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Part 6. Human Resources Management

Chapter 735. Ethics and Conduct Matters

Section 2. IRS Outside Employment

6.735.2 IRS Outside Employment

Manual Transmittal

September 03, 2026

Purpose

(1) This transmits revised IRM 6.735.2, Ethics Matters, IRS Outside Employment.

Material Changes

(1) Throughout the IRM, all language relating to bargaining units, unions, or union agreements to align with Executive Order (EO) 14251, Exclusions from Federal Labor-Management Relations Program and EO 14343, Further Exclusions from the Federal Labor-Management Relations Program was removed.

(2) Throughout the IRM, organization names, internal controls and hyperlinks have been updated.

Effect on Other Documents

This IRM supersedes IRM 6.735.2, Ethics Matters, IRS Outside Employment, dated August 5, 2025. It incorporates Interim Guidance memorandum HCO-06-0226-0003, Interim Guidance (IG) on IRM Language Related to Collective Bargaining Agreements, dated March 5, 2026.

Audience

Unless otherwise indicated, the policies, authorities and instructions contained in this IRM apply to all IRS business units excluding contractors and Chief Counsel.

Effective Date

(09-03-2026)

Alex Kweskin
Chief Human Capital Officer
Internal Revenue Service

6.735.2.1 (09-03-2026)

Program Scope and Objectives

  1. Purpose: This IRM provides policies and guidance for employment outside of the IRS. It may be supplemented by Human Capital Office (HCO) interim guidance.
  2. Audience: Unless otherwise indicated, the policies, authorities and instructions contained in this IRM apply to all IRS business units excluding contractors and Chief Counsel.
  3. Policy Owner: The IRS Chief Human Capital Officer (CHCO) is the policy owner.
  4. Program Owner: Human Resources Operation and Shared Services (HROSS) is the program owner for this IRM.
  5. Primary Stakeholders: HROSS and Employee Relations (ER) are the primary stakeholders for this IRM.
6.735.2.1.1 (09-03-2026)

Background

  1. OE and business activities refer to employment or business activities performed separate from an IRS employee’s official position.
  2. IRS employees may engage in OE, with or without compensation, with prior approval, when needed, if the OE or business activity follows applicable statutes and regulations and the OE does not conflict with the IRS mission.
  3. Read and interpret this IRM per relevant law, government-wide regulations, Treasury Human Capital Directives and Issuances, Comptroller General Decisions, and Office of Personnel Management guidance. Not complying with this IRM or related statutes and regulations can result in corrective action (e.g., discipline).
6.735.2.1.2 (09-03-2026)

Authorities

  1. 5 USC 73, Subchapter III, Political Activities
  2. 18 USC 11 PDF, Bribery, Graft, and Conflicts of Interest
  3. 18 USC 205, Activities of officers and employees in claims against and other matters affecting the Government
  4. Public Law 117-178, Civilian Reservist Emergency Workforce Act of 2021, signed September 29, 2022
  5. 5 CFR 733, Political Activity - Federal Employees Residing in Designated Localities
  6. 5 CFR 734, Political Activities of Federal Employees
  7. 5 CFR 2635, Standards of Ethical Conduct for Employees of the Executive Branch
  8. 5 CFR 3101, Supplemental Standards of Ethical Conduct for Employees of the Department of the Treasury
  9. 31 CFR 0, Department of the Treasury Employee Rules of Conduct
  10. Document 12829, General Records Schedule, 2.8, Employee Ethics Records
6.735.2.1.3 (09-03-2026)

Roles and Responsibilities

  1. This section provides responsibilities for:

    1. ER Division
    2. Business units (organizations)
    3. Business unit points of contact (business unit POCs)
    4. Managers
    5. Employees
    6. Deputy Ethics Official (DEO)

     

6.735.2.1.3.1 (09-03-2026)
Employee Relations (ER) Division
  1. Notifies HROSS when a business unit adds or replaces a business unit POC so access to the Outside Employment System (OES) can be added or deleted, as appropriate.
  2. Monitors OES compliance by analyzing OES data.
  3. Contacts the business unit POC if the organization’s records show deficiencies.
  4. Assists business unit POCs with questions about the OES.
  5. Processes OE requests requiring approval by the Commissioner of Internal Revenue.
  6. Contacts HROSS if there are OES issues.
  7. Approves organizational training materials to ensure compliance.
  8. Collaborates with the HCO, Compliance and Communication (C&C) Office, Policy Office (PO) on revisions to the IRM.
  9. Takes the lead on responding to data calls associated with audits and coordinates replies with the PO.
6.735.2.1.3.2 (09-03-2026)
Business Unit (Organizations)
  1. Choose a business unit POC to check organizational OE requests and records to ensure compliance and to serve as a representative on the IRS OE team.
  2. Ensure managers follow the 10 workday processing time. Refer to IRM 6.735.2.1.5, Program Controls.
  3. Ensure a copy of the approved/denied OE request is printed from the OES site and filed in the employee’s non-performance folder (drop file). Refer to IRM 6.735.2.13, Filing Approved/Denied Requests.
  4. Ensure the organization’s OE presentations and communications are correct and follow this IRM and online resources. Refer to IRM 6.735.2.1.2, Authorities, and IRM 6.735.2.1.7, Related Resources.
6.735.2.1.3.3 (09-03-2026)
Business Unit Points of Contact (Business Unit POC)
  1. Serve as the business unit contact to answer questions about using the OES.
  2. Review business unit presentations or communications to ensure IRM compliance and forward to the IRS OE POC for final approval.
  3. Serve as the liaison between the business unit and the IRS OE POC.
  4. Attend meetings with the IRS OE POC and complete associated actions.
  5. Run OES reports to check OE compliance and share reports with managers and/or POCs to help monitor compliance.

  6. Monitor organizational data to ensure:

    1. Requests are processed within 10 workdays. Refer to IRM 6.735.2.1.5, Program Controls.
    2. Approved records are updated annually in the OES. Refer to IRM 6.735.2.1.2, Authorities, and IRM 6.735.2.17, Annual Requirements.
    3. Duplicate records are deleted/archived.

     

  7. Find discrepancies (compliance issues) in OE records, coordinate proper action and confirm completion.
  8. Contact the IRS OE POC to resolve OES issues.
  9. For a list of the business unit POCs and the IRS OE POC, go to the HCO Outside Employment site.
6.735.2.1.3.4 (09-03-2026)
Managers
  1. Serve as the reviewing official if he/she is a supervisor in the employee’s supervisory chain and below the approving official.
  2. Serve as the approving official if he/she is a supervisor in the employee’s supervisory chain and at least two levels above the employee who submitted the request.
  3. Read this IRM to ensure the employee’s OE activity follows the regulations and the IRS policy.
  4. Request more information from the employee, if needed, to evaluate and approve/deny OE requests.
  5. Read and promptly act on email notices from HRConnect to ensure requests are reviewed/approved within 10 workdays and the annual review is timely completed.

  6. Add the employee’s OE request to the OES if it is submitted to them on Form 7995, Outside Employment or Business Activity Request.

    Note:

    Employees who cannot access the OES (e.g., they are not assigned an IRS computer or do not have access to a kiosk or shared workstation) may use Form 7995. Once added to OES, an email notice is sent to the employee and manager confirming submission.

     

  7. Enter the reason(s) for denying a request in the OES in the comments section. This is the approving official's responsibility.
  8. Remind employees annually of the OE policy (e.g., activities that are prohibited, submit requests for approval in advance, update the record in the OES if an employee wants to end his/her OE and submit a new request if his/her approved OE position/duties change).
  9. Contact the business unit POC with questions about using the OES.
  10. Request guidance from their manager or the DEO if the reviewing official needs help deciding whether the employee’s requested OE activity is permissible and/or if it conflicts with the employee’s IRS duties. Refer to IRM 6.735.2.20, Contact Information.

  11. Go to the HCO Outside Employment site for step-by-step instructions. Job aids include, for example:

    1. HRConnect Employee Guide
    2. HRConnect Manager Guide
    3. Annual Review Job Aid
    4. How to Grant Proxy Rights in HRConnect

     

  12. After a request is approved/denied, the first-level manager must log into the OES and print a copy to file in the employee’s drop file. Refer to IRM 6.735.2.13, Filing Approved/Denied Requests.
6.735.2.1.3.5 (09-03-2026)
Employees

  1. Read this IRM to ensure the OE or activity they are interested in pursuing does not conflict with IRS duties and is not prohibited by:

    1. Statute
    2. Regulation
    3. The Office of Government Ethics (OGE)
    4. Treasury policies
    5. IRS policies

    Note:

    If needed, ask the first level manager or the DEO for help to decide if the desired OE activity is allowed or prohibited. Refer to IRM 6.735.2.20, Contact Information.

     

  2. Submit the OE request for approval at least 10 workdays prior to the date they expect accepting or starting the OE or business activity.

    Note:

    Employees who cannot access the OES (e.g., they are not assigned an IRS computer or do not have access to a kiosk or shared workstation) may use Form 7995 to submit a request. If Form 7995 is used, give it to the first level manager who will add it to the OES.

     

  3. Do not perform the approved OE during the IRS tour of duty (TOD).

    Note:

    With management’s approval, employees may engage in approved OE using annual leave, leave without pay, credit hours or compensatory time off. Refer to IRM 6.630.1, Absence and Leave.

     

  4. Do not perform the approved OE at the assigned post of duty (POD) or temporary work location.
  5. Do not perform the approved OE at the approved telework site during the IRS TOD.

  6. Do not perform the OE on Treasury or IRS property.

    Exception:

    This prohibition does not apply to employees who perform OE activities with a federal contractor on Treasury or IRS property, if there is a clear separation between the employees’ official duties and the employees’ duties for the contractor, and if the prospects for a conflict of interest are remote.

     

  7. Do not use any government property to perform OE.

  8. Submit a new request if the IRS position changes and the change is recorded on an SF-50, Notification of Personnel Action (refer to IRM 6.735.2.14, Change in IRS Position or Duties - When to Resubmit Request) and they want to continue performing OE that was previously approved.

    Note:

    In this scenario (when an active OE record exists, and an SF-50 was processed), an email notice, with the subject: Action Required - Outside Employment, is sent from HRConnect to the employee and his/her manager advising them to review and discuss the OE.

     

  9. Submit a new request if the approved OE duties change.
  10. Update the OE record in the OES if they want to end the approved OE or the OE hours change.
  11. Read and act on email notices for the annual review of previously approved requests. For step-by-step instructions, go to the HCO Outside Employment site and review the Annual Review Job Aid.
6.735.2.1.3.6 (11-15-2021)
Deputy Ethics Official (DEO)

  1. The DEO:

    1. Responds to IRS employees and managers who seek help with interpreting or applying the ethics rules, statutes and regulations to ensure the OE or business activity follows the policy and the law.
    2. Processes requests for help on Form 8558, Request for Opinion from the Deputy Ethics Official.
    3. Does not answer questions about using the IRS OES.

     

6.735.2.1.4 (09-03-2026)

Program Management and Review

  1. The PO and ER Division gauge the effectiveness of this IRM policy and procedures by considering feedback from customers and stakeholders as part of the review process for all Internal Management Documents. During this process, IRM sections are added, revised or removed. Changes are usually based on statutory and/or regulatory changes.
  2. The IRS OE POC, managers and business unit POCs pull reports from the OES to check requests, records and ensure compliance. The IRS OE POC notifies the business unit POCs if he/she finds non-compliance issues or emerging trends. Program management includes measuring the timeliness of processing OE requests and the annual update of approved OES records to ensure IRM compliance.
6.735.2.1.5 (09-03-2026)

Program Controls

  1. To ensure this IRM is still current and compliant with regulations, the PO and ER regularly review this IRM and revise content when needed.
  2. This IRM requires approval/denial of OE requests within 10 workdays of submitting the request in the OES or the date the employee submits a signed Form 7995.
  3. The OE policy requires managers to timely conduct an annual review and update approved OE records in the OES.
6.735.2.1.6 (09-03-2026)

Terms and Acronyms

  1. Corrective Action - A non-disciplinary, disciplinary or adverse action taken to address misconduct and discourage reoccurrence.
  2. Drop File - A personnel file securely kept by an employee’s manager. It is a temporary file that holds documents unrelated to performance, such as corrective actions addressing misconduct. The drop file is kept separately from official personnel folders (OPF), employee performance folders, and employee medical folders.
  3. IRS Outside Employment Point of Contact (IRS OE POC) - The POC in ER who oversees the OE operations.
  4. Outside Employment (OE) - Paid or unpaid employment or business activities, performed by IRS employees outside their IRS duties.
  5. Outside Employment System (OES) - IRS’s online system found in HRConnect (refer to My Outside Employment tile) for submitting requests, annually reviewing, updating approved records and monitoring OE records to ensure compliance.
  6. OES Reviewing Official - Usually the first-level manager in the employee’s supervisory chain below the approving official.

  7. OES Approving Official - Usually the second-level manager in the employee’s supervisory chain at least two levels above the employee who submitted the request.

    Note:

    For Criminal Investigation employees, refer to IRM 9.1.4, Criminal Investigation Directives.

     

  8. OE Business Unit Point of Contact (business unit POC) - The business unit’s POC for managers and employees. The business unit POC answers questions about using the OES and helps managers with OE policy compliance.
6.735.2.1.7 (09-03-2026)

Related Resources

  1. Document 9300, 14 General Principles of Ethical Conduct for Federal Employees
  2. EthicsLink (refer to Outside Activities and Employment)
  3. Form 7995, Outside Employment or Business Activity Request
  4. Form 8558, Request for Opinion from the Deputy Ethics Official
  5. HCO Outside Employment site
  6. IRS iManage Outside Employment site
  7. IRM 6.735.1, Ethics Program Requirements
6.735.2.2 (07-12-2023)

Delegation of Authority

  1. Refer to Delegation Order 6-4, Authorization to Engage in Outside Employment, Business, and Other Activities, located in IRM 1.2.2, Servicewide Delegations of Authority.
6.735.2.3 (07-12-2023)

Outside Employment (OE) Limitations

  1. OE or business activities must not conflict with the employee's IRS duties. A conflict exists if:

    1. The activity is prohibited by statute, regulation, Treasury policy, or IRS standards of ethical conduct.
    2. It requires the employee’s disqualification from performing IRS duties because the OE activity would materially impair the employee’s ability to perform.

     

  2. OE or business activities may not be performed:

    1. During the employee’s IRS TOD.
    2. At the employee’s assigned POD or temporary work location.
    3. At the employee’s approved telework site during his/her IRS TOD.
    4. On Treasury or IRS property.
    5. Using government property (e.g., supplies, badges, credentials, computers, email, phones, and other information technology devices and resources). Refer to IRM 10.8.27, Information Technology (IT) Security, Personal Use of Government Furnished Information Technology Equipment and Resources, for details.
    6. If the OE or business activity impedes the IRS mission or is considered likely to negatively affect the public’s perception of the IRS.

     

6.735.2.4 (09-03-2026)

Prohibited Outside Employment (OE) Activities

  1. Prohibited activities must not be performed by IRS employees and may not be performed indirectly, for example, through a business, family members or friends. The types of OE or business activities that are prohibited include:

    1. Performing legal services involving federal, state or local tax matters. A tax matter is one in which the attorney is acting as a tax practitioner/advisor. For example, giving tax-related estate planning advice is prohibited; however, drafting powers of attorney and simple wills where the estate is not subject to federal, or state estate taxes is permitted.
    2. Appearing on behalf of any taxpayer as a representative before any federal, state or local governmental agency, in an action involving a tax matter, except with the written authorization of the Commissioner of Internal Revenue.
    3. Engaging in accounting, or the use, analysis, and interpretation of financial records when such activity involves tax matters.
    4. Engaging in bookkeeping, the recording of transactions or the record-making phase of accounting, when such activity is related to a tax determination.
    5. Preparing tax returns for compensation, gift or favor.
    6. Acting as an agent or attorney for anyone in a claim against the United States or in a matter in which the United States is a party or has a direct or substantial interest, before any department, agency, or court, unless permitted by an exception in 18 USC 205 PDF. Employees are also prohibited from accepting or seeking compensation for such representational services whether performed personally or by someone else, unless permitted by an exception in 18 USC 203.
    7. Receiving compensation or honorarium for teaching, speaking, or writing that is related to official IRS duties. Note: The topic “related to” an employee's official duties are broad and include, for example, any ongoing or announced IRS policies, programs or operations. Exception: This restriction does not apply to certain courses offered as part of an established curriculum at a qualified institution of higher education.
    8. Engaging in unlawful or criminal matters.

     

6.735.2.5 (09-03-2026)

Outside Employment (OE) Activities Exempt from Requesting Approval

  1. Permission is not needed to engage in the following OE or business activities:

    1. Membership and services (including holding of office) in tax-exempt organizations under the Internal Revenue Code, IRC 501(c). This exemption does not apply to traditional employment or management relationships with organizations such as employment as a nurse in a tax-exempt hospital, serving as a minister of a church or managing the organization’s day-to-day activities. For example, requests are not needed for volunteer services (that is, hospital work, Red Cross, animal shelter, museum docent, or grief counselor) or services for homeowners’ associations or federal employees’ associations.
    2. Membership and services (including holding office) in federal employee organizations. However, employees in certain positions (e.g., Senior Executives) are prohibited from holding office in federal employee organizations.
    3. Membership and services (including holding office) in the local office of a credit union, whether it is run by or for IRS personnel. Services may include paid, non-tax related bookkeeping work performed by the treasurer, or part-time clerical or teller services.
    4. Services as a Notary Public.
    5. Sales to the public, such as yard sales, garage sales or the occasional sale of personal items on eBay or Facebook Marketplace. The sale of personal items to coworkers, friends, relatives, and neighbors must not be asked for or transacted during work hours or in space occupied by Treasury or IRS.
    6. Minor services and odd jobs for friends, relatives or neighbors.
    7. Giving advice and assistance in the preparation of tax returns where no compensation is accepted.
    8. Rental of personally owned property, real or personal. This exemption does not apply if an employee is engaged in or appears to be engaged in a commercial business venture. Facts suggesting a commercial business venture include but are not limited to rental of commercial real estate, rental of multiple residential structures or a multi-unit structure (e.g., more than a duplex), or formation of a corporate entity in connection with the activity.
    9. Temporary (30 calendar days or less) assistance in a family enterprise in cases of an emergency, such as the death, serious illness or incapacitating accident of a family member engaged in such business. This exception ensures you can assume a share of the responsibilities in family emergencies. A request and approval are needed if the need for such assistance continues beyond 30 calendar days or occurs more than once in a calendar year.
    10. Custodian of your child’s property, or acting as administrator executor, guardian or attorney-in-fact for a relative or friend provided the duties do not entail operation of a business. Such services are not considered legal employment or practice. Acceptance of an executors or trustees fee is permissible if no part of the fee is specifically identified as payment for tax return preparation.

    11. Unpaid bookkeeping, preparation of tax returns and other informational forms required by the Service, and the maintenance of other records for civic, religious, educational, and charitable non-profit organizations which are exempt from federal income tax.

      Note:

      Employees may not represent an organization in connection with an application for non-profit status.

       

    12. Employment in the National Guard, in any Reserve component of the United States Armed Forces, or as a Federal Emergency Management Agency Reservist.

     

6.735.2.6 (09-03-2026)

Permitted Outside Employment Activities - Submit Request; Prior Approval Required

  1. Legal Employment or Practice - A request to provide legal services may be approved if the proposed activity does not conflict with the employee’s official duties (refer to IRM 6.735.2.1.3.5, Employee Responsibilities). A conflict exists, for example, if the employee is involved in a prohibited activity (refer to IRM 6.735.2.4, Prohibited Outside Employment Activities).

  2. Bookkeeping and Accounting Activities - Employees may engage in the full range of bookkeeping activities (e.g., recording transactions and the record-making phase of accounting) provided the activity is not related to a tax determination. Employees may also engage in bookkeeping and accounting related to a tax determination in the following situations:

    1. Keeping the books for a firm or business owned or run by you or your immediate family if prospects for a conflict of interest are remote.
    2. Engaging in business with your spouse or domestic partner.

     

  3. Teaching, Speaking and Writing - Teaching, speaking and writing activities that involve the Office (see below for explanation), which are not part of an IRS employee’s duties, are considered outside activities that require approval. An activity involves the Office if it:

    1. Relates to or involves IRS programs, or activities.
    2. Draws on information obtained from your IRS employment that has not been made public or is not available to the public upon request (e.g., “Official Use Only” information).
    3. Involves cost to the government in either money or time.

     

  4. Hatch Act, Political Activity - Employees may take an active part in political activities to the extent not prohibited by 5 USC 73, Subchapter III (the Hatch Act). Some political activities, while permissible per the Hatch Act, are considered OE or business activities. Examples of allowable political activities include serving as a:

    1. Campaign manager (provided that the employee does not personally engage in fundraising activities or personally accept donations to the campaign)
    2. Election judge

    3. Independent candidate for office in specified localities

      Note:

      These are examples only and may not apply to Criminal Investigation or career-SES employees, who are considered “further restricted employees” under the Hatch Act. If you have questions about whether the planned political activity requires management approval, contact the DEO.

      Refer to IRM 6.735.2.20, Contact Information.

      Note:

      Federal employees are prohibited from being candidates in partisan elections. There are limited exceptions for employees running as independent candidates in legally specified localities. If employees are interested in pursuing candidacy for any elected office, contact Chief Counsel, General Legal Services, as noted above.

      Note:

      For details on the Hatch Act, visit the EthicsLink (refer to Political Activity).

       

     

6.735.2.7 (09-03-2026)

Outside Employment System (OES)

  1. In 2021, the IRS implemented the OES in HRConnect.
  2. The manager and employee data in the OES, including email addresses, is pulled from HRConnect. If the data in the OES is not correct, management must submit a Personnel Action Request to correct it.
  3. Each pay period, copies of approved/denied requests are automatically sent from HRConnect to the site responsible for the IRS OPF. A copy of the request is filed in the OPF as required by 5 CFR 3101.104, Outside Employment.
6.735.2.7.1 (09-03-2026)

Access to Outside Employment System (OES)

  1. All OE requests must be submitted (or added by the manager/business unit POC if an employee uses Form 7995) and processed in the HRConnect OES.
  2. All employees automatically have access to the OES.
  3. Managers automatically have access to requests submitted by their employees.
  4. Business unit POCs get access to business unit records through the IRS OE POC.
6.735.2.7.2 (07-12-2023)

Proxy Access

  1. Managers may grant two types of proxy access:

    1. Initiator access to someone on their support staff. This individual can add requests submitted on Form 7995 to the OES.
    2. Initiator/approver access to acting managers. This individual can add requests submitted on Form 7995 and review/approve requests or conduct annual reviews on the OES.

     

  2. For step-by-step proxy instructions, go to the HCO Outside Employment site, and refer to the job aid, How to Grant Proxy Rights in HRConnect.
6.735.2.8 (09-03-2026)

Submitting an Outside Employment (OE) Request

  1. Before submitting a request, read this IRM to ensure the OE or activity is allowed and does not conflict with your IRS duties.

  2. At least 10 workdays before the expected date for accepting or starting a permitted OE position, add your request to the HRConnect OES.

    Note:

    If an employee cannot access OES (e.g., you are not assigned an IRS computer or do not have access to a kiosk or shared workstation) you may use Form 7995.

     

  3. For step-by-step instructions, go to the HCO Outside Employment site. Job aids include, for example:

    1. How to Add an Outside Employment Request (Video)

    2. Outside Employment HRConnect Employee Guide

      Note:

      If the requester has an active request(s), a pop-up message will display. The requester will be asked if he/she wants to end the previously approved OE. If he/she is no longer performing that OE, click Yes. If he/she wants to continue the previously approved OE, click No.

       

     

  4. Email notices are sent to the employee and manager beginning with confirmation after the request is added until it is approved/denied.
  5. If a request is not approved within 10 workdays, the employee is not allowed to accept or start the OE. An email notice denying the request is sent to the employee and manager. An email is only sent to the second-level manager if the request was denied. Employees may resubmit requests for approval.
6.735.2.8.1 (09-03-2026)

Seasonal/Furlough/Shutdown Exceptions

  1. The OE policy applies to seasonal employees in non-duty status, furloughed employees and all employees when the government is shutdown.

  2. The prior approval requirement is waived for seasonal employees who work permitted OE while in non-duty status and all employees in case of a furlough or shutdown. However, upon return-to-duty status, employees must submit a request to continue the OE activity.

    Note:

    This waiver does not apply to requests under IRM 6.735.2.9, Request for the Commissioner of Internal Revenue.

     

  3. If the OE was only performed during the furlough/shutdown period (that is, the OE ended before the employee returned to the IRS), do not submit a new OE request.
6.735.2.9 (09-03-2026)

Request for the Commissioner of Internal Revenue

  1. IRM 6.735.2.4, Prohibited Outside Employment Activities, requires the written authorization of the Commissioner of Internal Revenue for requests:

    1. To appear on behalf of any taxpayer, as a representative, before any federal, state, or local governmental agency, in an action involving a tax matter.
    2. To represent third parties before the government in non-tax matters.

     

  2. Submit requests for the Commissioner’s approval into the OES (refer to IRM 6.735.2.8, Submitting Outside Employment Request). In the Business Type field, choose Taxpayer Representative. Complete the remaining steps, save the request, and submit it for review/approval.

  3. After the second level manager approves the request, the IRS OE POC receives the request and provides the following instructions to management:

    1. The employee’s management chain prepares a memorandum, addressed to the Commissioner of Internal Revenue, through the IRS OE POC, describing management’s detailed assessment of the request (e.g., any conflict with the employee’s IRS duties, the employee’s requested representational role, any concerns, whether the DEO provided guidance, if requested [if received, attach to the memo]).

      Note:

      To find the IRS OE POC, go to the HCO Outside Employment site (refer to Outside Employment Business Unit Points of Contact).

       

     

  4. After the IRS OE POC receives a reply from the Commissioner of Internal Revenue, the signed memo will be sent to the business unit POC who will share it with the employee’s immediate and second-level managers. The first-level manager will provide the memo to the employee and file a copy in the employee’s drop file.
  5. Allow a minimum of 45 workdays to process.
6.735.2.10 (07-12-2023)

Checking Status of Request

  1. Employees must follow the steps below to check the status of their OE request on OES:

    1. Log into HRConnect.
    2. Select the My Outside Employment tile.
    3. Select the appropriate record.
    4. Review the Status field and comments, if provided.

     

6.735.2.11 (07-12-2023)

Modifying or Withdrawing an Outside Employment (OE) Request

  1. Employees must follow the steps below to withdraw their OE request on OES:

    1. Log into HR Connect.
    2. Select the My Outside Employment tile.
    3. Select the appropriate record.
    4. Slide the ratio button to Withdraw.
    5. Click Continue.

     

  2. Employees must follow the steps below to modify an in-progress OE request on OES:

    1. Log into HR Connect.
    2. Select the My Outside Employment tile.
    3. Select the appropriate record.
    4. Slide the ratio button to Modify.
    5. Make edits as needed.
    6. Click Continue.

     

  3. Employees must follow the steps below to modify an approved OE request on OES:

    1. Log into HR Connect.
    2. Select the My Outside Employment tile.
    3. Select the appropriate record.
    4. Slide the ratio button to Modify.
    5. Choose one of the three modification options, which include ending request.
    6. Click Continue.

     

6.735.2.12 (07-12-2023)

Viewing/Printing Requests/Records

  1. Employees must follow the steps below to view or print requests on OES:

    1. Log into HR Connect.
    2. Select the My Outside Employment tile.
    3. Select the appropriate record.
    4. Click View/Print.
    5. Choose one of the three modification options, which include ending request.
    6. Click on printer icon which gives the user the option to print or save as an Adobe pdf.

     

  2. After the employee receives the email approving/denying the request, log into the OES to print/save a copy.
6.735.2.13 (07-12-2023)

Filing Approved/Denied Requests

  1. OES forwards approved and denied OE requests to the IRS OPF site for filing in the employee’s OPF, as required by 5 CFR 3101.104(b), Bureau Responsibilities.
  2. After the first-level manager receives the email notice of an approved/denied OE, the manager will print the record and file in the employee’s drop file.
  3. When the first level manager receives email notification of an annual review or an employee update of the record, log into the OES and print the record for filing in the employee’s drop file.
6.735.2.14 (07-12-2023)

Change in IRS Position or Duties - When to Resubmit Request

  1. Employees and their first-level manager and proxy(ies) receive an e-mail when an SF-50 for one of the actions listed below affects an active and approved OE request. Under this circumstance, employees must submit a new request if they wish to continue the OE. Employees must update their record in the OES if they are no longer working the OE.

    Nature of ActionDescriptionComments
    500Conversion to Career AppointmentIf occupational series and/or business unit changes
    501Conversion to Career-Conditional AppointmentIf occupational series and/or business unit changes
    570Conversion to Excepted Service AppointmentIf occupational series and/or business unit changes
    571Conversion to Excepted Service Appointment Not To Exceed (NTE)If occupational series and/or business unit changes
    702PromotionExcludes career ladder promotions
    703Promotion NTE 
    713Change to lower gradeIf occupational series and/or business unit changes
    721ReassignmentIf occupational series and/or business unit changes
    740APosition changeIf occupational series and/or business unit changes
    741Position change NTEIf occupational series and/or business unit changes
    930Detail NTE 
    932Term of Detail 
6.735.2.15 (09-03-2026)

Ending Outside Employment (OE)

  1. Employees must update their OE records in the OES when they stop performing OE.

    Note:

    Employees who cannot access the OES (e. g., they are not assigned an IRS computer or do not have access to a kiosk or shared workstation) must notify their manager if they want to end their OE. The manager or designee (e.g., the business unit POC) will update the OES record on the employee’s behalf.

     

  2. When an employee’s approved OE ends, he/she cannot reactivate the record. Deactivated records are available for viewing/printing in History in the OES. The employee must submit a new OE request if he/she wants to work a previously ended OE activity.
6.735.2.16 (09-03-2026)

Records Retention

  1. OES records are purged six years after the employee separates from the IRS, per Document 12829, The General Records Schedules (refer to 2.8, Employee Ethics Records).

  2. Management annually reviews drop files and destroys superseded documents, in compliance with Document 12829, The General Records Schedules (refer to 2.2, Employee Management Records). Drop files are kept for one year after an employee separates or transfers to another agency. drop files are destroyed after the one-year retention period.

    Note:

    Management must keep relevant records in the drop file if it is needed in connection with a grievance, appeal or judicial proceeding.

     

6.735.2.17 (07-12-2023)

Annual Requirements

  1. Email notices are sent from HRConnect to employees 60 days before the annual review is due. Employees may modify portions of their record (e.g., hours worked) or end the OE if no longer performing the activity.

  2. Email notices are sent from HRConnect to the employee’s second-level manager and the employee 30 days before the annual review is due for recertification. The employee may change or end the record as noted above. The manager will access the OES (refer to number three below) to complete the recertification.

    Note:

    The first-level manager does not review the record again for the annual recertification.

     

  3. The second-level manager annually reviews approved OE records and updates the record in the OES. During the annual review, management ensures there are no changes including whether the OE conflicts with the employee’s current IRS duties, and to decide if the approved OE can continue. This responsibility can be assigned to a higher-level manager per Delegation Order 6-4, Authorization to Engage in Outside Employment, Business, and Other Activities, found in IRM 1.2.2.7.4.

    Note:

    If employees do not complete their annual review, the manager may complete it. The OES will deny (end) the OE if the manager does not promptly update OES. If this happens, the employee must send a new request to continue to OE.

     

  4. Go to the HCO Outside Employment site for step-by-step instructions.
  5. Management reminds employees annually of the OE policy and procedures during the mandatory briefings cycle and/or in business unit ethics discussions.
6.735.2.18 (09-03-2026)

Reports

  1. The OES reports help the IRS OE POC, managers and business unit POCs certify that new requests are timely approved/denied and the required annual reviews are timely updated in the OES. Reports should be run at least monthly to check OE records.
  2. Refer to the Outside Employment OE Specialist SOP (Standard Operating Procedures) for instructions on creating an Excel report and sorting data.
6.735.2.19 (09-03-2026)

Reporting Ethics Violations

  1. Allegations of ethics violations (such as performing a prohibited OE activity or working an OE activity without approval) must be reported to your manager or to the Treasury Inspector General for Tax Administration (TIGTA). Report ethics violations to TIGTA by completing the form (e.g., click “IRS Employee Crime or Misconduct”).
6.735.2.20 (09-03-2026)

Contact Information

  1. Employees who need help determining whether an activity they are pursuing is permitted or prohibited should talk to their manager or contact the DEO via email GLS Ethics.
  2. Managers who need help determining if the employee’s IRS duties conflict with their employee’s requested OE activity should contact their supervisor or the DEO via email GLS Ethics.
  3. Employees needing help using the OES, should contact the business unit POC.
  4. If the business unit POC is unable to resolve an OES issue, contact the IRS OE POC for help.