Memorandum of Understanding Covering Servicing Relationships Between the Treasury Inspector General for Tax Administration (IGTA) and the Internal Revenue Service (IRS)
As a result of the IRS Restructuring and Reform Act of 1998, the Inspector General Act of 1978 was amended to create a second Treasury Inspector General (IG), the Treasury IG for Tax Administration (TIGTA) responsible for IRS. The legislation abolishes the Office of the Chief Inspector and creates the TIGTA effective January 18, 1999.
The legislation resulted in several budgetary transfers in order to create a FY 1999 budget base and a FY 2000 Congressional appropriation request for the TIGTA. Funds were moved out of the Inspection budget to cover the transfer of responsibility for the background investigation program to IRS and the creation of a Program Evaluation function within IRS. Funds were moved into the TIGTA budget to cover a 21 FTE transfer and contract audit costs from the Treasury IG and certain administrative services performed for Inspection by IRS staff.
The TIGTA budget includes full funding for salaries, benefits, rent, enforcement expenses, overtime, awards, ADP, training, travel, services and supplies, equipment, space alterations and moving expenses. In addition, IRS transferred to the TIGTA funding for the equivalent of 14 FTE. These 14 FTE represent administrative services performed by IRS staff for Inspection that were not included in the Inspection budget. Those services include procurement, accounting, budget execution and formulation, space acquisition and design, personnel action processing (including SES), recruitment, classification, employee relations and travel voucher processing.
The transfer of the dollars to the TIGTA budget of the equivalent of those 14 FTE is effective with the beginning of FY 2000. At that time, the TIGTA will use the resources to either perform those services internally or contract with a service provider, including potentially IRS. For the balance of FY 1999 from the January 18, 1999 creation date for the IGTA, IRS has agreed to provide those services to the TIGTA..
There are other services for which budgetary transfer arrangements have not been made. This occurred for a number of reasons. For telecommunications, the current billing and payment processes did not permit an adequate accounting of resources specifically devoted to Inspection. In the case of services such as building security and fitness centers, it was not practical to separate the services into a small piece belonging to the TIGTA and then set up a reimbursement system. In other cases, such as EEO complaints and OWCP programs, economies of scale dictated that the TIGTA would not want to set up its own internal systems.
Listed below are those services that IRS agrees to provide at no cost to the TIGTA until such time as a program and resource transfer is mutually agreed to by both the IRS and the Treasury Inspector General for Tax Administration.