This IRM covers the concept and principles of discipline, administrative disciplinary matters, investigations and Treasury Inspector General for Tax Administration (TIGTA) reports of investigation, disciplinary records and reports, guidelines for identifying and using tax information, and nondisciplinary and lesser disciplinary actions.

For purposes of this IRM, a non-disciplinary action is a clearance letter, a closed without action letter or a written letter of counseling.

For purposes of this IRM, a lesser disciplinary action is an admonishment or a reprimand.

Disciplinary Suspensions and Adverse Actions are covered in IRM 6.752. (Information will be contained in IRM 6.752 which will be published at a future date.)

Actions involving employees in their probationary or trial period are covered in IRM 6.300. (Information will be contained in IRM 6.300 which will be published at a future date.)

Discipline is adherence by all employees to known conditions and standards of conduct established to provide for the orderly and efficient administration of the Internal Revenue Service. This includes compliance with governmentwide standards of conduct, as well as standards of conduct, work procedures, and office practices established to accomplish the work of the Service. All employees and managers share in establishing and maintaining effective discipline.

Employees who fail to comply with standards of conduct, work procedures and office practices in the Internal Revenue Service will be subject to disciplinary action designed to correct the violation and motivate the individual to become a productive employee of the Internal Revenue Service. Disciplinary action will be used to correct the conduct or other actions of employees that impair operational effectiveness or damage the public image of the Internal Revenue Service.

Disciplinary action in each case must be fair, equitable, impartial, as timely as possible, and should not be taken to punish, but to correct. No standard schedule of offenses and penalties will be used in the Internal Revenue Service, although a guide that assists management in determining appropriate penalties may be used (see Exhibit 6.751.1-1). Each case will be considered individually and dealt with on its own merits, with due consideration to the supporting evidence as well as information supporting the employee’s position. Mitigating factors, willfulness, prior offenses and position occupied will be considered in deciding appropriate corrective action. Consistency in taking disciplinary actions is an objective. When a specific penalty is prescribed by statute, no discretion exists. In these cases the statutory penalty must be imposed and cannot be reduced (e.g., for willful misuse of a government owned or leased vehicle, 31 CFR § 0.735-46 requires a minimum 30-day suspension).

Supervisors are responsible for establishing and maintaining effective discipline within their work group. The supervisor should explain work requirements and other standards the employee is expected to meet when the employee enters on duty. Supervisors have a continuing responsibility to assure that proper discipline exists, and to keep employees informed of acceptable work performance and conduct requirements. Supervisors should take or recommend disciplinary action when employees deviate from acceptable standards of conduct or performance. When violations occur, supervisors must fully document the offense and be prepared to support the corrective action needed to make the employee a productive member of the work group.

The servicing Labor Relations office is responsible for advising and assisting supervisors in all disciplinary matters, including TIGTA reports of investigation, employee tax cases, IDRS security violations, and other conduct allegations referred for appropriate action.

The servicing Labor Relations office will ensure that proposed disciplinary actions are consistent, taking into account the employee’s position, the seriousness of the misconduct, and all other relevant factors; and will ensure that such actions are in conformance with laws, rules, regulations, and prior judicial and appeal decisions.

In addition, the servicing Labor Relations office will ensure that the following actions (including follow-up procedures) are taken in a timely manner:

Delegation Order No. 81 (as revised) establishes the level of officials authorized to take final action in a nondisciplinary action, lesser disciplinary action, and disciplinary suspension. The order also establishes the lowest level to which the authority may be redelegated.

The level of officials authorized to propose and take final action in an adverse action will be detailed in the delegation orders to be issued at a future date (see note above and IRM 6.752).

Consultation with the servicing Labor Relations office is required before the issuance to an employee or employees of any notices involving non-disciplinary action, lesser disciplinary action, disciplinary suspension, or adverse action.

While the same standard of conduct applies to all Service employees, the level of accountability is directly proportionate to the level of trust, leadership and responsibility vested in the employee’s position. For example, employees in professional positions would be more accountable than a clerical employee for the same violation of the rules of conduct. Similarly, managers, executives, and employees directly involved in law enforcement activities (e.g., Special Agents) are, by definition, more accountable for a high degree of personal integrity in the exercise of their official responsibilities. Therefore, the position an employee occupies and the accountability associated with that position will be taken into consideration in determining the appropriate disciplinary action, even if the result is a greater penalty than that presented in Exhibit 6.751.1-1.

Supervisors and managers are expected to use the full extent of their authorities and capabilities in handling administrative matters that do not require professional investigative skills, techniques, or authorities. The documentation and availability of facts, and the relevant evidence to make a determination in administrative matters, is usually close at hand and readily available to supervisors and managers. In these types of administrative/disciplinary matters, interviews of any third parties are rarely necessary, all logical sources of information are readily available in most instances, and there is little reasonable potential that more serious forms of employee misconduct exist. Offenses that are administrative in nature may include:

Supervisors and managers should not investigate other kinds of employee misconduct unless approval is obtained from the appropriate Internal Security manager or the TIGTA Inspector. Supervisors must not undertake any activities that require professional investigative skills, techniques, or authorities — such as obtaining affidavits or sworn statements, securing police records or other evidence not customarily available to them during the course of their official duties, or engaging in any concealed surveillance of others. In cases where it is impractical for supervisors or managers to obtain and document the facts necessary to the formulation of a responsible disciplinary judgment, they should obtain TIGTA’s support and assistance.

Where an administrative offense has occurred and there is no indication of any other form of employee misconduct that must be reported to TIGTA, supervisors and managers may take appropriate action after consultation with the servicing Labor Relations office. Notices involving non-disciplinary action, lesser disciplinary action, disciplinary suspension, or adverse action may not be issued to employees unless the necessary facts have been documented with sufficient clarity.

The investigative jurisdiction of TIGTA in background investigations, investigations resulting from complaints or irregularities concerning employees and, in certain instances, complaints and allegations made by employees of the Internal Revenue Service, is described in IRM (10)300.

Any allegation or information that an employee may have committed a crime, including violation of any tax law, or any IRS, Treasury, or Office of Government Ethics (OGE) conduct provision, must be promptly reported to TIGTA. Operating officials and supervisors will not, under any circumstances conduct an investigation into these matters unless concurred in by TIGTA.

Referral of TIGTA’s investigative reports shall be made on a "need to know" basis only; however, they should be referred to the levels of management having authority to recommend and take final action. All persons shall be cautioned to treat such investigative reports in a strictly confidential manner.

The desirability of a prompt evaluation and a timely decision on a conduct or suitability case cannot be overemphasized. Undue delay between management’s awareness of an offense and the corrective action will detract from the effectiveness of the discipline. Officials should strive to close cases or issue notices of proposed action promptly after receipt of all pertinent data.

When the proposing official, after consultation with the servicing Labor Relations office, believes that investigative reports require clarification, development of additional facts, or further investigation, the report will be returned to the servicing TIGTA office via the same channels by which it was received — along with a memorandum outlining the clarification, additional facts or information sought.

As a result of an oral and/or written reply to a notice of adverse action, either the proposing or deciding official may find issues raised that warrant the development of additional facts and data by investigation. The report, after consultation with the servicing Labor Relations office, will be returned to the servicing TIGTA office via the same channels by which it was received — together with a memorandum outlining the additional facts and data desired and, if appropriate, the area(s) of further investigation.

TIGTA investigation reports regarding actions that have been completed will be returned to the appropriate TIGTA office in accordance with any applicable procedures and instructions on Form 2076, TIGTA Referral Memorandum. Reports should be returned no later than the effective date of an action. Cases where actions are stayed in accordance with the collective bargaining agreements should be returned no later than the date the action would have been effective but for the stay. If the obtaining of an SF-50 in any action will result in a delay of more than a few days in the return of a report, the report should be returned without the SF-50 and the SF-50 should be forwarded to TIGTA when it becomes available.

Whenever an action is subsequently modified in a case that is based on a TIGTA report of investigation, TIGTA should be provided with the information, including any changed personnel notices or settlement agreements.

When portions of a TIGTA report form the supporting material used in an evidence file, permission to copy and use those pertinent portions of the report must be obtained from TIGTA.

In some instances, complaints of improper conduct by Service employees may involve possible violations of law under the jurisdiction of another Federal agency or a local government. Since TIGTA is responsible for maintaining liaison with such agencies, matters of this type will be referred to TIGTA.

In cooperating with Federal or local investigative agencies, employees will do so within the limitation of statutes and regulations governing the disclosure of information.

If an investigation report or allegation referred for management action concerns two or more field employees, at least one of whom is in a position centralized to the National Headquarters, the report will be referred by TIGTA to the Director, Strategic Human Resources, for handling in accordance with the procedures in 6.751.1.11 below.

If an investigation report or allegation referred for management action concerns two or more employees in decentralized positions located in different posts of duty, TIGTA will forward the report to the Director, Personnel Services, AWSS, who will refer the cases to the appropriate embedded Human Resources offices for analysis and recommendation. The Director, Personnel Services, AWSS, will review the recommendations to assure consistent action. If either office does not agree with a determination made by the Director, Personnel Services, the recommendation will be submitted to the Deputy Commissioner for decision.

Depending on the nature of adverse information developed by the investigation or the unusual circumstances or sensitivity presented by the case, the Chief Inspector may recommend to the Deputy Commissioner that a conduct case involving an employee in a decentralized position be adjudicated in the National Headquarters — with or without referral to the Business Unit Chief for recommendation. If the Deputy Commissioner agrees, the case will be reviewed by Personnel Services, AWSS, and action to be taken will be recommended by the Director, Personnel Services, AWSS, to the appropriate official. If the Deputy Commissioner Operations does not agree that the case should be adjudicated in the National Headquarters, and he/she and the Chief Inspector are unable to resolve their differences, the matter will be presented by the Deputy Commissioner to the Commissioner for decision.

Investigation reports or referrals of allegations for management action concerning employees of the National Headquarters will be transmitted to the appropriate National Headquarters official concerned through the Director, Personnel Services, AWSS (except for Executive and Senior Manager (GS -15) cases).

The Director, Personnel Services, AWSS, or his/her designee will review the case and forward the report and related documents to the appropriate official for action. The Director, Personnel Services, AWSS, provides technical assistance as may be necessary for the proper handling of such cases, and for returning investigation reports to TIGTA after action has been completed by the appropriate official.

The appropriate National Headquarters official (or his/her designee) is responsible, with the technical assistance of the Director, Personnel Services, AWSS, for taking proper action with respect to matters covered in investigation reports. Such matters include review of the case, preparation and delivery of any notices, receiving and evaluating any employee answers (including answers in person), and preparation and delivery of final decision letters and any other related correspondence. The TIGTA report, with completed Form 2076, Inspection Referral Memorandum, will be forwarded to the Director, Personnel Services, AWSS, for return to TIGTA.

TIGTA Reports and allegations referred for management action involving Executives, Senior Managers (GS-15) and positions over which the Commissioner retains authority will be processed in accordance with standard operating procedures approved by the Commissioner or Deputy Commissioner as appropriate.

The following are filed on the left or temporary side of the Official Personnel Folder:

Permanent records affecting the employee’s status and service, including Notifications of Personnel Action, Standard Form 50, are filed on the right or permanent side of the Official Personnel Folder.

IRM 1(15) 59.31, Administrative Records, establishes the required retention period for the disciplinary action and adverse action case files.

Records and files dealing with individual disciplinary or adverse action cases should be maintained in a locked container in accordance with IRM 1(16)12, Manager’s Security Handbook.

Form 2582, Disciplinary and Suitability Cases Closed, will be used for compiling statistical information concerning employee disciplinary and suitability cases closed in each function and the National Headquarters during each 12-month period ending September 30.

The Chief, Office of Ethics and Business Conduct, will prepare a consolidated report for distribution to Personnel Officers and the Office of Personnel Operations.

Tax returns or return information may not be disclosed in proposing or effecting discipline, except as provided by the specific provisions of Section 6103 of the Internal Revenue Code. To the extent that a return or return information is relied upon in proposing or effecting discipline, the confidentiality of the information must be safeguarded.

Under the provisions of Section 6103(b)(1), a tax return is defined as "any tax or information return, declaration of estimated tax, or claim for refund required by, or provided for or permitted under the provisions of this title which is filed with the Secretary (of the Treasury) by, on behalf of, or with respect to any person and any amendment or supplement thereto, including supporting schedules, attachments or lists which are supplemental to, or part of, the return so filed."

Return information is defined as "a taxpayer’s identity, the nature, source or amount of his/her income, payments, receipts, deductions, exemptions, credits, assets, liabilities, net worth, tax liability, tax withheld, deficiencies, over assessments, or tax payments, whether the taxpayer’s return was, is being, or will be examined or subject to other investigation or processing, or any other data received by, recorded by, prepared by, furnished to, or collected by the Secretary with respect to a return or with respect to the determination of the existence, or possible existence of liability of any person under this title for any tax, penalty, interest, fine, forfeiture, or other imposition or offense, and any part of any written determination or any background file document relating to such written determination which is not open to public interpretation."

Section 6103(1)(4)(A) of the Internal Revenue Code permits the disclosure of returns or return information to an employee or former employee, or to his/her duly authorized representative, when, upon written request, the appropriate official judges the disclosure to be relevant and material to a proceeding involving personnel or claimant representative matters. Since disciplinary or adverse actions are proceedings involving personnel matters, a duly authorized representative may be authorized access to returns or return information if such access is or may be relevant and material to the disciplinary or adverse action. A request for disclosure under 6103(1)(4)(A) will be evaluated by the appropriate official with delegated authority pursuant to Delegation Order No. 156. (lnformation will be contained in Delegation Order 156, which will be published at a future date.) A disclosure under 6103(1)(4)(A) requires an accounting under the Privacy Act.

When dealing with returns and return information in disciplinary letters, code the return information, attach a key, and indicate that the employee is restricted from making disclosures of tax information without proper approval. In addition, in letters proposing a disciplinary suspension or adverse action, indicate that:

A sanitized copy of the evidence file is normally necessary when an action is appealed to a third party. At the proceeding or hearing, an employee or an employee’s representative may use the sanitized tax information contained in the evidence file submitted by the Service to the third party. Other tax information may not be disclosed by the employee, or the employee’s representative, unless a separate written request has been submitted to and approved by the Service.

In the event that disclosure of the tax information would seriously impair Federal tax administration, release of tax information to an employee and the authorization of disclosure of tax information by the employee may not be granted.

When an employee’s own tax matters are an issue in a disciplinary action under appeal to a third party by the employee, disclosure of the employee’s tax records to the third party is permissible.

When an employee’s failure to comply with the tax laws is a reason for taking a disciplinary or adverse action, use the following in the remarks section of SF-50: "Reason for action — Violation relating to IRM 6.751.1.16." Letters of reprimand for tax offenses should be placed in a sealed envelope in the OPF, with the following on the outside: "Letter of reprimand for violation relating to IRM 6.751.1.16. To be viewed by authorized management officials only. Destroy: two years from date of letter."

The material that follows in this subsection includes procedures for taking appropriate nondisciplinary and lesser disciplinary actions, including special procedures for dealing with information resulting from the TIGTA investigations of alleged improper conduct. Information on disciplinary suspensions and adverse actions is contained in IRM 6.752. (Information will be contained in IRM 6.752 which will be published at a future date.)