1.2.10 Policy Statements for Organization, Finance and Management Activities

Manual Transmittal

September 18, 2018


(1) This transmits revised IRM 1.2.10, Servicewide Policies and Authorities, Policy Statements for Organization, Finance and Management Activities.

Material Changes

(1) IRM Policy Statement 1-44 (Revoked), Monitoring of Employee Telephone Conversations , is approved effective May 2, 2018.

(2) IRM Policy Statement 1-235 (Rev.1), Environment, Safety, and Health Policy, is approved effective May 31, 2017.

Effect on Other Documents

This supersedes IRM 1.2.10, dated November 21, 2016.


All Divisions and Functions

Effective Date


James R. Bolling, Director,
Servicewide Policy, Directives and Electronic Resources
Strategy and Business Solutions
Research, Applied Analytics and Statistics

Introduction to Organization, Finance and Management related Policy Statements

  1. This IRM contains the Policy Statements which relate to Organization, Finance and Management activities. Each Policy Statement is now categorized by the process to which it belongs. Distribution of the IRM should be to all persons having a need for any of the Policy Statements. The fact that Policy Statements apply to all Service personnel involved in the type of program, activity, function, or work process covered by them remains unchanged.

  2. Any Policy Statement approved after this revision of IRM 1.2.10 is posted to IRS.gov and can be accessed through the FOIA Reading Room web site http://www.irs.gov/uac/Electronic-Reading-Room, under the heading Recent Delegation Orders and Policy Statements. They remain on the web until the next revision is made to this IRM.


    If any Policy Statements have been inadvertently omitted from this Section they are still considered official and in full force and effect. Please send any discrepancies found to spder@irs.gov.

  3. The following is a listing of all sections in the Policy Statement series:

    • IRM 1.2.1, Policies of the Internal Revenue Service;

    • IRM 1.2.10, Policy Statements for Organization, Finance and Management Activities;

    • IRM 1.2.11, Policy Statements for Information Technology Activities;

    • IRM 1.2.12, Policy Statements for Submission Processing Activities;

    • IRM 1.2.13, Policy Statements for the Examining Process;

    • IRM 1.2.14, Policy Statements for the Collecting Process;

    • IRM 1.2.15, Policy Statements for Human Resources Management Activities;

    • IRM 1.2.16, Policy Statements for the Rulings and Agreements Process;

    • IRM 1.2.17, Policy Statements for the Appeals Process;

    • IRM 1.2.18, Policy Statements for Criminal Investigation Activities;

    • IRM 1.2.19, Policy Statements for Communications, Liaison and Disclosure Activities;

    • IRM 1.2.20, Policy Statements for Penalties and Interest Activities;

    • IRM 1.2.21, Policy Statements for Customer Account Services Activities;

    • IRM 1.2.22, Policy Statements for Taxpayer Education and Assistance Activities;

    • IRM 1.2.23, Policy Statements for Office of Chief Counsel Activities; and

    • IRM 1.2.25, Policy Statements for Security, Privacy and Assurance Activities.

Policy Statement 1-1

  1. Mission of the Service

  2. Provide America's taxpayers top quality service by helping them understand and meet their tax responsibilities and by applying the tax law with integrity and fairness to all.

  3. Tax matters will be handled in a manner that will promote public confidence

  4. All tax matters between taxpayers and the Internal Revenue Service are to be resolved within established administrative and judicial channels. Service employees, in handling such matters in their official relations with taxpayers or the public, will conduct themselves in a manner that will promote public confidence in themselves and the Service. Employees will be impartial and will not use methods which are threatening or harassing in their dealings with the public.

  5. Taxpayer privacy will be safeguarded in the acquisition and use of information

  6. Since compliance with Internal Revenue laws cannot be determined solely with reference to information on returns and documents filed with the Service, the Service will obtain information from other sources. However, only information necessary for the enforcement and administration of the tax laws which the Service is authorized and directed to enforce will be sought. To safeguard taxpayer privacy, any information received by the Service, other than that described in this paragraph, will not be indexed or associated with the name or identifying symbol of a taxpayer. No disclosure of information will be made except as provided by law.

  7. Taxpayer Privacy Rights

  8. The IRS is fully committed to protecting the privacy rights of all taxpayers. Many of these rights are stated in law. However, the Service recognizes that compliance with legal requirements alone is not enough. The Service also recognizes its social responsibility which is implicit in the ethical relationship between the Service and the taxpayer. The components of this ethical relationship are honesty, integrity, fairness, and respect.

  9. Among the most basic of a taxpayer's privacy rights is an expectation that the Service will keep personal and financial information confidential. Taxpayers also have the right to expect that the Service will collect, maintain, use, and disseminate personally identifiable information and data only as authorized by law and as necessary to carry out agency responsibilities.

  10. The Service will safeguard the integrity and availability of taxpayers' personal and financial data and maintain fair information and recordkeeping practices to ensure equitable treatment of all taxpayers. IRS employees will perform their duties in a manner that will recognize and enhance individuals' right of privacy and will ensure that their activities are consistent with law, regulations, and good administrative practice. In its recordkeeping practices, the Service will respect the individual's exercise of his/her First Amendment rights in accordance with law.

  11. As an advocate for privacy rights, the Service takes very seriously its social responsibility to taxpayers to limit and control information usage as well as to protect public and official access. In light of this responsibility, the Service is equally concerned with the ethical treatment of taxpayers as well as their legal and administrative rights.

Policy Statement 1-2

  1. Principles of Quality

  2. The Service is committed to pursuing quality in fulfilling its Mission. The importance of doing the job right the first time can not be overstated. Therefore, the Service will abide by the following principles of quality:

    1. Establish a quality climate where quality is first among equals with schedule and cost;

    2. Emphasize product and service quality by eliminating systemic flaws during the planning, implementation and operational processes;

    3. Improve responsiveness to the public and other Service components;

    4. Install a quality improvement process in every field and National Office organization; and

    5. Develop evaluative systems consistent with and reflective of the quality principles.

Policy Statement 1-3 (Formerly 1-40)

  1. Studies, tests and research projects improve operations and decision-making throughout the Service

  2. The collection and analysis of data related to Service operations and strategic goals is essential to sound planning, management, and evaluation of Service programs and activities. Studies, tests, and research projects in support of Service strategic goals are encouraged, and will be conducted within the Service by the NHQ Research function and research functions within the operating divisions, subject to the prior approval of appropriate management officials.

Policy Statement 1-18 (Formerly 1-154)

  1. Furnishing Tax Forms and Certain Publications to Tax Practitioners and Others

  2. Since October 1986, IRS has not provided "bulk" quantities of tax forms to tax professionals . In 1990 professional firms were further limited to no more than two copies of most tax forms and no more than one copy of instructions and taxpayer information publications. Exceptions to this rule are made for information return forms (W–2, W–3, W–4, 1096, 1098, 1099 series forms and Form 5498). Free bulk supplies of information return forms are provided to practitioners (see (3) below).

  3. Banks, post offices, libraries or other organizations are not subject to a quantity restriction as long as they are not engaged in the preparation of taxes for private gain and the forms are for redistribution to the general public. These entities may obtain bulk quantities of only the forms that are offered through the Bank, Post Office and Library (BPOL) Program, provided they participate in the program. Additionally, employers may obtain free bulk quantities of the forms that are available on the Employer Program and ordered on Form 7018 order blank series.

  4. Free single copies of Publications 17 and 334 will be provided to all taxpayers requesting them. Multiple copies of either publication will not be honored except as follows: (a) Generally, libraries are limited to two copies per branch office, (b) When an IRS Executive determines that such distribution will further the interest of taxpayer service or education (i.e. Understanding Taxes, VITA). Priority must be given to filling single copy requests for Publications 17 and 334; requests for bulk quantities that jeopardize the Service’s ability to respond timely to such single copy demands should not be honored. Individuals may print their own bulk quantities of Publications 17 and 334.

  5. Package X, Reference Copies of Federal Tax Forms and Instructions, will become obsolete after the Tax Year 2004 revision. Tax professionals and others who require reference copies of tax products may:

    1. purchase Publication 1796, IRS Tax Products (on CD-ROM), from the National Technical Information Service (NTIS) or the U.S. Government Printing Office’s (GPO) Superintendent of Documents; or

    2. download tax products as needed from the IRS’ official web site.


  6. Publications 1132 and 1194 are generally limited to one copy per library branch office. These publications are only available to libraries that participate in the BPOL Program. All others may purchase them through the Superintendent of Documents.

Policy Statement 1-21

  1. The Internal Revenue Service will be a progressive organization

  2. There will be a definite and continuing program to enhance the effectiveness of all elements of the Service. This program will be comprehensive in concept, imaginative yet realistic in design, and will be so administered as to provide vigorous and dedicated attention to making the Internal Revenue Service a truly forward thinking organization; one that will be recognized by employees and the public alike as representing that which is the best in modern and progressive management.

  3. The Service seeks to maintain high caliber and quality productivity of work force

  4. The Service will seek to obtain its objectives by maintaining the high caliber and effectiveness of the Service's work force through such measures as:

    1. encouraging well qualified persons to seek and remain in Internal Revenue Service employment;

    2. providing employees with training that will enhance their ability to perform the work to be done;

    3. offering attractive career programs to motivate and enable top calibre employees to strive for and attain positions of increased responsibility and importance to the needs of the Service.

Policy Statement 1-27 (Formerly P-1-230)

  1. Protection from Reprisal for Whistleblowing

  2. The Internal Revenue Service recognizes and endorses the rights of employees to raise issues and to file complaints, subject to applicable law and regulations. The Service is committed to a work environment that is free from retaliation and reprisal, including reprisal for whistleblowing.

  3. The Service will foster a climate for employees where issues can be discussed openly and where allegations of misconduct and impropriety are immediately reported and appropriately acted on.

  4. Managers and supervisors are responsible for ensuring that the personnel actions they take conform to civil service laws and regulations. Those laws and regulations include retaliation for whistleblowing on the list of prohibited personnel practices. Managers and supervisors will take vigorous corrective action when a prohibited personnel practice occurs.

  5. The Service will not tolerate any type of reprisal or retaliation.

Policy Statement 1-37

  1. Alternative Dispute Resolution for Equal Employment Opportunity Claims

  2. The Internal Revenue Service (IRS) is committed to early and voluntary resolution of claims of employment discrimination in order to foster a harmonious and productive working environment. The IRS recognizes that mediation and other forms of Alternative Dispute Resolution (ADR) are valuable mechanisms for resolving Equal Employment Opportunity (EEO) claims and related concerns. Accordingly, it is the policy of the IRS to offer ADR with regard to all EEO claims, with the exception of cases involving criminal activity and managerial actions taken as a result of a 1203 violation.

  3. All IRS managers and supervisors have a duty to cooperate in ADR as a part of the EEO process. During the EEO process, the IRS will offer to engage in ADR with the employee. Once ADR is offered and the employee elects to participate, a management official must participate in the ADR session. Management officials participating in ADR must do so in good faith, and must have the authority or have immediate access to an official with authority to enter into a binding settlement agreement. As ADR is intended to facilitate voluntary resolution, no participant in ADR during the EEO process shall be compelled against his/her will to compromise claims or make binding commitments.

  4. In order to derive the maximum benefit from and ensure confidence in the ADR process, all ADR sessions shall be conducted using a certified mediator or otherwise appropriately trained third party neutral person. The IRS regards the Department of the Treasury Shared Neutrals Program as a viable source for trained, neutral third parties.

  5. The IRS shall record information concerning the ADR process including: the number of ADR sessions offered; the number of ADR offers accepted; and the source of the neutral third parties used in each ADR session. The IRS shall also survey or otherwise offer ADR session participants the opportunity to inform the Service of their opinions concerning the effectiveness of the ADR session, including the effectiveness of the neutral third party utilized.

  6. This policy supersedes all previous Alternative Dispute Resolution policies.

  7. Signed: Beth Tucker, Deputy Commissioner for Operations Support Steven T. Miller, Deputy Commissioner for Services and Enforcement

Policy Statement 1-38

  1. Equal Employment Opportunity

  2. The Internal Revenue Service is committed to ensuring equal employment opportunity (EEO) for employees of and applicants for employment with the IRS in order to ensure fair treatment, afford talented men and women every opportunity to fully participate in the IRS’s workforce and to contribute to the accomplishment of the IRS’s mission, as well as to bolster the IRS’s reputation as an employer of choice and a strong, effective, high-performing public service organization.

  3. The IRS will not tolerate discrimination, including harassment, based on race, color, national origin, sex (including pregnancy and gender identity), religion, age, disability, genetic information, sexual orientation or parental status, nor retaliation for involvement in protected EEO activity (filing a complaint, participating in an investigation, openly protesting discrimination) with respect to any aspect of employment (recruitment, hiring, evaluation, promotion, transfer, assignment, training, career development, benefits, separation). In accordance with established procedures, the IRS will provide reasonable accommodation to all qualified individuals with disabilities, and for religious beliefs and practices, unless doing so would impose an undue hardship.

  4. The IRS vigorously complies with all applicable federal anti-discrimination statutes, regulations, Executive Orders, and management directives.

  5. Signed: Douglas H. Shulman, Commissioner of Internal Revenue.

Policy Statement 1-44 (Revoked)

  1. Monitoring of Employee Telephone Conversations

  2. Policy Statement P-1-44 approved September 19, 1996 is revoked. Since approximately 2004, the Service has been using a telephone software system for recording interactions between IRS customer service personnel and taxpayers or their representatives. The recordings are then made available through a browser-based interface to managers and quality reviewers, enabling remote assessment of employee performance and customer service quality. The use of the telephone software system was negotiated between the Service and the National Treasury Employees Union (NTEU) for all appropriate areas of implementation.

Policy Statement 1-45

  1. The Service Recognizes the Importance of the Work Environment

  2. The Service recognizes the effect of office environments on both the recruitment and retention of employees. Aesthetically pleasing offices have a positive impact on an employee's effectiveness and productivity, and improve the overall quality of worklife. It is the responsibility of IRS managers to identify and actively seek to improve factors that influence the attractiveness and effectiveness of the work place.

Policy Statement 1-46

  1. Child Care

  2. The Internal Revenue Service recognizes the need of Service employees and potential employees for child care services, the benefits to both the employer and the employee of child care services, and the importance of planning for an efficient and effective child care program.

Policy Statement 1-47

  1. Reasonable Accommodations for People with Disabilities: The Internal Revenue Service shall take positive and persistent actions to recruit, hire, develop and advance persons with disabilities. The Service shall make reasonable accommodations for all qualified applicants or employees with physical or mental disabilities in accordance with law. The Service shall comply with all appropriate rules, regulations and directives. Executives, managers and supervisors shall create a positive work environment that will encourage employees with disabilities to maximize and reach their full potential.

  2. Program Accessibility for Members of the Public with Disabilities: The Internal Revenue Service shall take necessary action to ensure that members of the public with disabilities have an equal opportunity to effectively participate in its programs, activities and services, in accordance with law. The Service shall comply with all appropriate rules, regulations and directives.

Policy Statement 1-48

  1. Reimbursement of Travel Expenses is Authorized for a Guest Attending an Awards Ceremony

  2. The Service will pay travel expenses for the guest of an award recipient to attend a major or national awards ceremony (i.e., Presidential Rank Award; SEA Executive Excellence Award; Annual Treasury or Handicapped Employee's Award; annual ceremony of the agency or a major organizational component, or a prestigious award ceremony sponsored by a non-Federal organization). Such travel reimbursements effectively promote the purpose of the awards program and enhances the meaning of the ceremony for the award recipient.

Policy Statement 1-63

  1. Operations to be under Financial Plan

  2. The Internal Revenue Service shall operate under a Financial Plan consisting of a comprehensive and unified plan of action for carrying out the programs of the Service during a specified period, expressed in terms of work to be done and staffing and dollars to be devoted thereto.

Policy Statement 1-65

  1. Budget estimates as commitments

  2. The Service's budget document shall be a technical expression (in the form prescribed by the Department of the Treasury, Office of Management and Budget, and the Appropriations Committee) of the Financial Plan of the Service for the Budget year. Such document shall be based on the most realistic estimates that can be made of the programs, staffing, workload, etc., for the applicable year and shall take into account that, to the extent that budget is approved, such estimates may be regarded by the Treasury, the Office of Management and Budget, and the Congress as commitments to be fulfilled.

Policy Statement 1-66

  1. Execution of budget to conform to budget commitments

  2. The preparation of the operating financial plan and the execution thereof shall be controlled to the end that the program presented in the budget estimate is followed to the extent approved or as revised by the Congress. If conditions arise indicating the advisability of making material variations in the plan (budget), appropriate recommendation shall be made to the Commissioner who will determine whether the proposed action is compatible with the Service's commitments, and what, if any, action should be taken upon the recommendation. Any variations approved by the Commissioner shall be specified in writing and documented with appropriate support which explains the reasons for and the effect of the variations.

Policy Statement 1-97

  1. Authority for use of payments for special statistical studies: The Code authorizes the Service to receive payment for the cost of special statistical studies, compilations, and other services involving data from tax returns or from related records maintained in connection with the administration of the tax laws, and to use the payment to reimburse the appropriation that bore the cost of such work or services.

  2. Criteria and priorities for evaluating requests: The Service will honor such requests to the fullest extent feasible. However, its limited facilities require establishment of the following criteria and priorities in considering the merits of requests from parties outside of the Department of the Treasury:

    1. No request will be approved unless the National Director, Compliance Research determines that it can be completed without substantial interference or disruption of the Service's own statistical program, or its operations, and that it is compatible with the types of studies and compilations which the Service ordinarily makes.

    2. Preference will be given to projects that may prove useful in the formulation of Federal tax administration, including those in furtherance of the objectives of agreements between the Commissioner and the State governments for cooperation and exchange of information.

    3. Next preference will be given to projects that involve the public interest of other Federal agencies and to projects that involve the public interest of other governmental agencies.

    4. The preference accorded all other projects, not in conflict with the public interest, will be determined on their merits and the availability of facilities.

  3. Municipal and local agencies to work through state: The Service will, insofar as feasible, look to state taxing authorities to act as clearing houses for handling requests for data associated with taxpayer entity identification from their counties, municipalities, or other political subdivisions, and agencies.

  4. Data from automated files supplied on a once-a-year basis: In order to keep the drain on computer and programming resources within reasonable bounds, the Service will endeavor to fulfill requests for large-scale data listings from its automated files by furnishing data elements in tape mode on a once-a-year basis. In furtherance of this policy the Service will continue to consult with officials of States, Federal agencies, and other users in developing and improving programs for exchanging or furnishing tax return or taxpayer entity data.

  5. Principles to be observed: The following principles will be observed in connection with all requests for special statistical studies and compilations:

    1. No breaches of the regular rules on the confidentiality of tax information will be permitted, irrespective of whether data are furnished on tape, paper, or other mode.

    2. Only those special tabulations will be made which appear, on the basis of professional standards, to be justified within the limitations of the available data.

    3. No request will be accepted without the expressed understanding that the Service is authorized to postpone or discontinue the project in the event that the available statistical facilities and services are needed for other purposes.

    4. The results of any special studies or tabulations shall be available, without restriction, for use by the Department of the Treasury notwithstanding any payments made by other parties.

    5. The Service will charge requesters a reasonable fee for costs incurred in undertaking special statistical studies, compilations, and other services. Any request involving a charge of $500 or more should be secured, where possible, by a negotiated contract, purchase order, or obligation of funds. Charges may be waived only when specifically approved by the Commissioner or his/her delegate.

    6. All agreements will provide for scheduling payment or payments in advance of the disbursement of Service funds.

    7. Publication of the data supplied in the special studies will be accompanied by an appropriate statement describing the sources and limitations of the data.

Policy Statement 1-109

  1. Individually owned property may be used only when authorized: Personal property owned by employees or others will not be used by employees in performance of official duties, except in emergencies, unless authorized by Internal Revenue Service or Treasury regulations, or approved by the appropriate property officer.

  2. Only Service firearms may be used on official duty: Only firearms furnished by the Internal Revenue Service may be used or carried by personnel whose duties require that they carry firearms in the performance of official duty assignments.

  3. Repair of personally-owned property: Except for vehicles, personally-owned property may be serviced and repaired at Government expense, when its use has been specifically authorized.

Policy Statement 1-110

  1. Employee afforded hearing in property damage cases

  2. An employee of the Service may be held pecuniarily liable for loss of or damage to government-owned property which is the result of gross negligence. Such determinations will be made by the survey officer or the survey board. However, before such a recommendation is made, the employee will be given opportunity for a hearing, or, at the option of the employee, may submit a written statement of circumstances or explanation.

Policy Statement 1-113

  1. Postage-paid envelopes furnished with third party inquiries

  2. Specially designed reply envelopes and labels preprinted with the notation "Business Reply Mail" stating that "POSTAGE WILL BE PAID BY THE INTERNAL REVENUE SERVICE" and pre-addressed to an IRS employee or office may be furnished in tax liability investigations when information is solicited from a third party not representing the taxpayer. Prepaid envelopes or labels may also be furnished to persons or concerns for their convenience in submitting information for official purposes such as administrative investigations, requesting information from an employee's references, or other similar situations.

  3. Pre-addressed envelopes requiring postage furnished when beneficial to Service

  4. Pre-addressed envelopes requiring postage may be furnished taxpayers for their convenience in mailing returns or for other official purposes when it has been administratively determined that the practice is beneficial to the Service in promoting a more expeditious and economical operation.

Policy Statement 1-124

  1. Tax returns prescribed by National Office; other public use forms require approval

  2. Tax return forms, schedules for attachment, and instructions will be developed and prescribed only by the National Office. Field offices may develop and prescribe other public use forms subject to the review and approval requirements of the Manual.

Policy Statement 1-125

  1. Permanent records of significant changes to organizations, policies, or programs are to be created, preserved, and transferred to the National Archives and Records Administration (NARA)

  2. In compliance with the Federal Records Act of 1950, as amended, the Commissioner of Internal Revenue, all Internal Revenue Service Chief Officers, and their organizational components are responsible for the creation and preservation of records documenting significant changes to the agency's organization, policies and programs. Many of these documents will be determined to be permanent records of historic significance. Agency officials and employees must transfer such permanent records to NARA in accordance with mandatory disposition authorizations found in official IRS Records Control Schedules.

Policy Statement 1-156

  1. Taxpayer Publications Program enhances voluntary compliance

  2. Keeping the taxpaying public informed by communicating provisions of the law in understandable terms encourages and promotes voluntary compliance. Accordingly, the office of the Chief, Strategic Planning and Communications, prepares and publishes plain-language booklets and pamphlets as part of the Service's program to inform taxpayers of their rights and duties under the tax laws and to assist them in the preparation of their tax returns.

Policy Statement 1-157

  1. Review of publications prepared by other agencies

  2. Taxpayers will assume that they can rely on the accuracy of all official publications. Accordingly, the Service will, upon request, review material relating to Federal taxation prepared for publication by other Government agencies.

Policy Statement 1-178

  1. All segments of Service share responsibility for public attitudes

  2. The Service recognizes that public attitudes toward our system of voluntary compliance with the tax laws derive, to a substantial extent, from contacts of all types that the public has with the Internal Revenue Service. Thus, the responsibility for creating and maintaining a constructive public attitude is shared by all officials and employees of the Service. Any interaction with the public must reflect high ethical standards and a commitment to serving the public with courtesy, efficiency and integrity.

Policy Statement 1-212

  1. Useful information necessary for effective management

  2. At all levels of the Service, officials having managerial or executive responsibilities must have useful information in order to make decisions and plan future programs and activities. A prerequisite to determining information needs is to identify and define objectives and goals; to the extent practicable, objectives and goals should be expressed in measurable or quantifiable terms.

  3. Line and functional officials will secure information required to make timely decisions in planning, scheduling, evaluating alternatives, monitoring progress toward program objectives, measuring performance, and detecting situations requiring corrective action for activities within their responsibility and authority. To this end, such officials shall establish formal reporting requirements wherever appropriate.

  4. Reported information shall reflect progress toward established objectives and goals and, to the fullest extent possible, be integrated into single reporting systems that will provide for the selection, extraction, and use of data by various organizational components as is appropriate to their needs. As a part of any such integrated system, detailed reporting (as opposed to summary reporting) will normally be confined to the level of demonstrated utility.

Policy Statement 1-213

  1. Information resources to be carefully managed

  2. Information is a resource to the manager in the same sense as personnel, space and equipment are resources--all contribute to effective program accomplishment. Management information, like other resources, is costly. It must therefore be carefully managed, and its acquisition, processing and distribution fully justified.

  3. Planning for information needs and supporting resources will accompany program planning. Appropriate consultation and coordination of plans or changes to reports (e.g. data elements) will be conducted among all organizations having a role in the design and implementation of any reporting system. Proposed management information and reporting systems will be subjected to a thorough cost/benefit analysis.

  4. Because of the potential for revenue losses, field professional and technical personnel should not be required to interrupt their activities to record more than the minimum essential data. As a general principle, management information should be generated as a by-product of operations wherever possible, rather than as the result of specialized reporting efforts not otherwise required by normal Service operations. Similarly, reporting economies shall be achieved through the use of common data sources and base files, wherever possible.

  5. Line and functional managers are responsible for periodic review of their reports and for taking prompt action to eliminate unnecessary requirements and improve ineffective systems. They will be guided in this effort by published standards and procedures for effective and economic reporting. Where appropriate, for effective use of reports by field line and functional managers, National Office functional officials will issue guidelines and arrange for necessary training and orientation.

Policy Statement 1-214

  1. Management and reports officials to select data of maximum Servicewide usefulness

  2. Appropriate reported information is an important management tool not only for managers of specific activities or organizational elements, but for overall management as well. It is necessary to identify data to be reported so as to provide for: (a) the needs of management officials at all levels, (b) the requirements of one activity for data reported by another activity, and (c) the integration and compatibility of data reported by the various activities. Therefore, National Office functional and field reporting officials shall collaborate in determining the type of data to be reported in order to produce coordinated information of maximum Servicewide usefulness.

Policy Statement 1-226

  1. All Service executives and managers are responsible for effective and efficient use of data processing applications

  2. Executives and managers are responsible for identifying potential cost effective data processing applications for their functions, ensuring that required data processing services are incorporated in the planning and budget process, and seeking necessary technical advice and assistance from appropriate data processing staff specialists. They are also responsible for ensuring that subordinate managers and employees are trained in data processing applications and techniques.

Policy Statement 1-230

  1. Diversity and Inclusion

  2. Commitment
    The IRS has a strong and steadfast commitment to ensuring that diversity and inclusion are integrated into the policies, procedures, and practices used to carry out our mission. This commitment not only extends throughout the IRS workforce, but to the taxpayers, tax practitioners, and the communities with whom we engage.

  3. Definitions
    At the IRS, diversity is a broad concept that encompasses all the differences that employees bring to work. Diversity, therefore, includes the traditional focus around race and gender, but also includes diversity of thought, ideas, backgrounds, and experiences. Inclusion, one of IRS's core values, is the leveraging and engagement of every employee's unique strengths and talents so that each individual can contribute to his or her full potential. Diversity coupled with inclusion is a long-term business strategy that will help fuel the innovative outcomes and continual improvement necessary for our future success.

  4. Business Case
    Leveraging diversity and inclusion is critical to our mission, workforce, and to taxpayers. Different perspectives spark creative insights and solutions to better accomplish our mission. Greater engagement of employees from all backgrounds yields greater personal satisfaction and higher levels of productivity. A diverse and inclusive workplace ensures that the IRS not only reflects the population we serve but also better understands and serves all taxpayer's needs.

  5. Accountability
    Every IRS employee and manager is responsible for promoting diversity and inclusion. Our attitudes, words, actions, and inactions all contribute to the workplace environment. Each of us must strive to treat one another with respect, be open to learning about our differences, and seek to leverage individual attributes that will make the IRS stronger as a whole.

Policy Statement 1-231 (formerly 6-11)

  1. Administrative procedures and forms will be designed to promote voluntary compliance

  2. Recognizing the importance of voluntary compliance on the part of taxpayers to the efficient operation of the tax system, specific attention will be given by Service officials to isolating and defining problems in tax administration which might adversely affect voluntary compliance.

  3. Service officials will take positive action to critically examine the Service's forms, procedures and administrative practices and ensure they are designed to provide for sound administration of the law and effective use of resources. Simultaneously, Service officials will ensure that the effects upon taxpayers of these forms, procedures, and administrative practices are considered.

Policy Statement 1-232 (formerly 11-12)

  1. Assistance in development of tax returns solicited

  2. Assistance and suggestions in the development of tax return forms will be solicited, where appropriate, from Governmental agencies and professional, trade, industry and other outside groups. Suggestions received will be evaluated and utilized according to their merits.

  3. Coordination maintained with other Government agencies

  4. Coordination will be maintained with the Social Security Administration, and other Governmental agencies, and with State tax officials in matters of mutual concern involving the technical content of tax return forms and instructions.

Policy Statement 1-233 (formerly 11-86)

  1. Names of disbarred taxpayer representatives published

  2. Name furnished by the Director of Practice of attorneys, certified public accountants, or enrolled agents who have been disbarred or suspended from practice before the Department of the Treasury are published in the Internal Revenue Bulletin.

Policy Statement 1-234 (formerly 0-67)

  1. Joint Investments By Managers With Subordinates or Superiors

  2. Joint investments, including ownership of real or personal property, between managers and their subordinate employees or their superiors present a conflict of interest, or an appearance of a conflict of interest, which is prohibited by IRS and Treasury Department regulations

  3. Managers may not have joint investments with subordinate employees and/or superiors. This includes functional relationships (for example, a division chief having a joint investment with the functional Assistant Regional Commissioner) in addition to line superior/subordinate relationships.

  4. Managers who have such joint financial interests are required to report the investment to higher management and to take appropriate action to eliminate the conflict.

Policy Statement 1-235 (Rev. 1)

  1. Environment, Safety, and Health Policy

  2. Purpose: To affirm the commitment of the Internal Revenue Service (IRS) to leadership in Environment, Health and Safety (EHS), and reducing the environmental impacts and health and safety risks of our operations, products, and facilities.

  3. Scope: This policy applies to all IRS facilities, activities, employees, and contractors under the control of the IRS.

  4. Policy: It is the policy of the IRS to conduct operations in a manner that minimizes negative EHS impacts on our operations, products, and services to the fullest extent possible. Specifically, the IRS commits to:

    1. Preserve human and natural resources through reducing risks of injury and illness, and practicing good environmental stewardship;

    2. Integrate EHS considerations into all business decisions, including forecasting changes to internal and external business environments and establishing strategies to address anticipated changes;

    3. Comply with all applicable federal, state, and local EHS laws and regulations, Executive Orders, and other requirements;

    4. Implement pollution prevention practices to realize overall improvements in environmental performance outcomes;

    5. Support IRS personnel at all levels in their responsibilities to prevent pollution to the environment, and eliminate risks to human health and safety when and where possible.

Policy Statement 1-236

  1. Fairness and Integrity in Enforcement Selection

  2. The IRS Mission statement includes "enforcing the tax law with integrity and fairness to all." A "fair and just tax system" is also a cornerstone in the Taxpayer Bill of Rights (TBOR). As IRS employees, we are expected to carry out our duties with integrity and fairness. Fairness and integrity therefore apply to how IRS administers tax laws to all taxpayers as well as how IRS employees interact with each taxpayer and each tax professional. Employees must exercise their professional judgment, not personal opinions, in conducting their enforcement responsibilities.

  3. There are three parts to enforcing the tax law with integrity and fairness:

    • To ensure fairness to the taxpaying public, employees must take into account the responsibilities and obligations that all taxpayers share, and pursue those individuals and businesses who don’t comply with their tax obligations. In this way, employees are being fair to those who are compliant and that, in turn, helps promote public confidence in our tax system for all taxpayers.

    • To ensure an equitable process for all taxpayers, fairness and integrity are built into the foundation of our enforcement selection processes. These processes operate under a comprehensive set of checks and balances and safeguards to identify the highest potential noncompliance, using scoring mechanisms, data driven algorithms, third party information, whistleblowers and information provided by the taxpayer. No one individual can control the enforcement selection decision-making processes, and we limit involvement to only those employees whose duties require involvement. This produces processes that are impartial and applied consistently to each taxpayer return.

    • To ensure fairness to each taxpayer, we do our jobs with a focus on taxpayer rights, including due process and appeal rights. The Internal Revenue Code grants taxpayers certain rights when working with the IRS, and these rights are embodied in Publication 1. In addition, managers and employees adhere to many administrative and legislative procedures. Managerial as well as quality reviews of selection decisions occur during each phase of the selection and assignment process. IRS employees are managed and evaluated on how well we provide fair and equitable treatment to taxpayers as required by the Restructuring and Reform Act of 1998. Also, taxpayers may administratively appeal most IRS decisions, including the assessment of additional tax or penalties, the denial of a refund claim, or issuance of a lien or levy. An employee in the Office of Appeals, an independent and impartial function within IRS, will contact the taxpayer, hear the case and decide whether to sustain the enforcement action. Most taxpayers can also petition the U.S. Tax Court for a pre-assessment review of any proposed additional tax or seek a refund in other federal courts.

All Active Policy Statements for Organization, Finance and Management Activities

New Number Old Number Title
1-1   Mission of the Service
1-2   Principles of Quality
1-3 1-40 Studies, tests and research projects improve operations and decision-making throughout the Service (formerly 1-40)
1-18 1-154 Furnishing Tax Forms and Certain Publications to Tax Practitioners and Others
1-21   The Internal Revenue Service will be a progressive organization
1-27 1-230 Protection from Reprisal for Whistleblowing. Note: no relation to Diversity and Inclusion., signed December, 2012.
1-37   Alternative Dispute Resolution for Equal Opportunity Claims
1-38   Equal Employment Opportunity
1-44 (Revoked)   Monitoring of Employee Telephone Conversations
1-45   The Service Recognizes the Importance of the Work Environment
1-46   Child Care
1-47   Reasonable Accommodations for People with Disabilities
1-48   Reimbursement of Travel Expenses is Authorized for a Guest Attending an Awards Ceremony
1-63   Operations to be under Financial Plan
1-65   Budget estimates as commitments
1-66   Execution of budget to conform to budget commitments
1-97   Authority for use of payments for special statistical studies
1-109   Individually owned property may be used only when authorized
1-110   Employee afforded hearing in property damage cases
1-113   Postage-paid envelopes furnished with third party inquiries
1-124   Tax returns prescribed by National Office; other public use forms require approval
1-125   Permanent records of significant changes to organizations, policies, or programs are to be created, preserved, and transferred to the National Archives and Records Administration (NARA)
1-156   Taxpayer Publications Program enhances voluntary compliance
1-157   Review of publications prepared by other agencies
1-178   All segments of Service share responsibility for public attitudes
1-212   Useful information necessary for effective management
1-213   Information resources to be carefully managed
1-214   Management and reports officials to select data of maximum Servicewide usefulness
1-226   All Service executives and managers are responsible for effective and efficient use of data processing applications
1-230   Diversity and Inclusion
1-231 6-11 Administrative procedures and forms will be designed to promote voluntary compliance
1-232 11-12 Assistance in development of tax returns solicited
1-233 11-86 Names of disbarred taxpayer representatives published
1-234 0-67 Joint Investments By Managers With Subordinates or Superiors
1-235 (Rev.1) 1-28
Occupational Safety, Health and Environmental Compliance
1-236   Fairness and Integrity in Enforcement Selection