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TIGTA Interim Report 2021-16-026 — Status of IRS Coronavirus Response Funding

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CourtTreasury Inspector General for Tax Administration (TIGTA)
Filed2021-05-05

Summary

An interim audit report issued by the Treasury Inspector General for Tax Administration on May 5, 2021, Report Number 2021-16-026, addressed to the Commissioner of Internal Revenue. It evaluates controls over the $765.7 million in appropriated funds the IRS received for its coronavirus response, made up of $750.7 million under the CARES Act and $15 million under the Families First Coronavirus Response Act. The report states that as of September 30, 2020 the IRS had spent $438.5 million, with $327.2 million still available, and that the IRS submitted an initial spend plan to Congress on May 27, 2020 identifying 12 requirement areas. It finds that the IRS did not provide Congress a quarterly expenditure report through June 30, 2020 as required and that a later update identified 18 spending requirements. TIGTA lists three areas for improved tracking and makes no recommendations.

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1 
 
 
 
 
 
 
Interim Report – Status of  
Coronavirus Response Funding  
 
 
May 5, 2021 
 
Report Number:  2021-16-026 
 
 
 
 
 
 
 
 
 
TIGTACommunications@tigta.treas.gov   |   www.treasury.gov/tigta 
 
TREASURY INSPECTOR GENERAL FOR TAX ADMINISTRATION 

HIGHLIGHTS:  Interim Report – Status of Coronavirus Response Funding  
Interim Audit Report issued on May 5, 2021 
Report Number 2021-16-026 
 
 
Why TIGTA Did This Audit 
This audit is one in a series of 
audits being conducted by TIGTA 
as part of our oversight role of 
the IRS’s response to the 
coronavirus pandemic, including 
implementation of the applicable 
Coronavirus Aid, Relief, and 
Economic Security Act provisions.  
Our overall objective was to 
evaluate controls implemented by 
the IRS to ensure that the 
$765.7 million in appropriated 
funds received for its coronavirus 
response is adequately tracked 
and used only for the intended 
purpose.   
TIGTA is issuing this interim audit 
report to provide information 
about the status of the IRS’s 
coronavirus response funding as 
of September 30, 2020.  TIGTA 
plans to issue a subsequent 
report in Fiscal Year 2022 that will 
supplement the information in 
this report. 
Impact on Taxpayers 
The IRS received $765.7 million 
for its coronavirus response 
efforts.  Key components of the 
response include issuing 
Economic Impact Payments to 
provide Americans with economic 
relief and funding IRS programs 
that focus on helping taxpayers 
understand and meet their tax 
obligations.   
 
 
 
 
 
 
 
 
What TIGTA Found 
As of September 30, 2020, the IRS spent $438.5 million of the 
$765.7 million in appropriated funds it received for its coronavirus 
response, with $327.2 million still available for use.  TIGTA found that 
the IRS provided an initial spend plan to Congress, as required, 
describing its planned use of the $765.7 million in coronavirus 
funding.  The IRS did not, however, provide Congress a quarterly 
report of its coronavirus response funding expenditures through 
June 30, 2020, as required.  The first quarterly spending report 
provided to Congress was through September 30, 2020.  The IRS 
stated that ongoing discussions with the Department of the Treasury 
over what information should be included in the spending report 
caused the delay in its quarterly reporting.  
The IRS advised us that, although the initial spend plan provided to 
Congress specified the need for 5,020 additional full-time equivalent 
(FTE) employees, in general, the employees who worked in support of 
the coronavirus response in FY 2020 were preexisting employees.  In 
the IRS’s September 30, 2020, spend plan update, the IRS increased 
its total FTE estimate for its coronavirus response efforts from 
5,020 FTEs to 5,404 FTEs.  The IRS also advised us that, through hiring 
or devoting current employees to coronavirus response efforts, it has 
dedicated 2,144 FTE of the 5,404 total FTEs estimated it would need.   
The initial spend plan submitted by the IRS on May 27, 2020, 
identified 12 overall requirement areas in which the funds would be 
used and included a cost estimate for each requirement area in total 
and by fiscal year.  Examples of the requirement areas include 
funding needed for increased call volumes, printing and mailing  
of notices, and system and programming updates.  The 
September 30, 2020, spending report and updated spend plan 
identified 18 spending requirements, an increase of six from the 
initial spend plan and included a requirement area for employee 
awards and overtime.  However, the spending report provided to 
Congress only reported actual expenditures at the appropriation 
level, not by the 18 requirement areas.  
During its ongoing work, TIGTA identified three areas in which the 
IRS could improve tracking of its coronavirus response funding.  
Specifically, the IRS should consider reporting actual expenditures by 
requirement area and report FTEs budgeted and dedicated by 
requirement area.  In addition, the IRS should update the employee 
awards and overtime budget amount reported to include all 
budgeted funds for this activity.  The IRS’s spend plan currently 
underestimates these costs because the calculation does not include 
all previously budgeted funds for this activity. 
What TIGTA Recommended 
This report was prepared to provide interim information only.  
Although TIGTA has included preliminary observations and areas for 
IRS consideration, TIGTA is not making any recommendations at this 
time. 

U.S. DEPARTMENT OF THE TREASURY 
WASHINGTON, D.C.  20220 
TREASURY INSPECTOR GENERAL 
FOR TAX ADMINISTRATION 
 
 
 
May 5, 2021 
 
 
MEMORANDUM FOR: COMMISSIONER OF INTERNAL REVENUE 
 
FROM: 
Michael E. McKenney 
 
Deputy Inspector General for Audit 
 
SUBJECT: 
Interim Audit Report – Status of Coronavirus Response Funding 
(Audit # 202010625) 
 
This report presents the results of our review to evaluate controls implemented by the Internal 
Revenue Service (IRS) to ensure that the $765.7 million in appropriated funds received for its 
coronavirus response is adequately tracked and used only for the intended purpose.  This audit 
has two phases, and this is the interim report on the status of the IRS’s coronavirus response 
funding as of September 30, 2020.1  This review is part of our Fiscal Year 2021 Annual Audit  
Plan and addresses the major management and performance challenge of Responding to the  
COVID-19 Pandemic.   
This report was prepared to provide information only.  Therefore, we made no 
recommendations in the report.  However, we provided IRS management officials with an 
advance copy of this report for review and comment prior to issuance. 
Copies of this report are also being sent to the IRS managers affected by the report information.  
If you have any questions, please contact me or Heather Hill, Assistant Inspector General for 
Audit (Management Services and Exempt Organizations). 
 
 
                                                 
1 We are issuing this interim audit report to provide information on the status of the IRS’s coronavirus response 
funding as of September 30, 2020.  A subsequent report is planned for issuance in Fiscal Year 2022 that will  
provide updates to the information in this report and the status of the IRS’s coronavirus response funding as of 
September 30, 2021, as well as the controls over the funds. 

 
 
Interim Report – Status of Coronavirus Response Funding  
Table of Contents 
Background .....................................................................................................................................Page 1 
Results of Review .......................................................................................................................Page 2 
Status of Coronavirus Response Funding ...................................................................Page 2 
Preliminary Observations ..................................................................................................Page 9 
Appendices 
Appendix I – Detailed Objective, Scope, and Methodology ................................Page 11 
Appendix II – Abbreviations .............................................................................................Page. 13 
 
 
 

 
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Interim Report – Status of Coronavirus Response Funding  
Background 
The Coronavirus Aid, Relief, and Economic Security Act (CARES Act)1 was enacted on 
March 27, 2020, and is the largest economic rescue package in U.S. history, providing for  
more than $2 trillion in economic relief.  The Act was passed in response to the Coronavirus 
Disease 2019 (COVID-19) outbreak and its impact on the economy, public health, State and  
local governments, individuals, and businesses. 
As part of the CARES Act, Title II and Title V, the Internal Revenue Service (IRS) received 
$750.7 million in appropriated funds for spending related to its coronavirus response.2  In 
addition, the IRS received an additional $15 million as part of emergency supplemental 
appropriations for Fiscal Year (FY) 2020 under the Families First Coronavirus Response Act, for a 
total of $765.7 million.3  The IRS has the option of using CARES Act funds in either FY 2020 or 
FY 2021, while Families First Coronavirus Response Act funds can be spent through FY 2022.   
Congress allocated the funding within these acts to the IRS Taxpayer Services, Enforcement, and 
Operations Support appropriations.  The Taxpayer Services appropriation provides funding for 
programs that focus on helping taxpayers understand and meet their tax obligations, while the 
Enforcement appropriation supports the IRS’s examination and collection efforts.  The 
Operations Support appropriation provides funding for functions that are essential to the overall 
operation of the IRS, such as infrastructure and information services. 
One of the significant CARES Act provisions involved the IRS issuing recovery rebates, also 
referred to as Economic Impact Payments (EIP), of $1,200 per individual ($2,400 to couples filing 
a joint return) and $500 for each qualifying dependent.  The payments were to be issued to all 
U.S. residents with income below certain threshold amounts who met certain other criteria, such 
as having a work-eligible Social Security Number.4 
The CARES Act also included a requirement that a spend plan must be submitted to Congress 
detailing the expected use of coronavirus response funding, and agencies that received the 
funding are required to submit quarterly reports to Congress detailing the actual expenditure of 
coronavirus response funding.  Finally, transfers of funding between appropriations require 
advance Congressional notification.  Figure 1 illustrates the process the IRS used in reporting on 
the funding it received for the Coronavirus response. 
                                                 
1 Pub. L. No. 116-136 (Mar. 27, 2020). 
2 Funding was designated for Taxpayer Services, Enforcement, Operations Support, and an Administrative Provision.  
Funds will remain available until September 30, 2021.   
3 Pub. L. No. 116-127 (Mar. 18, 2020). 
4 Congress later passed the Consolidated Appropriations Act, 2021 (Including Coronavirus Stimulus & Relief) that 
provided for an additional EIP of $600 to eligible individual taxpayers.  Pub. L. No. 116-260 (Dec. 27, 2020).  

 
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Interim Report – Status of Coronavirus Response Funding  
Figure 1:   Process Used in Reporting on Coronavirus Response Funding 
 
Source:  Treasury Inspector General for Tax Administration (TIGTA) analysis of the CARES Act and 
Families First Coronavirus Response Act. 
This audit is one in a series of audits being conducted by TIGTA as part of our oversight role of 
the IRS’s response to the coronavirus pandemic, including implementation of the applicable 
CARES Act provisions.5  TIGTA is issuing this interim audit report to provide information about 
the status of coronavirus response funding received by the IRS as of September 30, 2020.  We 
plan to issue a subsequent report later in FY 2022.  This subsequent report will provide updates 
to the information in this report as well as more specific information on how the IRS used the 
funding it received for its Coronavirus response efforts. 
Results of Review 
Status of Coronavirus Response Funding   
As of September 30, 2020, the IRS spent $438.5 million of the $765.7 million in appropriated 
funds it received for its coronavirus response, with $327.2 million still available for use.  We 
found that the IRS provided an initial Coronavirus Response Discretionary Spend Plan (hereafter 
referred to as a “spend plan”) to Congress, as required, describing its planned use of the 
$765.7 million in coronavirus funding it received.  The IRS also provided weekly updates to the 
Office of Management and Budget on the amount of coronavirus response funding spent. 
Coronavirus funding spend plan provided in May 2020 
The IRS submitted a plan to Congress on May 27, 2020, detailing how it intended to spend the 
$767.5 in Coronavirus funding it received.  The IRS did not, however, provide Congress a 
quarterly report of its actual coronavirus response funding expenditures (hereafter referred to as 
a “spending report”) through June 30, 2020, as required.  The first quarterly spending report 
provided to Congress was through September 30, 2020.  This report was provided in 
December 2020 and also included an updated spend plan.  The IRS advised us that ongoing 
discussions with the Department of the Treasury over what information should be included in 
the spending report caused the delay in its quarterly reporting.  The IRS’s budget monitoring 
                                                 
5 TIGTA, 2021 Annual Audit Plan. 

 
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Interim Report – Status of Coronavirus Response Funding  
also included providing weekly status reports to the Office of Management and Budget 
summarizing spending of coronavirus response funds. 
The spend plan submitted by the IRS on May 27, 2020, 
identified 12 overall requirement areas in which the 
funds would be used and included a cost estimate for 
each requirement area in total and by fiscal year.  The 
requirement areas included: 
1. Service Calls and Taxpayers Support 
($222.4 million) – costs associated with funding 
3,375 full-time equivalent (FTE) employees 
(which includes hiring 975 FTEs in 2020) to 
process increased taxpayer call volumes primarily related to EIPs.6  
2. Printing, Postage, and Information Notices for the Stimulus Rebate ($137 million) – costs 
associated with sending notices to taxpayers eligible for EIPs. 
3. Programming, Applications, Systems ($130 million) – costs associated with system and 
programing changes needed to support various tax law changes related to the CARES 
Act, including those needed to issue to EIPs.   
4. Stimulus Return Processing ($90 million) – costs associated with funding 1,215 FTEs 
needed to process increased return filings as a result of various tax law changes in the 
CARES Act and to address the extended return filing date.  
5. Verification and Collection ($70.5 million) – costs associated with funding 400 FTEs 
(which includes hiring 240 FTEs) to perform compliance activities addressing tax law 
changes related to the CARES Act. 
6. Paper Check Issuance ($38 million) – costs associated with mailing paper EIP checks.  
7. Continuity of Operations ($35 million) – costs associated with purchasing laptops, 
wireless devices, and software licenses in support of employee telecommuting.  
8. Other Needs ($21.6 million) – costs associated with ensuring that facilities are safe for IRS 
employees, enhancing employee electronic learning, and issuing contracts to address 
various aspects of the IRS’s coronavirus response efforts. 
9. Printing, Postage, and Information Notices for the Form 941, Employers Quarterly 
Federal Tax Return ($10 million) – costs associated with issuing, printing, and mailing 
informational notifications addressing the various tax law changes related to the 
CARES Act. 
10. Forms and Publications ($6 million) – costs associated with interpreting provisions and 
updates to forms and publications.  This work includes recovery efforts related to work 
that was delayed due to the coronavirus.   
                                                 
6 An FTE is a measure of labor hours in which one FTE is equal to eight hours multiplied by the number of 
compensable days in a particular fiscal year.   
The IRS noted in its spend plan 
that, in developing cost estimates, 
it considered its prior experience in 
making payments of $600 to 
qualifying Americans per the 
Economic Stimulus Act of 2008.   

 
Page  4 
Interim Report – Status of Coronavirus Response Funding  
11. Taxpayer Advocate ($3.2 million) – costs associated with funding 30 FTEs to help 
taxpayers resolve issues arising from various tax law changes related to the coronavirus 
response. 
12. Program Management ($2 million) – costs associated with developing an overall strategy 
to ensure that the IRS implements the various tax provisions and significant changes 
related to the coronavirus response 
The IRS noted in its spend plan that, in developing cost estimates, it considered its prior 
experience of making payments of $600 to qualifying Americans per the Economic Stimulus Act 
of 2008.7  The IRS relied on that experience when developing cost estimates for the CARES Act 
EIP, including how demand for toll-free services would increase and how many notices the IRS 
would provide to taxpayers.  Staffing for its examination and collection efforts were determined 
by reviewing the law and creating staffing estimates based on how taxpayers could potentially 
misuse the various credits and payments. 
Several spend plan revisions were needed 
Shortly after submitting its original spend plan, the IRS notified Congress on June 18, 2020, that 
it intended to amend its spend plan to reallocate approximately $19 million from the Operations 
Support appropriation to the Taxpayer Services ($6 million) and Enforcement ($13 million) 
appropriations.  The reallocation was due to the reduction in planned mailing costs because the 
initial estimate anticipated sending two notices for the EIPs.  However, the IRS subsequently 
determined that only a single notice was required to inform taxpayers about the EIP.  The 
reallocated $19 million was to be used to expand fraud and identity theft detection and for 
special act awards, retention incentives, and overtime pay. 
On September 15, 2020, the IRS again notified Congress that it intended to amend its spend 
plan.  The purpose of this amendment was to reallocate approximately $11.8 million from the 
Taxpayer Services ($2.9 million) and Enforcement ($8.9 million) appropriations back to the 
Operations Support appropriation.  The reallocation was due to a reduction in estimated costs 
associated with employee awards.  The $11.8 million reallocated to Operations Support was 
primarily to be used for information technology labor costs. 
Figure 2 below is a summary, by appropriation, indicating the IRS’s spend plan amounts, 
revisions, and funds remaining as of September 30, 2020. 
                                                 
7 Pub. L. No. 110-185, 122 Stat. 613 (Feb. 10, 2008). 

 
Page  5 
Interim Report – Status of Coronavirus Response Funding  
Figure 2:  IRS FY 2020 Coronavirus Response Spending by Appropriation  
 
Source:  IRS September 30, 2020 spending report and updated spend plan.  Information presented may 
not sum due to rounding.  
The IRS spent more than one-half of Coronavirus Response funding as of the end of FY 
2020  
The IRS reported in its September 30, 2020, quarterly spending report and updated spend plan 
to Congress that it spent $438.5 million (57 percent) of the $765.7 million appropriated funds it 
received for its coronavirus response, with $327.2 million still available for use.  The quarterly 
report also provided updated information on the IRS requirement area budget estimates.  The 
September 30, 2020, updated spend plan identified 18 requirement areas, an increase of six 
from the May 27, 2020, initial spend plan.  The six new or expanded requirement areas were: 
1. Vendor Support ($25 million) – costs associated with printing and mailing approximately 
36 million backlogged and deferred notices to taxpayers. 
2. Special Act/Retention Incentive and Overtime ($8.4 million) – costs associated with 
providing retention incentives and special act awards to employees who voluntarily came 
back to work on-site to support critical functions and critical positions requiring physical 
presence in IRS facilities.  In addition, the IRS is paying overtime to employees who 
directly support coronavirus response activities. 
3. Expand Fraud and ID Theft ($8.3 million) – costs associated with enhancing the IRS’s 
ability to analyze entities with employment tax requirements and filings in order to 
identify patterns of noncompliance and optimize case selection activities. 
4. IT Additional Labor Needs ($8 million) – costs associated with critical CARES Act 
information technology projects to continue without delay or diverting resources from 
other essential information technology needs. 

 
Page  6 
Interim Report – Status of Coronavirus Response Funding  
5. EIP Outreach ($4.3 million) – costs associated with issuing a notice to eligible taxpayers 
of EIPs who have not otherwise filed a claim. 
6. Continuity of Operations – expanded to include separate amounts for the continuity of 
operations activities funded by the Cares Act ($22 million) and Families First Coronavirus 
Response Act ($15 million). 
However, the update provided to Congress only reported actual expenditures at the 
appropriation level, not by the 18 requirement areas.  Figure 3 is a summary of the updated 
estimated cost information provided by requirement area. 

 
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Interim Report – Status of Coronavirus Response Funding  
Figure 3:   IRS Coronavirus Response Budget by Requirement Area 
Source:  IRS September 30, 2020, spending report and updated spend plan.  
Status of hiring associated with coronavirus response efforts  
In its May 27, 2020, spend plan, the IRS stated that its coronavirus response efforts would 
require 5,020 FTEs.  Figure 4 identifies the IRS’s FTE needs by requirement area. 

 
Page  8 
Interim Report – Status of Coronavirus Response Funding  
Figure 4:  Initial FY 2020 Coronavirus Response  
FTE Needs by Funding Requirement Area 
 
Source:  IRS May 27, 2020, spend plan.   
The IRS advised us that, although the spend plan provided to Congress specified the need for 
5,020 additional employees, in general, the employees who worked in support of the 
coronavirus response in FY 2020 were preexisting employees.  For example, these preexisting 
employees included seasonal employees funded by the Taxpayer Services appropriation (IRS’s 
seasonal workforce year was extended for FY 2020). 
In addition, the IRS noted that, even in cases in which new employees were hired as part of the 
overall coronavirus response effort, those employees were not always performing work related 
to the coronavirus response; sometimes experienced current employees are assigned to perform 
the work related to the coronavirus response, and new employees are hired to perform those 
employees’ prior work.  This includes 377 new enforcement personnel who were hired from 
July through September 2020. 
In its September 30, 2020, spend plan update, the IRS increased its total FTE estimate for its 
coronavirus response efforts from 5,020 FTEs to 5,404 FTEs.  The IRS also advised us that it 
dedicated 2,144 FTEs of the total 5,404 FTEs it estimated it would need.  Figure 5 below indicates 
FTEs planned and dedicated by appropriation as of September 30, 2020.8  Similar to how the IRS 
reported the expenditures, the budgeted and dedicated FTEs are reported by appropriation and 
not by the 18 requirement areas. 
                                                 
8 The IRS issued internal guidance requiring that employees performing work related to the coronavirus outbreak on a 
part-time or full-time basis charge their hours to designated accounting codes in its payroll system.  For those 
employees who cannot charge time to coronavirus funding directly in the system themselves, an adjustment is made 
after the fact in the IRS’s general ledger. 

 
Page  9 
Interim Report – Status of Coronavirus Response Funding  
Figure 5:   IRS FY 2020 Coronavirus Response FTE Status by Appropriation 
  
Source:  IRS September 30, 2020, spending report and updated spend plan .. 
Employee awards and overtime spending exceeded the spend plan budget  
One of the new requirement areas was for employee awards and overtime.  In the initial spend 
plan, employee awards and overtime were not separately identified.  Our analysis of the IRS 
Integrated Financial System indicated total personnel compensation associated with the IRS’s 
coronavirus response funding was $148.5 million as of September 30, 2020.9  This includes $12.7 
million for employee awards ($6.8 million) and employee overtime ($5.9 million).  The total spent 
on employee awards and overtime exceeded the IRS’s budgeted spend plan amount of $8.4 
million.  This occurred because, when the new requirement area for employee awards and 
overtime (Special Act/Retention Incentives and Overtime) was incorporated into the budget, the 
calculation of the budgeted amount did not include all previously spent funds for this activity. 
Preliminary Observations 
During our ongoing work, we identified three areas in which the IRS could improve tracking of 
its coronavirus response funding.  In its quarterly spending reports, the IRS should consider 
tracking and including information on funds spent and funds remaining for each of the 
18 requirement areas.  In developing its initial coronavirus response spend plan, the IRS 
identified 12 overall requirement areas in which the funds would be used, and included a cost 
estimate for each requirement.  The September 30, 2020, updated spend plan identified 
18 requirement areas, an increase of six areas.  However, in the September 30, 2020, spending 
report, actual expenditures were only reported at the appropriation level, which does not allow 
for a comparison of budgeted amounts to actual spending information at the requirement area 
level.  Tracking actual expenditures by requirement area would allow the IRS and Congress to 
better validate the reliability of estimates, more quickly identify requirement areas with potential 
shortages or surpluses of funds, and support the timely reallocation of funds as needed. 
The IRS should also consider including information on FTEs (budgeted and dedicated) by 
requirement area in its quarterly spending reports.  The IRS advised us that, in developing the 
initial and revised budget and associated 18 requirement areas, input was solicited from key 
                                                 
9 The Integrated Financial System is the IRS’s administrative accounting system. 

 
Page  10 
Interim Report – Status of Coronavirus Response Funding  
internal stakeholders responsible for implementing the agency’s coronavirus response efforts, 
and adjustments were made based on their feedback.  Although the IRS advised us that it 
calculated the FTEs needed to accomplish each requirement area when it developed its original 
spend plan, information on FTEs budgeted and realized by requirement area was not included in 
any of its subsequent budget updates.  Similar to tracking actual expenditures by requirement 
area, tracking actual FTEs by requirement area would allow the IRS and Congress to better 
validate the reliability of FTE estimates, more quickly identify requirement areas with potential 
shortages or surpluses of FTEs, and support the timely reallocation of FTEs as needed. 
Finally, the IRS should update the budget amount reported for the Special Act/Retention 
Incentive and Overtime requirement area to include all budgeted funds for this activity.  This 
would provide the users of the update with more accurate information on the amount of Special 
Act/Retention Incentive and Overtime budgeted. 
A fundamental component of Federal budgeting is the periodic reporting of information on 
spending against plans so that management has credible, up-to-date information for 
monitoring and decision-making.  By including additional information, the IRS would improve 
the usefulness and tracking of its coronavirus response funding for both internal and external 
stakeholders. 
 

 
Page  11 
Interim Report – Status of Coronavirus Response Funding  
Appendix I 
Detailed Objective, Scope, and Methodology 
The overall objective of this audit was to evaluate controls implemented by the IRS to ensure 
that the $765.7 million in appropriated funds received for its coronavirus response is adequately 
tracked and used only for the intended purpose.  To accomplish our objective, we: 
• 
Identified and reviewed relevant policies and procedures over the tracking and reporting 
of coronavirus response funding by the IRS. 
• 
Analyzed the methodology used by the IRS in 1) developing its coronavirus response 
funding spend plan and 2) monitoring the plan’s execution.  
• 
Reviewed any guidance provided by the Office of the Chief Financial Officer to the 
business operating divisions on developing estimates for the coronavirus response 
spend plan.  
• 
Evaluated the status of the IRS’s coronavirus response funding as of September 30, 2020. 
Performance of This Review 
This review was performed with information obtained from the Office of the Chief Financial 
Officer located in Washington, D.C., during the period July 2020 through March 2021.  We 
conducted this performance audit in accordance with generally accepted government auditing 
standards.  Those standards require that we plan and perform the audit to obtain sufficient, 
appropriate evidence to provide a reasonable basis for our findings and conclusions based on 
our audit objective.  We believe that the evidence obtained provides a reasonable basis for our 
findings and conclusions based on our audit objective.   
Major contributors to the report were Heather Hill, Assistant Inspector General for Audit 
(Management Services and Exempt Organizations); LaToya Penn, Director; Anthony Choma, 
Audit Manager; Kanika Kals, Lead Auditor; and Carolyn deGuzman, Auditor.  
Validity and Reliability of Data From Computer-Based Systems  
We performed the following testing to assess the reliability of data from the Integrated Financial 
System.  We evaluated the data by (1) comparing information extracted to reports produced by 
the agency, (2) evaluating extracted data for inconsistencies and unexpected values, 
(3) reviewing information about the system that produced the data, and (4) interviewing agency 
officials knowledgeable about the data.  We determined that the data were sufficiently reliable 
for purposes of this report.   
Internal Controls Methodology 
Internal controls relate to management’s plans, methods, and procedures used to meet their 
mission, goals, and objectives.  Internal controls include the processes and procedures for 
planning, organizing, directing, and controlling program operations.  They include the systems 
for measuring, reporting, and monitoring program performance.  We determined that the 
following internal controls were relevant to our audit objective:  the IRS’s policies and 

 
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Interim Report – Status of Coronavirus Response Funding  
procedures for estimating program costs related to its coronavirus response, tracking 
coronavirus response funding, and reporting to stakeholders on its coronavirus response 
spending.  We evaluated these controls by interviewing IRS management, analyzing statutory 
reporting requirements, and reviewing documentation supporting the process used to estimate 
and track coronavirus response spending during FY 2020.  

 
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Interim Report – Status of Coronavirus Response Funding  
 
Appendix II 
Abbreviations 
CARES Act 
Coronavirus Aid, Relief, and Economic Security Act 
EIP 
Economic Impact Payment 
FTE 
Full-Time Equivalent 
FY 
Fiscal Year 
IRS 
Internal Revenue Service 
TIGTA 
Treasury Inspector General for Tax Administration 
 

 
 
 
 
 
 
 
To report fraud, waste, or abuse,  
call our toll-free hotline at: 
(800) 366-4484 
By Web: 
www.treasury.gov/tigta/ 
Or Write: 
Treasury Inspector General for Tax Administration 
P.O. Box 589 
Ben Franklin Station 
Washington, D.C. 20044-0589 
 
 
Information you provide is confidential, and you may remain anonymous.

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