Once Legislative Affairs has designated the LMSB Division as the lead stakeholder for a new audit, the LMSB Division holds the opening conference (usually a one hour meeting) within one or two weeks after receipt of the engagement letter. For cross-functional GAO reviews, Legislative Affairs or the Audit Program Liaison at the LMSB Division schedules the opening conference. The TIGTA auditors may begin fieldwork before the opening conference takes place. Opening conference participants usually include appropriate LMSB executive-level officials; program managers and their pertinent staffs, staffs from affected functions outside LMSB; Legislative Affairs; and TIGTA or GAO officials, depending on the audit type.

At the opening meeting, auditors discuss the audit objectives, audit sites, and the information the auditors need, such as names of contacts and documents. To expedite the research process, the engagement letter usually includes a list of the documents the Audit Team would like to receive at the opening conference or shortly thereafter.

The Audit Program Liaison should:

The designated LMSB Administrative Assistant in charge of meeting rooms reserves meeting space upon request from the Audit Program Liaison.

The designated LMSB Program Manager for the new audit, or designated representative from his/her staff, is responsible for taking notes during the opening meeting and sharing them with the Audit Program Liaison and other meeting participants, as needed.

Treasury Order 115-01 establishes the functions of the TIGTA. Section 5d states, "In carrying out their official duties, the TIGTA personnel shall have the full cooperation of employees of the Department of the Treasury and shall have full and prompt access to all facilities of the IRS and related entities, including computer facilities and computer rooms, electronic databases and files, electronic and paper records, reports and documents, and other material available to the IRS and related entities, which relate to their programs and operations; and, when access is necessary to execute a function of the TIGTA pertaining to a matter within the jurisdiction of the TIGTA, all similar facilities throughout the Department."

For TIGTA audits or investigations, two statutes allow disclosure of tax and related tax return information:

Both statutes have provisions allowing disclosure to the TIGTA under certain conditions. IRC section 6103(h)(1) allows the IRS to disclose information to Treasury employees with a "need to know" for tax administration purposes. The authority for releasing information covered by the Privacy Act is 5 USC 552a (b)(1). It is also governed by the "need to know " conditions with respect to performance of auditor duties. The legislative history of RRA 98 states, "The Treasury Inspector General (IG) for Tax Administration has the same access to taxpayer returns and return information as does the Chief Inspector under present law."

In addition to the above statutes, Legislative Affairs and the LMSB Division have Audit Program guidelines that managers and their employees must follow when working on audits. Employees can find these guidelines in the IRM 11.5.1, Audit Process for GAO and TIGTA (Servicewide guidelines), and the Legislative Affairs' Web site under the TIGTA/GAO Audit Resource Center at http://cl.no.irs.gov/la/BranchC/GAOTIGTA/ARC/Audit%20Resource%20Center.htm . Employees can also find LMSB Audit Program guidelines in IRM 11.51.1 and the LMSB Division's TIGTA/GAO Audit Program Web site at http://lmsb.irs.gov/hq/pqa/TIGTA_GAO/home.asp.

Besides conducting comprehensive performance and financial audits of IRS programs, operations, and activities, TIGTA conducts investigations of IRS employees. In RRA 98, the Congress gave TIGTA all powers and responsibilities of the IRS Inspection Service except for conducting background checks and providing physical security. TIGTA was also granted sole jurisdiction and responsibility to enforce criminal law as it pertains to IRS operations including IRS employee misconduct and external attempts to corrupt tax administration.

The TIGTA's Office of Investigations (OI) has the responsibility to conduct investigations that proactively and reactively protect the Treasury’s ability to collect revenue. The OI conducts investigative programs that:

TIGTA investigations may involve violations of federal criminal statutes and/or standards of ethical conduct. Examples of investigations include:

The OI also operates a toll-free hotline where anyone can anonymously report allegations of fraud, waste, abuse, or mismanagement in IRS programs and operations. Complaints can be submitted to the hotline by various methods provided on the TIGTA’s Web site. The TIGTA’s investigatory review procedures are also in its Web site.
For additional information see the TIGTA's Web site at http://www.treas.gov/TIGTA/.

The TIGTA may contact IRS managers or employees to gather information in connection with a planned investigation or research. The investigation or research could be result of a telephone call from a taxpayer, practitioner, or employee alleging misconduct at the IRS, or research work before an audit. LMSB employees should consult with their managers (for investigations), the Audit Program Liaison (for audits), or the LMSB Disclosure Technical Advisor for disclosure guidance.

After verifying proper TIGTA identification (credentials/badge if the contact is in person), employees must cooperate as fully as possible with an investigation. Title 5 U.S.C. section 552a (b)(1) provides for disclosure to employees within the agency (i.e., Department of the Treasury) if they have a need for the record in the performance of their duties. Neither the tax code nor the Privacy Act requires a written request, and no IRM procedure requires the TIGTA to make written requests during investigations. See IRM 11.3.22.9, Disclosure to Federal Officers and Employees for Tax Administration Purposes (TIGTA).

When releasing tax data in connection with an investigation, IRS employees should prepare a record of the disclosure by using Form 11377 (Taxpayer Data Access) to document they accessed confidential data at the request of a TIGTA agent. Employees must file the form with their managers daily.

Employees who need further guidance when responding to a TIGTA agent's request for information about an employee or taxpayer investigation, should contact their managers. Managers can contact the LMSB Disclosure Technical Advisor for disclosure guidance.

Shortly after the Office of Legislative Affairs receives the GAO study notification letter, it prepares a transmittal or cover memorandum addressed to the official(s) designated as lead stakeholder(s) for the new audit (e.g., Division Commissioner). The memorandum transmitting the GAO study notification is known as the "disclosure memorandum" because it authorizes managers to allow access to tax return and information return documents to the GAO Team in connection with the new review. The memorandum, which is forwarded with the GAO study notification to managers involved in the review, provides instructions to managers on how to handle GAO requests for taxpayer information and account for disclosure of such information based on IRM 11.3.23, Disclosure to the GAO.

The opening conference with the GAO to discuss the new study should not take place until the designated lead stakeholder receives the disclosure memorandum from Legislative Affairs. Managers should not provide taxpayer or return information to the GAO before Legislative Affairs issues the disclosure memorandum. Legislative Affairs issues a disclosure memorandum for each of the GAO study notifications when the Congress authorizes access to taxpayer records to the GAO based on authority granted by the Internal Revenue Code (IRC) section 6103(f)(4).

The designated lead executive(s) and pertinent Program Manager(s) should become familiar with the disclosure memorandum and discuss with the Audit Team at the opening meeting what IRS records and taxpayer information the GAO needs. The lead stakeholder(s) should negotiate with the auditors during the audit the extent of the records requested, either paper or electronic, especially if the requests for information seem unreasonable (e.g., request for an entire database containing taxpayer information). The lead stakeholder(s) or Program Manager(s) can contact the Audit Program Liaison to request a copy of the disclosure memorandum before the opening meeting, if Legislative Affairs or the Audit Program Liaison did not provide it with the study notification.

Legislative Affairs notifies the appropriate functions by electronic mail or memorandum about any changes in the GAO audit plans such as access to taxpayer information, changes in audit objectives, expansion of audit sites, or closing an audit before issuing a draft report.

The disclosure memorandum, addressed to the lead stakeholder(s) for the audit, provides specific disclosure instructions. It applies to managers within the IRS providing taxpayer information to GAO analysts or representatives. Employees should consult with their managers before releasing any information to the GAO in connection with an ongoing review.

IRM 11.3, Disclosure of Official Information, provides that: " You and your designees are authorized to provide the GAO with access to any tax or nontax information, with the exception of the identity of an informant or any information which will tend to reveal the identity of an informant, grand jury information, and certain information obtained under tax treaty [see IRM 11.3.23, Disclosure to the GAO] that falls within the scope of this review. If information exists that would identify a confidential informant, either directly or indirectly, you should notify the appropriate Director of Investigation who will seek authorization from Headquarters to withhold the information. Similarly, if it appears that disclosure of tax information to the GAO would seriously impair a civil or criminal tax investigation, authorization to withhold such information should be sought through appropriate channels from the Office of Governmental Liaison and Disclosure."

For additional information see IRM 11.3, Disclosure of Official Information.

Managers can disclose taxpayer information only to those GAO representatives whose names appear on the current list of GAO personnel designated to review IRS programs under IRC section 6103(f)(4). GAO analysts or representatives should contact the appropriate manager (e.g., the designated primary contact within the lead stakeholder area or the Audit Program Liaison) to arrange for their visits to collect taxpayer information. An updated list of GAO personnel authorized to have access to taxpayer information is available in the Legislative Affairs' Audit Program Web site at http://cl.no.irs.gov/la/BranchC/GAOTIGTA/Index.htm .

If the name of the GAO representative requesting information is not in the list, managers should contact the Audit Program Liaison to request an updated list or addendum from the GAO.

The lead executive owner for the GAO review and/or the designated Program Manager in LMSB is responsible for reviewing and approving responses to requests for information from the GAO involving tax returns or information returns, accounting for the disclosures of taxpayer information, and coordinating with the GAO to deliver the information requested in person or by express mail.

Subsection I of the Privacy Act and IRC section 6103 (p)(3)(A) govern accounting for the disclosure of tax returns and return information. Generally, managers may use Form 5466-B, Multiple Record of Disclosure, to account for tax disclosures, although in situations where managers are disclosing a large volume of records at one time (mass disclosures), they may use a narrative accounting (letter) instead. To account for the disclosure, the responsible manager(s) should use Form 5466-B, found at the following link: http://core.publish.no.irs.gov/forms/internal/pdf/63063h98.pdf , or a narrative record (letter) providing specific information as described in the IRM. See IRM 11.3.37 for IRS procedures to create a record of the disclosure (an "accounting" ). Managers should send copies of Form 5466-B or narrative (letter) to the appropriate Disclosure Office and the Audit Program Liaison for record-keeping via encrypted electronic mail or by express mail.

The Privacy Act of 1974 (5 U.S.C. section 552a) and IRC section 6103 (26 U.S.C. section 6103) require the IRS to maintain an accurate accounting of the disclosure of records when the IRS discloses the information without the individual’s prior notification or consent. Subsection (b) of the Privacy Act requires an accounting for the disclosure of non-tax information about individuals (i.e., personnel records, travel vouchers, etc.). Form 5482, Record of Disclosure, is used to account for disclosure of the non-tax records (IRM 11.3.19).

The narrative record of accounting letter should include:

Managers can refer questions on accounting for disclosure to the LMSB Division's Disclosure Technical Advisor. If the Disclosure Technical Advisor is not available, managers can contact the Disclosure officer serving their functional area or state.

Besides conducting comprehensive performance and financial audits of IRS programs, operations, and activities, the GAO may conduct investigations of IRS employee according to standards that the President’s Council on Integrity and Efficiency (PCIE) established. PCIE standards ensure that the GAO and its investigators:

The Office of Special Investigations (OSI) in the GAO is staffed by criminal investigators. The OSI conducts oversight investigations of allegations of serious wrongdoing that may involve potential violations of criminal law. When OSI investigations disclose potential violations of law, the office refers the information to the appropriate law enforcement agency, such as the Office of Inspector General or the Department of Justice. The OSI seeks evidence of wrongdoing either in conjunction with or independently of audits and evaluations. The OSI investigations typically focus on allegations of:

The OSI also engages in proactive operations that test the security of agencies’ systems, controls, and property. It also uses the GAO’s FraudNET, an automated system that allows the public an opportunity to report allegations of fraud, waste, abuse, and mismanagement of federal funds.

Like other GAO units, the OSI expects that an agency will promptly comply with requests for access to its records and to agency personnel directly involved with the matter under investigation. Furthermore, no one should interfere with an investigator’s ability to obtain relevant information about an investigative matter. Investigations do not support the use of entrance or exit conferences. However, for investigations that will result in a public report or testimony, the OSI briefs agency officials after it has completed the investigation and before it makes the information public.
(Source: the GAO’s Agency Protocol, October 2004 – GAO-05-35G)

A closing or exit conference (usually a one hour meeting) takes place at the end of an audit, usually within two weeks after the Audit Team issues the statement-of-facts briefing paper (GAO) or discussion draft report (TIGTA). The closing meeting takes place at the request of the Audit Team or the LMSB managers responsible for the audit. The purpose of the meeting is to discuss managers’ comments or reactions to the statement-of-facts briefing paper, discussion draft, or draft report (if the Audit Team did not issue a discussion draft report or briefing paper). The executive lead stakeholder, or a representative, should participate at the closing conference. LMSB managers should seek concurrence from the Audit Team on proposed revisions to the discussion draft report or statement-of-facts briefing paper and request a revised audit report before the Audit Team issues the draft report, if possible.

The Audit Program Liaison should:

The LMSB Administrative Assistant in charge of meeting rooms reserves meeting space upon request from the Audit Program Liaison.

The executive owner(s) of the audit and pertinent Program Manager(s) responsible for the audit should thoroughly review the discussion draft report or statement-of-facts briefing paper to ensure the report reflects:

Although the IRS does not need to issue a formal response to the discussion draft report or statement-of-facts briefing paper, this is the time to raise concerns and consider the feasibility of adopting the audit recommendations, if the report has recommendations.

Managers should take advantage of this opportunity to discuss any concerns or inaccuracies with the audit report. When concerns and/or inaccuracies exist in a discussion draft report or statement-of-facts briefing paper, the lead stakeholder function should coordinate with pertinent managers within and outside LMSB, as needed, to prepare comments. Managers should provide written comments (e.g., annotated in the audit report, if possible) to meeting participants and the Audit Program Liaison before the closing meeting and a copy to the Audit Team at the closing meeting, unless the team requests a copy prior to the meeting. To follow up after the meeting, program managers should also provide consolidated comments to the Audit Team by electronic mail, with copy to the Audit Program Liaison. By providing written comments, managers ensure they address all their concerns with the report, provide the auditors specific language for revisions, and clarify any misunderstandings during the meeting. Written comments reduce the time spent taking meeting notes and help focus the closing meeting discussions on the most important issues.