IRS offices have first choice of Service-owned excess property through the circulation of excess property lists among offices. Property Officers who maintain well-planned long-range requirements find this method of acquisition advantageous. However, before requisitioning transfers from other IRS offices, consider transportation costs as well as age, condition, rehabilitation costs, degree, and duration of need of the item.

Property that is excess to other agencies' needs can be an important acquisition source for Property Officers. Property transferred from other agencies should be carefully selected. It should not only satisfy a bona fide need but should also be acceptable in age, condition, and costs of alteration and transportation.

Regulations governing transfer of excess property are in FMR 102-36, Disposition of Excess Personal Property.

Standard Form 122, Transfer Order, Excess Personal Property, is used to acquire or transfer excess property from another federal agency or within Treasury bureaus.

The Designated Official is responsible for evaluating and disposing of tangible gifts in accordance with TD 61-04.

When the value determination of a tangible gift is more than minimal value or if a travel expense, the designated official shall forward to REFM, Logistics Management Branch, National Office, within (10) days, written documentation that includes:

In addition, each year by January 10th, REFM Logistics Management Branch prepares a consolidated list of gifts received in excess of minimal value and all travel-related expenses for the preceding year and forwards the list to the Director, Office of Asset Management, Department of the Treasury.

Decorations may be accepted, worn, or displayed by an employee with the Secretary's approval. If not approved, decorations shall be deposited with the designated official within 60 days of acceptance. The designated official will dispose of decorations in accordance with procedures outlined in the Treasury Directive.

The Internal Revenue Service Information Technology Asset Management System (ITAMS) provides a complete integration of perpetual inventory accounts with the general ledger accounts.

Property inventory coordinators shall take physical inventories of non-expendable property at regular intervals.

Property and Custodial Officers control all property and safeguard it from loss, breakage, or undue deterioration until the property is moved, on proper authority, from their jurisdiction.

National Office Criminal Investigation is responsible for control of investigative equipment. IRM 9.10.1, Criminal Investigation Equipment Control System, identifies investigative equipment, defines responsibilities, and sets forth procedures for the Investigative Equipment Program.

Property will remain in the office to which it is assigned unless the Property Officer authorizes its removal. A signed Property Pass/Custody Receipt, Form 1930, will be obtained before release of the property for repair or approved temporary use outside the office by an employee.

IRS will use personally-owned property only if:

Demonstrations and tests of equipment or other tangible items with a commercial vendor must be prearranged through the Contracting Officer in addition to the Property Officer. Prior approval of the Property Officer must be obtained to make sure that any property provided for demonstration or test is cleared to enter or exit the building.

When equipment or tangible items are to be left for demonstrations or tests, the Contracting Officer notifies the Property Officer and provides the vendor, in writing, the dates of the demonstration or test and when the equipment or tangible items are to be removed. The letter will emphasize that IRS assumes no responsibility for damage or loss of equipment unless such loss or damage is caused by the negligence of Service employees. Guidelines for Testing Equipment are contained in IRM 1.14.4.14 of this IRM.

Full consideration should be given to establishing rental agreements in lieu of free use of vendors' equipment. Such agreements should define the government's liability should damage occur because of IRS employee negligence. Coordination with procurement staff should assure that all necessary terms and conditions are included in the rental agreements.

Under no circumstances should a vendor who provides free use of equipment be given any indication that the IRS will commit to a future procurement or that the IRS endorses the product.

Property shall be rented or leased only when it is economically feasible or cost beneficial.

National Office notification is required on all proposed rentals or leases of property, other than ADP and peripheral equipment, when the annual cost exceeds $100,000.

When submitting notification to National Office on rental or lease of property, furnish the following information:

Each Property Officer will maintain capitalized rented or leased property under his/her jurisdiction on ITAMS.

Borrowing or loaning personal property must have prior approval of the Property Officer or supervisor.

Removal of property requires the approval of the responsible Property Officer and may require issuing a property pass/custody receipt for government property

Property may be temporarily loaned to or borrowed from another government agency when prior approval is obtained from the local Property Officer.

The Property Officer prepares Standard Form-122, on all property loaned to another agency. Procedures follow for preparing the SF-122:

When equipment is temporarily borrowed from another agency, any documents the lending agency provides are filed in a Borrowed Property file. The Custodial Officer files a copy of the document in his/her location file for the office using the equipment. A copy is also provided to the ITAMS Inventory Coordinator.

Any expense involved in transporting the property is assumed by the receiving office.

REFM Territory Property Officers may transfer property to or from other IRS offices or government agencies.

Where possible, the Property Officer should give priority to the following factors before making a transfer:

Under Executive Order 12999, the Computers for Learning Program allows government agencies and the private sector to transfer surplus computers and related computer peripheral equipment to schools and educational nonprofit organizations. Special consideration is to be given to those with the greatest need (those located in a Federal empowerment zone or enterprise community). Further information is available at http://www.computers.fed.gov/public/aboutProg.asp .

Standard Form 122, Transfer Order, Excess Personal Property , is used to authorize, and document transfers of property between property offices, to other bureaus in the department, to schools, and to other federal agencies. It may also be used for transfers of property between IRS offices, but its use for this requirement is optional. Each SF-122 report shall be sequentially numbered. The number will begin with TR, for Transfer Order, the Facilities Area Code, an office indicator (optional), the two digit fiscal year, and a three digit serial number, beginning with number 001 for the first report each fiscal year.

If the office elects to use the SF-122 for transfers between IRS Property Officers:

For transfers between other Treasury bureaus and federal agencies:

Prior approval of the National Office Multimedia Division is required before transfer or other disposition of printing equipment.

Transfers of computers and peripheral equipment between IRS offices is coordinated between the SPIF Units and Facilities Management Territory Office. The releasing REFM office is responsible for:

When transferring ADP equipment between IRS offices, the local Logistics Management staff or Property Officer at the shipping and receiving locations should notify the ITAMS Inventory Coordinators.

Each REFM Territory Office has access to the database for its assigned posts of duty.

Each REFM Territory Office system is permitted as many lower level (read and write permission) users as required.

System access to ITAMS is controlled at the National Office level. A National Office AWSS ITAMS Coordinator has authority to provide passwords and the type of permission access required by local users.

Passwords for access to ITAMS must be obtained from the National Office MITS Security Administrator through the National Office AWSS ITAMS Coordinator.

Users are required to complete an Online Form 5081, Authorized Information System (AIS) – User Registration/Change Request, and forward it online to the National Office ITAMS Coordinator.

The National Office AWSS ITAMS Coordinator has access to the entire Agency-wide database for review and generating Agency-wide reports.

Accountable Property: All capitalized and non-expendable property for which accountability is established in the perpetual inventory accounts and the general ledger.

Acquisition Code: Identifies how an item was acquired by the agency, e.g. purchased, leased, seized.

Acquisition Cost: The original cost to the government of an item as it is recorded in the financial and accounting records.

Acquisition Date: The date a property item was marked received by the holding agency.

Asset Type: General description or classification of a property item.

Assigned Location: Address of an IRS office that has physical custody of an asset.

Barcode: A self-contained message with information encoded in the widths of a bars and spaces in a printed pattern that is easily read and printed by machine.

Barcode Number: A unique number assigned to each property asset for identification purposes.

Building Number: A unique identifier assigned by GSA to each building occupied by IRS.

Category: A unique name assigned to an asset group for identification of the asset.

Capitalized Property: All property items that have a useful life of one year or more and a unit cost or current fair market value of $5,000 and above.

Class Code:A code used to identify an item according to its classification within a Federal Supply Classification Group.

Condition Code: A code used to identify the condition of any personal property asset.

Disposal Code: A numerical code that describes the method used for removing an asset from the inventory.

Disposal Date: The date on which the reporting office actually relinquishes accountability for an asset as it is removed from IRS premises.

Excess Property: Non-expendable property that is excess to the reporting office's needs. Includes property determined unserviceable by the property officer.

Expendable Property: All property that, when used, is consumed, loses its identity, or becomes a component part of other equipment or fixed property, e.g. pencils, paper, lead, batteries, etc.

FSC Group: A code representing a general classification of inventory items based on the GSA Federal Supply Classification system.

Function: Organization within the Service to which an asset is assigned.

Incidental Maintenance: Maintenance charges, outside of coverage provided by a contract or warranty.

Non-Expendable Property: All property assets that are counted as capitalized and not costed to operations, e.g. supplies. It is property of durable nature with a useful life of more than one year, has sufficient value to justify maintaining and continuing monetary property records, is of a nature that moderate damage results in repair rather than replacement, and generally costs $5,000 or more.

NONHR: A unique classification used to identify high-risk non-IT assets.

NONIT: A unique classification used to identify assets other than computer equipment.

Product Name: A unique name assigned to an asset within a Category group to further identify an asset.

Property Life Cycle: The tracking of the useful life of property assets, beginning with acquisition through disposal.

Reconciliation: The process of matching the physical inventory count with the recurring inventory system documentation.

Seized Property:Property acquired through the legal process of confiscation.

Source Document: The document authorizing an acquisition, transfer, or release of property accountability.

Useful Life: The average number of years an asset is considered usable before its value is fully depreciated.

Workstation: An area or mini-environment in which all personal space, equipment, and furnishings needed for a particular task have been brought together.

Data collection for ITAMS is accomplished on the local system in two ways:

Detailed instructions for operating ITAMS and creating/updating the database can be found in IRM 2.14.1, Information Technology Asset Management.

Input to the system should be done on a timely basis to ensure that all data on the system reflects the current status of all assets.

New assets should be input into the system when received and no later than ten business days after receipt at the loading dock or warehouse.

Transfers of assets from one location and/or organization within an office can also be completed with the scanner gun or at the PC. If the scanner is used, the system is not updated until the scanner is uploaded to the PC. All scanner uploads should take place as soon as possible after the completion of all transactions.

Disposition of excess property should be recorded within ITAMS as soon as, and no later than ten business days, after the assets have been physically removed from the control of the disposing office.

All data fields on the inventory record should be correct and reflect the most current information on all assets.

The useful life of an asset is that period during which the asset provides benefits. Estimates of useful life consider factors such as physical wear and tear and technological changes that bear on the economic usefulness of the asset. The useful life categories of assets is as follows:

Minimum replacement standards should be met by any office trying to replace property. Replacement standards for motor vehicles are prescribed in FMR 102-34.280. In general, all other property meets replacement criteria if it is no longer usable or economical to repair. The Useful Life standards listed above, other than motor vehicles, have been set by IRS.

ITAMS defines assets as eligible for replacement based upon two factors: condition and/or the replacement standards. Condition codes used within ITAMS are those set forth in CFR 102-36.240, "What are the disposal condition codes?" The prescribed Condition Codes are listed below:

Assets are not considered disposed of on ITAMS until they are physically removed from IRS premises through the disposal process.