If an employee is given an assignment in which he or she has a financial interest, he or she should complete a Form 6782, Certification of Direct or Indirect Financial Interest in a Work Assignment, and file it with his or her immediate supervisor. The Supervisor, through Associate or Division Counsel, may seek the advice of General Legal Services on the proper resolution of the conflict (e.g. reassignment, regulatory exemption, individual waiver, directed divestiture).

Questions regarding an employee’s own participation, or the participation of another Counsel employee, in a matter because of a conflict of interest, or an impartiality issue should be referred through the employee’s management chain to the Associate or Division Counsel. The Associate or Division Counsel may seek GLS advice on the appropriate course of action.

Questions regarding the participation of the Chief Counsel or the Deputies Chief Counsel in particular matters should be referred through the Associate or Division Counsel to the Chief Counsel Front Office gatekeeper, who will coordinate with GLS as necessary.

Standards of professionalism and courtesy require that any question concerning a potential conflict of interest or impartiality issue involving another employee be raised in a confidential manner through supervisory channels and not be made the subject of speculation or rumor.

Absent the application of a regulatory exemption or the issuance of an individual waiver (discussed below), employees may not personally and substantially participate in any particular matter that will have a direct and predictable effect on the employee’s financial interests. 18 U.S.C. § 208(a).

A financial interest in a particular matter exists when an employee or a person whose financial interests are imputed to the employee has a stake in the matter’s outcome. Imputed financial interests include those held by the employee’s spouse, minor child, or general partner. The financial interests of other persons, including organizations or entities, are imputed to an employee if the employee serves as an officer, director, trustee, general partner, or employee of an organization or entity, or if the employee is negotiating with or has an arrangement concerning future employment with a person, organization, or entity.

Particular matters under 18 U.S.C. § 208(a) include deliberations, decisions, or actions focused on the interests of either a specific party or parties or of a discrete and identifiable class of persons ( e.g. a particular industry). A particular matter need not involve specific parties and may include a broad range of Government activities such as judicial or administrative proceedings, applications, requests for ruling, or other determinations, as well as general activities such as rulemaking or the formulation of general policies.

A particular matter will have a direct effect on a financial interest if there is a close causal link between any action to be taken in the matter and any expected effect of the matter on the financial interest. It will have a predictable effect on a financial interest if there is a real as opposed to speculative possibility that the matter will affect the financial interest. The dollar amount of any gain or loss is immaterial.

The U.S. Office of Government Ethics (OGE) has the authority to issue regulatory exemptions to the prohibition of 18 U.S.C. § 208(a) if OGE determines that the financial interest is too remote or inconsequential to affect the integrity of the employee’s services. Specific regulatory exemptions are discussed below and may be found at 5 C.F.R. part 2640, subpart B.

Diversified Mutual Funds. A fund is diversified if it does not have a stated policy of concentrating its investments in any industry, business, single country other than the United States, or bonds of a single State within the United States.

Sector Mutual Funds. A sector fund is a mutual fund that concentrates its investments in an industry, business, single country other than the United States, or bonds of a single State within the United States.

Interests in Securities. An employee may participate in a particular matter involving specific parties that will affect the employee’s, his or her spouse’s or minor child’s interest in publicly traded securities if the value of the interest does not exceed $15,000.

Employee Benefit Plans. An employee may participate in any particular matter affecting the underlying holdings of the Thrift Savings Plan.

An individual waiver is available where it is determined that a financial interest is not so substantial as to be deemed likely to affect the integrity of the employee’s services.

Requests for individual waivers should be submitted by Associate or Division Counsel to the Associate Chief Counsel (General Legal Services). The Associate Chief Counsel (GLS) will prepare the waiver and consult with OGE, as required by OGE regulations.

Approving Officials for various Counsel employees are listed below.

Absent authorization, an employee should not participate in a specific party matter where the matter will have a direct and predictable effect on the financial interests of a member of his or her household, or where a person with whom he or she has a covered relationship is a party or a representative of a party to the matter if a reasonable person would question the employee’s impartiality.

An employee has a covered relationship with the following persons:

The employee’s immediate supervisor may authorize the employee to participate despite the appearance of a lack of impartiality if he or she determines, in light of all relevant circumstances, that the Government’s interest in the employee’s participation outweighs the concern that a reasonable person may question the integrity of the agency’s programs and operations. The criteria for making the authorization determination are set forth in subpart E of the Standards of Standards of Ethical Conduct. 5 C.F.R. § 2635.502(d). Supervisors should consult with the Associate Chief Counsel (GLS) when issuing an authorization.

The above procedures should also be followed where an employee has a relationship, other than a covered relationship described above, with a person who has an interest in a matter before the Office of Chief Counsel, and a reasonable person with knowledge of all facts and circumstances would question the employee’s impartiality in participating in the matter.

The restraints of this section pertain to certain matters in which the United States is a party or has a direct and substantial interest. (See 18 U.S.C. § 207). These matters consist of those in which a former employee participated personally and substantially or merely had overall responsibility for the matters.

Under 18 U.S.C. § 207(a)(1), former government employees are permanently barred from acting as agent or attorney for, or otherwise representing any other person in an appearance before, or with the intent to influence or make any oral or written communication on behalf of any other person (1) to the United States, (2) in connection with any particular Government matter involving a specific party, (3) in which matter the employee has personally and substantially participated as a government employee.

Under 18 U.S.C. § 207(a)(2) former government employees are barred for a period of two years from acting as an agent or attorney for, or otherwise representing any other person in any appearance before, or with the intent to influence, making any oral or written communication on behalf of any other person (1) to the United States, (2) in connection with any particular government matter involving a specific party, (3) if such matter was actually pending under the employee’s official responsibility within one year prior to the termination of the employee’s responsibility.

Treasury Department Circular No. 230, § 10.25 (31 C.F.R. § 10.25) governs the practice of attorneys before the Service. Willful violation of these regulations may be a basis for disbarment or suspension from practice before the IRS.