Open Recommendations

The Chief Information Officer should implement an automated tool that can block restricted file types on SPO sites.

The Chief Information Officer should establish a process to identify and update sites that are missing appropriate site administrators.

The Chief Information Officer should coordinate with the Office of Chief Counsel to identify opportunities to recover, from the original contractor, the amount paid for the SharePoint 2013 extended service contracts due to delays and deficiencies in the original contractor's work.

The Chief Information Officer should ensure that future information technology contracts include milestones, deliverables, and/or more stringent performance monitoring.

The Commissioner, LB&I Division, should ensure that future initiatives involving complex tax returns do not duplicate steps in the compliance risk analysis process and consider the statute of limitations to allow examiners sufficient time to review and take appropriate compliance actions.

The Commissioner, LB&I Division, should develop procedures to ensure that all large partnership returns filed throughout the year are considered for risk assessment by the LPC Program.

The Chief, Taxpayer Services, should ensure that the programming change to accurately update the secondary taxpayer’s account with the date of death annotated on a tax return is implemented in January 2026 and is functioning as intended.

The Chief, Taxpayer Services, should ensure that the requested programming to change how the date of death and corrections are posted to the taxpayer’s account is implemented in January 2027 and is functioning as intended.

The Chief, Taxpayer Services, should verify that the approximately 55,000 taxpayer accounts from the unprocessed January 2023 SSA file are locked.

The Commissioner, Taxpayer Services Division, should ensure that appropriate steps are taken to recover the erroneous RRC payments, including issuing Letter 510C.

The Human Capital Officer should coordinate with IT to determine the time frame when managers must request laptops for new employees. Once determined, formalize the requirement in the standard new employee orientation guidance and update the Manager’s Onboarding Checklist.

The Human Capital Officer should update the Manager’s Onboarding Checklist with a step to issue the performance plan within 30 calendar days of the employee’s start date.

The Human Capital Officer should establish a formal written policy that requires managers to conduct quarterly touchpoint discussions with new employees in their first year and require that managers attend the updated training on conducting quarterly touchpoint activities.

The Human Capital Officer should work with the ITM administrator to add quarterly touchpoint activities to the manager’s ITM module as part of the new employee onboarding, send managers notifications of upcoming due dates for quarterly touchpoint activity discussions and alert managers if the discussions are past due.

The Commissioner, Internal Revenue Service, should evaluate available options to prioritize the scanning of historical documents to realize cost savings and comply with Office of Management and Budget and National Archives and Records Administration mandates to convert all paper documents to digital format by December 2030.

The Commissioner, Small Business/Self-Employed Division, should establish a process to regularly review and closely monitor taxpayer accounts with a hostage indicator. The indicator should be placed or removed from accounts to ensure that IRS records reconcile with State Department and FBI listings of individuals held in captivity and seeking tax relief. The indicator should also be removed from tax accounts that are not identified on the partner agency’s listings.

The Commissioner, Small Business/Self-Employed Division, should develop internal procedures to reengage released taxpayers and ensure that, at a minimum, account transactions, penalties, refunds, and records are accurate and up to date.

The Commissioner, Small Business/Self-Employed Division, should restrict who can add or remove hostage indicators.

The Commissioner, Small Business/Self-Employed Division, should ensure that the programming for the hostage indicator is functioning as intended, and that unintended actions are not occurring on taxpayer accounts. In the interim, consider coordinating with the Identity Theft Victim Assistance Program when the IRS is notified of a new impacted taxpayer to provide appropriate protection, such as an IP PIN.

The Commissioner, Small Business/Self-Employed Division, should take the necessary steps to provide FTP penalty relief to the 2,138 eligible taxpayers we identified, including but not limited to abating FTP penalties.

The Chief Procurement Officer should revise the contract file checklists to include the following: a) a certification statement that the contracting officer added all applicable documents to the contract file; and b) managerial approval confirming the completeness of the contract file.

The Chief Procurement Officer should work with the Chief Financial Officer to develop a form that includes all the elements of the required quality assurance inspection report, provide training to the CORs on its use, and implement a requirement for consistent use.

The Director, Collection Policy, SB/SE Division, should update IRM 5.1.22, Field Collection Procedures-Disclosure, to accurately reflect the IRS disclosure guidance regarding I.R.C. § 6103(e)(8).

The Director, Examination, SB/SE Division, should remind Field Examination employees that a Form 8821 does not permit
the designee to act on behalf of the taxpayer.

The Director, Examination, SB/SE Division, should remind field examiners and group managers of the need to verify and document taxpayer representation before initiating contact and reinforce procedures for handling revocations or withdrawals of representation.