The purpose of this section is to provide the policies, guidelines and requirements for the administration of the Internal Revenue Service’s (IRS) personnel security program regarding the initiation of suitability/security investigations. Every position within Treasury/IRS requires that incumbent or potential employees undergo an investigation conducted by an appropriate government authority based upon the sensitivity of the position, and/or need for access to classified information, and requirements of Homeland Security Presidential Directive (HSPD-12) ( http://www.whitehouse.gov/news/releases/2004/08/20040827-8.html ).

The investigative requirements shall be consistent with the guidance provided by the Office of Personnel Management (OPM). Background investigations, conducted for suitability or security determination purposes, constitute the first step in the process of ensuring the highest standards of honesty, integrity, and security among (IRS) employees, enabling the IRS to carry out its mission and ensure the integrity of its employees. Suitability reflects the standards required for employment with the Government in general, and the IRS in particular, with reference to a person's character, reputation and overall fitness.

Suitability determinations must be made when derogatory information about an applicant or employee surfaces in the course of pre-employment or background investigations.

The following authorities ( http://awss.web.irs.gov/personnelSecurity/Executive%20Orders.shtml ) apply to personnel security and suitability investigations:

Personnel officers must employ every reasonable means available to obtain suitability information prior to the applicant's Enter on Duty (EOD) date. This applies to all applicants including:

IRS policy mandates that, in all cases, applicants must be fingerprinted and the results received (including disposition information if applicable) prior to the applicants' EOD. IRS policy prohibits an individual from entering on duty, until FBI fingerprint results and, if applicable, case disposition information are received and reviewed. This policy applies to all positions in all IRS locations, with no exceptions. In the event that staff shortages occur, managers shall take steps to move existing staff into areas that require additional resources. Applicants must also undergo a tax check, see Human Capital Policy #67. For contractor personnel, the IRS will follow the policy contained in IRM 10.23.2, Contractor Investigations.

The Human Capital Office is required to determine eligibility by verifying the citizenship and selective service registration (if applicable) before entry on duty date as part of the hiring process.

Fingerprints must be submitted to OPM, which will conduct a search of the FBI-Identification Division criminal history records and a check of OPM's Security/Suitability Investigations Index, which will identify any prior investigations conducted by other agencies.

In order to reduce resource shortfalls, the IRS has received authority from OPM to re-employ annuitants in several occupations. In order to streamline the process and mitigate risk to the Service, the following pre-employment checks will be required of all re-employed annuitants hired, regardless of the business unit, prior to entry on duty: receipt of fingerprint check results and, if applicable, disposition information; verification that a background investigation was completed during the annuitant’s tenure with the IRS.

Any review or investigation that yields adverse or derogatory information (see 5 CFR 731) about an applicant, or an employee, requires a suitability determination. Whether the adverse information originated from a personnel security investigation, an OF-612, resume, financial statement, or other source, a suitability determination will be made before any other type of determination (i.e., security, loyalty, etc).

Investigative forms can only be completed after a conditional offer of employment has been made.

Background Investigation Coordinators initiating background investigations will follow the instructions found on the IR Web at the following link - http://abis.web.irs.gov/abis/home.asp.

Every IRS position, including those of contractors, must be designated with a sensitivity level. All employees and contractors must meet personnel security/suitability standards commensurate with their position sensitivity level and they must be subject to personnel investigation requirements. There is a reinvestigation requirement for individuals in high risk positions and those who have security clearances if they continue to have a need for access to classified information.

Risk levels determinations are made for every position when the position description is written and classified (see IRM 6.731.1.6.1, Risk Designation System). For standard position descriptions, risk level determinations are made by the National Classification Center ( http://hco.web.irs.gov/posclass/positiondesc/index.html ), in conjunction with the function where the position is located. Risk levels for all SES and other Executive Resources Board covered positions are determined by the Office of Executive Services.

These risk levels are established through an analysis of the duties and responsibilities of the positions, and their impact on agency mission (see IRM 6.731.1.6.2, Suitability Position Risk Levels and IRM 6.731.1.6.3, Computer/ADP Risk Levels.) Examples of Public Trust positions and their risk levels are:

Minimum Investigative Requirements. The investigative levels shown above require the following minimal level investigation as recommended by the Department of the Treasury and OPM:

Only personnel designated High Risk are subject to a Periodic Reinvestigation (PRI) no later than five years after placement and at least once every succeeding five years. If there is a change in position risk or sensitivity level, i.e., an employee moving to a position at a higher risk or sensitivity level than the position he or she currently occupies, the employee must meet the investigative requirements of the position designation of the new position.

For an employee moving into a Critical-Sensitive or Special-Sensitive position, the investigation must be completed pre-appointment. Other than for Critical-Sensitive or Special-Sensitive levels, if the position risk or sensitivity of an incumbent’s position is increased due to an accretion of duties and responsibilities, the incumbent may remain in the position, but the investigation required by the higher risk/sensitivity level shall be initiated within 14 working days of the effective date of the new position designation.

Investigations for low risk temporary appointments of 180 days or less are not initiated, only a fingerprint check and tax checks are required. The minimum requirements, however, do not preclude IRS from establishing more stringent requirements with appropriate justification.

For individuals occupying national security positions the risk levels are:

These investigations are used to determine suitability for employment in positions in the competitive service, excepted service, and the Senior Executive Service (SES).

Personnel Security and Investigations (PS&I), within IRS, under delegated authority from the Office of Personnel Management (OPM), is responsible for carrying out a program of investigating applicants and employees for Federal employment.

Upon completion of the investigation, a "suitability" decision is made by the Service after reviewing the results of the required background investigation which is conducted by IRS, OPM or another Federal agency. The scope and coverage area of the investigation is determined by the designated position sensitivity level. The investigation is designed to reveal pertinent facts, past and present, about the character, honesty, trustworthiness, reputation, etc., of the applicant or employee.

When feasible, all background investigations shall be completed and suitability decisions made within an employee's first year of service. Adverse action procedures may be applicable in some cases.

The probationary period begins with the date the employee enters on duty and ends on the day before his/her first year anniversary on the job.

In accordance with the Treasury Security Manual, employees’ appointed to any Treasury/bureau position are subject to a suitability investigation (1) upon initial appointment to the Federal service and (2) upon reappointment after a break in service of 24 or more months. Employees also may be subjected to investigation for access to national security information prior to or immediately following entrance-on-duty. Current Federal employees appointed to Treasury/IRS positions may be subjected to further investigation, if the position to which they are being appointed carries a higher risk designation than that for which they were previously investigated. In general, the type of investigation to be conducted is based on the position's sensitivity or risk level designation.

Transfers and reinstatements from other agencies in moderate or high risk positions must complete the investigative forms. A determination as to whether or not an investigation is required must be done for all Moderate Risk and High Risk investigations.

If "material intentional falsification" is identified it must be referred to OPM even beyond the probationary year.

If the Subject of an investigation separates or is no longer being considered for appointment the investigation must be discontinued.

The employment and retention of any employee or contractor in a national security position must be consistent with the interests of the national security. At IRS that determination usually is related specifically to the individual's need for access to classified national security information, also referred to as a need for a security clearance.

Security clearances to permit access to classified (Confidential, Secret, or Top Secret) information are granted by the Director, PS&I, in accordance with EO 12968 or any successor order.

Completion of a favorable background investigation does not of itself confer access to classified materials. An individual is eligible for access to classified information provided:

The responsibility for determining whether an employee's official duties require possession of, or access to, classified information and whether the employee has been granted the appropriate security clearance and has a bona-fide "need-to-know." rests with the official who will be providing access to the information, and not with the prospective recipient.

Government contractors, licensees, grantee employees, or other non- Governmental personnel requiring access to classified information in the performance of their duties are subject to the same access requirements and standards as Federal employees.

The reinvestigation requirement covers all incumbents in national security positions.

Requests for national security clearances should be referred to the National Security Programs office within PS&I. Instructions for submitting requests can be found on the IR Web at the following link - http://awss.web.irs.gov/PersonnelSecurity/Requesting%20a%20National%20Security%20Clearance.shtml

For position sensitivity levels see Section 10.23.3.4 item 8.

In accordance with the Fair Credit Reporting Act, all Treasury/IRS applicants and employees, including contractor employees, for whom a credit check is initiated, will be notified in writing that credit reports may be obtained for employment purposes. Written consent must be obtained prior to any such reports being procured. Individuals must be notified promptly if information in their credit report may result in any unfavorable action, such as denial of a clearance, employment, or access authorization. The disclosure and authorization form (Form 13340) to be used for this purpose appears at http://awss.web.irs.gov/PersonnelSecurity/Personnel%20Security%20Forms.shtml .

Information in personnel security investigations, records, and operations, must be carefully safeguarded to protect the interests of both the individual and the Department/bureaus as required by the Privacy Act. Unless classified at a higher level, personnel security information must be afforded the same degree of protection as material classified Confidential and the information will only be used for authorized official purposes. When not in use, personnel security information must be stored in a General Services Administration-approved security container or in an equally secure area. Reports containing classified information must be protected in accordance with EO 12958, as amended, Classified National Security Information, and appropriate Treasury regulations.