensure
the issue codes for the 26 cases identified as being miscoded are corrected.
In their response to the
report, IRS officials agreed with the findings and recommendations. They have prepared a draft notice explaining
the audit results and plan to send it to the labor relations staff. They also plan to institute a quarterly
review of the FTCP issue codes as a temporary measure until validation routines
are hard coded into the Automated Labor and Employee Relations Tracking
System. Management stated the 26 cases
identified as being miscoded have been corrected. Further, management plans to validate
quarterly the FTCP issue codes input to the Automated Labor and Employee
Relations Tracking System from other systems.
READ THE
FULL REPORT
To view the report,
including the scope, methodology, and full IRS response, go to:
http://www.treas.gov/tigta/auditreports/2007reports/200710188fr.html.
Email Address: Bonnie.Heald@tigta.treas.gov
Phone Number: 202-927-7037
Web Site: http://www.tigta.gov