1.33.4  Financial Operating Guidelines (Cont. 1) 
Operating Procedures 
Chief Financial Officer Servicewide Procedures  (08-28-2006)
Labor Projections and Charging Labor Cost

  1. Labor costs are the single largest portion of the IRS budget, making up roughly 70% of direct appropriations. Financial Plan Managers must therefore use labor projections to project and monitor current fiscal year requirements.  (12-16-2014)
Labor Projections

  1. During budget execution, FPMs must monitor their labor costs regularly using the IFS 3YRF. All FPMs will input their hiring, attrition, and any other assumptions specific to their financial plan in the module on a regular basis. Additionally, FPMs must provide their other-than-full-time permanent staff plan data to CB as needed.

  2. Formal labor reviews are scheduled as part of the financial review process. See IRM, Financial Reviews. Corporate Budget will use 3YRF data to report on staffing levels and to make labor projections. Corporate Budget will perform labor analyses to ensure that funds are allocated appropriately. More specifics are included in the current 3YRF Labor Analysis Guidelines, found on the Business Warehouse & Business Planning/Simulation website.

  3. Corporate Budget arranges 3YRF training throughout the year for the BUs. Additionally, the BPS Team posts news and resources on the Business Warehouse & Business Planning/Simulation website.  (12-16-2014)
Charging Labor Costs, General

  1. Labor costs are generally obligated to functional areas based on the cost center where the employee is currently assigned organizationally. The cost center is based on the Totally Automated Personnel System (TAPS) organizational segment ("org seg" ) code. When employees perform work in a functional area or on an IOC other than the one where they are currently assigned organizationally, their time should be charged to the functional area or IOC where the work is performed. However, because adjustments to time charging require significant key entry and are highly susceptible to error, each FPM must choose an approach to time charging that balances timeliness, burden, and accuracy.

  2. As the primary approach to time charging, FPMs should generally leave time charged to the home cost center, as long as the data will be reasonably accurate.

  3. Financial Plan Managers should use direct charging (Iine-by-Iine accounting) only for a few defined needs, especially capturing work on IOCs and detail assignments through the Single Entry Time Reporting (SETR) system.

  4. Financial Plan Managers should use indirect charging for limited needs; e.g., Counsel's activities, EITC charging, and customer education and outreach work done by Tax Exempt & Government Entities revenue agents. Other needs may be permissible as well. The emphasis should be on the need for reasonably accurate data, making indirect charging of small amounts unnecessary. As with all document entry, ensure proper documentation to justify the entries into IFS. Indirect charging is done in IFS by using transaction code FV50, Park G/L Account Document, with document type EV (Expense Voucher), the IFS document type for correcting and transferring expenditures.

  5. Gaining and losing organizations are both responsible for using correct accounting codes when there is a delay in the release of employees to a different organization code or where there is a delay in the processing of an SF 52, Personnel Action Request, for an employee reassigned to a different organization code.  (12-16-2014)
Charging Labor Costs, Details and Temporary Promotions

  1. A detail or detail assignment is defined, for financial purposes, as any assignment to work outside the home cost center and/or functional area, for a specified period of time with a minimum duration of one pay period, when the employee is expected to return to his or her regular duties at the end of the assignment.

  2. All details must be charged to the correct functional area through timekeeping, unless an SF 52, Personnel Action Request, is prepared, which automatically points the charges and the on-rolls to the new receiving cost center and functional area. The correct activity is the functional area representing the work being done. If, for some reason, the receiving office is not funding the detail, the employee's manager must coordinate with the servicing budget office to coordinate charging the employee's time to their home cost center, and must charge it to the correct functional area. The overriding principle is that FPMs must charge time correctly by functional area to avoid statutory violations of appropriation law.

  3. When an employee is detailed and no Personnel Action Request is completed (i.e., same-grade detail), either the "D" (Detail) code or the "U" (User Funded) code can be selected as an override to the generated accounting code so the charges are directed to the function where the work is being performed.


    At no time should the "S" (SETR Generated) code be manually entered in the 13th position of the accounting code. This is strictly a "SETR" or "System" generated code. When entered manually, SETR does not detect that an override is necessary and will use the prior-stored accounting code which is usually the accounting code of the employee’s permanently assigned organization code - not the code where the work is being performed.


    Because details of on rolls do not move when we use the "D" or "U" code in timekeeping, on-roll-based labor projections, especially 3YRF projections, should be adjusted to account for details.

  4. When a detail involves a temporary promotion, the on-roll moves to the organization that is doing the promotion, so it's important to know when the temporary promotion will end, since the 3YRF will continue to assume the person stays in the promoting organization. The Human Resources Reporting Center can be used to determine the ending date of the temporary promotion. See Secured Business Unit Sites, Employee Data Reports, NTE Report-TIMIS and TAPS.

  5. Each BU should establish a control point at a high level within the organization (e.g., branch, division, or operation) to keep a log of all employees authorized to be on one of these codes and the expected duration. Follow up as necessary to ensure that the code is removed when no longer applicable.  (01-15-2008)
FTE Utilization Policies

  1. FTE allocations are maintained in IFS Budget Version 999 (see IRM, Integrated Financial System Version Descriptions).

  2. Financial Plan Managers should ensure FTEs are fully funded with labor and non-labor resources. In particular, each Financial Plan’s labor funding (specifically, Commitment Items 11SP, 11ST and 12LA in IFS version V1) must support the number of FTEs in the Financial Plan (version V999) at all times. When funding transfers are made, FTE adjustments must be made to retain this balance between FTEs and labor.

  3. Financial Plan Managers are responsible for their FTE resources, although systemically they need Corporate Budget's assistance to change the total FTE number in IFS (see IRM, Changing FTEs in IFS). Financial Plan Managers are allowed to "drown" surplus FTEs (that is, reduce FTE allocations) from the Financial Plan, to create additional FTEs, and to convert between Other Than Full-Time Permanent FTEs and Full-Time Permanent FTEs, as needed to maintain balance. These actions are permitted as long as sufficient labor and non-labor funds are available to support the FTEs, and they do not adversely impact accomplishment of the Strategy and Program Plan. See the hiring guidance in the next section.  (12-16-2014)
Changing FTEs in IFS

  1. To remove, add, or restore previously removed FTEs in IFS, the FPM must ask the CB BU analyst to make the adjustment.

  2. Corporate Budget BU analysts adjust FTEs in IFS Budget Version 999 at the AUTH level with a FMBB document. Commitment Items begin with ZPM for Permanent FTEs and ZTM for other-than-full-time permanent FTEs followed by two digits representing the activity type. Generally, the transfer should use commitment items ZPM32 for full-time permanent FTE and ZTM29 for other-than-full-time permanent.

  3. Systemically, FTEs cannot be transferred in IFS between funds. Rather, each fund is treated individually with an increase or decrease. The FPM may contact the CB BU analyst to request the increase and related decrease.

  4. These actions are permitted as long as sufficient labor and non-labor funds are available to support the FTEs, and they do not adversely impact accomplishment of the Strategy and Program Plan. See IRM, Hiring for guidance.  (08-28-2006)
Personnel Issues

  1. Budgetary guidance is warranted for certain personnel issues.  (12-16-2014)
Hardship Relocations

  1. The IRS hardship relocation guidelines are delineated in Article 15 of the 2012 National Agreement II between the IRS and National Treasury Employees Union. A basic tenet of the IRS hardship relocation policy is that there is work to be performed, now and in the future, in the geographic area to which an employee has requested a hardship relocation, and there must be a vacancy that management intends to fill. There will be no transfer of funds or FTEs to support approved hardship relocations. The 2012 National Agreement II is on the Human Capital Office’s (HCO) Labor & Employee Relations website, under National Agreement.  (04-16-2010)

  1. Financial Plan Managers can process internal and external hiring actions as long as they have adequate labor resources and FTEs in the current fiscal year, and hiring will not impact their budget for the following year as defined by the President’s Budget (excluding initiatives). See IRM, Managing within Resource Availability

  2. The CFO uses 3-Year Rolling Forecast data to report on staffing levels and to make labor projections. Financial Plan Managers must use the 3YRF to input their planned hiring, attrition, and any BU-specific assumptions for Labor Reviews (see IRM, Labor Reviews).

  3. Corporate Budget will work with Business Units to analyze the maximum year-end staffing capacity and affordability, based on expected budget levels, hiring plans, and attrition.

  4. Hiring plans are also reported in Staffing Level reports (see IRM, Staffing Level Reports - Positions and FTEs, and in PeopleTrak.  (12-16-2014)
Staffing Level Reports - Positions and FTEs

  1. Financial Plan Managers are responsible for developing staffing plans to achieve the goals in the budget. Financial Plan Managers update the 3YRF with full-time perm hiring plans and attrition projections by pay period and employment category. Corporate Budget uses this information and historical trends to develop staffing status reports for management.  (12-16-2014)
Cash (Monetary) Awards and Time-Off Awards

  1. IRS manages awards based on OMB and OPM guidelines. Award pool estimates at the financial plan level are established in accordance with these guidelines.  (12-16-2014)
Cash (Monetary) Awards for Prior Fiscal Year

  1. Cash (monetary) awards are chargeable to the "Appropriations current at the time the award is made" , per GAO Principles of Federal Appropriations Law, Volume II, Chapter 7, Section B.7.a. For example, corrections or adjustments to cash (monetary) awards made in FY 2012 are chargeable to FY 2012. On the other hand, if for some reason an award is delayed, such that managerial approval is not completed until after September 30 (the next fiscal year), the award is considered to be made and chargeable in the new fiscal year.

  2. In general, awards are regarded as having been made when there is an administrative determination to make them, as evidenced by the effective date on the SF 50, Notification of Personnel Action, for the award (the effective date is not the same as the payment date).

  3. Corrections and Adjustments: Corrections of clerical errors are properly chargeable to the fiscal year in which the award was originally made.

  4. In circumstances when interest must be paid on a late or partial payment of awards, the interest is chargeable to the fiscal year in which the award should properly have been made.

  5. Awards Claims and Settlements: The date that the awards claim becomes a legal liability determines the fiscal year of the appropriation to be used to pay the claim. Which fiscal year to charge for claim resolution depends on the underlying basis of the dispute and the specific circumstances of the case. General Legal Services is able to provide advice with regard to settlements on a case-by-case basis.

  6. In situations where a settlement is determined in the current year for an award, such adjustment would have to be made from current-year funding. In such a situation, CB would direct the BU to reprogram funds into commitment item 1171 to supplement cash (monetary) award funding. The supplemental award funding is in addition to the awards pool for current-year awards.

  7. See IRM, Gainsharing Travel Savings Program for information about gainsharing awards for the prior fiscal year.  (08-28-2006)

  1. The responsibility for buyout costs depends on who initiates the buyout.  (12-16-2014)
Servicewide Buyouts

  1. When Servicewide buyouts are initiated and an employee accepts a buyout, the related Voluntary Separation Incentive Pay (VSIP) should come from the financial plans’ allocated resources unless other specific guidance is provided. Terminal leave and other expenses should be funded like they are funded for all separating employees. Administrative payments to OPM for processing the buyouts in that fiscal year will be handled separately. Corporate Budget and the BUs should consult with HCO regarding the process and the remittance of fees to OPM prior to finalizing buyout offers.

  2. If a BU negotiates an arrangement whereby an employee is permitted to accept the buyout in the current year, but actually retires in the following fiscal year, the expenses are incurred in the following fiscal year – when the employee retires, not when the decision is made. In this case, the BU will be responsible for funding the buyout-related expenses incurred in the following fiscal year.  (12-16-2014)
Business Unit Buyouts

  1. If a BU decides to offer buyouts, that BU will be responsible for buyout expenses, including VSIP, Terminal Leave, and possibly OPM costs. Business units should consult with HCO regarding the process and the remittance of fees to OPM prior to finalizing buyout offers.  (12-16-2014)
Travel and Above Standard Level Requests

  1. Each BU receives travel funds to complete its mission and to support its customers. The objective should be to eliminate as much as possible employees' charging travel against a financial plan other than their home financial plan and functional area. All travelers should charge travel to their own BU whether in support of their own direct program or in support of a customer function.

  2. Travel directly related to the Federal Highway Administration’s Excise File Information Retrieval System (ExFIRS) may be charged against available multiyear funds as directed.

  3. Employees participating in leadership training programs must charge their time and travel costs to the home functional area designated by the BU where they work.

  4. Information Technology should pay for the travel of all IT analysts, whether they are attending a function within their own BU or assisting with the implementation of an approved project/program.

  5. In general, support functions such as IT, Agency-Wide Shared Services (AWSS), and HCO have been funded to support their customers’ day-to-day operational needs, and should not expect the customer to pay for their usual travel. Some examples and exceptions follow:

    1. Agency-Wide Shared Services will require a BU requesting above-standard or exceptional requests to fund the travel costs. Above-standard or exceptional requests are those beyond the level of service standards mutually agreed upon in the Level of Service Agreement between the support organization and its customers. In the case of approved space projects that are centrally funded from the Stewardship Financial Plan (STWD), necessary AWSS project travel and overtime funds already are included in the project authorization amount, and no funds will be requested from BUs; however, BUs will be expected to pay travel and overtime expenses related to customer-funded projects.

    2. The Human Capital Office will pay for travel associated with funded Servicewide programs such as administration of the Enterprise Learning Management System (ELMS) contract. AWSS personnel should pay the travel of instructors for timekeeping classes and bankcard classes.

    .  (12-16-2014)
Gainsharing Travel Savings Program

  1. Under the Government Employee Incentive Act, IRS employees can earn gainsharing travel savings awards for saving IRS money while on temporary duty travel. These savings will come from the use of Iess-expensive Iodging and/or from the use of frequent flyer benefits to purchase airline tickets for official travel. Employee participation is optional. Gainsharing awards are travel expenses, captured as General Ledger Account 6100.1236. See IRM 1.32.14, The Gainsharing Travel Savings Program.

  2. All temporary duty travel with lodging expenses, foreign or domestic, are covered under this program. Relocation travel is not covered under this program. See IRM 1.32.1, the Official IRS Local Travel Guide and IRM 1.32.11, Official IRS City-to-City Travel Guide.

  3. For gainsharing awards, some BUs require that Form 9127, Recommendation for Recognition, be completed and routed through the appropriate officials. Others process gainsharing awards through HR Connect. Each BU may provide local procedures. Use Form 9127, Recommendation for Recognition, unless local procedures dictate otherwise.

  4. IRS employees must submit their request for a gainsharing award no later than December 31 for the immediately preceding fiscal year.  (01-15-2008)
Statistics of Income, Functional Area 4Q

  1. Surplus funding for Statistics of Income (SOI), Functional Area 4Q, may be reprogrammed within a Financial Plan as needed to cover Functional Area 4Q deficits. Surplus SOI funds in any Financial Plan will first be used to offset SOI deficits in other Financial Plans or Fund Centers before being reprogrammed into other Functional Areas, at the direction of the Director, Statistics of Income. The written concurrence of the Director, Statistics of Income, is required before reprogramming FTEs or funds out of Functional Area 4Q.  (12-16-2014)
Treasury Franchise Fund (TFF)

  1. The Shared Services Programs (SSP) Division within the TFF provides common administrative services that benefit customers both within Treasury and outside agencies. The SSP provides these services on a centralized basis, where they can be administered more advantageously and more economically than they could be provided otherwise.

  2. The effective management and use of the Interagency Agreement (IAA) is a shared responsibility of the IRS and SSP.

  3. The SSP will bill the IRS monthly for these services.

  4. In each BU, the person responsible for all TFF issues is called the funding official and is defined as the BU DFO or the designee responsible for certifying TFF funding.

  5. Corporate Budget coordinates TFF issues between SSP funding officials and Treasury. Prior to the start of each fiscal year, Treasury’s SSP Office submits a proposed financial plan to Treasury’s Shared Services Council membership for approval. All agencies participating in the TFF, through their membership in the TFF, must review and approve the financial plan, along with any increases beyond those necessary to maintain current levels. IRS CFO, as a voting member of the Shared Services Council, approves or disapproves individual TFF program funding levels. The SSP then issues the IAA which must be signed by the IRS CFO.

  6. Each year CB issues final costs to all TFF funding officials and issues additional guidance in the processing of the TFF obligation documents.  (05-16-2011)
Rebates and Refunds

  1. Generally, any funds received from sources outside of the agency must be deposited into Treasury’s general fund as miscellaneous receipts, unless the agency has statutory authority to retain funds for credit (that is, an increase) to its own appropriation.

  2. An exception to the general rule is allowed for receipts that qualify as refunds. Refunds are defined as "repayments for excess payments and are to be credited to the appropriation or fund accounts from which the excess payments were made." Refunds must be directly related to previously recorded expenditures and are reductions of such expenditures. Refunds also have been defined as representing "amounts collected from outside sources for payments made in error, overpayments, or adjustments for previous amounts disbursed." GAO Opinion B-217913 (1986). In the referenced opinion, GAO determined that travel credit card rebates are adjustments of previous disbursements, therefore qualifying as ‘refunds.’ So, when refunds and/or rebates are received, including credit card rebates, add them to the appropriation and fiscal year initially charged.


    IRS earns rebates through the GSA SmartPay2 contract for government credit cards. AWSS-ESS Credit Card Services generates a quarterly Citibank Custom Reporting System Report to determine the percentage spent by appropriation for Individually-Billed travel cards and Centrally-Billed travel accounts. They allocate the rebates to the Business Units in the appropriation in which they were spent based on prior quarter spending.


    IRS may retain a rebate or credit when contracts contain clauses providing for contract price adjustments. "In 34 Comp. Gen. 145 (1954), [GAO] held that the refund required under a guarantee-warranty clause was properly creditable to the agency appropriation because it could be considered an adjustment in the contract price. Similarly in 33 Comp. Gen. 176, [they] held that a contractor's refund made under a price redetermination clause may be credited to the agency account in that the refund was the return of an admitted overpayment."

  3. Timing of the original obligations determines the dispensation of the rebate.

    • If the appropriation initially charged is open (current year), apply the rebate/refund to current year funds and it becomes available for obligation.

    • If the appropriation initially charged has expired, but is not yet closed, apply the rebate/refund to the expired account, even though its use in a prior year fund is limited.

    • If the appropriation initially charged has closed, deposit the refund to the Treasury general fund.  (08-28-2006)
Financial Plan Managers’ Procedures

  1. The following procedures are developed and imposed primarily by individual Financial Plan Managers, for cross-cutting and/or stewardship issues.  (12-16-2014)
Internal Order Codes

  1. Internal Order Codes are data elements in IFS that collect expenditure data for specific projects. They are used to track training and event-related costs and planning and expenditure data for projects within IFS. They are generally a five-digit alpha-numeric data element. For IT projects, the IOC may contain eight positions to track sub-project activities. Reimbursable projects use 10-digit IOCs. A listing of IOCs can be found in the current Financial Management Codes Handbook on the CB website, along with an indication of which codes are valid in which appropriations. See IRM,Tracking Event-Related Spending.

  2. Section 3.1, Internal Order Code (IOC), of the Introduction to the Financial Management Codes Handbook found on the CB website provides details on Internal Order Codes.

  3. See Exhibit 1.33.4-2, Master Data (Code) Change Request Procedure, for information on how to request an IOC.

  4. See the Structure for Internal Order Codes guidance for the IOC structure.  (12-16-2014)
Internal Order Codes – Information Services and Business System Modernization (BSM) Programs

  1. Internal Order Codes continue to be the official source for project cost information and are required for all costs charged against BAC 98, Information Services (IS), and BSM appropriation resources. Non-labor costs will be captured by an IOC through the normal accounting process (e.g., requisitions and travel vouchers). Labor costs will be captured from the payroll system, or by using an EV voucher. Employees funded by IS resources are required to track their time by IOC in the payroll system. Internal Order Codes also are used as needed to track certain major projects. See IRM, Financial Codes.

  2. Customers requiring an IS or BSM IOC should first contact IT Financial Management Services, Formulation Policy and Programs, who will provide assistance to customers and act as a liaison with CB for officially establishing or revising/removing codes.

  3. The IOC Structure tab of the Financial Management Codes Handbook describes special identifiers within the IT IOC structure.  (12-16-2014)
Tracking Event-Related Spending

  1. An event includes a conference, meeting, training, award ceremony, or other similar gathering that involves expenses of the attendees, such as for travel, meals, refreshments, or mementos.

  2. Internal Order Codes are required for events that cost $20,000 or greater that must be reported to Treasury and events $25,000 or greater that require prior Treasury approval.

  3. Business units should consider establishment of an IOC for events estimated to be less than $20,000 if the possibility exists that the actual costs could potentially exceed $20,000. Additionally, requisitions in IPS to purchase equipment or contract services related to events must include the unique event IOC.

  4. See the Event Tracking section of the Structure for Internal Order Code guidance for information on Event Tracking IOCs.

  5. For most events that have total costs of $20,000 or greater, BUs must follow the CFO Event Approval process detailed in the Interim Guidance on the Approval Process for Event-Related Spending, issued July 29, 2014.

  6. Travel and related expenses with a cost of $20,000 or greater that do not require approval through the CFO Event Approval process are detailed in Exceptions to the Approval Process for Event-Related Spending Requirements. For these events:

    • BU staff should work with their BU finance office to prepare an IOC Request Form using the criteria established in the Structure for Internal Order Code guidance and submit it to *CFO Master Data Request

    • The IOC Request Form should include the following statement in the "Reason for Action" field: "This event is not required to go through the event approval process."

    • CB will load this information into the IOC Request Upload Sheet, and forward it to Office of Financial Management Systems for activation.

    Business units must continue to submit to the CFO FM organization detailed information required by Treasury for all events, including those listed above, with total costs of $20,000 or greater. This information must be submitted at 10 days and 40 days after the event is held to *CFO Event Request as required by the Interim Guidance on the Approval Process for Event-Related Spending, issued July 29, 2014. The CFO will continue to report this information to Treasury.

  7. The Beckley Finance Center (BFC) will periodically contact BUs to review event-related information.

  8. The most current guidance and forms related to event spending can be found on the HCO website IRS Meeting and Training Approval: What You Need to Know .  (12-16-2014)
Training Programs

  1. The Human Capital Office manages the executive leadership program and pays all costs to manage the program. Employees participating in Servicewide leadership training programs charge their time and travel costs to the home functional area designated by the BU where they work. The Human Capital Office pays contract, materials, and instructor costs for the Servicewide leadership programs.

  2. The Human Capital Office is responsible for the curriculum development for the education community and e-learning infrastructure.

  3. The Human Capital Office manages the Skillsoft program. The Human Capital Office and IT fund the Skillsoft contract, which includes Books 24x7. The Human Capital Office maintains contract administration responsibilities for the Accounting and Tax Law Training (Thomson Reuters Checkpoint Learning) contract. The BUs prepare and fund requisitions based on the number of online training modules or customized tasks being ordered off the Thomson Reuters Checkpoint Learning contract.

  4. All expenditures associated with training commitment items must include an IOC. Internal Order Codes for training have been established for mission-critical occupations, management levels, Servicewide programs, and training support. This includes training travel, training services, and training supplies.

  5. For training events of $20,000 or more, a unique IOC must be established based on the scheme in IRM, Tracking Event-Related Spending, and entered in the Electronic Travel System as the IOC if a "T" is selected as the travel purpose code. For events that are under $20,000, please enter the course number or other approved IOC in the Internal Order line if a "T" is selected as the travel purpose code. Since IOC is not a mandatory field in the Electronic Travel System, managers must ensure these codes are entered in the System.

    1. For more information, see Interim Guidance on the Approval Process for Event-Related Spending, issued July 29, 2013, and IRS Meeting and Training Approval: What You Need to Know.

    2. Training events that have total costs of $20,000 or greater require detailed recording keeping. Business units must maintain and report actual costs for events $20,000 or greater in accordance with the Interim Guidance on the Approval Process for Event-Related Spending, issued July 29, 2013. See IRM, Tracking Event-Related Spending.

    3. Each Business Unit is responsible for establishing a method to identify, document, track and review all events, including but not limited to:

    • Costs related to event planning and attendance;

    • Approvals, justifications, cost comparisons, and cost-benefit analyses needed for the use of the event site under consideration; and

    • Meeting the reporting requirements required in this guidance.

    Each BU will maintain documentation related to all event planning and attendance, regardless of the cost, for a period of six years and three months, in a manner that allows for audit review and for management inquiry. See IRM, Tracking Event-Related Spending.

  6. For training included as part of a contract, this training must be a separate line item on the requisition and coded as training in IFS. Training listed as a separate task in the statement of work in a contract for the acquisition of goods and services should be submitted for review according to the HCO policy. See IRM 6.410.1, Learning & Education (L&E) Policy.

  7. FY 2012 Budget Operating Guidance issued November 23, 2011, eliminated funding for Employee Organization Conferences in FY 2012. FY 2013 Budget Operating Guidance issued December 6, 2012, indicates that FY 2012 Budget Operating Guidance remains in effect until further notice.  (12-16-2014)
Object Class 42, Insurance Claims and Indemnities Funding

  1. Chief Counsel is responsible for administering funding for Object Class 42, Insurance Claims and Indemnities. Counsel processes and approves insurance claims and other litigation expenses under General Ledger Account 6100.4202 for parties who prevail in tax litigation cases against the IRS. Counsel also processes and approves indemnity payments, which include Federal tort claims and employee personal property claims. Federal tort claims filed under the Federal Tort Claims Act are paid using General Ledger Account 6100.4201 for personal injury claims, which are taxable, or General Ledger Account 6100.4209 for property damage claims, which are nontaxable. Employee personal property claims filed under the Military Personnel and Civilian Employee Compensation Act are also indemnity claims that are paid using General Ledger Account 6100.4209.

  2. These claims are funded on a centralized basis through one of two methods:

    1. Agency-Wide Shared Services is responsible for funding Counsel-approved attorney fee and indemnity claims in the Taxpayer Services (0912) and Enforcement (0913) appropriations.

    2. Information Technology is responsible for funding Counsel-approved attorney fee and indemnity claims in Operations Support (0919).

  3. All non-tax litigation attorney fees or settlement claims are the responsibility of the BU in which the claim arose. Settlement claims include payments to taxpayers for the expenses incurred due to an erroneous levy (General Ledger Account 6100.4203) and payments to current and former employees for the final settlement of a complaint (General Ledger Account 6100.4204). Claims also may include payments of claims and judgments that are taxable and arise from court decisions or abrogation of contracts (General Ledger Account 6100.4205) as well as payments of claims and judgments that are non-taxable and arise from court decisions or abrogation of contracts (General Ledger Account 6100.4206).

  4. Amounts awarded, including settlements to current or former IRS employees or applicants for employment, in equal employment opportunity (EEO) cases litigated in District Court are the responsibility of the BU in which the EEO complaint arose (General Ledger Account 6100.4211).  (12-16-2014)
Rent Program and Building Delegation

  1. Rent resources are centralized in AWSS, Office of Resource and Operations Management.

  2. IRS occupies several GSA-delegated buildings, for which it is responsible for all operations and maintenance (O&M). Building Delegation funds in Functional Area 3D are to be used solely for the GSA Building Delegation Program, as documented in delegation agreements.

  3. Each year, GSA estimates the amount of O&M they would have charged, if they had operated those buildings under their standard usage policies. In accordance with Public Law No. 101-217, §121(d)(3), IRS is authorized to retain as no-year money the unexpended portion of our appropriated funds up to GSA’s estimated cost of O&M. Therefore, if our actual O&M costs for GSA-delegated buildings are less than GSA’s estimate for the given year, the difference is eligible for transfer (rollover) at year-end into no-year authority. Corporate Budget controls the transfer process and must obtain approval based on input from AWSS. Agency-Wide Shared Services is responsible for re-allocating funding to delegated site allotment offices once CB has completed the appropriation transfer process.

  4. Under no circumstances may any rollover no-year funds be used for current-year labor costs. No-year rollover funds may be obligated at the discretion of the Financial Management Officer in the delegated site to meet current-year needs and must be used in accordance with GSA-defined standards.  (08-28-2006)
Paper or Print Tax Research Services

  1. In 2009, IRS entered into corporate contracts for the delivery of comprehensive electronic tax law and legal research services through Lexis-Nexis and West Publishing. Commerce Clearing House (CCH), as a subcontractor of Lexis-Nexis, provides stand-alone discs. While a need remains for limited paper tax research services, purchase of these paper products should be carefully reviewed in light of available electronic sources. Lexis-Nexis and West Publishing contracts provide commonly used tax services in electronic format, such as Code of Federal Regulations, CCH U.S. Master Tax Guide, Research Institute of America United States Tax Reporter, etc. Operating divisions and functions should consider availability of these electronic services as well as employee skills, computer availability, and centralized shared libraries when determining the need for paper or print tax research services.

  2. Bulk contracting vehicles have been established for the purchase of print versions of the Internal Revenue Code and Income Tax Regulations, Research Institute of America Federal Tax Handbook, CCH U.S. Master Tax Guide, and the Federal Tax Baedeker Handbook. These bulk orders are coordinated through the Office of Servicewide Policy, Directives, and Electronic Research. Bulk ordering significantly reduces the per item cost of these products. The requesting operating division or function will fund the Code and Regulations orders, as well as a proportionate share of the handbook costs. Orders are based on the annual Other Government Agency survey, which is sent to each order point annually. The books are shipped through the Internal Management Directives Distribution System.

  3. For additional information, contact the Office of Servicewide Policy, Directives and Electronic Research (SPDER), or see SPDER’s Reference Tools at your Fingertips.  (01-15-2008)
Direct, Shared, and Indirect Support

  1. Direct support, which can be reasonably identified and charged to a specific Functional Area, must be so charged. Shared support is explained below (see IRM, Shared (Cross-Functional) Support). Indirect support should be reviewed and charged to the multiple Functional Areas it supports, as long as a reasonable distribution can be made. If no reasonable distribution is possible, indirect support will be charged to the predominantly benefiting Functional Area. The IRS policy is to maximize direct support and minimize indirect support to the extent practicable.  (12-16-2014)
Rent Program

  1. Agency-Wide Shared Services ensures that rent is committed and obligated monthly.

  2. Agency-Wide Shared Services manages the IRS Space and Housing program, including building delegation and equipment funds. Their oversight responsibilities include, but are not limited to, utilities, custodial expenses, and space alterations.  (12-16-2014)
Shared (Cross-Functional) Support

  1. In many IRS offices, ongoing space consolidation and rent reduction initiatives have resulted in BUs sharing the same space. The shared support funding process covers these situations where multiple BUs use the same items or services, and benefit by sharing them, but the cost to each BU cannot be clearly identified.

  2. Agency-Wide Shared Services, Real Estate and Facilities Management (REFM), has established a new national contract with a single vendor to lease Office Copier Multi-Functional Devices (C/MFDs). As such devices are considered IT in nature, IT will manage the new MFD program.

    1. IT will bill the BUs for their share of the MFDs based on FTE.

    2. BUs will submit BAC transfer requests to CB during Plan Development to cover these costs.

  3. Mail room equipment maintenance for non-campus locations is funded by AWSS, and for the campuses by Wage & Investment (W&I).

  4. Wage & Investment manages the general Shared Support Program for the Washington, DC, metro area, all field offices, including SB/SE call sites, and all 10 campus locations. The Wage & Investment Shared Support Program does not include copiers or contracted mail room operations.

  5. Information Technology, User and Network Services, handles the networked printer environment. The program encompasses networked end user non-production printers (minimum 1-to-10 employee ratio). The networked printer program results in shared devices that cross organizational boundaries. In order to ensure printer consumable ordering/purchasing is transparent to the various organizational entities, User and Network Services administers the program through the Office of Acquisition Strategy. The program covers printer toner, waste toner bottles, oil bottles, photoconductors and, depending on the printer type, printer drums. The program does not cover paper products or consumables for stand-alone, non-qualifying printers. All IRS BUs are eligible to participate in the program.

  6. Information Technology is responsible for funding all costs of IT portable electronic devices (PEDs) in IT inventory; for example, Blackberries and wireless cards. This includes the costs for maintenance and repair. The determination of who has authorized use of wireless cards and Blackberries will be based on standard employee profiles, as well as Senior Executive Team decisions/direction.

    AWSS Rent Funds are centralized & paid by AWSS
    Public Transit Subsidy Program Funds are centralized & paid by AWSS
    Furniture AWSS primary; BU Supplementary
    Building Delegation AWSS
    Buildings Services and Maintenance AWSS
    Space & Housing – Space Alterations AWSS/REFM exclusively
    Equipment Purchases REFM for initial purchase of shared;
    W&I Shared Support for replacement of shared;
    BU for exclusive use
    Mail services at non-campus locations AWSS
    National REFM Mailroom Contract AWSS
    Shred Services AWSS
    Wage & Investment Courier (non-mail related), Shuttles, and Motorpools SB/SE or W&I Shared Support
    BU for exclusive use
    Equipment Rentals BU for rental of exclusive use;
    W&I for shared
    Mail meter rental & maintenance at non-campus locations BU for exclusive use; W&I Shared Support
    Small POD Supply Program W&I Shared Support for participating offices only
    Standard copy paper and fax toners W&I Shared Support for all DC Metro and Field Offices
    Bulk Printing & Postage (e.g., for tax packages & notices) W&I
    Mail meter rental & maintenance at campuses W&I Direct; W&I Shared Support
    Mail services at campuses W&I
    Chief Counsel Tax litigation attorney fees & indemnity claims See IRM, Object Class 42, Insurance Claims and Indemnities Funding
    IT Network printer consumables For network printers only, IT funds toner and, depending on the printer type, printer drums; see IRM Shared (Cross-Functional) Support
    Portable Electronic Devices (PEDs), e.g., Blackberries and wireless cards IT funds all maintenance of current IT inventory and approved additions of PEDs; see IRM Shared (Cross-Functional) Support
    Copiers/Multi-Functional Devices (C/MFDs) contract IT funds all photocopiers  (12-16-2014)
Jury Fees

  1. Jury fees are handled as part of the standard collection process, not as a reimbursable. The actual collection transaction will be processed directly against the accounting string supplied with the fees. The BU point of contact is responsible for supplying the accounting string to the employee for use on Form 3210, Document Transmittal. All BUs will use General Ledger Account 6100.1111 as the expense code on Form 3210, Document Transmittal. Failure to supply valid accounting string information to the employee serving on the jury will result in the loss of that financial plan's ability to directly recoup those fees. Instead, the funds will default to a standard accounting string controlled by CB. Please note, all debit vouchers will be posted to the same accounting string as the original check.

  2. If the check is for time only, the employee should endorse the check by writing the words "Payable to Internal Revenue Service" on the reverse of the check beneath the employee's signature. The accounting string also should be identified on the jury fee check. In cases where the check for jury duty covers both time and travel, employees should cash the court's check and keep only the travel portion amount. Employees should complete a Form 3210, Document Transmittal, to forward their personal check (payable to the Internal Revenue Service) and a copy of the court statement to the BFC. The Form 3210, Document Transmittal should contain the employee’s full name as shown in their personnel records, social security number, organizational unit, the accounting string, office phone number, and the dates of attendance in court. The employee should then mail the check and Form 3210, Document Transmittal to Beckley Finance Center, Attention: Jury Fee Desk.  (12-16-2014)
Food and Refreshments

  1. As a general rule, IRS may not use appropriated funds to furnish food for Federal employees at their duty stations, unless specifically authorized under statute.

  2. See IRM 1.32.20, Using Appropriated Funds to Purchase Meals and Light Refreshments.

  3. See Interim Guidance on the Approval Process for Event-Related Spending issued July 29, 2014.  (12-16-2014)
Information Services, BAC 99 Procedures

  1. The following procedures apply to IS, BAC 98 resources. The Chief Technology Officer (CTO) has responsibility for all BAC 98 resources, and all IT resources reside in the IT (MITQ) Financial Plan. See IRM, Information Services (IS), BAC 98 Reprogramming Authority. Information Technology provides additional financial operating guidelines for its own organization on its IT Procedures/Guidelines website.  (12-16-2014)
Policy on Procuring Information Technology (IT) Products & Services

  1. Funds in the IS budget activity (BAC 98) and the BSM appropriation (fund 0921) are designated for exclusive use in procuring information technology goods and services. BAC 98 provides funding for Servicewide IT operations and maintenance and investments to enhance or develop business applications for the BUs. BAC 98 funds telecommunications, hardware and software (including commercial-off-the-shelf), contractual services, and staffing costs to manage, maintain, and operate IS. In addition, funds in BAC 98 provide for critical or limited (except when funded by initiatives) improvements or enhancements to existing business applications. Even though IT is no longer its own appropriation, by defining the BAC, we state that these expenses will to be funded in BAC 98, part of the Operations Support appropriation (0919). Purchases of IT goods and services may only be funded from BAC 98 or BSM funds. All IT-related needs should be routed through IT.


    Telecommunications and other IT costs may be transferred from BAC 98 to the TFF no-year accounts for the IRS share of the TFF expenses.

  2. When an appropriation specifies the purpose for which the funds are to be used, 31 USC §1301(a) applies to restrict the use of the funds to the specified purpose. A specific appropriation must be used to the exclusion of a more general appropriation that might otherwise have been viewed as available for the particular item. Deliberately charging the wrong appropriation for purposes of expediency or administrative convenience, even with the expectation of rectifying the situation by a subsequent transfer from the correct appropriation, is a violation of law.

  3. The Commissioner delegated authority to the CTO to govern all areas related to IT resources and technology management (Delegation Order IT 2-1-1). Inherent in that authority is the responsibility to budget and deliver IT products. CTO policies and procedures are included in Delegation Order IT 2-1-1 and IRM 2.21.1, Introduction to Requisition Processing for Information Technology (IT). The Master Service Level Agreement provides additional guidance for obtaining internal IT products and services. The Delegation Order, IRM, and Master Service Level Agreement are all available on IT Procedures/Guidelines website.  (12-16-2014)
Operations Support and Business Systems Modernization (BSM) Appropriations Reporting Requirements

  1. Regardless of the form they take (individual appropriations act, consolidated appropriations act, omnibus, etc.), the annual laws providing funding for the IRS typically include several reporting requirements related to general information technology investments as well as specific Business Systems Modernization (BSM) projects.

  2. Historically, reports have been due to the House and Senate Committees on Appropriations and the Comptroller General of the United States within 14 days after the end of each quarter of the fiscal year. Required content has typically included the cost and schedule performance for major information technology investments and specific BSM projects, including the purpose and life-cycle stages of the investments; the reasons for any cost and schedule variances; the risks of such investments and strategies the IRS is using to mitigate such risks; and the expected developmental milestones to be achieved and costs to be incurred in the next quarter.

  3. Reporting requirements and timeframes are subject to change on an annual basis, so for specific annual reporting requirements, BUs should refer to the language for the Operations Support and Business Systems Modernization appropriations in the annual funding law, and consult with the CB analyst assigned to their financial plan(s).  (04-16-2010)
Earned Income Tax Credit (EITC) Procedures

  1. The following procedures apply to the EITC appropriation resources. EITC is a refundable credit created in 1975 to offset the impact of Social Security taxes on low-income families, encouraging them to seek employment rather than welfare. Pub 596 is an excellent resource guide for rules and regulations governing EITC. More information is in the W&I Finance Customer Guide.  (12-16-2014)

  1. Wage & Investment's EITC Office was established to enhance oversight of the program. The EITC Program Office will negotiate agreement with the operating units through Service Level Agreements that specify the level of effort and activities in support of the EITC Program.

  2. Earned Income Tax Credit expenditures are tracked via three sub-appropriations:

    • 09E2D (Taxpayer Services)

    • 0917D (Enforcement)

    • 09E9D (Operations Support)

    The sub-appropriations roll up to the corresponding BACs already designated by functional area mapping; for example, funds in EITC functional area 2B roll up to BAC 22, in sub-appropriation 09E2, appropriation 0912.
    Although there is no legal requirement to do so, tracking the EITC program is necessary to enable the IRS to answer questions regarding the program.

  3. All financial plans involved in EITC activities will establish a charging methodology by functional area prior to the beginning of the fiscal year. Financial Plan Managers must ensure each employee's EITC time charges are reported accurately and timely by the 25th of every month, in accordance with the methodology established for their financial plan.

  4. Periodic audit reviews will be conducted by the EITC Office, as well as by the Treasury Inspector General for Tax Administration (TIGTA) and the GAO to ensure that obligations charged to EITC are only for EITC-related initiatives, programs, and projects.  (01-15-2008)
Federal Highway Administration (FHWA) Trust Fund

  1. IRS has a project with the Department of Transportation to perform work on behalf of the Federal Highway Administration (FHWA) under the authority of the Highway Trust Fund. This project is undertaken by IT and SB/SE to enforce and enhance the collection of highway use taxes through systems modernization. This work is funded through use of an allocation account. See OMB Circular A-11, Preparation, Submission and Execution of the Budget, Part 1, General Information, Section 20, Terms and concepts.

  2. The Federal Highway Administration, the parent, is responsible for recording the contract authority, recording the appropriations to liquidate contract authority, and tracking obligations and disbursements of the fund through use of its own Treasury appropriation fund symbol. The Federal Highway Administration issues budget guidance to the IRS on Form FHWA 370, Advice of Funds Available for Obligation. The dollar amount on Form FHWA 370 represents an allotment of contract authority to the IRS. This form provides both the authority and description of the project or program to be executed. It does not provide the fund authority (dollars) to pay the bills. It only represents the transfer of contract authority. Funds are not transferred until actually needed for disbursement. The Federal Highway Administration will initiate a Form SF 1151, Nonexpenditure Transfer Authorization, based on IRS’s estimated quarterly disbursements. Financial Management provides the FHWA timely reporting of commitments, obligations, expenditures, and disbursements related to this fund using both budgetary and proprietary accounts. Business units are responsible for any expense transfers should they need to make FHWA charges to the current-year appropriations.

  3. Trust fund accounting is not the same as general fund or revolving fund accounting. Unused fund authority is returned to the parent annually and reallocated.  (04-16-2010)
Private Collection Agency Expenditure Fund

  1. The FY 2009 omnibus appropriation shut down the IRS use of private collection agencies; as specified in Administrative Provision Section 108, "None of the funds made available in this Act may be used to enter into, renew, extend, administer, implement, enforce, or provide oversight of any qualified tax collection contract."

  2. A percentage of the funds that have been collected by Private Collection Agencies were transferred into Special Fund Expenditure Account 20X5510. The remaining amount is used only for IRS collection enforcement activities. SB/SE is the leading organization. This Fund is a no-year account, with normal budgetary procedures. OMB requires 10 days' notice of the plan to spend these funds before they can be used.  (01-15-2008)
Accounting Issues

  1. Most accounting policies can be found on the CFO FM website, but key policies that are inextricably linked to budget execution are presented here.  (12-16-2014)
Interagency Agreements or Reimbursable Agreements

  1. The IRS can enter into two types of interagency transactions: Interagency Agreements (IAA) or Reimbursable Agreements (RA). These transactions occur when Federal agencies perform work and provide goods or services for other agencies or activities on a reimbursable basis. Reimbursements between agencies are a form of resource transfer. The organization entering and signing the agreement is responsible for budgeting and arranging funding for the agreements. Such transfers are prohibited without statutory authority.

  2. IRS often contracts with other agencies, including Federal, state, and foreign governments, as well as private organizations, to perform work or provide goods or services for which the IRS will be reimbursed. The IRS accounts for the expenses incurred through the establishment of RAs, through which the IRS performs work and receives money. See IRM, Reimbursable Operating Guidelines (ROG). When the IRS pays for work performed or goods or services provided, this is called an IAA.

  3. In the event of a CR, continuing projects via IAAs are allowed to commence work and accrue earnings at the same rate that occurred in the prior year.  (04-16-2010)
Reimbursable Work Authorizations (RWA) and Security Work Authorizations (SWA)

  1. Project managers for GSA Reimbursable Work Authorizations (RWA) must work with GSA to obtain documentation necessary to support charges for work completed on any individual RWA (GSA Form 2957). Project managers should be able to provide documentation to support all charges from GSA for a specific RWA, as well as any charges for unbilled amounts. At year-end, project managers should supply to the Beckley Finance Center a supportable estimate for all work completed on an RWA, but unbilled by GSA. This will provide the basis for the accounting office to record an account payable for work completed but not yet billed.

  2. Project managers for Security Work Authorizations (SWA) must work with the Department of Homeland Security (DHS) to obtain documentation necessary to support charges for work completed on any individual SWA (FPS Form FPS 57). Project managers should be able to provide documentation to support all charges from DHS for a specific SWA, as well as any charges for unbilled amounts. At year-end, project managers should supply the Beckley Finance Center a supportable estimate for all work completed on an SWA, but unbilled by DHS. This will provide the basis for the accounting office to record an account payable for work completed but not yet billed.  (04-16-2010)
Intra-governmental Payment and Collection

  1. Financial Plan Managers, with input from project managers as appropriate, are responsible for ensuring certification for payment for all amounts billed from other federal agencies through the Intra-governmental Payment and Collection process. Certification indicates that the IRS has received all the goods and services for which it is billed, and that those goods and services were acceptable. Certification to the Beckley Finance Center should occur within 10 calendar days of receipt of the supporting billing information from the billing agency. In cases where amounts billed are in dispute, reconciliation should be provided to the accounting office identifying these amounts and plans for resolution of discrepancies.

  2. At year-end, Financial Plan Managers should report any material discrepancies for Intra-governmental Payment and Collection billings to the Beckley Finance Center so that the amounts due to or from another federal agency can be recorded.

  3. At year-end, Financial Plan Managers should notify the Beckley Finance Center of goods or services provided by another federal agency for which the IRS has not yet been billed. Notification must include the associated IFS obligation document identification number.  (12-16-2014)
Reimbursable Operating Guidelines (ROG)

  1. IRM 1.33.3, Reimbursable Operating Guidelines, assists FPMs in fulfilling their responsibilities related to the reimbursables program. These guidelines provide instructions to record reimbursable agreements in the financial system, and to bill and collect funds from other agencies.

  2. The reimbursable project coordinators are responsible for ensuring that an agreement is in place before doing the work and for coordinating with the FPMs for budget authority and recording obligations. Obligations related to reimbursable work may not be incurred until supported by documented evidence of a binding agreement between the IRS and the requesting agencies of activities. Because IFS prohibits FPMs from exceeding their budget, FPMs must help project coordinators comply with this long-standing policy: "No agreement, no work." See IRM 1.33.3, Reimbursable Operating Guidelines, for expanded guidance.

  3. Reimbursable project managers must maintain complete project files, including documentation supporting all reimbursable earnings for the projects. Documentation should include formulas, calculations, and all detailed documentation used to develop project earnings. See IRM 1.33.3, Reimbursable Operating Guidelines, for costing methodology procedures and the CB Reimbursables website for additional resources.  (12-16-2014)
Vendor Payments

  1. To satisfy prompt payment regulations, the Contracting Officer’s Representative (COR), Alternate COR or End User must enter receipt of goods and/or services electronically in IPS for procurement acquisitions at the time of delivery of goods or completion of services. Entry of receipt should not be delayed pending either the 1) receipt of an invoice, or 2) acceptance for what has been received. The COR, Alternate COR or End User must enter acceptance as promptly as possible, but no later than the seventh calendar day after receipt has occurred, unless the contract specifies a longer period of time or there are unresolved issues with the goods and/or services. For service agreements where charges for the services vary from month to month, the COR, Alternate COR or End User must enter estimated receipt and/or acceptance. The automated interface between IPS and IFS posts both the receipt and acceptance to the obligation. See IRM, Electronic Receipt and Acceptance, for more information.

  2. When the COR, Alternate COR or End User enter receipt and/or acceptance electronically, they are required to obtain and retain hard copy documentation of the receipt of supplies and/or services in their files. Documentation can be in the form of packing slips, IRS generated reports, etc. An e-mail from the program manager stating that supplies and/or services related to a specific invoice or invoices have been received as of a specified date is also acceptable. The COR/End-User must review contracts on a monthly (or a cycle appropriate to the contract) basis to ensure receipts and acceptances are current and to make sure obligations are valid and accurate. For year-end close procedures, see IRM, Administrative Accounting, Annual Close Guidelines, for more information.  (12-16-2014)

  1. Commitments and obligations must be posted timely. Obligations must be recorded within five business days of receipt of the appropriate documentation. See Interim Guidance on Timely Recording of Obligations. Commitments set aside funds for future obligations and are a management tool that draws down availability. Obligations are legally binding agreements created by awards, contracts, or purchase orders. The values of the negotiated agreements (obligations) are to be entered into lFS prior to the beginning of work. Obligations draw down (liquidate) commitments. Expenditures draw down (liquidate) obligations.

  2. Financial Plan Managers should make every effort to post data in IFS to the appropriate accounting string. However, accounting code corrections can be made in IFS. Financial Management's procedures identify thresholds below which the accounting codes for the obligation should not be changed, except in certain cases. In situations where the actual accounting code cannot be corrected, the FPM may need to transfer funds to cover any budget deficit. There are separate rules tor purchasing transactions, Electronic Travel System obligations, manual travel obligations, and payroll. See IRM, Accounting Code Changes, for information on submitting accounting code changes. The SV Request Form (Accounting Code Correction) is on FM’s Travel Guidance website.  (08-28-2006)
Unliquidated Commitments/Obligations

  1. Timely management of commitments and obligations enables the IRS to optimize its financial resources. Unliquidated commitments and obligations may be deobligated at any time throughout the fiscal year, whenever they are deemed no longer valid. Financial Plan Managers are responsible for coordinating with Procurement and the Beckley Finance Center the timely liquidation of orders or estimated obligations that are no longer valid.

  2. Bulk-funded commitments and estimated obligations, in particular, must be tightly controlled, reviewed, and adjusted to actual requirements as quickly as possible. Financial Plan Managers must frequently (i.e., at a minimum, monthly) review all outstanding unliquidated obligations, regardless of fiscal year and appropriation, to identify unliquidated obligations that should be deobligated. They should contact all pertinent parties to help determine which unliquidated obligations may be deobligated. AUC and AUO programs have been established in IFS to assist and facilitate reviews. Periodic reviews are required by the CFO (see IRM, Aging of Unliquidated Commitments and Aging of Unliquidated Obligations Reviews).  (04-16-2010)
User Fees

  1. User fees are collected throughout the fiscal year for the costs of providing specified services and are deposited into a special fund receipt account. User fees may be used to supplement IRS appropriations to fund corporate needs. IRS must submit spend plans to OMB and receive their approval prior to transferring funding from the receipt account to IRS no-year accounts.

  2. Once OMB has approved the spend plans, IRS must request an apportionment to transfer the "user fee" funds from the receipt account into user fee no-year accounts.

  3. Once funds are transferred to the user fee no-year accounts and are distributed to a financial plan, they become part of that financial plan’s resource availability for the current fiscal year. See IRM, Managing within Resource Availability.

  4. Balances available at fiscal year-end in the user fee no-year accounts, including recoveries from prior-year obligations, will be pulled back and returned to the receipt account for redistribution the following fiscal year.

  5. User fee charges for providing specified services must be reviewed every two years to ensure existing charges are adjusted to reflect changes in costs, and to determine whether fees should be assessed for other goods and services. See OMB Circular A-25, User Charges. The biennial review is the responsibility of the FPMs with the assistance of CFO and FM. Business units are responsible for collecting fees, maintaining case information, developing a method to track cases and fee information, and maintaining their files for audit purposes. See IRM 1.32.19, User Fees.  (12-16-2014)
Expired, Closed, and No-Year Appropriations

  1. Budget authority life cycles are discussed in OMB Circular A-11, Preparation, Submission and Execution of the Budget, and the narrative of the Financial Management Codes Handbook found on the CB website. Appropriation language defines the period during which funds are open; that is, available for new obligations. IRS receives some multiyear and no-year funding, but most appropriations are annual appropriations, meaning they are open for one year. Special rules apply after an annual or multiyear appropriation expires.

  2. Expired appropriations: Once the period of availability expires, new obligations may NOT be incurred. Balances are available only for upward and downward adjustments to existing or unrecorded obligations during the five years following expiration of obligation authority for annual and multiyear funds. See IRM, Time: the Bona Fide Needs Doctrine.


    During FY 2013, balances from annual appropriations for FY 2008 through FY 2012 are expired.


    After 9/30/2013, the annual appropriation 13130912D will expire.

  3. An exception to the above is travel. Travel should always be obligated for the fiscal year in which it occurred. If an employee doesn’t file a voucher timely, the travel must still be charged in the year in which the travel took place.

  4. Closed appropriations: After the last expired year, the account is closed and the balances are canceled. Any invoices for valid obligations received after the account is closed must be obligated against and disbursed from current-year budget authority that is available for the same general purpose. However, no more than one percent of any annual appropriation is available to cover closed-year obligations. To monitor compliance with that limit in IFS, IRS uses separate funds designated by "Q" for these expenditures. The "Q" Fund is legally a subset of the current-year appropriation, pointing to the same Treasury symbol. Financial Plan Managers must use the "Q" Fund for valid obligations received after the account is closed.


    After 9/30/2013, the annual appropriation 08080912D is closed.


    Assume we received an invoice during FY 2013 for a valid obligation incurred against the FY 2004 annual Processing Assistance and Management (PAM) appropriation (0912). Since the account was closed and budget authority was canceled on 9/30/2009, the obligation would have to be made in the current year, FY 2013, against the closed-year Taxpayer Services "Q" fund account 13130912Q.


    Beckley Finance Center notifies CB about charges for closed-year accounts. Corporate Budget must promptly move funds from the direct account, example 13130912D, to the closed-year account, 13130912Q, to cover the expenditure (because the closed-year account is a subset of the direct account, legally this is not an interappropriation transfer, although systemically it is handled as such). Corporate Budget requests the accounting string from which to pull the funds from the BU.

  5. No-year funds: Occasionally the language for a specific appropriation of budget authority or the authorization of the appropriation may make all or some portion of the amount available until expended. This is referred to as no-year budget authority. These accounts are designated by an "X" in the account number, such as Treasury symbol 20X0913 (for example, in IFS, 12XX0913D).  (12-16-2014)
Prior Year Funds Management

  1. When a FPM or the BFC needs to realign prior-year funds, the FPM or the BFC will request the realignment, via e-mail, to CB. The e-mail request must include a full justification, all accounting strings needed, and amounts. Unless there is reason to deny the request, CB will perform the adjustment in IFS and will respond via e-mail informing the FPM or the BFC of the processed adjustment and the IFS transaction numbers.

Exhibit 1.33.4-1 
Division Finance Officers and Financial Plan Managers

The Division Finance Officers (DFO) and Financial Plan Managers have funds control responsibility for their Financial Plans; see IRM, Funds Control Responsibility. This exhibit identifies the DFO and Financial Plan Manager by position title.

Financial Plan Division Finance Officers Financial Plan Managers
Agency-Wide Shared Services (AWSP/STWD) Director, Resource and Operations Management Financial Plan Manager Associate Director, Resource and Operations Management, Financial and Human Resources Management Branch
Appeals (APPZ) Director Strategy and Finance Director, Finance
Chief Communications & Liaison (CALC) Director, Finance and Education Director, Finance and Education
Chief Financial Officer (CFOB) Associate CFO, Corporate Budget Associate Director, Operations Support (Non-IT)
Counsel (ATTY) Associate Chief Counsel (Finance and Management) Director, Financial Management
Criminal Investigation (CIDV) Director, Strategy Director, Finance
Executive Leadership and Direction (NHQM) Director, Resources and Operations Management Associate Director, Operations Support (Non-IT)
Human Capital Office (HCOH/HCCJ) Director, Finance Chief, Financial Management
Information Technology (MITQ) Director, Financial Management Services Chief, Formulation
Chief, Execution
Chief, Support Services
Large Business and International (LB&I) Director, Management & Finance Manager, Finance
Privacy, Government Liaison and Disclosure (PGLD) Director, Resource and Operations Management Chief, NHQM/CFOB/PGLD Budget Section
Small Business/Self-Employed (SBSE) Director, Strategy and Finance Chief, Financial Management
Tax Exempt and Government Entities (TEGE) Director, Finance Director, Finance
Taxpayer Advocate Service (TPAX) Director, Financial Operations Director, Financial Operations
Wage and Investment (WAGE/WISK) Director, Strategy and Finance Director, Finance
Other Corporate Plans (1111/0290) Associate CFO, Corporate Budget Director, Budget Execution

Exhibit 1.33.4-2 
Master Data (Code) Change Request Procedure

Corporate Budget is the main point of contact for requesting Master Data additions, changes, and deactivations. Financial Management Master Data includes fund centers, cost centers, internal orders, functional areas, and commitment items.

Submit all requests to CB using the appropriate request forms. The request forms are found on the CB website. Once the forms are completed, e-mail them to *CFO Master Data Request. After the request is reviewed, either the code will be implemented in the system or an alternative recommendation will be made to the requesting BU.

For reorganizations, the BU should contact CB as soon as senior management approves the initial reorganization proposal. See IRM, Reorganizations and Other Modifications Affecting Budget. Corporate Budget facilitates the establishment of financial codes associated with reorganizations. The BU should meet with CB to discuss the purpose of the reorganization, to compare the old structure to the proposed structure hierarchy, and to determine derivation rules. Once an agreement is made, BUs should submit the appropriate request forms, along with an organizational chart, to CB at least 60 days prior to the anticipated effective date of the reorganization. Corporate Budget will coordinate with HR Connect representatives to ensure they receive accurate and complete information to implement financial codes in HR Connect.

More Internal Revenue Manual