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1.55.6  W&I Government Accountability Office (GAO) and Treasury Inspector General for Tax Administration (TIGTA) Post-Audit Process

Manual Transmittal

October 14, 2016

Purpose

(1) This transmits revised IRM 1.55.6, Wage and Investment - W&I Government Accountability Office (GAO) and Treasury Inspector General for Tax Administration (TIGTA) Post-Audit Process.

Material Changes

(1) IRM 1.55.6.1, Overview, changed title to Program Scope and Objectives.

(2) IRM 1.55.6.1 (1), Program Scope and Objectives, edited to reference IRM 1.4.30, Monitoring Internal Control Planned Corrective Actions and other minor edits.

(3) IRM 1.55.6.1 (1), Program Scope and Objectives, added Quality Assurance Reviews to list of management controls.

(4) IRM 1.55.6.2, Roles and Responsibilities, changed Office of Internal Control to Office of Audit Coordination; here and throughout the document where applicable.

(5) IRM 1.55.6.3, Tracking and Reporting Requirements, minor grammar edits.

(6) IRM 1.55.6.4, Identifying Planned Corrective Action Reports and Actions, revised organizational to Office of Identity Assurance Office; minor spelling edits in Table 1.1, TIGTA Report Number Explanation; Table 1.2, GAO Report Number Explanation; and Table 1.4, W&I Responsible Employee List.

(7) IRM 1.55.6.7, Verifying the JAMES Report, clarified instructions; minor grammar edits.

(8) IRM 1.55.6.8, Duplicate Planned Corrective Actions, changed title to Tracking Duplicate Planned Corrective Actions; minor grammar edits.

(9) IRM 1.55.6.9, Placing Recommendations on Hold, new.

(10) IRM 1.55.6.10.3, Canceling Planned Corrective Actions, revised title to Director, Office of Audit Coordination.

(11) IRM 1.55.6.13 Timeliness, revised Table 1.8, Timely Updating a Planned Corrective Action in the JAMES; minor spelling edits.

(12) IRM 1.55.6.14, Uploading Support Documentation, revised for clarity; minor grammar edits.

(13) IRM 1.55.6.16, Final Validation of Planned Corrective Actions, corrected IRM reference.

(14) IRM 1.55.6.17.1, JAMES Reports, revised Table 1.9, List of Frequently Used Reports; minor spelling edits.

(15) Exhibit 1.55.6-1, Example of a JAMES Report Verification E-mail, updated to reference Office of Audit Coordination, new report information; and other minor grammar edits.

(16) Exhibit 1.55.6-3, Example of a JAMES Report Verification Memorandum, revised dates in memo.

(17) Exhibit 1.55.6-4, Example of a Form 13872 Addressing Outcome Measures, added 9c, Program/JAMES Coordinator Signature and 10c, Signature of approving official.

(18) Exhibit 1.55.6-11, List of Acronyms, revised to add Identity Assurance Office and correct Return Integrity and Compliance Services.

(19) New IRM subsections were added renumbering sections.

(20) Corrected double spacing, and punctuation errors throughout IRM.

Effect on Other Documents

IRM 1.55.6 dated September 24, 2015 is superseded.

Audience

W&I and other IRS business division GAO/TIGTA audit coordinators

Effective Date

(10-14-2016)

Susan Powers
Director, Operations Support
Wage and Investment Division

1.55.6.1  (10-14-2016)
Program Scope and Objectives

  1. The IRS is subject to annual audits conducted by the Government Accountability Office (GAO) and the Treasury Inspector General for Tax Administration (TIGTA) to ensure its programs and activities are operating according to established policies and procedures. Within the Wage and Investment (W&I) division, program oversight of the internal controls program is managed under the leadership of the Director, Operations Support, W&I and within the Capital Management & Oversight Office. See IRM 1.40.30,Monitoring Internal Control Planned Corrective Actions for a detailed description of the internal control framework.

  2. Management controls are identified as:

    • A-123 Assessments

    • Remediation Plans

    • Material Weaknesses (MW)

    • Significant Deficiencies (SD)

    • Quality Assurance Reviews

    • National Taxpayer Advocate (NTA) Most Serious Problems (MSPs)

    • GAO and TIGTA Audit Planned Corrective Actions (PCAs)

1.55.6.2  (10-14-2016)
Roles and Responsibilities

  1. The Office of Audit Coordination (OAC) has servicewide oversight for most of IRS’ GAO and TIGTA audit plans (findings, recommendations and planned corrective actions). The Chief, Financial Office coordinations the GAO Financial Audit. The business divisions headquarters and business organization coordinators assist these offices in managing the internal control programs which include the audit process and the post-audit corrective action inventory.

  2. The OAC desk officer is responsible for:

    1. Serving as the liaison between the business division and the Department of Treasury

    2. Coordinating the completion of management controls with each business division

    3. Establishing reports in the Joint Audit Management Enterprise System (JAMES) tracking system of IRS' planned corrective actions, reports, material weaknesses, significant deficiencies, and remediation plans

    4. Reviewing and validating all Program Office (PO) User (business unit coordinators) entries into the JAMES that implement or extend planned corrective actions

    5. Preparing reports/charts regarding IRS audit(s), material weaknesses, remediation plan(s), and status and inventory activities

  3. The W&I business division coordinator is responsible for:

    1. Serving as the liaison between W&I and the OAC

    2. Overseeing the completion of W&I GAO/TIGTA corrective action plan inventory

    3. Coordinating status updates with each business unit coordinator

    4. Tracking performance measures

    5. Preparing and providing status reports to W&I management

    6. Serving as the business division JAMES coordinator

    7. Maintaining final audit and post-audit records

    8. Reconciling the business division corrective action plan inventory

    9. Reviewing all business unit coordinators entries into the JAMES, including support documentation, that implement or extend planned corrective actions.

  4. The W&I business unit coordinator is responsible for:

    1. Verifying and tracking post-audit GAO/TIGTA activity

    2. Serving as the business unit JAMES coordinator

    3. Ensuring activities required to implement planned corrective actions are monitored and completed by field personnel

    4. Preparing and providing status reports through the business unit to division headquarters management and the OAC

    5. Updating the status of planned corrective actions in the JAMES, including uploading support documentation to implement or extend an action.

    6. Conducting a review of the action status and inventory

    7. Reconciling the business unit’s inventory of planned corrective actions

    8. Preparing ad hoc reports

    9. Maintaining audit files

1.55.6.3  (10-14-2016)
Tracking and Reporting Requirements

  1. Compliance with the Federal Managers Financial Integrity Act (FMFIA), the Federal Financial Management Improvement Act (FFMIA), the Office of Management and Budget (OMB) Circulars, Treasury Directives, and the GAO and TIGTA guidelines is essential to effectively managing internal controls.

  2. The Office of Audit Coordination along with the Office of Internal Control, tracks the status of IRS’ servicewide material weaknesses, significant deficiencies, audit action plans, and financial accomplishments. Information from these plans is used to evaluate the effectiveness and progress of IRS’ potential weaknesses and implementation of suggested recommendations.

  3. The JAMES is a U.S. Department of Treasury owned web based system used to track and report data from action plans. The JAMES is one of three applications under the Financial Analysis and Reporting System (FARS) which perform analysis and reporting functions in the areas of proprietary and budgetary accounting, management control and audit follow-up, and performance measurement. Reports are established as a result of Treasury Office of Inspector General (OIG), the TIGTA, and the GAO audits. The JAMES tracks and reports IRS’ planned corrective action plans that address findings from internal management reviews, information on the FMFIA, material weaknesses, significant deficiencies, and FFMIA remediation plans.

  4. Post-Audit data can be extracted from the JAMES by:

    1. Conducting basic and advance queries;

    2. Running standard reports; and

    3. Creating ad hoc user defined reports

1.55.6.4  (10-14-2016)
Identifying Planned Corrective Action Reports and Actions

  1. TIGTA and GAO planned corrective action reports tracked in the JAMES are identified by a unique numbering sequence.

    1. The TIGTA report numbers are comprised as shown in Table 1.1.

      Example:

      2012-00-000

      Table 1.1. — TIGTA Report Number Explanation

      Digits in TIGTA Report Number Represent
      First four digits Fiscal year in which the final report is issued

      Example:

      A final report dated December 5, 2015 (Fiscal Year 2016), would have “2016” as the first four digits.

      Note:

      A hyphen is placed after the fourth digit.

      Fifth and sixth digits Lead IRS business program, TIGTA business unit and/or a special focus of the audit (e.g., American Recovery and Reinvestment Act of 2009 (ARRA), Affordable Care Act of 2010 (ACA), etc.). See Table 1.3 for codes and information related to the audit focus.

      Note:

      A hyphen is placed after the sixth digit.

      Seventh, eighth, and ninth digits Sequential number assigned by TIGTA.
    2. The GAO report numbers are comprised as shown in Table 1.2.

      Example:

      GAO-10-000

      Table 1.2. — GAO Report Number Explanation

      Digits in GAO Report Number Represent
      First three digits GAO

      Note:

      Hyphens are placed after the third and fifth digits.

      Fourth and fifth digits Fiscal year the report was opened

      Note:

      Hyphens are placed after the third and fifth digits.

      Sixth, seventh, and eighth digits Sequential number assigned by GAO
  2. TIGTA and GAO planned corrective action numbers are comprised of the finding number, the recommendation number, and the corrective action number.

  3. Planned corrective action plans are assigned to a lead business division generally identified by the organizational symbols; referred to as the "responsible organization in the JAMES."

  4. The two middle digits of the report number represent the business program or business unit. See table 1.3 for an explanation of codes.

  5. Planned corrective actions are generally assigned to a specific business unit to implement; referred to as the "responsible employee in the JAMES." The responsible employee is generally extended to the third and fourth level. See Table 1.4. for a list of W&I's responsible employees.

    Table 1.3. — IRS Program Areas and TIGTA Business Unit Codes

    IRS Business Programs TIGTA Business Units Code
    Headquarters Operations and Exempt Organizations Programs Management Services and Exempt Organizations (MSE) 10
    Information Systems Programs Security and Information Technology Services (SITS) 20
    Small Business and Corporate Programs Compliance and Enforcement Operations (CEO) 30
    Wage and Investment Income Programs Returns Processing and Account Services (RPA) 40

    Note:

    If the middle digit ends in "1" that indicates the report is associated with the American Recovery and Reinvestment Act of 2009; if the middle digit ends in "2" that indicates the report is related to anti-fraud; and if the middle digit ends in "3" that indicates the report is associated with the Affordable Care Act of 2010.

    Table 1.4. — W&I Responsible Employee List

    Responsible Business Unit Organizational Symbols Responsible Business Organization Responsible Employee
    Identity Assurance Office SE:W:IAO Identity Assurance Office SE:W:IAO
    Operations Support SE:W:O Capital Management Oversight SE:W:O:CMO
    Modernization Develop and Delivery SE:W:O:MDD
    Strategies and Solutions SE:W:O:S
    Modernization Tool and Technology SE:W:O:MTT
    Customer Assistance, Relationships and Education SE:W:CAR Field Assistance SE:W:CAR:FA
    Media and Publications SE:W:CAR:MP
    Stakeholder Partnerships, Education and Communications SE:W:CAR:SPEC
    Customer Account Services SE:W:CAS Accounts Management SE:W:CAS:AM
    Electronic Products & Services Support SE:W:CAS:EPSS
    Joint Operations Center SE:W:CAS:JOC
    Submission Processing SE:W:CAS:SP
    Return Integrity and Compliance Services SE:W:RICS Business Performance Lab SE:W:RICS:BPL
    Integrity and Verification Operations SE:W:RICS:IVO
    Refundable Credits Administration SE:W:RICS:RCA

1.55.6.5  (10-14-2016)
Tracking Corrective Action Plans

  1. At the close of an audit, a corrective action report is entered into the JAMES. In order for management to comply with the OAC’s reporting requirements, each corrective action within an action plan has an estimated implementation date. The JAMES tracks planned corrective actions for all Treasury Department agencies by the projected implementation date.

  2. A new report number is assigned in the JAMES. This number tracks post GAO and TIGTA audit activity. For TIGTA, the report numbering sequence includes the fiscal year the report was issued followed by two digits representing the lead stakeholder or lead business division, followed by a three digit sequential number (for example 2005-40-018). For a list of codes, See Table 1.3.

  3. For GAO, the numbering sequence usually changes from the job code under which the work was conducted (for example, 450389) to the corrective action plan report. The two middle digits represent the fiscal year in which the report is issued followed by a three digit sequential number (for example GAO-05-062).

1.55.6.6  (10-14-2016)
Obtaining Access to the JAMES

  1. Contact the W&I headquarters coordinator within the Program, Evaluation and Improvement business organization to obtain current procedures for requesting system access.

  2. Program users are issued a logon and password from the Department of Treasury to access the JAMES.

  3. Request for JAMES access should be sent through the user's manager to the W&I Headquarters Coordinator.

  4. The following information is needed to request access to the JAMES:

    • Employee Name

    • E-mail Address

    • Telephone Number

    • Level of Access (read-only or full)

    • Account Type(new or modified)

    • Office Organizational Symbol (e.g., SE:W:CAS:SP)

  5. Users will be required to read and acknowledge receipt of the FARS User Responsibility Statement and the Rules of Behavior document online before gaining access to the application.

    Note:

    TIGTA representatives have access to the JAMES and send requests directly to their designated JAMES responsible official. GAO representatives do not have access to the JAMES; however, they generally contact the OAC to request planned corrective action status updates.

  6. Passwords should be changed every 90 days and an automatic notification will be sent from Treasury as a reminder.

  7. Accounts with no activity generally expire after six months and the OAC will have to be contacted to reactivate.

1.55.6.7  (10-14-2016)
Verifying the JAMES Report

  1. When new actions are entered into the JAMES, the OAC desk officer sends a notification e-mail to the W&I business division. See Exhibit 1.55.6-1 for an example. The verification process involves the division coordinator and the business unit coordinator reviewing the JAMES report (findings, recommendations and corrective action plan(s)) for accuracy and returning a notification of concurrence or non-concurrence.

  2. When a business unit concurs with the report and no outcome measures are identified, an mail response can be returned to the OAC..

  3. When a redaction request has been made to a final audit report the OAC will ensure the appropriate boxes are checked in the JAMES report to safeguard sensitive data. These JAMES reports may include text that has been redacted from the final audit report posted on the auditing agency's website. Caution should be used when distributing JAMES reports containing redacted information. Distribution should be limited to need to know only.

  4. Note: SBU reports are only accessible in the JAMES by the responsible business unit program users.

  5. When a business unit has major discrepancies with the report and/or outcome measures are identified, a memo should be sent under executive signature. See Exhibit 1.55.6-2 and Exhibit 1.55.6-3 for examples of memos. If more than one business unit is identified in a report, a separate notification/memo is forwarded from each business unit.

    Note:

    Memo should be prepared in accordance with Document 11426, IRS Correspondence Manual.

  6. The OAC desk officer, the W&I business division coordinator, and the business unit coordinator each play significant roles in ensuring planned corrective actions are implemented and reported timely to Congress.

  7. The OAC desk officer is responsible for:

    1. Receiving notification from GAO or TIGTA of issuance of audit report

    2. Entering the audit report into the JAMES

    3. Notifying the responsible business division and/or business unit coordinator of the planned corrective action plan(s)

    4. Entering reports issued without recommendations in the JAMES

    5. Ensuring redacted reports are accurately identified in the JAMES.

    6. Requesting missing planned corrective action plan(s) if necessary

    7. Sending the responsible business division and/or business unit coordinator a copy of the JAMES A6 - Audit Summary report tracked in the JAMES

    Note:

    For a GAO report, the OAC may request verification of a partial JAMES report containing only the findings and recommendations. Once the 60-day letter is received identifying the planned corrective action, due date, and responsible official, the information is entered into the JAMES to complete the report. For a TIGTA report, the OAC may request verification even though the JAMES report is closed or contains only findings with no reported recommendations. Verification may still be requested even though the JAMES report is closed.

  8. The W&I business division coordinator is responsible for:

    1. Receiving notification from the OAC of new planned corrective actions being tracked in the JAMES

      Note:

      The business unit coordinator should still be contacted to concur or not concur with the information in the report even if the report is entered in the JAMES as closed or without planned corrective actions.

    2. Reviewing the JAMES report for accuracy

    3. Notifying the business unit coordinator of the request for review

    4. Tracking dates and any issues or concerns with the JAMES report

    5. Routing all JAMES report verification correspondence to the OAC; generally, within 30 - 45 days after the issuance of the final audit report

  9. The W&I business unit coordinator is responsible for:

    1. Confirming finding(s), recommendation(s), and planned corrective action(s) are stated accurately

    2. Verifying if the JAMES report should be noted as redacted

    3. Ensuring the due date of the planned corrective action is the 15th day of the month

    4. Ensuring the correct responsible official is designated

    5. Ensuring potential outcome measures are correctly stated and a tracking method is in place to report the realized/unrealized benefits when the recommendation is implemented

      Note:

      The OAC will post a $1 in the Actual Benefits Amount field to indicate IRS' disagreement with any outcome measure amount reported in the final audit report and tracked in the JAMES.

    6. Securing authorized signatures when a substantial disagreement with the findings, recommendations, planned corrective action(s), or outcome measures are identified. When this occurs, the memo should clearly address the discrepancies, the monetary benefit type(s) and the amount(s), and the responsible executive within the function should sign the memo. Memos are prepared according to Document 11426.

    7. Ensuring a notification of concurrence or non-concurrence is returned to the business division coordinator on or before the requested due date.

    Note:

    The data tracked in the JAMES is reported to Congress through the Department of Treasury; therefore, the accuracy of the information is important.

1.55.6.8  (10-14-2016)
Tracking Duplicate Planned Corrective Actions

  1. When responding to an audit recommendation, it may be decided that more than one IRS business division or more than one W&I business unit are responsible for implementing a planned corrective action. If this is the case, then duplicate or multiple planned corrective actions may be established and tracked in the JAMES. Communication between the affected offices, headquarters, and the OAC is important and necessary. See Table 1.5 for general guidance in recognizing when a duplicate planned corrective action may be established if two or more officials are noted or implied as a responsible official in the final audit response.

    Table 1.5. — Duplicate Planned Corrective Action Guidance

    IF THE AUDIT RESPONSE IDENTIFIES... THEN...
    One business division and/or business unit One planned corrective action is generally established in the JAMES with the business division and/or business unit listed as the responsible employee.
    Two or more business divisions and/or business units are listed, but one business division and/or business unit is identified as the “lead.” Duplicate planned corrective actions are generally not established in the JAMES for each business division and/or business unit listed.
    Two or more business divisions and/or business units Duplicate planned corrective actions are generally established in the JAMES; for each business division and/or business unit listed as a responsible official.

    Note:

    In some cases the decision to duplicate or not to duplicate a planned corrective action has already been cleared through the business unit's management and staff during the audit phase.

1.55.6.9  (10-14-2016)
Placing Recommendations on Hold

  1. Recommendations that W&I agrees with but lacks the funding and/or resources for implementation will be placed on HOLD.

  2. The Recommendation Hold Category, which that supports why a recommendation was placed on hold, is tracked in the JAMES. The category, funding; involves input from other agencies; legislation authority; or outside of the Treasury’s purview, is usually determined by the responsible business organization.

  3. A HOLD status can be maintained for up to three years, with a one time one year extension.

  4. Status updates for W&I recommendations placed on HOLD will be requested twice during the year (e.g., February and September)

  5. Recommendations on HOLD are reported to W&I executive board on a monthly basis

  6. When a recommendation on HOLD is ready for release, the status update must be coordinated with the office of Program, Evaluation and Improvement and the Office of Audit Coordination to update the JAMES.

1.55.6.10  (10-04-2012)
Updating Planned Corrective Action Reports

  1. Activities in a planned corrective action report should be updated to record actions taken to delay an action, to implement an action, to cancel an action or supersede an action.

  2. Due dates of open planned corrective actions should be closely monitored to ensure actions are updated timely and activities taken accurately complete the recommended task.

  3. When tasks are delayed, it generally means extreme circumstances have prevented implementation of the planned corrective action by the scheduled due date. See IRM 1.55.6.10.5, Extending Planned Corrective Actions for a complete list of acceptable reasons to extend the due date of a planned corrective action.

  4. A "placeholder" action plan may be established allowing management to address recommendations before the final due date. Actions in a "placeholder" action plan are usually presented in complete or partial steps pending outcomes of task forces, studies, or annual reviews. The action plan as well as the placeholder plan should clearly identify those actions management intends to take on the agreed upon recommendation(s).

  5. If a "placeholder" action plan is being tracked in the JAMES, management has time to address and implement the plan while considering their options or desired future goals. Management can also reassess the situation and provide a new corrective action plan with a delayed due date that fully addresses the recommendation(s) or provide a revised "placeholder" planned corrective action and delayed due date with steps management will now take to address the recommendation(s).

1.55.6.10.1  (10-14-2016)
Implementing Planned Corrective Actions

  1. Most planned corrective actions are set with an implementation due date of the 15th of the month.

  2. Activities to implement a planned corrective action should be completed by the agreed upon due date.

  3. Management officials should ensure activities are completed timely and accurately.

  4. If the action requires computer programming, the programming should be completed and actually in use before the planned corrective action is considered implemented. Submission of a work order or placing a program in test mode generally does not justify implementation.

  5. If the action requires the issuance of an IRM or the revision of a form or publication, the form or publication should be published or officially made available to users by the date of implementation.

    Note:

    The actions taken to implement a planned corrective action should mitigate the risk of the audit finding. The OAC reviews actions taken with this in mind. See IRM 1.4.30, Monitoring Internal Control Planned Corrective Actions for additional guidance and IRM 1.55.6.13 for more information on timely implementing, extending, and updating planned corrective actions.

1.55.6.10.2  (09-26-2013)
Implementing Planned Corrective Actions With Outcome Measures

  1. Potential outcome measures, represent either the possible dollar amounts available (cost savings) or the funds gained (additional revenue) when recommendations from an audit are implemented.

  2. Of the eight categories of outcome measures, only three are tracked in the JAMES; they are 1) Increased Revenue, 2) Questioned Costs, and 3) Funds Put to Better Use.

  3. The amount of outcome measures realized with the implementation of a corrective action, including zero ($0) amounts, must be addressed on the Form 13872 to close an action. See Exhibit 1.55.6-4. It must be clear what actions were taken to realize the amount reported.

  4. The category of the realized monetary benefit that is listed on Form 13872 should be the same as the potential monetary benefit first identified in the audit report. The JAMES must be updated to reflect realized outcome measures (including zero amounts) in order to complete the status update.

  5. The reporting of outcome measures realized may need to be addressed during the JAMES report verification process if PCAs are being entered into the JAMES as already implemented at the close of the audit. These incidents are addressed on a case-by-case basis. See IRM 1.4.30.6.8 (8), Audit Reporting, Monitoring, and Requirements, for additional guidance.

1.55.6.10.3  (10-14-2016)
Canceling Planned Corrective Actions

  1. When the implementation of an agreed upon planned corrective action first identified in the final audit report is not possible, a request to cancel or close action(s) can be made to the auditing agency. The request to cancel a corrective action plan should be approved before the due date in the JAMES. The reason should be clear, and the justification substantiated. See Exhibit 1.55.6-5 for an example of a request to cancel a planned corrective action.

  2. To request cancellation of a TIGTA planned corrective action, prepare a memo for the signature of the W&I Commissioner. Address the memo to the Deputy Inspector General, and copy the OAC. A notification of TIGTA's decision to concur or not concur should be returned. See Exhibit 1.55.6-6 and Exhibit 1.55.6-7 for examples of TIGTA responses.

  3. To request cancellation of a GAO planned corrective action, the correspondence (e.g., memorandum or e-mail) should be addressed to the GAO and routed through the Director, Office of Audit Coordination. See Exhibit 1.55.6-8 and Exhibit 1.55.6-9 for examples of request and concurrence to request.

    Note:

    All correspondence to cancel a planned corrective action should be routed through the office of Program Evaluation and Improvement.

1.55.6.10.4  (10-04-2012)
Superseding Planned Corrective Actions

  1. When an audit produces action(s) previously recommended in another audit, and those action(s) are still open, the status of the previous action will be updated from "open" to "superseded." The recommended action will then be tracked through the new report. The repeat audit indicator field in the JAMES should also be updated.

1.55.6.10.5  (10-14-2016)
Extending Planned Corrective Actions

  1. When an activity, program or product required to implement a planned corrective action plan is unattainable by the original due date, implementation of the corrective action is usually postponed. A status update, new due date, and justification for the extension is required; the status remains open and a justification to extend the planned corrective action is noted.

  2. Justification for extending a planned corrective action is categorized. The specific category is captured on the Form 13872, Planned Corrective Action (PCA) Status Update for TIGTA/GAO/MW/SD/TAS/REM Reports and in the JAMES.

  3. The Department of Treasury has approved the following categories and definitions for extending planned corrective actions:

    • Research/Analyze Data – Delays in implementation in order to perform additional analysis or studies

    • Publishing – Delays in issuing or publishing guidance or manuals

    • Concurrence – Delays due to planned corrective actions that are coordinated with other offices before the action could be implemented, closed, or cancelled

    • Monetary Benefits – Delays to address associated actual outcome measures

    • Legislative – Delays due to waiting for the resolution of a legal issue

    • Clearance – Routing delays for comments or reviews (supporting documentation must show that it is in the final stage of the review process)

    • Budget – Delays due to waiting for the approval of funding

    • Resources – Delays due to the lack of insufficient resources due to budget constraints

    • Contracting – Delays due to waiting for contract awards or when procurement activities are not complete

    • Information Technology (IT) – Unforeseen release delays due to programming or hardware/software issues

  4. The Office of Program, Evaluation and Improvement should be notified before an action to extend a PCA is entered in the JAMES.

    Note:

    Extending the original implementation due date of a planned corrective action is considered a late response by the Department of Treasury. IRS' performance measure of planned corrective actions met and/or extended is shared with IRS executives during operational reviews and other executive briefings (e.g., Operations Strategy Board, and Management Control Executive Steering Committee). See IRM 1.4.30, Monitoring Internal Control Planned Corrective Actions for more information on performance reporting.

1.55.6.11  (10-14-2016)
Documenting Status Updates to Planned Corrective Actions Using Form 13872

  1. The Form 13872, Planned Corrective Action (PCA) Status Update for TIGTA/GAO/MW/SD/TAS/REM Reports is used to document the status change of the planned corrective action. The Form 13872 is uploaded into the JAMES and used by the OAC to validate the status update. See IRM 1.4.30.8.8(5) Uploading and Attaching Documents into the JAMES for more guidance.

  2. Executive signature is required on the Form 13872. The contact person listed on Form 13872 in section eight (a - c) should be a subject-matter expert able to clarify activities related to the corrective action plan if requested by the OAC, TIGTA, GAO, or other management official. The signature of the responsible business unit JAMES coordinator in section nine (a - d) is required. Documentation that does not reflect the appropriate signatures or contain the required information should be returned for correction.

    Note:

    Electronic signatures are acceptable on Form 13872; however, conformed signatures shown as "/s/" will not be accepted.

1.55.6.12  (10-14-2016)
Transferring Planned Corrective Actions

  1. If ownership of a planned corrective action should be reassigned to another W&I business unit, concurrence should be obtained and documented; however, a formal memo of concurrence is not necessary.

  2. If ownership of a planned corrective action should be reassigned to another business division, concurrence is needed from the accepting official. A formal memo from the transferring business division head to the reassigned business division head should be prepared. See Exhibit 1.55.6-10.

  3. Correspondence should clearly identify the report number, the planned corrective action number, and the reason for transfer.

  4. The signed memo and/or other communications supporting the reassignment should be forwarded to the OAC to complete the reassignment in the JAMES. See IRM 1.4.30.8.8 (12) Transfer of Responsibility for Audit Recommendations Resolution (Transfer of PCA Responsible Organization/Responsible Employee from one BOD to a different BOD) for more guidance.

    Note:

    Correspondence pertaining to the transfer of a planned corrective action should be routed through the Office of Program, Evaluation and Improvement.

1.55.6.13  (10-14-2016)
Timeliness

  1. The activities implementing planned corrective actions should be completed by the agreed upon date in order to be considered timely implemented. The status of a planned corrective action must also be updated in the JAMES on or before the controlled due date in order to be considered implemented timely. The OAC requires all status changes (implementations, cancellations, and extensions) to be updated in the JAMES on or before the due date. See Table 1.6, Table 1.7, and Table 1.8 for criteria on timely implementing and extending all planned corrective actions and updating the JAMES.

    Note:

    The business unit coordinators are encouraged to submit the appropriate paperwork to document the status change of a planned corrective action by the first of the month. This should allow adequate time to process and validate the status change.

    Table 1.6. — Timely Implementing a Planned Corrective Action

    If... And... Then...
    Activities to implement a planned corrective action have a due date in the JAMES of December 15, and are completed by December 15, The Form 13872 Planned Corrective Action (PCA) Status Update for GAO/TIGTA Reports is signed on, or before December 15, The action is considered implemented timely.
    Activities to implement a planned corrective action have a due date in the JAMES of December 15, and are not completed by December 15,   The action is considered not implemented timely.

    Table 1.7. — Timely Extending a Planned Corrective Action in the JAMES

    If..., And..., Then...
    Activities to implement a planned corrective action have a due date in the JAMES of December 15, and are not completed by December 15, The status change to extend the due date is input into the JAMES on or before December 15, The action is considered extended timely.
    Activities to implement a planned corrective action have a due date in the JAMES of December 15, and are not completed by December 15, The status change to extend the due date is input into the JAMES after December 15, The action is considered not extended timely.

    Note:

    The planned corrective action will appear as MISSED on the Treasury scorecard until timely implemented or timely extended.

    Table 1.8. — Timely Updating a Planned Corrective Action in the JAMES

    If... And... Then...
    The planned corrective action due date is December 15, The status change is input into the JAMES on or before December 15, The action is considered updated timely. The JAMES should reflect the implementation date as December 15.
    The planned corrective action due date is December 15, The status change is input into the JAMES after December 15, but by the fifth (5) work day (e.g., December 18), The action is considered updated timely in the JAMES.

    Note:

    The Office of Audit Coordination will reject the update and roll back the status change date to December 15; so, the planned corrective action is considered updated timely in the JAMES.

    The planned corrective action due date is December 15, The status change is input into the JAMES after December 15 and after the fifth (5) work day (e.g., December 26), The action is not considered updated timely in the JAMES.

    Note:

    All necessary documentation (e.g., signed Form 13872, and supporting documentation, etc.) must be uploaded timely and in order to accurately validate actions in the JAMES on or before the due date.

1.55.6.14  (10-14-2016)
Uploading Support Documentation

  1. In September, 2010, the Department of Treasury enhanced the JAMES to store documentation in support of a PCA status change.

    Note:

    This includes material weaknesses, significant deficiencies and remediation plan actions.

  2. Effective January 2016, When the PCA Status is set to Implemented, Cancelled, or Replaced a message box will appear on the JAMES screen stating – “At least one supporting document is required to be uploaded before the Status field can be changed.” 

  3. A complete, executive approved and dated, Form 13872 and any supporting documentation should be uploaded into the JAMES at the time the PCA Status is updated in the JAMES. See IRM 1.4.30.8.8 for additional guidance. .

  4. Support documents containing sensitive information must be redacted before uploading.

  5. Examples of support documentation include: the Form 13872;, final reports;, formal data analysis;, official meeting notes that document decisions made in support of PCA implementation; records of planning meetings;, published forms and publications;, course materials;, updated IRMs ; and certain e-mails).

  6. Due to the significance of the GAO/TIGTA audit program, coordinators should ensure the information entered into the JAMES is accurate, grammatically correct, executive approved, and entered timely.

  7. Documents cannot be edited or deleted by the business unit coordinator or the business division headquarters coordinator once uploaded into the JAMES.

    Note:

    Currently only the OAC desk officer can remove any erroneously uploaded document from the JAMES.

1.55.6.15  (09-24-2015)
Closed Planned Corrective Action Quality Review

  1. A statistical sample of closed PCAs will be reviewed annually by the OIC. PCAs found to not have sufficient documentation to support closure uploaded in the JAMES will be documented on Form 14668, Closed PCA Quality Assurance Review Notification and sent to the responsible organization. See IRM 1.4.30.8.10, Closed PCA Quality Assurance Review for additional guidance.

  2. Submission of new or additional documents should be coordinated through Program Evaluation and Improvement before uploading into the JAMES.

  3. Results of the quality review are reported during the MC-ESC sub-group meetings.

1.55.6.16  (10-14-2016)
Final Validation of Planned Corrective Actions

  1. The W&I business unit coordinator should thoroughly review the Form 13872 and other support documentation prior to uploading into the JAMES. See IRM 1.55.6.14 IRM 1.55.6.14, Uploading Support Documentation for additional guidance.

  2. The W&I headquarters business division coordinator should thoroughly review the Form 13872 and other support documentation prior to uploading into the JAMES.

  3. The OAC desk officer will perform a final review and validation of all planned corrective action updated in the JAMES.

  4. If additional information is needed, the OAC desk officer should communicate through the W&I business division primary JAMES coordinator to resolve.

1.55.6.17  (10-14-2016)
Reports

  1. A variety of reports are used to manage the GAO/TIGTA planned corrective action inventory and communicate related information about management controls data. Monthly, quarterly, and annual reports are prepared to capture the number of actions opened, closed, delayed, and the performance rating of timely responses. See Table 1.9 for a list of frequently used reports.

1.55.6.17.1  (09-26-2013)
JAMES Reports

  1. Standard reports are developed and enhanced by programmers at the Department of Treasury. The Reports Menu in the JAMES lists over 29 standard reports. Refer to the JAMES User Manual for a complete list of reports. Standard reports are generated in a HTML or Excel format.

  2. The JAMES also allows the creation of user defined reports. Data from user defined reports are formatted using Microsoft Office applications (e.g., Excel, Word, and PowerPoint). Information from almost every data element can be extracted and/or used in a calculation to obtain needed data. User defined reports can be shared among JAMES program users. Refer to the JAMES User Manual for assistance in creating user defined reports.

    Table 1.9. — List of Frequently Used Reports

    REPORT TITLE REPORT DESCRIPTION
    A3 - Open Recommendations Without PCAs Identifies reports entered without the planned corrective actions; pending submission of the final response to the OAC..
    A4 - Overdue PCAs Identifies actions currently due, but not implemented or the due date has not been extended. Ran after the 15th of the month.

    Note:

    Planned corrective actions updated in the JAMES, but pending validation by the OAC also appear on this report.

    A5 - Open PCAs Report Provides detailed information of all open planned corrective actions.
    A6 - Audit Summary Provides a descriptive report of findings, recommendations, and planned corrective actions for a specific audit report.
    S2 - Scorecard Detail Report Reports bureau scores of "Met", "Missed" and "Extended" PCAs during a specific time-frame. Usually ran to show Track-9 completed data.
    User Defined - Actions Currently Due Provides a list of open planned corrective actions due for a specific timeframe. Ran bi-monthly and sent to the business unit coordinators with actions due.
    User Defined - Actions Entered as of Provides a list of any new planned corrective actions added to the JAMES during a specific timeframe. Run in the middle and end of the month.
    User Defined - Actions Closed as of Provides a list of planned corrective actions closed during a specific timeframe. Run at the end of the month.

1.55.6.18  (10-04-2012)
Records Management

  1. In accordance with the Federal Records Act of 1950 and pursuant to Title 44, USC 3102, an official record of a GAO or TIGTA audit should be maintained by the division headquarters office.

  2. The IRS established a records management program to ensure the economical and efficient management of its records. The program provides for the application, on a continuing basis, of sound management practices and techniques in the creation, maintenance, retrieval, preservation and disposition of records. See IRM 1.15.1 the Records and Information Management Program, for additional information. All Federal employees are required by law to preserve records containing adequate and proper documentation of the organization, functions, policies, decisions, procedures and essential transactions of the agency. See IRM 1.10.3.2.3, E-mails as Possible Federal Records, for additional information.

  3. GAO audit records should be retired to the Washington National Records Center (WNRC) two years after closing, and destroyed when 20 years old.

  4. TIGTA records should be prepared for retirement to the WNRC two years after closing, transferred in five-year segments (i.e., 1993 – 1998), and destroyed after ten years.

Exhibit 1.55.6-1 
Example of a JAMES Report Verification E-mail

This is the official notification sent by the OAC to the business division that the report has been entered into the JAMES.

The Office of Audit Coordination (OAC) is now tracking the following new Treasury Inspector General for Tax Administration (TIGTA) and/or Government Accountability Office (GAO) audit reports in Treasury’s Joint Audit Management Enterprise System (JAMES): 2015-40-XXX (TIGTA DRAFT #201540XXX), “INDIVIDUAL INCOME TAX RETURNS WERE TIMELY PROCESSED IN 2015; HOWEVER, IMPLEMENTATION OF TAX LAW CHANGES COULD BE IMPROVED,” ISSUED DECEMBER 29, 2015

Audit Report - New audit report listed above has been entered into the JAMES. A JAMES A6-Summary audit report abstract is provided as an attachment for these new audit reports. To ensure accuracy of the information reported to Treasury, please review the audit report findings, recommendations, corrective action descriptions, root cause category, recommendation hold category, and outcome measures, if applicable. The A6-Summary report can also be reviewed in JAMES by clicking on the “Standard Reports” button, enter the report number and then click “Run - A6-Summary Report.”

Please follow the steps below and respond by the response due date at the top of this e-mail:

  • Notify me immediately (phone/e-mail) if the information contained in the JAMES is incomplete and/or inaccurate

  • If the information contained in the JAMES is correct, the lead coordinator in the functional area responsible to address the corrective action(s) should send me an e-mail concurrence by the response due date

  • A concurrence memorandum, signed by a responsible official at the executive level l, is only required if there is a substantial disagreement or if outcome measures have been identified

Future Updates - IRS requires the responsible employee to notify the OAC regarding the status of their corrective actions. For a planned corrective action to be considered entered in JAMES timely:

  • All implemented planned corrective actions must be reported in the JAMES within five working days of the due date.

  • The amount of outcome measures realized must be addressed, if applicable.

  • All extended/rescheduled planned corrective actions must be reported in the JAMES on or before the scheduled due date.

  • Documentation for all planned corrective action status updates must be approved by an executive, an equivalent, or actor.

  • Electronic signatures are acceptable, however conformed signatures shown as "/s/" will not be accepted.

  • Each business division should ensure planned corrective actions are updated accurately and timely with support documentation uploaded in the JAMES.

For implemented actions, the OAC will backdate the action five working days to reflect the implementation date. For example: to be considered timely, a corrective action due June 15, 2015 must be completed on or before June 15, 2015 and entered into JAMES by June 21, 2015. The OAC has the capability to backdate your entry date to June 15, if you meet the above reporting requirements.

Transfers and Changes - If responsibility is being transferred to another official, you must provide the OAC with a memorandum identifying the report and reason for transfer. The transfer:

  • Must have a signed concurrence from the accepting official.

  • Must include all information previously received, including this e-mail which should also be provided to the accepting official.

  • Will need concurrence from the Treasury Inspector General for Tax Administration (TIGTA) in order to REJECT a recommendation, CANCEL a planned corrective action, or CHANGE a planned corrective action.

  • Will need concurrence from the Government Accountability Office in order to REJECT a recommendation, CANCEL a planned corrective action, or CHANGE a planned corrective action for a GAO report.

If you have any questions or need further assistance, please e-mail me or contact me on (XXX) XXX-XXXX.

Exhibit 1.55.6-2 
Example of a Non-Concurrence Memorandum

This memo is sent to the Office of Audit Coordination by the business division when significant discrepancies are discovered in the JAMES report that need to be corrected. The executive that owns the planned corrective action in question generally prepares the memo. The memo is sent through the W&I headquarters office.

Note:

The memo should be left justified, printed on W&I letterhead, and follow other correspondence rules in accordance with Document 11426, IRS Correspondence Manual.

RESPONSE DUE DATE: JULY 22, 2015

MEMORANDUM FOR DIRECTOR, OFFICE OF AUDIT COORDINATION

FROM: John Doe

Director, Customer Account Services (CAS) W&I

SUBJECT: Verification of Joint Audit Management Enterprise System (JAMES) Audit Summary Report

The Customer Account Services (CAS) function has been assigned the responsibility of responding to specific corrective actions found in the attached JAMES Verification Report, GAO-05-247R, "MANAGEMENT REPORT: IMPROVEMENTS NEEDED IN IRS’ INTERNAL CONTROLS, " ISSUED APRIL 27, 2014.

After careful review, we identified significant discrepancies with information pertaining to the findings, recommendations, corrective actions and or outcome measures (if applicable).

We specifically do not concur with (fill-in)

If additional information is needed, please contact Jane Doe, Audit Coordinator, at (XXX) XXX-XXXX.

Attachment

Exhibit 1.55.6-3 
Example of a JAMES Report Verification Memorandum

This memo is sent to the Office of Audit Coordination (OAC) by the business division when the JAMES report contains outcome measures. The executive that owns the planned corrective action associated with the recommendation generally prepares the memo. The memo is forwarded by Program Evaluation and Improvement office.

Note:

The letter should be left justified and printed on W&I letterhead in accordance with Document 11426, IRS Correspondence Manual.

February 20, 2016

MEMORANDUM FOR DIRECTOR, OFFICE OF AUDIT COORDINATION

FROM: Jane Doe

Director, Customer Assistance Relationships and Education (CARE) W&I

SUBJECT: Verification of Joint Audit Management Enterprise System (JAMES) Audit Summary Report

The CARE function has been assigned the responsibility of responding to corrective actions associated with the audit report listed above. After careful review, we agree that the findings, recommendations, and corrective actions are accurately reflected in the attached Joint Audit Management Enterprise System (JAMES) A6 Audit Summary Report. While we agree with Treasury Inspector General for Tax Administration’s (TIGTA) computation of the cost savings (funds put to better use) Outcome Measure (shown below), we do not agree that it is an achievable outcome.

Funds Put to Better Use $ 22,185,990.00

If additional information is needed, please contact Ray Charles, JAMES Program Coordinator at (404) 338-9999.

Concurrence:

Exhibit 1.55.6-4 
Example of a Form 13872 Addressing Outcome Measures

This is a sample of Form 13872, Planned Corrective Action (PCA) Status Update for TIGTA/GAO/MW/SD/TAS/REM Reports, (Rev. 10-2010), used to report the activities of a planned corrective action status update. This sample is reporting the implementation of a planned corrective action containing outcome measures.

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Exhibit 1.55.6-5 
Example of a Memorandum Requesting Cancellation of a TIGTA Corrective Action

This memo is used to request concurrence to close a TIGTA planned corrective action. The memo is sent from the W&I Commissioner to the TIGTA's Deputy Inspector General

Note:

The memo should be left justified, printed on W&I letterhead, and follow other correspondence rules in accordance with Document 11426, IRS Correspondence Manual.

MEMORANDUM FOR TREASURY INSPECTOR GENERAL FOR TAX ADMINISTRATION

FROM: John Doe

Commissioner, Wage and Investment Division

SUBJECT: Request to Close Corrective Action 1-1-3 from Internal Audit Report #71399, "Quality of Information Document Processing"

I am writing to request your concurrence to close corrective action 1-1-3 from the subject Internal Audit report dated March 3, 2014. Your recommendation and our justification for closing these actions follow.

Recommendation #1: Service reports, such as Martinsburg Computing Center (MCC) Report 405-02-12, should be reviewed to determine whether large variances between process years exist in the volume and dollars of information documents. These analyses should be completed prior to the release of information to the states and other third parties and should include multiple year comparisons.

Corrective Action #1-1-3: IRS management is considering creating an automated process that highlights dollar and volume anomalies by comparing the current tax year report data with the prior year report data. Until we automate this task, management will continue to perform cursory reviews, or reviews on specific income types. Customer Service and Submission Processing will coordinate writing a manual and developing automated review process.

Background: The Auditors found that service control systems allowed problems with Service Center Recognition/Image Processing System (SCRIPS) data to go undetected. Because of the SCRIPS scanning problems, we posted incorrect information to the Information Returns Master File (IRMF). After we identified the processing errors, we took corrective actions to minimize the effects of the erroneous data on compliance programs and external users of the data. We later analyzed the July 1996 IRS report (Martinsburg Computing Center Report 405-02-12), which showed that SCRIPS scanning errors continue.

The finding was the result of SCRIPS Optical Character Recognition (OCR) "misreading" dollar amount fields, human errors, and filer errors. The SCRIPS was "looking" for dollar amounts so small (font size) that it would see a comma as the number 9 and periods as the number 0. The SCRIPS would also translate dollars signs, negative signs, and other non-numeric characters into numbers resulting in, large errors, sometimes in the trillions of dollars. The SCRIPS transcribers also made keypunch errors or approved erroneous dollar amounts by answering "OK" to visual verifications of dollar amounts. Filers errors and our use of "summary forms" that totaled all the dollar amounts reported in a submission, also contributed to SCRIPS errors. SCRIPS transcribers processed summary forms as just another Form 1099.

To address Recommendation 1, we submitted a Request for Information Services (RIS) to create a report that highlights dollar and volume anomalies by comparing the current tax year report data with the prior year report data. We have attempted to have Information Systems (IS) implement the RIS numerous times since the completion of the audit, the last time in May 2002, but IS has repeatedly rejected the RIS.

Justification to Close This Action:

The IRS has taken actions to refine the OCR processes, modify transcription instructions, and alert filers of summary documents. These actions have reduced erroneous SCRIPS so much that the report, which we planned to create through the RIS, would be of no material value. The corrective actions we are taking and have taken to reduce erroneous SCRIPS errors, and the cursory reviews IS conducted, are the same corrective actions required if the proposed comparison report showed dollar or volume anomalies.

For a detailed description of IRS’ actions to reduce erroneous SCRIPS errors, see the attached.

I hope this information justifies our conclusion that implementing this corrective action is not appropriate. If you agree that we should close this corrective action, please sign below. If you have any questions, please call Jane Doe, Senior Tax Analyst at (XXX) XXX-XXXX.

Attachment

Concurrence: __________________________________________ Date: ___________________
John Doe, Deputy Inspector General  

Exhibit 1.55.6-6 
Example of a Memorandum Concurring the Closure of a TIGTA Planned Corrective Action

This cover memo is received from the TIGTA when they concur to IRS' formal request to close a planned corrective action. The cover memo usually includes IRS' signed request for closure memo, and sent via e-mail to the W&I Commissioner.

Note:

The memo is usually printed on Department of Treasury letterhead.

DEPARTMENT OF THE TREASURY

WASHINGTON, D.C. 20220

MEMORANDUM FOR COMMISSIONER, WAGE AND INVESTMENT DIVISION

FROM: John Doe

Deputy Inspector General

SUBJECT: Request to Cancel Planned Corrective Action 1-1-3 from Audit Report 2014-XX-XXXX, Quality of Information Document Processing

You have requested the Treasury Inspector General for Tax Administration’s concurrence in canceling corrective action 1-1-3 relating to the subject report. As requested, I have indicated my concurrence by my signature on the attachment.

If you have any questions, please contact me, or your staff may contact Jane Doe, Director, Office of Management and Policy at (XXX) XXX-XXXX.

Attachment

cc:

Attn: Jane Doe

Exhibit 1.55.6-7 
Example of a Memorandum Not Concurring the Closure of a Planned Corrective Action

This memo is received from the TIGTA when they do not concur to IRS' formal request to close a planned corrective action. The memo is usually sent via e-mail to the W&I Commissioner.

Note:

The memo is usually printed on Department of Treasury letterhead.

MEMORANDUM FOR COMMISSIONER, WAGE AND INVESTMENT DIVISION

FROM: John Doe Deputy Inspector General for Audit

SUBJECT: Request to Close Joint Audit Management Enterprise System (JAMES) Planned Corrective Actions (PCA) 1-1-1, 1-3-1, 1-5-1, and 1-6-1 from Audit Report 2014-XX-XXX “Additional Security is Needed for Access to the Registered User Portal,” (Audit XXXXXXXX)

Thank you for the opportunity to review your justifications for closing the four unresolved corrective actions, as mentioned in the subject line of this memorandum. Based on our review of your justifications, we disagree with the closure of the four recommendations on the JAMES because the access control weaknesses associated with these recommendations still exist. These corrective actions are critical to minimize the risk of unauthorized access to taxpayer data.

For all four recommendations, your corrective actions depended on the completion of the Unified Work Request (UWR) to:

  • Update the Automated Suitability Analysis Program to collect and retain suitability information for specific delegated users, which would allow the IRS to initial criminal background and tax compliance checks (planned corrective action 1-1-1),

  • Complete requisite programming changes to the Third Party Data Store so that complete results of the Automated Suitability Analysis Program’s spouse tax compliance checks are posted (planned corrective action 1-3-1),

  • Bring the Registered User Portal into compliance with password composition and history retention (planned corrective action 1-5-1), and

  • Complete programming modifications to include a series of challenge questions to unlock user accounts (planned corrective action 1-6-1).

After reviewing the UWR, the MITS Executive Review Board deemed the actions as “Not Mission Critical,” and not driven by legislative need. As such, the corrective actions were not completed.

For corrective action 1-1-1, you also cite that delegated users who have Preparer Tax Identification Numbers (PTIN) will be subject to return preparer suitability checks. While you also cite that there is a high probability that many delegated users will have PTINs, we have not received any evidence or support as how many delegates have PTINs. In addition, we recognize that some delegated users may not be preparing tax returns, which means they do not need a PTIN and would not be subject to any suitability checks.

We would like for your organization to continue to work with the MITS organization to complete your original corrective actions to our recommendations. We believe the corrective actions for four recommendations should remain open until such time when the original corrective actions are completed or alternate correctives actions are proposed and completed that would address the access control deficiencies.

Please contact me at (XXX) XXX-XXXX if you have any questions or John Doe, Assistant Inspector General for Audit (Security and Information Technology Services), at (XXX) XXX-XXXX.

Exhibit 1.55.6-8 
Example of a Request to Cancel a GAO Corrective Action

This request is used to request concurrence to close a GAO planned corrective action. This memo should be sent from W&I Commissioner to the Government Accountability Office.

MEMORANDUM FOR GOVERNMENT ACCOUNTABILITY OFFICE

FROM: John Doe

Commissioner, Wage and Investment Division

SUBJECT: Request to Close Planned Corrective Action 1-14-1 from Audit Report GAO-03-143, “IRS Needs to Further Refine Its Filing Season Performance Measures,” issued January 7, 2014

I am writing to request your concurrence to close planned corrective action 1-14-1 from the subject audit report issued January 7, 2014. Your recommendation and our justification for closing this action is as follows:

Recommendation:

Given the importance of automated telephone assistance, develop a customer satisfaction survey and measure for automated assistance.

Response:

We agree that measuring customer satisfaction with automated services is important. Our newer interactive internet services have satisfaction surveys incorporated in the program. We are continuing to upgrade our automated services and will be implementing telephone system architectural changes as part of the Customer Communications Engineering Study. We will review your recommendation to evaluate the benefit of programming and implementing a customer satisfaction survey system based on outdated delivery systems.

Background Information:

The TeleTax application contained an automated customer satisfaction survey in Fiscal Years (FY) 2012 and 2013 but it was discontinued in FY 2014. The IRS responded to a Government Accountability Office audit recommendation in 2014 that we would expand future Tele Tax customer satisfaction surveys upon completion of Voice Response Unit (VRU) migration in FY 2015. From 2009 to 2014, the VRU platform underwent three modernizations of architectural changes to new platforms. The Information Technology (IT) Division advised the Wage and Investment Division to delay the implementation of the survey until the final platform and architectural migrations were completed. Upon final completion of the VRU migration in FY 2014, W&I submitted a unified work request (UWR) for the creation of an automated survey. Competing with other business priorities, MITS was unable to implement this UWR due to funding and resource constraints. We have recently resubmitted the UWR for reconsideration and it remains unfunded through January 2013, due to other competing critical business priorities.

Justification to Close this Action:

Completing an automated survey for automated self-service telephone applications is a desired, non-critical, enhancement. However, business funding continues to remain limited unless for critical business imperatives, modernization and key legislative initiatives.

Accordingly, I request your concurrence with the recommendation to close this planned corrective action. If you have any questions, please contact me or members of your staff may contact Jane Doe, Senior Operations Advisor, Joint Operations Center, Customer Accounts Services at (678) XXX-XXXX.

Concurrence: __________________________________________ Date: ___________________
John Doe, Comptroller General  

Exhibit 1.55.6-9 
Example of a Concurrence to Cancel a GAO Corrective Action

This response is received from the GAO when they concur to IRS' formal request to close a planned corrective action without full implementation. Usually due to funding. The response is usually returned via e-mail to the business unit contact or the W&I Commissioner.

From: Jane Doe [mailto:DoeJ@gao.gov]

Sent: Friday, January 08, 2015 3:11 PM

To: John Doe; John Q. Public

Cc: Jane Doe; Jane Q. Public

Subject: The IRS Needs to Further Refine It's Season Performance Measures

We received IRS's 12/23/14 letter concerning our recommendation in GAO-03-143 that IRS should implement a customer satisfaction survey for automated calls. We acknowledge that IRS continues to think this recommendation is a good one, but that you all would like to close it as not implemented because it has not been funded. Please note that we will be updating our work pertaining to automated calls and the need for a customer satisfaction survey during our FY 2015 filing season (450816) and/or FY 2016 budget reviews (450820). During that time, we will determine if a similar recommendation is warranted.

If you have any further questions, please give me a call at 404-XXX-XXXX.

Relevant Contacts: FY 2015 Filing Season Jane Doe, Assistant Director and John Doe, Analyst-in-Charge FY 2016 Budget

Sincerely,

Jane

Exhibit 1.55.6-10 
Example of a Memorandum Requesting The Transfer of a Planned Corrective Action

This memo is used to request the transfer of a planned corrective action from one business division to another. The memo is sent from the W&I Commissioner to the head of office of the gaining office.

Note:

The memo should be left justified, printed on W&I letterhead, and follow other correspondence rules in accordance with Document 11426, IRS Correspondence Manual.

MEMORANDUM FOR JOHN DOE COMMISSIONER SMALL BUSINESS SELF-EMPLOYED DIVISION

FROM: Jane Doe

Commissioner, Wage and Investment Division

SUBJECT: Transfer of Open Treasury Inspector General for Tax Administration Planned Corrective Actions

With the realignment of program offices under the Electronic Tax Administration and Refundable Credits Office (ETARC), effective October 9, 2014, the Wage and Investment division has identified nine planned corrective actions (PCAs), from three Treasury Inspector General for Tax Administration (TIGTA) audit reports, that should be transferred to the Office of Online Services and the Return Preparers Office under the Deputy Commissioner for Services and Enforcement.

The planned corrective actions to transfer are:

  1. From the audit report Additional Security Is Needed For Access To The Registered User Portal 2010-XX-XXX (Audit 2013XXXXX), PCAs 1-5-1 and 1-6-1 will be transferred to the Office of Online Services; and PCAs 1-1-1 and 1-3-1 will be transferred to the Return Preparers Office.

  2. From the audit report Systems Validations Are Insufficient To Prevent The Unauthorized Use of Electronic Filing Identification Numbers 2013-XX-XXX (Audit # 2013XXXXX), PCAs 1-1-1, 1-2-1, 1-3-1, and 1-6-1 will be transferred to the Return Preparers Office. (3) From the audit report Individuals Who Are Not Authorized To Work In The United States Were Paid $4.2 Billion in Refundable Credits 2014-XX-XXX (Audit 2013XXXXX), PCA 4-1-3 will be transferred to the Return Preparers Office.

Your concurrence to transfer the identified planned corrective actions is requested. Audit liaisons from the Office of Online Services and the Return Preparers Office have been briefed, and all are in agreement with the specifics of the transfers. A detailed listing of the planned corrective actions discussed is attached. In addition, the has been notified. They will work with the Department of Treasury to ensure the planned corrective actions, currently tracked in the Joint Audit Management Enterprise System, are updated to accurately reflect the appropriate organizational codes and the responsible business organization under the Deputy Commissioner for Services and Enforcement.

For questions, or if additional information is needed, please contact me or a member of your staff may contact John Doe, Chief, Program Evaluation and Improvement, at 404-XXX-XXXX.

Attachment

Concurrence: __________________________________________ Date: ___________________
John Q. Public, Deputy Commissioner for Services and Enforcement  

cc:

Exhibit 1.55.6-11 
List of Acronyms

This is a list of acronyms used throughout this IRM.

Acronym Definition of Acronym
CARE Customer Assistance, Relationships and Education
CAS Customer Account Services
FARS Financial Analysis and Reporting System
MC ESC Management Control Executive Steering Committee
FFMIA Federal Financial Management Improvement Act
FMFIA Federal Managers’ Financial Integrity Act
GAO Government Accountability Office
HTML Hyper Text Markup Language
IAO Identity Assurance Office
JAMES Joint Audit Management Enterprise System
LB&I Large Business and International
MSP Most Serious Problem
MW Material Weakness
NTA National Taxpayer Advocate
OAC Office of Audit Coordination
OpSB Operations Strategy Board
PCA Planned Corrective Action
PPAC Planning, Program and Audit Coordination
PEI Program, Evaluation and Improvement
REM Remediation Plans
RICS Return Integrity and Compliance Services
SB/SE Small Business and Self-Employed
SD Significant Deficiency
TE/GE Tax Exempt and Government Entities
TIGTA Treasury Inspector General for Tax Administration
UWR Unified Work Request
W&I Wage and Investment

More Internal Revenue Manual