IRS RESPONSE TO RECOMMENDATION: ​The Department of Treasury is leading an initiative to develop enterprise technology solutions, including an automated mechanism for hiring officials to see their real-time vacancy status from start to finish. IRS has defined self-service HR tools that allow management to request, track, and efficiently manage their individual hiring needs in a single integrated solution and to track hiring demand against actual hiring, as priority requirements. IRS is also funding this effort through the Inflation Reduction Act.

CORRECTIVE ACTION: The Department of Treasury is leading an initiative to develop enterprise technology solutions, including an automated mechanism for hiring officials to see their real-time vacancy status from start to finish. The Talent Acquisition, Minimum Viable Product (MVP) has incremental deliveries that began March 2024. Full implementation of the MVP is expected no later than September 2024.

Update: Department of Treasury is leading this initiative and implementation is on hold at the Department level. IRS continues to advocate this need at every opportunity including a bi-weekly working group with Treasury partners.

TAS RESPONSE: TAS is encouraged to learn about this development and the ongoing Minimum Viable Product (MVP) deliveries that began March 2024. TAS is looking forward to the full implementation around September 2024. TAS will continue to advocate with internal and external stakeholders in support of HCO to receive the technical support and flexibilities it needs so it can better serve its customers.

ADOPTED, PARTIALLY ADOPTED or NOT ADOPTED: Adopted

OPEN or CLOSED: Open

DUE DATE FOR ACTION (if left open): 10/31/2025

IRS RESPONSE TO RECOMMENDATION: The IRS does not have the authority to unilaterally change the amounts of award pools. Award amounts are contingent upon budget allocations and several other factors (e.g., statute, National Agreement, etc.). Therefore, the Agency cannot commit to a plan to expand or eliminate limits on aggregate amounts for employee awards and bonuses. However, the IRS remains committed to offering employee awards and incentives, to improve employee retention rates and to allow the agency to better compete with other agencies on employee benefits. In addition to IRS appropriations and budgets, we also follow the award and incentive limitations the Office of Personnel Management imposes. The IRS agrees to review options available and determine if a plan is possible.

CORRECTIVE ACTION: ​The IRS agrees to review options available and determine if a plan is possible.

TAS RESPONSE: TAS is looking forward to learning more about the IRS’s work on this recommendation as it reviews options available and determines if a plan is possible. It is important for the IRS to study employee awards and bonuses and better understand how to improve employee retention rates, in accordance with and contingent upon limitations the Office of Personnel Management imposes, the National Agreement, and other factors.

ADOPTED, PARTIALLY ADOPTED or NOT ADOPTED: Partially Adopted

OPEN or CLOSED: Open

DUE DATE FOR ACTION (if left open): Ongoing

IRS RESPONSE TO RECOMMENDATION: ​Recruitment, relocation, and retention incentives are compensation flexibilities currently available to IRS business units to recruit and retain a world-class workforce. The IRS implemented group recruitment incentives for Revenue Agents and Revenue Officers. We are currently evaluating the use of retention incentives for additional mission critical and hard-to-fill occupations.

CORRECTIVE ACTION: We are currently evaluating the use of retention incentives for additional mission critical and hard-to-fill occupations. Efforts began November 2023 with the next group of incentives expected to be implemented on or about July 2024.

Update: As recommended by the National Taxpayer Advocate (NTA), the IRS has consistently increased it’s utilization of its compensation flexibilities (Recruitment, Relocation, and Retention incentives) to recruit and retain its talented workforce.

The IRS utilized Recruitment and Relocation incentives across 7 different business units during FY24, with projected total expenditures of $196,754,680 across 10 occupations. IRS also has plans for the path forward.

TAS RESPONSE: The National Taxpayer Advocate applauds the IRS for adopting this recommendation as well as its related efforts so far. The development of additional employment incentives will allow for more successful recruitment, leading to a more competitive workforce. TAS is looking forward to hearing about the next group of incentives expected to be implemented on or about July 2024.

ADOPTED, PARTIALLY ADOPTED or NOT ADOPTED: Adopted

OPEN or CLOSED: Closed

DUE DATE FOR ACTION (if left open): 

IRS RESPONSE TO RECOMMENDATION: ​​IRS is working through the procurement process to award a long-term strategic recruitment contract. In addition to marketing, branding, and outreach efforts, this contract will be a gateway to reaching qualified applicants at all grade levels. In the meantime, IRS entered into a short-term contract with a strategic recruiting firm in January 2024. To date, this contractor is developing strategic recruitment training and performing market research and analyses.

CORRECTIVE ACTION: IRS is working through the procurement process to award a long-term strategic recruitment contract. In addition to marketing, branding, and outreach efforts, this contract will be a gateway to reaching qualified applicants at all grade levels. In the meantime, IRS entered into a short-term contract with a strategic recruiting firm in January 2024. To date, this contractor is developing strategic recruitment training and performing market research and analyses.

TAS RESPONSE: The National Taxpayer Advocate is encouraged by the IRS’s recruitment contracting efforts so far and praises the IRS’s implementation of a long-term strategic recruitment contract. While this is a good first step, more work needs to be done, for which external contractors may be engaged for additional areas of assistance. TAS will be monitoring these developments and collaborating with the IRS to provide insights after evaluating the results.

ADOPTED, PARTIALLY ADOPTED or NOT ADOPTED: Partially Adopted

OPEN or CLOSED: Open

DUE DATE FOR ACTION (if left open): 5/31/2024

IRS RESPONSE TO RECOMMENDATION: ​​In early FY24, Talent Acquisition transformed Employment Operations from a hiring action processing posture to full service, customer-centric Hiring Operations. Effective December 2023, these dedicated hiring and recruitment teams are aligned to support specific Business Operating Divisions (BOD). We realigned STARS recruiters to a dedicated Hiring Operations Office and established a new Strategic Recruitment Office. Within this transformation, we staffed each office adequately to meet customer hiring demands and support in-person hiring events. In addition to adequate resources, we are transforming the hiring event process to promote additional automation and efficiencies which we will pilot in April 2024.

CORRECTIVE ACTION: The IRS is transforming the hiring event process to promote additional automation and efficiencies which it will pilot in April 2024.

TAS RESPONSE: The National Taxpayer Advocate is encouraged by HCO’s efforts in undertaking a more customer-centric approach and the realignment of the recruitment teams to better service customers. TAS will continue to monitor progress and evaluate the feedback and responses to these changes from the perspectives of the BODs in the IRS.

ADOPTED, PARTIALLY ADOPTED or NOT ADOPTED: Adopted

OPEN or CLOSED: Closed

DUE DATE FOR ACTION (if left open): N/A

IRS RESPONSE TO RECOMMENDATION: ​​In early FY24, Talent Acquisition transformed Employment Operations from a hiring action processing posture to full service, customer-centric Hiring Operations. These dedicated hiring and recruitment teams, which received additional FTEs based on hiring capacity calculator data, are aligned to support specific Business Operating Divisions, resulting in relationship building, consistency, accountability, communication, and an improved hiring process from beginning to end.

CORRECTIVE ACTION: In early FY24, Talent Acquisition transformed Employment Operations from a hiring action processing posture to full service, customer-centric Hiring Operations.

TAS RESPONSE: The National Taxpayer Advocate praises the IRS’s adoption of this recommendation and its related efforts to date. TAS looks forward to seeing the HCO implement a more customer-centric approach and hire additional employees over time to provide more timely communication to its customers. Critical components of an effective hiring strategy are relationship building and timely communication with both applicants and internal customers (Business Operating Divisions) because they allow for an improved and quicker hiring process.

ADOPTED, PARTIALLY ADOPTED or NOT ADOPTED: Adopted

OPEN or CLOSED: Closed

DUE DATE FOR ACTION (if left open): N/A

IRS RESPONSE TO RECOMMENDATION: ​​IRS developed a two-year formal training plan for all HR Specialists. Current HR Specialists will have refresher training and attend courses identified in the plan, building on current knowledge and skills. Recently hired or new HR Specialists will be placed on a two-year developmental training plan with courses covering the full hiring process.

CORRECTIVE ACTION: IRS developed a two-year formal training plan for all HR Specialists. Current HR Specialists will have refresher training and attend courses identified in the plan, building on current knowledge and skills. Recently hired or new HR Specialists will be placed on a two-year developmental training plan with courses covering the full hiring process.

TAS RESPONSE: The National Taxpayer Advocate commends HCO for adopting this recommendation and for IRS efforts so far. It is important to revamp training for HR Specialists, both new and experienced, as processes change and HCO applies a more customer-centric approach. TAS will be monitoring effectiveness of the training over time as it takes place.

ADOPTED, PARTIALLY ADOPTED or NOT ADOPTED: Adopted

OPEN or CLOSED: Closed

DUE DATE FOR ACTION (if left open): N/A

IRS RESPONSE TO RECOMMENDATION: ​​Enterprise Talent Development Classroom Learning Services (CLS) provides in-person classroom support services in IRS CLS training locations and remote classroom support services in non-CLS locations. IRS is seeking to allocate more support and personnel in CLS so it can provide classroom services and reestablish training support at non-CLS sites using a phased approach to expand the CLS footprint to increase support of Business Operating Divisions training.

CORRECTIVE ACTION: IRS is seeking to allocate more support and personnel in CLS so it can provide classroom services and reestablish training support at non-CLS sites using a phased approach to expand the CLS footprint to increase support of Business Operating Divisions training. Note: Implementation date is dependent on FMSS schedule for new property leasing agreements.

TAS RESPONSE: The National Taxpayer Advocate encourages the IRS to find ways to fully implement this recommendation in the future. It is crucial that the IRS allocate more personnel in CLS and provide better classroom services to improve training support. TAS will continue to monitor developments in this area until after the September 30, 2026, proposed implementation date and review the results and changes made.

ADOPTED, PARTIALLY ADOPTED or NOT ADOPTED: Adopted

OPEN or CLOSED: Open

DUE DATE FOR ACTION (if left open): 9/30/2026

IRS RESPONSE TO RECOMMENDATION: ​​The FY 2025 President’s Budget includes an administrative provision within the appropriations language that provides Direct Hire Authority (DHA). This provision expands DHA beyond current parameters to help ensure that hiring delays are not an obstacle for achieving broad mission related functions. In addition, the current proposal would extend DHA through 2027. The IRS Human Capital Office will work with the Office of Legislative Affairs and relevant offices within Treasury to respond to any legislative inquiries regarding this proposed language and continue to advocate for its inclusion in the final appropriations. The IRS Human Capital Office will ensure that appropriate language is submitted in February of each year for subsequent budget requests. In addition, Sec. 111 of the 2024 appropriations legislation signed into law on Saturday, March 23, 2024, contains language on direct hire authority for positions related to backlogged tax returns and tax return information (https://www.congress.gov/bill/118th-congress/house-bill/2882/text).

CORRECTIVE ACTION:
The IRS Human Capital Office will work with the Office of Legislative Affairs and relevant offices within Treasury to respond to any legislative inquiries regarding this proposed language and continue to advocate for its inclusion in the final appropriations. The IRS Human Capital Office will ensure that appropriate language is submitted in February of each year for subsequent budget requests.

TAS RESPONSE: TAS commends the IRS efforts to date and encourages the IRS to continue to request that Congress and OPM provide DHA and additional hiring flexibilities as needed for more positions and functions.

ADOPTED, PARTIALLY ADOPTED or NOT ADOPTED: Adopted

OPEN or CLOSED: Open

DUE DATE FOR ACTION (if left open): 2/28/2025

IRS RESPONSE TO RECOMMENDATION: ​​​​In response to the evolving pandemic environment, the IRS implemented various health & safety measures in accordance with guidance from the Safer Federal Workforce Taskforce and other authorities and instituted multiple Return to Office initiatives. As a result, the IRS experienced a significant increase in the numbers of requests for reasonable accommodation (RA). At its peak, the Agency had over 11,000 RA requests, 6,786 of which were exemptions from the Federal vaccine mandate.

The Agency provided interim accommodations while processing the RA requests. Recognizing the sizable increase in accommodation requests was adversely impacting case processing times and other aspects of the program, beginning in August 2023, the Agency performed an in-depth review of its policies and procedures for, and resources devoted to, affording effective reasonable accommodations for employees and applicants for employment with disabilities.

The IRS Office of Equity, Diversity & Inclusion (IRS-EDI) administers the reasonable accommodation program as described in Internal Revenue Manual 1.20.2 and is in the process of executing a multi-pronged improvement approach in the areas of staffing, training, and process improvement.

Historically, IRS-EDI had three teams of Reasonable Accommodation Coordinators (RACs) who facilitate the assessment and fulfillment of accommodation needs in accordance with applicable statutes, regulations, and sub-regulatory guidance. In light of the greatly increased demand for reasonable accommodation services, in 2023 an additional (fourth) team with ten RACs, one Senior RAC and a Team Manager was created. The newly hired RACs were provided in-depth soft skills training followed by on-the-job-instruction.

In October 2023, the IRS implemented a new technology platform—IRWorks–to initiate and track reasonable accommodation request. IRWorks is more adept at tracking all facets of the accommodation process allowing for effective case inventory management and data analysis to identify opportunities for improvements which will expedite decision making and fulfillment of accommodation requests.

Ensuring all IRS managers are trained in RA is essential to the success of the program. RA was a key aspect of new FY24 Agency-wide Continuing Professional Education for all managers. This refresher training focused on management’s responsibilities and the importance of exhibiting empathy, kindness and grace when addressing employee issues including disability-related workplace challenges. EDI continues to provide RA training to managers and employees as part of established curricula or on an ad hoc basis.

In November 2023, the IRS Commissioner approved the RA Improvement Strategy that focuses on addressing several pain points including expediting accommodations case processing. As a result, Deciding Officials must approve or deny accommodations in writing within five to ten business days, with the goal of reducing the need for case referral to Federal Occupational Health. These process improvements and the additional staffing have enabled the Agency to reduce its overall RA case inventory by 30% in the past 12 months.

CORRECTIVE ACTION: ​The IRS Commissioner approved the RA Improvement Strategy that focuses on addressing several pain points including expediting accommodations case processing. As a result, Deciding Officials must approve or deny accommodations in writing within five to ten business days, with the goal of reducing the need for case referral to Federal Occupational Health. These process improvements and the additional staffing have enabled the Agency to reduce its overall RA case inventory by 30% in the past 12 months.

TAS RESPONSE: The National Taxpayer Advocate applauds the IRS for partially adopting this recommendation and for recent improvements highlighted above. However, it is unclear from the response whether the IRS conducted the recommended study. Furthermore, the development of a comprehensive RA improvement strategy would be incomplete without dialogue with stakeholders, insights and feedback from affected employees with reasonable accommodation needs, and applicants with disabilities seeking employment, as we recommended in our report. TAS is encouraged by the increase in resources devoted to the RA Program and looks forward to reviewing the new comprehensive strategy.

ADOPTED, PARTIALLY ADOPTED or NOT ADOPTED: Partially Adopted

OPEN or CLOSED: Open

DUE DATE FOR ACTION (if left open): Ongoing