IRS RESPONSE TO RECOMMENDATION: ​IRS agrees to implement the TAS recommendation in full.

IRS requested Direct Hire Authority (DHA) for critical Services and Enforcement and Operations Support positions on October 6, 2022. The Office of Personnel Management granted DHA for these positions on November 8, 2022, for use through November 30, 2024.

CORRECTIVE ACTION: N/A – Actions have already been completed.

TAS RESPONSE: The National Taxpayer Advocate praises the IRS’s efforts in continuing to pursue DHA authority for more critical positions across the service. We hope that the IRS will also request DHA authority for secretaries and analysts. With the needed support and flexibilities provided to the IRS, it will be able to meet its hiring needs at a reasonable pace.

ADOPTED, PARTIALLY ADOPTED or NOT ADOPTED: Partially Adopted

OPEN or CLOSED: Closed

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

IRS RESPONSE TO RECOMMENDATION: ​IRS agrees to implement the TAS recommendation in full.

IRS developed a roadmap in August 2022 that provides the required steps for IRS business units’ submission of OPM Form 1397 for targeted GS series. IRS published a Leaders’ Alert in September 2022 to remind managers of the availability of special salary rates (SSR) as a flexibility and shared the road map for requesting SSR schedules. In October 2022, during the required OPM annual review of existing special rates, IRS included the previously published Leader’s Alert and roadmap as a reminder to business units on how to request a new special salary rate. IRS will continue to issue communications on an annual basis to remind managers of this flexibility. IRS is currently working with business units who have expressed a need for the use of a SSR, and IRS will use this opportunity to test the existing process and determine whether additional enhancements are necessary.

CORRECTIVE ACTION: N/A – Actions have already been completed.

TAS RESPONSE: The National Taxpayer Advocate applauds the IRS for adoption of this recommendation and for IRS efforts so far, but these efforts need to continue as more awareness is needed about special pay rates for critical positions. IRS workflows require specialized, well-trained personnel to audit a taxpayer, collect tax debt, process correspondence, or answer tax law questions, and those specialized employees have been retiring or otherwise leaving for the private sector during the past decade and taking their expertise and institutional knowledge with them. This loss of talent is costly, and it takes a significant amount of time and resources to attract, hire, and train replacements for those employees. The IRS needs to be able to better compete with the private sector and attract and retain these employees.

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 agrees to implement the TAS recommendation in full.

The IT Executive Steering Committee approved the accelerated planning process and interim kick-off for the initiative to modernize the Automated Background Investigation System on January 24, 2023. The scope, schedule, and total cost will be refined by an integrated team. When implemented, this technology will help eliminate antiquated processes, reduce manual workload, and improve interconnections with other systems.

CORRECTIVE ACTION: The IT Executive Steering Committee approved the accelerated planning process and interim kick-off for the initiative to modernize the Automated Background Investigation System on January 24, 2023.

Update: Budgetary resources were reallocated toward a contract awarded on June 12, 2023 to invest in and modernize the Automated Background Investigation System.

TAS RESPONSE: The National Taxpayer Advocate recommends that the IRS fully implement this recommendation in the future. It is crucial to upgrade current IRS background investigation system technology to eliminate antiquated processes, reduce manual workload, and improve interconnection with other systems. TAS will continue to advocate for the IRS’s needs to reduce manual workload and streamline the hiring process with internal and external stakeholders.

ADOPTED, PARTIALLY ADOPTED or NOT ADOPTED: Adopted

OPEN or CLOSED: Closed

DUE DATE FOR ACTION (if left open): 

IRS RESPONSE TO RECOMMENDATION: ​IRS agrees to implement the TAS recommendation in full.

The IRS has approved additional funding for the HCO STARS team to expand marketing and outreach, recruitment events, virtual platforms, and external partnerships to increase applicant pools.

CORRECTIVE ACTION: N/A – Actions have already been completed.

TAS RESPONSE: TAS commends the IRS’s efforts to date; however, we will need additional information to be able to verify and monitor the implementation of this recommendation. We urge the IRS to take the steps necessary to expand recruitment partnerships with private sector recruiting firms, universities, and community colleges. We understand that the HCO STARS team had been operating with limited resources, but this recommendation should be prioritized and pursued vigorously.

ADOPTED, PARTIALLY ADOPTED or NOT ADOPTED: Partially Adopted

OPEN or CLOSED: Closed

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

IRS RESPONSE TO RECOMMENDATION:

IRS agrees to implement the TAS recommendation in part.

Multiple initiatives, such as the IRS Exit Survey, FEVS-related Pulse Survey and Employee Retention Survey, are being conducted to improve retention rates, enhance employee engagement, and drive high quality employee performance in multiple demographic areas. Data gathered from these initiatives will be used to identify appropriate action items and serve as a benchmark for engaging and retaining employees. These initiatives are in addition to the Treasury Exit Survey and Federal Employee Viewpoint Survey data the IRS is currently receiving.

More broadly, as part of implementing the IRS Inflation Reduction Act Strategic Operating Plan, the IRS will focus substantially on improving the employee experience by offering more flexibility, building a more collaborative team culture, and better equipping personnel in order to attract and retain the top talent needed to meet our mission.

CORRECTIVE ACTION: As part of implementing the IRS Inflation Reduction Act Strategic Operating Plan, the IRS will focus substantially on improving the employee experience by offering more flexibility, building a more collaborative team culture, and better equipping personnel in order to attract and retain the top talent needed to meet our mission.

Update: This recommendation is on track for implementation. The next milestone is in November 2023 for exit survey results.
Update: As recommended by the National Taxpayer Advocate (NTA), the Corporate Leadership Engagement Action Plan (CLEAP) was updated on July 24, 2024, and is scheduled to be published on IRS Source in August 2024. Additionally, the newly revised version of the CLEAP will be provided to the Business Unit (BU) branch to include in their annual/quarterly BU engagement planning initiatives.
More specifically, the new language addressing at-risk populations can be found on Pages 14, 16, and 17. The updated version has been reviewed and approved at the appropriate executive-level within HCO as recommended by the Compliance & Risk Management Office to appropriately close out NTA PCA 3-5 by the requested due date of 7/31/24. Please refer to the signature in Block 6B.

TAS RESPONSE: Employee retention rates are difficult to improve but necessary for the agency. The key to building and sustaining a vibrant workforce lies in investing in and cultivating talent in the workforce and creating incentives for employees to stay. Employee retention and employee advancement go hand-in-hand, as employees who are unsatisfied with their job or unable to see opportunities for advancement often leave for other jobs. TAS commends the IRS’s efforts to date; however, we will need additional information to be able to verify and monitor the implementation of this recommendation. TAS is aware that the IRS is still in the planning phase in this initiative, but we look forward to reviewing the IRS successes in implementing this recommendation.

ADOPTED, PARTIALLY ADOPTED or NOT ADOPTED: Adopted

OPEN or CLOSED: Closed

DUE DATE FOR ACTION (if left open): 

IRS RESPONSE TO RECOMMENDATION: ​IRS agrees to implement TAS recommendation in full.

The IRS needs strong training and development programs that prepare employees to serve taxpayers efficiently and effectively. The IRSU implementation team is partnering with the Human Capital Transformation Office to develop strategies to ensure IRSU can fully support all IRA training initiatives. All progress in IRSU to date has been implemented using the existing budget. To move IRSU into the next phase, which includes IRA initiatives, leveraging technology, vendor-driven training content, and expanding our classroom footprint, will require additional funding. To become fully operational and continue to maintain over the long term, IRSU requires start-up funding as well as a sufficient annual operating budget.

IRS supports employee development and training including supporting the IRSU. Appropriated funds are distributed with leadership approval to business units for ongoing operating requirements and unfunded leadership priorities. Currently, IRS does not carry a reserve so any additional funding for IRSU is possible only by realigning funds from other corporate priorities. Additional funding needs for IRSU could be considered in the future by including this need in our budget request. For current year needs, HCO will submit an EUR (Enterprise Unfunded Request) to CFO for IRSU funding that is needed outside any Inflation Reduction Act initiatives already funding training activities. HCO will include their future IRSU needs in a FY24 EUR for an increase to their base that will fund them in future fiscal years and continue to use the EUR process to request additional funding as IRSU future needs become more defined.

CORRECTIVE ACTION: HCO will include their future IRSU needs in a FY24 EUR for an increase to their base that will fund them in future fiscal years and continue to use the EUR process to request additional funding as IRSU future needs become more defined.

Update: IRSU which is the foundation upon which we will continue the joint development of updated training strategies and programs. To reach our desired organizational structure, a Request for Organizational Change (ROC) impacting a total of 823 positions (both current employees and new hires) will need to be approved and implemented. IRSU does not anticipate reaching its final organizational state until the end of FY26, given hiring/staffing limitations.

TAS RESPONSE: The National Taxpayer Advocate is encouraged that the IRS is considering this recommendation for the future but remains concerned about the lack of necessary funding that has not been provided or otherwise reallocated for IRSU at this time. The National Taxpayer Advocate continues to recommend a strong focus on training. TAS will continue to monitor this activity. TAS will also advocate for the IRS’s funding needs for implementation of IRSU and additional training with internal and external stakeholders.

ADOPTED, PARTIALLY ADOPTED or NOT ADOPTED: Partially Adopted

OPEN or CLOSED: Open

DUE DATE FOR ACTION (if left open): 12/31/2025