Treasury Inspector General for Tax Administration Semiannual Report to Congress (October 1, 2025–March 31, 2026)
Summary
The Treasury Inspector General for Tax Administration’s Semiannual Report to Congress covers October 1, 2025 to March 31, 2026 and is signed by Principal Deputy Inspector General Heather M. Hill. TIGTA says its audit and inspection offices issued 17 reports and its Office of Investigations completed 881 investigations, with $722 million in financial accomplishments, despite reduced staff after the 2025 Treasury voluntary separation initiatives and a hiring freeze; it says the October-November 2025 government shutdown delayed key IRS modernization efforts. One audit found the IRS correctly gave Failure to Pay penalty relief, announced in December 2023 for the effects of the pandemic, to more than 99 percent of the 5 million eligible taxpayers, while approximately 2,100 potentially eligible taxpayers had not been marked eligible as of April 2024.
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To Report Waste, Fraud, and Abuse:
Web:
www.tigta.gov
FAX:
202-927-7002
Toll-Free Hotline:
1-800-366-4484
Information you provide is confidential. You may remain anonymous.
TREASURY INSPECTOR GENERAL
FOR TAX ADMINISTRATION
VISION
Maintain a highly skilled, proactive, and diverse Inspector General organization dedicated to
working in a collaborative environment with key stakeholders to foster and promote fair tax
administration.
MISSION
Provide quality professional audit, investigative, and inspection and evaluation services that
promote integrity, economy, and efficiency in the administration of the nation’s tax system.
CORE VALUES
Integrity—Maintain the highest professional standards of integrity, personal responsibility,
independence, objectivity, and operational excellence in pursuit of the Treasury Inspector
General for Tax Administration’s (TIGTA) mission.
Organizational Innovation—Model innovative practices in organizational structure,
operational programs and processes, audit, investigative, and inspection and evaluation
methodologies, and the application of advanced information technology.
Communication—Achieve effective organizational approaches and solutions by
encouraging open, honest, and respectful communication among TIGTA’s executives,
employees, offices, and functions, as well as between TIGTA and its external stakeholders.
Value Employees—Respect the dignity, contributions, and work-life balance of our
employees, and recognize diversity as fundamental to the strength of our organization.
Commitment to Collaboration—Establish and maintain collaborative and professional
relationships with other government and non-government stakeholders.
ii
Message to Congress
The Treasury Inspector General for Tax Administration (TIGTA) provides
independent oversight of the Internal Revenue Service (IRS). Although TIGTA
is placed organizationally within the Department of the Treasury, which has
its own Office of Inspector General, we operate independently with a specific
mandate to oversee all aspects of activity related to the IRS’s administration of
the federal tax system.
Strong oversight is essential to protecting public resources, safeguarding
taxpayer information, and maintaining confidence in tax administration.
Through three independent and complementary functions, Audit,
Inspections and Evaluations, and Investigations, TIGTA identifies risk, deters
fraud and misconduct, and strengthens internal controls. Our work delivers
measurable results that protect taxpayer dollars and promote the integrity
of tax administration.
I am pleased to submit this Semiannual Report to Congress, which summarizes our work and
accomplishments for the period October 1, 2025 – March 31, 2026.
During this reporting period, I am particularly proud of the Office of Audit’s impact on improving tax
administration for taxpayers, the Office of Inspections and Evaluations’ resilience in adapting to and
embracing a rapidly changing environment while continuing to deliver impactful oversight and the Office
of Investigations for their $722 million in financial accomplishments for the American taxpayers.
Despite operating with reduced staff due to the 2025 Treasury voluntary separation initiatives and the hiring
freeze, our team remained resilient and steadfast in our mission. TIGTA continues to leverage advanced tools
and modernize internal processes to improve efficiency and effectiveness. However, the October-November
2025 government shutdown significantly impacted IRS operations and delayed key modernization efforts, as
reflected in this report.
During this period, our Offices of Audit and Inspections and Evaluations issued 17 reports and our Office of
Investigations completed 881 investigations.
I am proud of the work our staff has accomplished and remain confident in our commitment and ability to
combat waste, fraud, and abuse in the nation’s tax system. We will continue working with Congress, the
Administration, and all our stakeholders to strengthen federal tax administration.
Sincerely,
Heather M. Hill
Principal Deputy Inspector General
iii
Overview of TIGTA
TIGTA provides audit, investigative, inspection, and evaluation services that promote economy, efficiency, and
integrity in the administration of the Internal Revenue laws. We provide independent oversight of the IRS, the
IRS Oversight Board, and the IRS Office of Chief Counsel. Although TIGTA is placed organizationally within the
Treasury Department and reports to Congress and the Secretary of the Treasury, it functions independently
from all other offices and bureaus within the Treasury Department.
TIGTA oversees all aspects of activity related to the federal tax system as administered by the IRS. TIGTA
protects the public’s confidence in the tax system by identifying and recommending strategies for addressing
the IRS’s management challenges and implementing the priorities of the Treasury Department.
TIGTA’s organizational structure is comprised of the Office of the Inspector General and seven functional
offices: the Office of Audit; the Office of Inspections and Evaluations; the Office of Investigations; the Office
of Mission Support; the Office of Information Technology; the Office of Data Analytics, and the Office of
Chief Counsel.
Semiannual Report to Congress | October 1, 2025–March 31, 2026
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TREASURY INSPECTOR GENERAL FOR TAX ADMINISTRATION
Statutory Mandate
Investigate IRS employee misconduct Promote economy and efficiency
and external attempts to corrupt or in the administration of tax laws.
threaten IRS employees.
Prevent and detect waste,
Conduct, supervise, and coordinate fraud, and abuse in IRS programs
audits and investigations related to IRS and operations.
programs and operations.
Inform the Secretary of the Treasury
Review and make recommendations and Congress of problems and
on existing and proposed legislation deficiencies identified and of the
and regulations related to IRS programs progress made in resolving them.
and operations.
Authorities
TIGTA has all authorities granted under the Inspector General Act of 1978 (Inspector General Act).1 In
addition to the standard authorities granted to Inspectors General, TIGTA has access to tax information in the
performance of its tax administration responsibilities. TIGTA also reports potential criminal violations directly
to the Department of Justice when we deem appropriate.
TIGTA and the Commissioner of Internal Revenue (Commissioner) have established policies and procedures
delineating responsibilities to investigate potential criminal offenses under the Internal Revenue laws. In
addition, the IRS Restructuring and Reform Act of 1998 (RRA 98) amended the Inspector General Act to give
TIGTA the statutory authority to carry firearms, execute search and arrest warrants, serve subpoenas and
summonses, and make arrests.2
1 5 United States Code (U.S.C.) §§ 401-424.
2 Internal Revenue Code (I.R.C.) § 7608(b)(2). Pub. L. No. 105-206, 112 Stat. 685 (codified as amended in scattered
sections of 2, 5, 16, 19, 22, 23, 26, 31, 38, and 49 U.S.C.).
Semiannual Report to Congress | October 1, 2025–March 31, 2026
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TREASURY INSPECTOR GENERAL FOR TAX ADMINISTRATION
Table of Contents
Vision, Mission, and Core Values ii
Message from the Principal Deputy Inspector General iii
Overview of TIGTA 1
Statutory Mandate 2
Authorities 2
Table of Contents 3
TIGTA Highlights 4
Promote the Economy, Efficiency, and Effectiveness of Tax Administration 6
Assess Emerging Issues Impacting America’s Tax System 10
Protect the Integrity of Tax Administration 14
Investigations Statistical Reports 19
Reports with Unimplemented Corrective Actions 24
Appendices
Appendix I – Inspector General Required Reporting 29
Appendix II – Statutory Reviews 30
Appendix III – Audit and Evaluation Reports Issued 33
Funds Put to Better Use 34
Appendix IV – Inspector General Peer Review Activity 35
Appendix V – Data Tables Provided by the IRS 36
IRS Memorandum 36
Report of Employee Misconduct by Disposition Groups 37
Report of Employee Misconduct National Summary 38
Summary of Substantiated I.R.C. Section 1203 Inquiries
Recorded in ALERTS 38
Appendix VI – Section 1203 Standards 39
Glossary 40
Reporting Requirements 41
3
TIGTA Highlights
Office of Audit and Office of Inspections and Evaluations
Semiannual Report to Congress | October 1, 2025–March 31, 2026
4
TREASURY INSPECTOR GENERAL FOR TAX ADMINISTRATION
Office of Investigations
Semiannual Report to Congress | October 1, 2025–March 31, 2026
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TREASURY INSPECTOR GENERAL FOR TAX ADMINISTRATION
Office of Audit
Promote the Economy, Featured Reports:
Efficiency, and • The IRS’s Readiness for the
2026 Filing Season
Effectiveness of Tax • The IRS Has Made Limited
Progress Achieving Paperless
Administration Processing
• Nearly Five Million Eligible
Taxpayers Received Failure to
TIGTA’s Office of Audit identifies opportunities to improve the Pay Penalty Relief Due to the
administration of the Nation’s tax laws by conducting comprehensive and Effects of the Pandemic
independent performance audits of the IRS’s programs and operations to: • The IRS Has Yet to Develop
• assess efficiency, economy, effectiveness, and program a Successful Strategy for
accomplishments; Examining Large Partnership
• ensure compliance with applicable laws and regulations; and Returns
• prevent, detect, and deter waste, fraud, and abuse. • The IRS Made Limited Progress
Implementing Zero Trust Data
TIGTA’s audit work is comprised of reviews mandated by statute or
Principles
regulation, those requested by congressional committees’ members
and staff, and those identified through the Office of Audit’s planning and • The IRS Canceled Contracts
evaluation process. Potentially Saving Hundreds
of Millions of Dollars, but the
The IRS’s implementation of audit recommendations results in: Impact on Taxpayer Service
• better use of taxpayer dollars; and Remains Unknown
• improved taxpayer experience.
The following summaries highlight significant audits completed during this six-month reporting period.
The IRS’s Readiness for the 2026 Filing Season
TIGTA, Alert Memoranda for Audit Number 2026-400-002
The annual tax return filing season is a critical time for the IRS because it is when most individuals file their
income tax returns and contact the IRS if they have questions.
However, recent workforce reduction efforts returned IRS staffing to October 2021 levels. At the same time,
key inventories waiting to be processed (such as amended tax returns and taxpayer correspondence) have
significantly increased. Efforts to hire filing season employees were delayed due to the government shutdown
and changes to the hiring process within the Treasury Department. Lastly, new efforts to modernize tax
administration are delayed and their expected efficiencies may not occur during the 2026 filing season.
Semiannual Report to Congress | October 1, 2025–March 31, 2026
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TREASURY INSPECTOR GENERAL FOR TAX ADMINISTRATION
Office of Audit
The IRS Has Made Limited Progress Achieving Paperless Processing
Report Number 2026-408-003
The IRS was provided long-term funding to update technology capabilities to improve tax administration and
services to taxpayers. One of the initiatives the IRS undertook was to expand digital services for taxpayers.
We reviewed the IRS’s progress towards paperless processing by way of document digitization.
Digitization involves creating a scanned image of paper tax returns and then extracting the data from it into
a digital format. Digitization will improve the accuracy and timeliness of processing, make it easier to access
taxpayer data, while saving money on processing and storage costs of paper.
For Filing Season 2025, individual paper tax returns accounted for 72 percent of processing costs, yet they
made up only 6 percent of all individual tax returns filed. The IRS planned to digitally process all paper filed
Forms 940, 941, and 1040 by the 2025 Filing Season (estimated to be 78 percent of all paper-filed returns).
The development of an in-house, cost-effective, paperless processing system was delayed, and the selected
contractor, although successful during the pilot program, was unable to handle the increased volume of
scanned paper tax returns. In April 2025, the IRS was directed to stop work on its in-house paperless
processing system and begin a new Zero Paper Initiative. The Zero Paper Initiative consolidates IRS efforts to
modernize paper processing of tax returns, correspondence, and information returns.
As of May 2025, contractors scanned 517,000 of the 9.8 million paper filed Forms 940, 941, and 1040.
This accounted for 5 percent of their planned goal.
Figure 1: The IRS did not achieve its revised goal to
Continued delays have hindered the efforts to meet
digitize all paper-filed Forms 940, 941, and 1040
the completion goal.
received during the 2025 Filing Season.
We recommended that the IRS 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
IRS agreed with this recommendation. Source: IRS provided data
Nearly Five Million Eligible Taxpayers Received Failure to Pay Penalty
Relief Due to the Effects of the Pandemic
Report Number 2026-400-001
In February 2022, the IRS temporarily suspended certain automated collection notices to provide
relief to taxpayers during the pandemic. However, Failure to Pay (FTP) penalties continued to accrue. In
December 2023, the IRS announced it would waive these penalties for eligible taxpayers. We reviewed
whether the IRS accurately applied this penalty relief and ensured it was limited to eligible taxpayers.
Semiannual Report to Congress | October 1, 2025–March 31, 2026
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TREASURY INSPECTOR GENERAL FOR TAX ADMINISTRATION
Office of Audit
We determined the IRS correctly provided penalty relief to more than 99 percent of the 5 million taxpayers
that were eligible for the relief. Of the 4.9 million eligible taxpayers who received penalty relief, 3.6 million
took steps to resolve their outstanding balance. From January through March 2024 the remaining 1.3 million
taxpayers were notified that normal collection operations would resume beginning April 2024.
Approximately 2,100 taxpayers who were potentially eligible for the FTP penalty relief did not have their
tax accounts marked as eligible as of April 2024. Collectively, we estimate these taxpayers are potentially
entitled to more than $463,000 in FTP penalty relief.
We recommended that the IRS take the necessary steps to provide FTP penalty relief to
approximately 2,100 taxpayers that we identified, including but not limited to abating FTP penalties.
The IRS agreed with the recommendation.
The IRS Has Yet to Develop A Successful Strategy For Examining
Large Partnership Returns
Report Number 2026-308-011
IRS data shows large partnership filings (assets greater than or equal to $10 million) increased from more
than 140,500 in 2011 to nearly 335,000 in 2023. However, examination rates fell from 2.7 percent to
below 0.1 percent during the same
Figure 2: Large Partnership Returns Filed Increased While
time period. The IRS believed it could
Examination Rates Declined From Tax Year 2011 to Tax Year 2023
increase the examination rate with
Inflation Reduction Act (IRA) resources
that became available in 2022.
We assessed whether the IRS
is using available information to
identify partnership noncompliance
by evaluating the IRS’s soft letter
campaign for balance sheet
discrepancies, and its selection of
certain large partnership returns
for examination.
In October 2023, the IRS issued
Letter 6585, Soft Letter Pass-Through
Entity Campaign, to 483 partnerships
whose balance sheets contained a
Source: IRS provided data for partnerships with assets of $10 million
discrepancy, alerting the partnership or more.
of potential issues with their tax returns.
While these letters do not require a response, failure to respond or provide adequate documentation to
the letter may lead to an examination. Of the 483 soft letters sent, the IRS did not receive responses for
163 letters, rejected 182 responses for insufficient evidence or inadequate documentation, and accepted
138 responses.
The IRS did not pursue examinations based on these responses due to resource constraints and limited time
remaining on the assessment statute of limitations (the IRS generally has three years from the date a return
Semiannual Report to Congress | October 1, 2025–March 31, 2026
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TREASURY INSPECTOR GENERAL FOR TAX ADMINISTRATION
Office of Audit
is filed to examine it). Separately, the IRS is examining 82 of the largest U.S. partnerships, with most exams
ongoing as of December 2025.
We recommended that the IRS ensure that future projects involving complex tax returns eliminate
duplicative steps and consider the statute of limitations to allow enough time for compliance actions
to occur. We also recommended the IRS develop procedures to ensure that all large partnership
returns filed throughout the year are considered for risk assessment. The IRS agreed with both of
our recommendations.
The IRS Has Made Limited Progress Implementing Zero Trust Data
Principles
Report Number 2026-208-013
A data governance strategy outlines how an organization manages, protects, and uses its data. It sets the
policies and processes to ensure data is accurate, secure, and accessible throughout its lifecycle. The Zero
Trust Architecture is an end-to-end approach focused on resource protection and the premise that trust is
never granted implicitly and must be continually evaluated. We reviewed the IRS’s data governance strategy
to determine if the IRS has the right controls, processes, and plans in place to meet its Zero Trust data goals.
The IRS is in the first stages of development for its Data Inventory Management and Categorization. The IRS
developed the Enterprise Data Platform for its data inventory and has onboarded 41 (22 percent) of the 187
data repositories as of October 2025. Although the IRS has deployed two commercial software solutions for
data categorization, it has not implemented automated data categorization due to challenges establishing
related policies.
In addition, we found that the IRS encrypts data in transit between its locations, and we confirmed
that encryption configuration settings are enabled for data transmitted between IRS locations. We also
found that the majority of the IRS data were backed up. However, the IRS does not resolve the requests
for data restoration within required time frames. This could impact the ability of the IRS to conducts its
business operations.
Further, the IRS did not meet the requirements to create an Information Resources Management Strategic
plan as required by the Office of Management and Budget. Our review of the IRS’s documents found they did
not contain elements, such as governance boards.
We recommended that the Chief Information Officer evaluate the current data restoration process
and streamline processes to ensure that recovery timelines are met and develop a single document
to serve as its Information Resources Management Strategic Plan and ensure that the plan includes
all required components. The IRS agreed to both recommendations.
Semiannual Report to Congress | October 1, 2025–March 31, 2026
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TREASURY INSPECTOR GENERAL FOR TAX ADMINISTRATION
Office of Inspections and Evaluations
The IRS Canceled Contracts Potentially Saving Hundreds of Millions
of Dollars, But the Impact on Taxpayer Service Remains Unknown
Silver Book Review, Report Number 2026-1S0-015
In early 2025, federal agencies were directed to review contracts and reduce spending where possible. As
part of this effort, General Services Administration identified contracts that could be canceled or modified
and shared that list with Treasury, which then asked the IRS for further evaluation.
Canceling contracts can avoid future spending by eliminating remaining option periods. When only part of a
contract is canceled (descoped), it is treated like a cancellation but applies to a portion of the contract. Each
time a contractor invoices the IRS for completed work, it reduces the open obligations amount by the same
amount. Canceled option periods and remaining open obligations represent potential savings from canceling
a contract.
Between January and May of 2025, the IRS identified 501 contracts, out of more than 3,000, for possible
cancellation. By July 2025, the IRS opted to cancel 344 of those contracts. However, the actual cost savings
from these actions were limited or unknown because most obligated funds had already been expended or
the contracts had no obligated values.
More than 100 of the canceled and descoped contracts supported taxpayer-facing services, which may
create service gaps, delay assistance, and require resource adjustments.
Assess Emerging Issues Featured Reports:
Impacting America’s • Limited Testing Shows Taxpayers
Generally Received Courteous
Tax System and Professional IRS Telephone
Service
• Tax Relief Improvements
TIGTA’s Office of Inspections and Evaluations provides focused and Underway for Taxpayers
expedited oversight to quickly assess emerging issues impacting tax Wrongfully Detained or Taken
administration and IRS operations. Hostage
Inspections are intended to: • Snapshot Report: The IRS’s
Inflation Reduction Act Spending
• provide factual and analytical information;
Through September 30, 2025
• monitor compliance;
• Telework Decreased After
• measure performance; the Return to In-Person Work
Directive, but the IRS Will
• assess the effectiveness and efficiency of programs and operations; Face Challenges Monitoring
• share best practices; and Compliance
• inquire into allegations of waste, fraud, abuse, and mismanagement.
Semiannual Report to Congress | October 1, 2025–March 31, 2026
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TREASURY INSPECTOR GENERAL FOR TAX ADMINISTRATION
Office of Inspections and Evaluations
Evaluations are intended to:
• provide in-depth reviews of specific management issues, policies, or programs;
• address government-wide or multi-agency issues; and
• develop recommendations to streamline operations, enhance data quality, and minimize inefficient and
ineffective procedures.
The following summaries highlight significant inspections and evaluations completed during this six-month
reporting period.
Limited Testing Shows Taxpayers Generally Received Courteous and
Professional IRS Telephone Service
Report Number 2026-IE-R001
During the 2024 Filing Season (January through May 2024), we received nearly 250 complaints from
taxpayers critical of interactions they had with an IRS representative on the telephone. As a result, we
selected 5 IRS telephone specific lines and listened to 831 call recordings to assess the quality of service
provided to taxpayers calling the IRS. In April and May 2024, the IRS received approximately 2.3 million
telephone calls from taxpayers using these 5 telephone lines.
IRS representatives were courteous and professional in the majority of the 831 call recordings in our sample.
However, 90 calls (11 percent) involved unprofessional behavior by IRS representatives. We also noted that
128 calls were dropped and disconnected for unknown reasons and could not be evaluated.
We made one recommendation that advised the IRS to conduct annual refresher training for all
representatives. The training would emphasize the importance of representatives always providing
professional and courteous customer service. The IRS agreed with the recommendation.
Figure 3: Poor Customer Service Issues Identified on Five IRS Telephone Lines
Source: Call recordings between IRS representatives and taxpayers.
Tax Relief Improvements Underway for Taxpayers Wrongfully
Detained or Taken Hostage
Report Number 2026-IE-R002
When taxpayers return to the United States after being wrongfully detained or held hostage, they should not
be burdened with improper penalties or letters demanding payment. In January 2025, the IRS implemented
new procedures to improve the process to provide tax relief to these taxpayers.
Semiannual Report to Congress | October 1, 2025–March 31, 2026
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TREASURY INSPECTOR GENERAL FOR TAX ADMINISTRATION
Office of Inspections and Evaluations
Additionally, in January and April 2025, the U.S. Department of State and the Federal Bureau of
Investigations notified the IRS that 11 individuals were wrongfully detained or held hostage. Those
individuals were to have a hostage indicator placed on their tax account to receive tax relief. However, prior
to the IRS implementing its new process, we found that 75 individuals were either incorrectly labeled as
a hostage or did not have the indicator removed after being released from captivity. We also found that
recently released hostages did not receive tax relief.
We made five recommendations to the Commissioner, Small Business/Self-Employed Division:
• review all taxpayer accounts that had a hostage indicator but were not identified by partner
agencies and take appropriate actions after removing the indicator;
• establish a process to review and monitor taxpayer accounts with a hostage indicator;
• develop procedures to reengage taxpayers released from captivity to ensure that penalties are
properly abated;
• restrict who can add or remove a hostage indicator to a taxpayer’s account; and
• ensure that the hostage indicator is functioning as intended and, in the interim, consider
providing additional identity theft protection for impacted taxpayers or their representatives.
The IRS agreed with four recommendations and partially agreed with the recommendation that involved
providing additional identity theft protection.
Snapshot Report: The IRS’s Inflation Reduction Act Spending Through
September 30, 2025
Report Number 2026-IE-R003
The IRS initially received $79.4 billion in supplemental funding when the IRA was signed into law. Congress
reduced that funding multiple times and the IRA funding available to the IRS through September 30, 2031, is
now $26 billion.
As of September 30, 2025, the IRS has spent approximately $15.7 billion in IRA funding (almost
61 percent of current funding). In FY 2025 (October 1, 2024, through September 30, 2025), the IRS spent
approximately $6.7 billion (excluding prior year obligation adjustments) in IRA funding.
Figure 4: FY 2025 IRA Expenditures
Source: The Integrated Financial System report provided by the Office of the Chief Financial Officer.
Semiannual Report to Congress | October 1, 2025–March 31, 2026
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TREASURY INSPECTOR GENERAL FOR TAX ADMINISTRATION
Office of Inspections and Evaluations
According to the IRS, the largest total IRA expenditures have been employee compensation (i.e., pay/benefits)
at approximately $7.3 billion and contractor advisory and assistance services at approximately $5.2 billion.
We recently reported that the IRS reduced its workforce by approximately 25 percent from February through
May 2025. However, the impact to employee compensation was not significant because most employees
took workforce reduction incentives and continued to receive pay until September 30, 2025.
Telework Decreased After the Return to In-Person Work Directive, but
the IRS Will Face Challenges Monitoring Compliance
Report Number 2026-IE-R004
In January 2025, the President issued the Return to In-Person Work directive instructing departments and
agencies to “as soon as practicable” take all necessary steps to require employees to return to work in-person
on a full-time basis.
As of May 2025, employees reporting any use of telework declined from 65 percent to 25 percent between
the pay periods ending March 8 (prior to the IRS’s Return to In-person work) and May 3, 2025.
From March 9 to May 3, 2025, 89 percent of the daily time charges for employees reporting in-person work
matched building access card data. The remaining 11 percent did not have corresponding access card data
to support in-person work. According to IRS officials, there are several reasons why an employee may have
reported in-person work but there was no corresponding access card data (e.g., miscoded time charges or
card issues).
The IRS completed its first high-level review of telework use in November 2025 and found that the compliance
rate for in-person work averaged 91 percent.
We encountered numerous challenges reviewing IRS compliance with the Return to In-Person Work directive.
The IRS may also experience some of the same challenges as it monitors telework use.
Examples of these challenges include:
• implementation of Controls During Our Review;
• transition to New Telework Agreements;
• inability to Verify Whether Employees Worked In-Person for the Full Day;
• buildings Did Not Always Have Access Card Data;
• data Did Not Always Have the Correct Employee Identifier; and
• verification of Potential Noncompliance Is Resource-Intensive.
We recommended that the IRS coordinate with the Treasury Department to determine expectations for
the quarterly monitoring of telework use; and finalize processes and procedures for the quarterly
monitoring of telework use. IRS management agreed with both recommendations.
Semiannual Report to Congress | October 1, 2025–March 31, 2026
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TREASURY INSPECTOR GENERAL FOR TAX ADMINISTRATION
Office of Investigations
Protect the Integrity of Featured Investigations:
Tax Administration • Former IRS Employee Pleads Guilty
to Stealing U.S. Treasury Check
• Former IRS Employee Sentenced to 12
TIGTA is statutorily mandated to protect the integrity of federal Months and a Day in Prison Following a
tax administration. We accomplish this mission through the More Than $2M Financial Fraud Scheme
investigative work conducted by the Office of Investigations. Through
its investigative programs, we protect the integrity of the IRS and • Former IRS Employee Used Social Media
its ability to collect revenue owed to the federal government by to Recruit Individuals to Defraud the U.S.
investigating criminal and civil law violations that adversely impact Government of More Than $3.5 Million
federal tax administration, as well as administrative misconduct by
• Pennsylvania Man Threatens to Murder
IRS employees.
IRS Employees
EMPLOYEE INTEGRITY: Foster accountability and protect
• Inmate Sentenced for Threats to IRS
public trust. Employees Prior to Release from Prison
Investigative Focus: Allegations involving IRS employees who may
misuse their position or fail to meet legal or ethical standards. • Texas Woman Sentenced to Five Years in
Federal Prison for Theft of Government
EMPLOYEE AND INFRASTRUCTURE SECURITY: Protect IRS Money and Aggravated Identity Theft
personnel, safeguard information, and ensure IRS operations
• Texas Man Pleaded Guilty to
function safely.
Forging Endorsement On $9 Million
Investigative Focus: Threats to IRS employees, facilities, Treasury Check
and systems.
• Virginia Man Sentenced to Three Years
EXTERNAL ATTEMPTS TO CORRUPT TAX ADMINISTRATION: Imprisonment for Attempts to Interfere
Protect taxpayers and preserve the integrity of tax administration. with Tax Administration and Failure to
Investigative Focus: Individuals or organizations seeking to defraud, File Tax Returns
bribe, impersonate, or unlawfully influence IRS operations.
The following summaries highlight significant investigations
completed during this six-month reporting period.1
Figure 5: Breakdown of Investigation Work
1 Facts in the summarized case narratives come from court documents of the jurisdictions named.
Semiannual Report to Congress | October 1, 2025–March 31, 2026
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TREASURY INSPECTOR GENERAL FOR TAX ADMINISTRATION
Office of Investigations
Employee Integrity
For our country’s tax system to operate successfully, taxpayers must have confidence in the fair and impartial
administration of federal tax laws and regulations. IRS employee misconduct can erode the public’s trust and
impede the IRS’s ability to effectively enforce tax laws. Employee misconduct can take many forms, such as
the misuse of IRS resources or authority; theft; fraud; extortion; taxpayer abuse; unauthorized access to, and
disclosure of, tax returns and return information; and identity theft.
Former IRS Employee Pleads Guilty to Stealing U.S. Treasury Check
In October 2025, in the Western District of Missouri, former IRS employee Sierra S. McCall pleaded guilty
to theft of government property. McCall, an IRS customer contact representative, had been charged
with stealing and converting a $72,236 U.S. Treasury check along with two co-conspirators. One of the
co-conspirators, Jalen Koonce, was employed by the U.S. Postal Service at a sorting facility where
government checks are processed.
At sentencing, McCall could receive up to 10 years’ imprisonment, a $250,000 fine, and three years of
supervised release.
Former IRS Employee Sentenced to 12 Months and a Day in Prison
Following a More Than $2M Financial Fraud Scheme
In January 2026, in the District of Utah, former IRS employee Rodney Quinn Rupe was sentenced to 12
months and a day imprisonment for wire fraud after he abused his position and attempted to steal more
than $2 million in tax credits.
The sentence comes after Rupe pleaded guilty in June 2025, to wire fraud. The court also sentenced Rupe to
two years of supervised release.
According to court documents, in April 2022, Rupe accessed IRS systems and moved tax credits in the amount
of $2,021,986 from ExxonMobil’s taxpayer account to a taxpayer account for Ex XO Exteriors Ltd., a company
Rupe created and controlled. In September 2023, Rupe transferred the tax credits to the 2019 tax year account
for his company, which resulted in a refund check being issued to Ex XO Exteriors Ltd. Rupe unsuccessfully
attempted to deposit the refund check multiple times in 2024 before being arrested.
Former IRS Employee Used Social Media to Recruit Individuals to
Defraud the U.S. Government of More Than $3.5 Million
In February 2026, in the Northern District of Georgia, a former IRS and Small Business Administration
(SBA) employee, Attallah Williams pleaded guilty to conspiracy to defraud the U.S. Government with respect
to claims. According to court records, Williams submitted fraudulent applications to the SBA in the names
of businesses that were not operational to obtain Economic Injury Disaster Loans (EIDL) and Paycheck
Protection Program loans.
Semiannual Report to Congress | October 1, 2025–March 31, 2026
15
TREASURY INSPECTOR GENERAL FOR TAX ADMINISTRATION
Office of Investigations
Also, while employed as an SBA loan officer, Williams used social media to recruit individuals who, under her
instructions, submitted fraudulent applications to SBA for EIDL funds. Williams improperly approved those
applications in exchange for a share of the proceeds.
Williams left SBA for a position as a tax examining technician at the IRS. She continued to use social media
to recruit individuals who, with her assistance and instruction, submitted fraudulent tax documents to the
IRS to claim payments under the Employee Retention Tax Credit program. This scheme also entailed Williams
receiving a share of the proceeds.
In total, Williams submitted false claims for more than $3.5 million of pandemic emergency assistance
funds. Sentencing is scheduled for June 2026. Williams could receive up to 10 years imprisonment.
Employee and Infrastructure Security
Threats and assaults directed at IRS employees, facilities, and infrastructure impede the effective and safe
administration of the federal tax system and the IRS’s ability to collect tax revenue. TIGTA receives referrals
of threats, assaults, and forcible interference against IRS employees
performing their official duties. Our special agents are statutorily mandated
to provide physical security, “armed escorts,” to IRS employees who have
face-to-face contact with taxpayers who may pose a danger.
Pennsylvania Man Threatens to Murder IRS Employees
In December 2025, in the Eastern District of Pennsylvania, a criminal complaint was filed against Jean
Hyppolite for threats to murder a federal employee and use of interstate communications to threaten to
injure another person.
During a call with an IRS employee, the IRS employee and Hyppolite started talking over each other during a
discussion about Hyppolite being allowed to record the telephone call. After being advised that the telephone
call would be disconnected because Hyppolite was recording the telephone call, Hyppolite made multiple
threatening statements, including, “you are going to jail or you going to get shot in the street, you know you
are not supposed to do [expletive] like that. Pay me my money or face the consequences.” In a subsequent
call with a federal agent, Hyppolite was asked if he intended to harm employees at the IRS and he stated,
“for true, man, I will, if I go to the office and show my ID again, yes I will do for murder, some people in there, I
mean that [expletive].”
Hyppolite was arrested in December 2025. If convicted, Hyppolite could receive up to 15 years
imprisonment.
Semiannual Report to Congress | October 1, 2025–March 31, 2026
16
TREASURY INSPECTOR GENERAL FOR TAX ADMINISTRATION
Office of Investigations
Inmate Sentenced for Threats to IRS Employees Prior to Release
from Prison
In January 2026, in the Middle District of Pennsylvania, Timothy Koebert was sentenced to 43 months
imprisonment and 3 years supervised release for mailing threatening communications and threats to a
federal law enforcement officer.
According to court documents, Koebert mailed a letter to an Austin, Texas, IRS facility, threatening to injure
an unnamed woman, and letters to an Ogden, Utah, IRS facility that threatened to injure multiple victims,
including an unnamed law enforcement officer. He also mailed three threatening letters to an Assistant
United States Attorney. Koebert was nearing the end of his prison term for arson at the Pennsylvania State
Correctional Institute when he mailed the letters, each of which identified himself as the sender.
External Attempts to Corrupt Tax Administration
Individuals who attempt to corrupt or otherwise interfere with the IRS through various schemes and frauds
adversely impact the IRS’s ability to collect revenue. TIGTA investigates individuals and organizations that
attempt to exploit IRS programs or systems for personal gain or to facilitate fraud against the government.
TIGTA works closely with the U.S. Department of Justice and other law enforcement partners to pursue criminal
prosecution of individuals who attempt to corrupt federal tax administration.
Texas Woman Sentenced to Five Years in Federal Prison for Theft of
Government Money and Aggravated Identity Theft
In February 2026, in the Middle District of Florida, Kristin Cara Kunstler was sentenced to 61 months in
prison for theft of government money or property and aggravated identity theft. Kunstler was also ordered to
forfeit $2,797,083.
According to court documents, in January 2025, Kunstler deposited and cashed a U.S. Treasury tax refund
check made payable to another person. Kunstler opened an account at SunCoast Credit Union in Naples,
Florida, using the name, date of birth, and social security number of the payee of the check without
the payee’s consent, and deposited the $2,797,083 tax refund check. By February 2025, Kunstler had
withdrawn at least $1,505,094 of the funds from the account.
Texas Man Pleaded Guilty to Forging Endorsement on $9 Million
Treasury Check
In February 2026, in the Northern District of Texas, Trammelle
Fisher pleaded guilty to forged endorsement on a U.S.
Treasury check.
According to court records, Fisher filed an Assumed Name
Certificate in the business name “T&J Family Funeral Home Ft.
Worth.” On the same day, Fisher opened a bank account in that
business name and presented for deposit a U.S. Treasury check
Semiannual Report to Congress | October 1, 2025–March 31, 2026
17
TREASURY INSPECTOR GENERAL FOR TAX ADMINISTRATION
Office of Investigations
for $9,003,993. Fisher then engaged in a series of transactions totaling over $2,000 in the fraudulently
obtained funds.
Fisher admitted he endorsed the check that had been fraudulently altered to reflect T&J Family Funeral
Home Ft. Worth LLC as the payee. At sentencing, Fisher could receive up to 10 years imprisonment.
Virginia Man Sentenced to Three Years Imprisonment for Attempts to
Interfere with Tax Administration and Failure to File Tax Returns
In February 2026, in the Eastern District of Virginia, Omini Tete Riman was sentenced to three years
imprisonment and one year of supervised release for attempts to interfere with the administration of Internal
Revenue laws and failure to file income tax returns. Riman is also required to pay $544,479 in restitution
and a $250 special assessment. Riman was convicted of the charges in November 2025.
According to court records and evidence presented at trial, Riman filed false IRS Forms 1040 for tax years
2013 and 2014, resulting in tax refunds to which he was not entitled. Riman then took steps to impede the
IRS’s efforts to recover those refunds. Riman also failed to file tax returns for tax years 2018 through 2023,
despite earning over $854,000 in wage and rental income during that period.
Semiannual Report to Congress | October 1, 2025–March 31, 2026
18
TREASURY INSPECTOR GENERAL FOR TAX ADMINISTRATION
Office of Investigations
Investigations Statistical Reports
Significant Investigative Achievements
Allegations Accepted by TIGTA
Allegations Accepted Against IRS Employees 1,577
Allegations Accepted Against Non-IRS Employees 563
Allegations Involving a Yet to Be Identified Subject 98
Total Complaints/Allegations 2,238
Status of Allegations Received by TIGTA
In Process Within TIGTA2 685
Referred to IRS for Action 672
Closed 881
Total Allegations 2,238
Full Investigations Opened and Closed
Total Investigations Opened 462
Total Investigations Closed 453
Financial Accomplishments
IRS Assets and Resources Protected Against Malicious Loss $563,716,071
Court-Ordered Fines, Penalties, and Restitution $41,530,878
Funds and Property Recovered During Investigative Activities $116,787,000
Tax Liability of Taxpayers Who Threaten and/or Assault IRS Employees $92,897
Total Financial Accomplishments $722,126,846
2 Complaints for which final determination had not been made at the end of the reporting period.
Semiannual Report to Congress | October 1, 2025–March 31, 2026
19
TREASURY INSPECTOR GENERAL FOR TAX ADMINISTRATION
Office of Investigations
Status of Closed Criminal Investigations
Criminal Referral Employee Non-Employee Total
Referred – Accepted for Prosecution 3 81 84
Referred – Declined for Prosecution 166 87 253
Referred – Pending Prosecutorial Decision 10 60 70
Total Criminal Referrals 3
179 228 407
Criminal Dispositions 4
Criminal Disposition Employee Non-Employee Total
Guilty (convicted) 1 3 4
Guilty (plea) 4 43 47
Nolo Contendere (no contest) 0 1 1
Pretrial Diversion 0 1 1
Deferred Prosecution 5
0 1 1
Not Guilty 0 0 0
Acquitted 1 0 1
Dismissed 0 3 3
Total Criminal Dispositions 6 52 58
Administrative Dispositions on Closed Investigations6
Removed/Terminated 13
Suspended/Reduction in Grade 20
Resigned/Retired/Separated Prior to Adjudication 122
Oral or Written Reprimand/Admonishment 27
Clearance Letter/Closed, No Action Taken 20
Alternative Discipline/Letter With Cautionary Statement/Other 33
Non-Employee Actions 7
51
Total Administrative Dispositions 286
Source: TIGTA Investigations Case Management Systems.
3 Criminal referrals include both federal and state dispositions.
4 Final criminal dispositions during the reporting period. This data may pertain to investigations referred criminally
in prior reporting periods and do not necessarily relate to the investigations identified as referred criminally in the
previous Status of Closed Criminal Investigations table. This table does not include investigations whose existence
is protected from disclosure by I.R.C. § 6103.
5 Generally, in a deferred prosecution, the defendant accepts responsibility for their actions and complies with
certain conditions imposed by the court. Upon the defendant’s completion of the conditions, the court dismisses
the case. If the defendant fails to fully comply, the court reinstates prosecution of the charge.
6 Final administrative dispositions during the reporting period. This data may pertain to investigations referred
administratively in prior reporting periods and do not necessarily relate to the investigations identified as closed in
the Investigations Opened and Closed table.
7 Administrative actions taken by the IRS against non-IRS employees.
Semiannual Report to Congress | October 1, 2025–March 31, 2026
20
TREASURY INSPECTOR GENERAL FOR TAX ADMINISTRATION
Office of Investigations
Summary of Investigative Reports and Criminal Referrals
Criminal Referral Breakdown
Number of Investigative Reports Issued
Referred to the Department of Justice for Criminal Prosecution 320
Referred to State/Local Prosecuting Authorities 13
Total Complaints/Allegations
Indictments 62
Criminal Informations 14
Source: TIGTA Investigations Case Management Systems.
Summary of Activity Relating to Complaints of Human Trafficking
Activity Relating to Complaints of Human Trafficking
Number of Suspected Violations Reported 0
Number of Investigations 0
Status of Investigations N/A
Outcome of Investigations N/A
Recommendations to improve the programs and operations None
Source: TIGTA Investigations Case Management Systems.
In accordance with the Trafficking Victims Prevention and Protection Reauthorization Act of 2022 (Public Law 117-348)
TIGTA is required to report on its human trafficking investigations.
Semiannual Report to Congress | October 1, 2025–March 31, 2026
21
TREASURY INSPECTOR GENERAL FOR TAX ADMINISTRATION
Office of Investigations
Closed Investigations Involving IRS Senior Government Employees8
If Declined,
Detailed Description of the Facts and Criminal Date Date of
Circumstances of the Investigation Disposition Status Referred Declination
A senior government official allegedly made
Separated during
false statements pertaining to a grant Declined 6/9/2025 6/9/2025
investigation
application.
A senior government official allegedly
transmitted personally identifiable
Counseling N/A N/A N/A
information to a non-government email
address.
A senior government official allegedly
accessed IRS systems from an international Counseling N/A N/A N/A
IP address.
A senior government official was allegedly Resigned before
N/A N/A N/A
engaged in a financial conflict of interest. adjudication
A senior government official allegedly worked Resigned before
Declined 1/17/2025 1/17/2025
from an unapproved telework location. adjudication
A senior government official was allegedly
involved with an inappropriate relationship Suspension N/A N/A N/A
with a subordinate employee.
A senior government official allegedly Closed without
N/A N/A N/A
violated personnel practices. adjudication
A senior government official allegedly made Removal/
Declined 3/20/2025 4/2/2025
false statements. Termination
A senior government official allegedly
Never referred N/A N/A N/A
engaged in procurement-related misconduct.
8 When TIGTA refers an IRS employee investigation to the IRS, the investigation remains open until all actions are
completed, including any penalty imposed upon the employee by the IRS. TIGTA closes an employee investigation
after receiving notice from the IRS of the administrative action taken in response to that investigation. For this
report, a “senior government employee” refers to an officer or employee in the Executive Branch who occupies a
position classified at or above GS-15 of the General Schedule. 5 U.S.C. § 405(a)(6). This table does not include
investigations whose existence is protected from disclosure by I.R.C. § 6103.
Semiannual Report to Congress | October 1, 2025–March 31, 2026
22
TREASURY INSPECTOR GENERAL FOR TAX ADMINISTRATION
Interference/Access to Information
During the reporting period, there were no attempts by the IRS to interfere with the independence of TIGTA.
Additionally, the IRS did not resist, object to oversight activities, or significantly delay access to information.
Instances of Whistleblower Retaliation
During the reporting period, there was one investigation of whistleblower retaliation.
Suspension and Debarment
Suspension and debarment are administrative remedies used to prevent the U.S. Government from working
with parties who have engaged in criminal or other improper conduct. Suspension and debarment are
applicable to organizations and persons who are or may conduct business or transactions with the U.S.
Government. The following table provides the status of TIGTA cases with Treasury’s Office of the Procurement
Executive, which handles acquisition, contracting, and suspension and debarment programs, from
October 1, 2025 to March 31, 2026.
Suspension and Debarment Referrals
Referred Pending Suspended Debarred Declined
Office of Investigations 0 8 2 2 16
Semiannual Report to Congress | October 1, 2025–March 31, 2026
23
TREASURY INSPECTOR GENERAL FOR TAX ADMINISTRATION
Reports with Unimplemented
Corrective Actions
The Inspector General Act requires that we identify any recommendations described in previous semiannual
reports, including the potential cost savings of those recommendations for which corrective actions have
not been completed. The following is a list of audit and evaluation reports with unimplemented corrective
actions. The list is based on information from the Treasury Department’s Joint Audit Management Enterprise
System. Visit our Reports section on Oversight.gov to obtain more details about the recommendations.
Revising Tax Debt Identification Programming and Additional Actions Are Needed to Further Reduce
Correcting Procedural Errors Could Improve the Tax Undeliverable Mail
Refund Offset Program Recommendations 1 and 2
Recommendation 1 Rep. No. 2019-40-074; September 2019
Rep. No. 2016-40-028; March 2016
Improvements Are Needed to Ensure That
Improvements Are Needed to Ensure That Tax Consistent Suitability Checks Are Performed for
Accounts on the Automated Non-Master File Are Participation in Internal Revenue Service Programs
Accurately Processed Recommendation 9
Recommendation 1 Rep. No. 2020-40-005; November 2019
Recommendation 2 - Potential Increased Revenue:
The Internal Revenue Service Can Improve Taxpayer
$354,153
Compliance for Virtual Currency Transactions
Rep. No. 2017-40-037; May 2017
Recommendation 1
Actions Are Needed to Reduce the Risk of Rep. No. 2020-30-066; September 2020
Fraudulent Use of Employer Identification Numbers
and to Improve the Effectiveness of the Application Security Controls Over Electronic Crimes Labs Need
Process Improvement
Recommendations 3 and 9 Recommendations 1 and 3
Rep. No. 2018-40-013; February 2018 Rep. No. 2021-20-003; December 2020
Active Directory Oversight Needs Improvement Expansion of Self-Correction for Electronic Filers
and Criminal Investigation Computer Rooms Lack and Other Improvements Could Reduce Taxpayer
Minimum Security Controls Burden And Costs Associated With Tax Return Error
Resolution
Recommendation 3
Rep. No. 2018-20-034; June 2018 Recommendation 6
Rep. No. 2021-40-008; December 2020
Improvements Are Needed in the Withholding
Compliance Program **********Platform Management Needs
Improvement9
Recommendation 5
Rep. No. 2018-30-072; September 2018 Recommendation 5
Rep. No. 2021-20-063; September 2021
9 Redaction due to subject matter that might create a risk of circumvention of the law if publicly released.
Semiannual Report to Congress | October 1, 2025–March 31, 2026
24
TREASURY INSPECTOR GENERAL FOR TAX ADMINISTRATION
Increased Availability of Tax Resources and Recurring Identification Is Needed to Ensure That
Information for Limited English Proficient and Employers Full Pay the Deferred Social Security Tax
Visually Impaired Taxpayers Has Enhanced Recommendation 2
Assistance, but Additional Improvements Are Rep. No. 2023-46-030; May 2023
Needed
Recommendation 8 Opportunities Exist to Improve the Accuracy of
Rep. No. 2022-40-008; December 2021 Information in the Centralized Authorization File and
Increase the Use of the Tax Pro Account System
Program and Organizational Changes Are Needed Recommendation 1
to Address the Continued Inadequate Tax Account Rep. No. 2023-40-033; May 2023
Assistance Provided to Taxpayers
Recommendations 11 and 18 American Rescue Plan Act: Continued Review of
Rep. No. 2022-46-027; March 2022 Premium Tax Credit Provisions
Recommendations 1, 2, and 3
Processing of Recovery Rebate Credit Claims During Rep. No. 2023-47-036; June 2023
the 2021 Filing Season
Recommendation 1 Review of the IRS’s Process to Perform Mandatory
Rep. No. 2022-46-032; May 2022 Annual Examinations of Presidential Returns for Tax
Years 2000 Through 2021
Physical Security Controls at the Recommendations 1, 2, 4, and 5
********************10 Rep. No. 2023-IE-R011; September 2023
Recommendations 1, 5, and 6
Rep. No. 2023-IE-R001; October 2022 The Internal Revenue Service Has Experienced
Challenges in Transitioning to Electronic Records
Opportunities Exist for the IRS to Develop a More
Recommendations 1 and 2
Coordinated Approach to Examination Workplan
Rep. No. 2023-10-050; September 2023
Development and Resource Allocation
Recommendations 2 and 4 The Enterprise Physical Access Control System
Rep. No. 2023-30-008; February 2023 Implementation and Physical Security Controls
Need Improvement
Additional Actions Are Needed to Improve and
Recommendation 3
Secure the Income Verification Express Service
Rep. No. 2023-20-062; September 2023
Program
Recommendation 8 The Internal Revenue Service Is Not Fully Complying
Rep. No. 2023-45-014; March 2023 With the No TikTok on Government Devices
Implementation Guidance
Additional Actions Are Needed to Reduce Accounts
Recommendations 3 and 6
Management Function Inventories to Below Pre-
Rep. No. 2024-IE-R003; December 2023
Pandemic Levels
Recommendation 10 Improvements Are Needed to Ensure the Health and
Rep. No. 2023-46-026; May 2023 Safety of Employees at the C-site
Recommendations 5, 6, 11, and 16
Plans Were Made to Implement the Taxpayer
Rep. No. 2024-IE-R006; December 2023
Experience Strategy, but Progress Is Not Monitored
Recommendation 1
Rep. No. 2023-15-028; May 2023
10 Redaction due to subject matter that might create a risk of circumvention of the law if publicly released.
Semiannual Report to Congress | October 1, 2025–March 31, 2026
25
TREASURY INSPECTOR GENERAL FOR TAX ADMINISTRATION
Administration of the Individual Taxpayer Customer Satisfaction Survey Results Are Not Used
Identification Number Program Effectively to Improve Taxpayer Service
Recommendation 8 Recommendations 1, 2, 3, 4, 6, and 7
Rep. No. 2024-400-012; December 2023 Rep. No. 2024-100-053; September 2024
Interim Evaluation – Assessment of the IRS’s Fiscal Year 2024 Statutory Review of Compliance
Comprehensive Facilities Security Review and With Legal Guidelines When Issuing Levies
Employee Safety and Security Measures Recommendation 6
Recommendations 1, 9, 12, and 13 Rep. No. 2024-300-056; September 2024
Rep. No. 2024-IE-R004; January 2024
Security Vulnerability Management and
Some Corrective Actions to Address Reported Configuration Compliance of a General Support
Information Technology Weaknesses Were System and Major Application Need Improvement
Not Adequately Documented and Effectively Recommendations 3 and 6
Implemented Rep. No. 2024-200-057; September 2024
Recommendation 3
Rep. No. 2024-200-025; June 2024 Fiscal Year 2024 Statutory Audit of Compliance
With Legal Guidelines Restricting the Use of
Virtual Currency Tax Compliance Enforcement Can Records of Tax Enforcement Results
Be Improved Recommendations 5 and 6
Recommendations 1, 2, and 3 Rep. No. 2024-300-061; September 2024
Rep. No. 2024-300-030; July 2024
The Information Collected by Online Providers and
The IRS Does Not Have Specific Plans to Replace Shared With Third Parties Is Not Clearly Disclosed to
and Decommission Legacy Systems Taxpayers and Is Unknown to the IRS
Recommendation 1 Recommendation 2
Rep. No. 2024-200-038; August 2024 Rep. No. 2024-400-062; September 2024
Improvements to the Tax-Exempt Compliance The IRS Could Collect Over a Billion Dollars in Taxes
Unit Could Reduce Mistakes and Unproductive From Unreported Wagering Income
Examination Referrals Recommendation 5
Recommendation 4 Rep. No. 2024-300-064; September 2024
Rep. No. 2024-100-040; August 2024
Improvements Are Needed to Ensure Oversight of
Efforts to Oversee State Agency Access to Federal and Increase Participation in the Free File Program
Tax Information Were Generally Successful; Recommendations 2, 3, 4, and 7
However, Some Improvements Are Needed Rep. No. 2024-400-067; September 2024
Recommendations 1 and 2
Rep. No. 2024-100-041; August 2024 Final Evaluation - Assessment of the IRS’s
Comprehensive Facilities Security Review and
The IRS Has Made Limited Progress Developing the Employee Safety and Security Measures
Methodology to Comply With the Treasury Directive Recommendations 1 and 6
to Not Increase the Audit Rate for Taxpayers With Rep. No. 2025-IE-R004; November 2024
Incomes Below $400,000 Due to Planning and
Implementation Challenges Improved Secure Document Safeguarding and
Recommendation 4 Destruction Procedures Are Needed
Rep. No. 2024-308-043; August 2024 Recommendations 1, 3, 4, 5, 10, 11, and 12
Rep. No. 2025-IE-R005; December 2024
Semiannual Report to Congress | October 1, 2025–March 31, 2026
26
TREASURY INSPECTOR GENERAL FOR TAX ADMINISTRATION
The Tax Offset Program Continues to Allow Millions Consistent Guidance Could Improve Delivery
of Dollars to Be Erroneously Refunded to Taxpayers of Payments and Returns Intended for IRS
Lockbox Sites
Recommendation 2 - Potential Funds Put to Better
Use: $23,157,344 Recommendations 1 and 6
Recommendations 1 and 6 Rep. No. 2025-IE-R015; April 2025
Rep. No. 2025-400-002; December 2024
Actions Need to Be Taken to Improve Services
The IRS Lacks Authority to Independently Verify That Provided at Taxpayer Assistance Centers
Low Income Taxpayer Clinic Grant Recipients Are Recommendations 4, 5, and 6
Meeting Eligibility Requirements Rep. No. 2025-108-017; April 2025
Recommendations 1, 2, and 3
Automated External Defibrillators Are Not
Rep. No. 2025-100-005; January 2025
Operationally Ready or Available at Some IRS Posts
The Taxpayer Advocate Service Office of Systemic of Duty
Advocacy Needs to Improve Program Oversight to Recommendations 3, 9, and 10
Ensure Taxpayer Problems Are Effectively Identified Rep. No. 2025-IE-R016; April 2025
and Resolved
Revenue Officer Compliance Sweeps of High-Income
Recommendations 1, 2, 3, 5, 7, 9, 10, and 11
Nonfilers Were Impactful, but Tracking Data and
Rep. No. 2025-300-006; February 2025
Training Could Be Improved
Improvements Are Required to Promptly Validate Recommendations 2 and 4
and Issue Manual Refunds Associated With Rep. No. 2025-300-021; April 2025
Deceased Taxpayers
Recommendation 1 - Potential Funds Put to Better Final Results of the 2024 Filing Season
Use: $4,681,909 Recommendation 10
Recommendation 2 - Potential Funds Put to Better Rep. No. 2025-408-016; April 2025
Use: $16,804,354
Recommendations 5 and 6 The IRS Could Leverage Examination Results in
Rep. No. 2025-IE-R012; March 2025 Artificial Intelligence Examination Case Selection
Models and Improve Processes to Evaluate
The Unanticipated Large Number of Taxpayers Performance
Created Safety and Security Challenges at Some Recommendations 1 and 3
Taxpayer Assistance Center Saturday Help Events Rep. No. 2025-308-022; May 2025
Recommendation 2
Rep. No. 2025-IE-R013; March 2025 Limited Progress Has Been Made Expanding the Use
of Electronic Signature Services on Non-Tax Forms
Inflation Reduction Act: Contract Performance Recommendation 1
Oversight and Compliance With Expenditure Rep. No. 2025-208-023; May 2025
Restrictions Need Improvement
Recommendations 1 and 3 Improvements to Taxpayer Advocate Case
Rep. No. 2025-208-008; March 2025 Processing Would Result in Better Customer Service
Recommendations 1, 2, and 3
Systems Hosting Sensitive Data Lack Consistent Rep. No. 2025-100-024; June 2025
Inventory Standards
Recommendations 2 and 4 Improvements Are Needed to Accurately Track and
Rep. No. 2025-200-009; March 2025 Safeguard Seized Digital Assets
Recommendations 1, 2, 3, 4, 5, and 6
Rep. No. 2025-IE-R018; July 2025
Semiannual Report to Congress | October 1, 2025–March 31, 2026
27
TREASURY INSPECTOR GENERAL FOR TAX ADMINISTRATION
Further Improvements Are Needed to Strengthen Although Enterprise Case Management
the Controls for Issuing Employer Identification Modernization Has Begun, No Legacy Systems Have
Numbers Been Decommissioned
Recommendations 1, 3, 4, 5, 6, 7, 8, 9, and 10 Recommendation 2
Rep. No. 2025-400-036; July 2025 Rep. No. 2025-208-050; September 2025
Inspection of Select IRS Operations in Puerto Rico The IRS Made Some Progress Implementing
Effective Protection for the ****************
Recommendation 6 Platform11
Rep. No. 2025-IE-R022; July 2025
Recommendations 2 and 5
Lack of Contract Oversight Led to Inoperable Kiosks Rep. No. 2025-200-035; September 2025
at Taxpayer Assistance Centers
Fiscal Year 2025 Mandatory Review of Disclosure of
Recommendation 1 Collection Activity With Respect to Joint Returns
Rep. No. 2025-IE-R024; August 2025
Recommendation 1
Authenticating Callers’ Identity on Business Rep. No. 2025-300-046; September 2025
and Practitioner Telephone Lines Needs to Be
Strengthened to Combat Fraud Fiscal Year 2025 Statutory Review of Restrictions
on Directly Contacting Represented Taxpayers
Recommendation 1 - Potential Funds Put to Better
Recommendations 1 and 3
Use: $55,889,446
Rep. No. 2025-300-047; September 2025
Rep. No. 2025-IE-R025; August 2025
Most Employers Paid Their Deferred Social Security
Taxes But Some Penalties Were Incorrect
Recommendation 1
Rep. No. 2025-406-049; August 2025
Fiscal Year 2025 Statutory Review of Compliance
With Legal Guidelines When Issuing Levies
Recommendations 1, 2, 3, and 4
Rep. No. 2025-300-042; September 2025
The Infrastructure Supporting the Big Data Analytics
Platform Has Overdue and Unresolved System
Vulnerabilities
Recommendations 1, 2, and 3
Rep. No. 2025-200-038; September 2025
Despite Previous Recommendations, Contract
Documentation Issues Persist
Recommendation 2
Rep. No. 2025-108-052; September 2025
11 Redaction due to subject matter that might create a risk of circumvention of the law if publicly released.
Semiannual Report to Congress | October 1, 2025–March 31, 2026
28
TREASURY INSPECTOR GENERAL FOR TAX ADMINISTRATION
Appendix I
Appendix I
Inspector General Act Required Reporting
The Inspector General Act requires Inspectors General to address the following matters.
Results for the Reporting Period Ending
Topic March 31, 2026
Interference/Access to During the reporting period, there were no attempts by the IRS to
Information interfere with the independence of TIGTA. Additionally, the IRS did
not resist, object to oversight activities, or significantly delay access to
information.
Unreasonable Refusal No instances of Unreasonable Refusal to report.
Management Decisions for Reports TIGTA received no management decisions during the current
Issued in a Prior Reporting Period reporting period for reports issued in a prior reporting period.
Significant Management Decisions No significant management decision revised during the reporting
That Were Revised During the period.
Reporting Period
Significant Management Decisions No significant management decisions with which the IG disagreed.
With Which the IG Disagreed
Instances and Reasons When No instances of failure to meet target dates to report.
an Agency Has Not Met the
Intermediate Target Dates in the
Remediation Plan
Disclosure No reports were closed and not disclosed to the public.
Review of Legislation and TIGTA’s Office of Chief Counsel reviewed 145 proposed regulations
Regulations and legislative requests during the reporting period.
Request for Information/ No instances of the IRS unreasonably refusing requests for
Unreasonable Refusal information.
Semiannual Report to Congress | October 1, 2025–March 31, 2026
29
TREASURY INSPECTOR GENERAL FOR TAX ADMINISTRATION
Appendix II
Appendix II
Statutory Reviews
The following table reflects the FY 2026 statutory reviews.
Reference to Statutory Coverage
Explanation of the Provision Comments/TIGTA Audit Status
Enforcement Statistics
I.R.C. § 7803(d)(1)(A)
Requires TIGTA to evaluate the IRS’s compliance Fieldwork currently in process.
with restrictions under RRA 98 § 1204 on the use of
enforcement statistics to evaluate IRS employees.
Restrictions on Directly Contacting Taxpayers
I.R.C. § 7803(d)(1)(A)(ii)
Requires TIGTA to evaluate the IRS’s compliance with Fieldwork currently in process.
restrictions under I.R.C. § 7521 on directly contacting
taxpayers who have indicated they prefer their
representatives be contacted.
Filing of a Notice of Lien
I.R.C. § 7803(d)(1)(A)(iii)
Requires TIGTA to evaluate the IRS’s compliance with Fieldwork currently in process.
required procedures under I.R.C. § 6320(a) upon the filing
of a notice of lien.
Extensions of the Statute of Limitations for Assessment of Tax
I.R.C. § 7803(d)(1)(C) / I.R.C. § 6501(c)(4)(B)
Requires TIGTA to include information regarding extensions Fieldwork currently in process.
of the statute of limitations for assessment of tax under
I.R.C. § 6501 and the provision of notice to taxpayers
regarding the right to refuse or limit the extension of
particular issues or a particular period of time.
Levies
I.R.C. § 7803(d)(1)(A)(iv)
Requires TIGTA to evaluate the IRS’s compliance with Fieldwork currently in process.
required procedures under I.R.C. § 6330 regarding levies.
Collection Due Process
I.R.C. §§ 7803(d)(1)(A)(iii) and (iv)
Requires TIGTA to evaluate the IRS’s compliance with Fieldwork currently in process.
required procedures under I.R.C. §§ 6320 and 6330
regarding taxpayers’ rights to appeal lien or levy actions.
Semiannual Report to Congress | October 1, 2025–March 31, 2026
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TREASURY INSPECTOR GENERAL FOR TAX ADMINISTRATION
Appendix II
Seizures
I.R.C. § 7803(d)(1)(A)(iv)
Requires TIGTA to evaluate the IRS’s compliance with Fieldwork currently in process.
required procedures under I.R.C. §§ 6330 through 6344
when conducting seizures.
Taxpayer Designations–Illegal Tax Protester Designation and Similar Designations
I.R.C. § 7803(d)(1)(A)(v)
An evaluation of the IRS’s compliance with restrictions Fieldwork currently in process.
under RRA 98 § 3707 on designation of taxpayers.
Disclosure of Collection Activity With Respect to Joint Returns
I.R.C. § 7803(d)(1)(B) (TIGTA requirement) / I.R.C. § 6103(e)(8) (IRS requirement)
Requires TIGTA to review and certify whether the IRS is Fieldwork currently in process.
complying with I.R.C. § 6103(e)(8), which requires the IRS
to disclose information to an individual filing a joint return
on collection activity involving the other individual filing the
return.
Taxpayer Complaints
I.R.C. § 7803(d)(2)(A)
Requires TIGTA to include in each Semiannual Report to Statistical results on the number of taxpayer
Congress the number of taxpayer complaints received; and complaints received are shown on page 19.
the number of employee misconduct and taxpayer abuse
allegations received by the IRS or TIGTA from taxpayers, IRS
employees, and other sources.
Administrative or Civil Actions With Respect to the Tax Collection Practices Act of 1996
I.R.C. § 7803(d)(1)(G) / I.R.C. § 6304 / RRA 98 § 3466
Requires TIGTA to include information regarding any Fieldwork currently in process
administrative or civil actions with respect to violation of
the fair debt collection provision of I.R.C. § 6304, including
a summary of such actions and any resulting judgments or
awards granted.
Denials of Requests for Information
I.R.C. § 7803(d)(1)(F) / I.R.C. § 7803(d)(3)(A)
Requires TIGTA to include information regarding improper Fieldwork currently in process
denial of requests for information from the IRS, based
on a statistically valid sample of the total number of
determinations made by the IRS to deny written requests
to disclose information to taxpayers on the basis of I.R.C. §
6103 or 5 U.S.C. § 552(b)(7).
Improper Payments Elimination and Recovery Act of 2010
31 U.S.C. § 3321
Requires TIGTA to assess the IRS’s compliance with Fieldwork currently in process
improper payment requirements.
Semiannual Report to Congress | October 1, 2025–March 31, 2026
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TREASURY INSPECTOR GENERAL FOR TAX ADMINISTRATION
Appendix II
Government Charge Card Abuse Prevention Act of 2012
Pub. L. No. 112-194, 126 Stat. 1445 (codified as amended at 5 U.S.C. § 5701 note, 10 U.S.C. § 2784, and 41
§ U.S.C. 1909)
Requires TIGTA to report on the IRS’s progress Rep. No. 2026-1S0-002, January 2026
in implementing purchase and travel card audit TIGTA’s review of the IRS’s purchase card
recommendations. program found that controls are generally
effective, and the number of purchase card
violations identified by the IRS were minimal.
Biannual Independent Assessment of Private Collection Agency Performance
Independently evaluate the performance of private Fieldwork currently in process
collection agencies.
Office of National Drug Control Policy (ONDCP) Detailed Accounting Submission and Assertions
21 U.S.C. § 1704(d) and the ONDCP Circular titled National Drug Control Program Agency Compliance
Reviews, dated September 9, 2021
Requires TIGTA to authenticate the IRS’s ONDCP detailed Rep. No. 2026-100-008, February 2026
accounting submission and assertions. TIGTA is not aware of any material
modifications necessary for the assertions
in the IRS’s FY 2025 ONDCP Budget
Formulation Compliance Report and Detailed
Accounting Report to be fairly stated and in
accordance with the ONDCP Circular.
Individual Taxpayer Identification Number (ITIN) Program
Assess that only individuals with a tax need are assigned an Rep. No. 2026-400-016, March 2026
ITIN. TIGTA found that for Processing Years
2023 and 2024, 45,386 tax returns with
approximately $172.4 million in credits were
claimed by ITIN holders who were ineligible
to receive these credits. Of the $172.4
million in tax credits claimed, $142.8 million
was refundable credits paid to the taxpayer.
Since September 2019, the IRS has not
completed any on-site compliance reviews of
its Certifying Acceptance Agents who assist
individuals in the application process and
are authorized to authenticate identification
documentation.
Adequacy and Security of the Technology of the IRS
I.R.C. § 7803(d)(1)(D)
Requires TIGTA to evaluate the IRS’s adequacy and security Information Technology Reviews:
of its technology. Rep. No. 2026-400-004; February 2026
Rep. No. 2026-408-003; February 2026
Rep. No. 2026-IE-R002; February 2026
Rep. No. 2026-408-006; March 2026
Security Reviews:
Rep. No. 2026-208-013; March 2026
Rep. No. 2026-200-010; March 2026
Semiannual Report to Congress | October 1, 2025–March 31, 2026
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TREASURY INSPECTOR GENERAL FOR TAX ADMINISTRATION
Appendix III
Appendix III
Audit and Evaluation Reports Issued12 13
View reports in their entirety at TIGTA.gov.
Limited Testing Shows Taxpayers Generally Received Recovery Rebate Credit Payments Were Issued to
Courteous and Professional IRS Telephone Service 300,000 Ineligible Taxpayers
2026-IE-R001 2026-406-007
Nearly Five Million Eligible Taxpayers Received The IRS Has Yet to Develop a Successful Strategy for
Failure to Pay Penalty Relief Due to the Effects of Examining Large Partnership Returns
the Pandemic 2026-308-011
2026-400-001
SharePoint Online Access and Security Controls
Review of the IRS’s Purchase Card Violations Report Need Improvement
and Status of Recommendations 2026-200-010
2026-1S0-002
Direct File Activity for the 2025 Filing Season
Tax Relief Improvements Underway for Taxpayers 2026-408-006
Wrongfully Detained or Taken Hostage
2026-IE-R002 Snapshot: The IRS’s Inflation Reduction Act
Spending Through September 30, 2025
The IRS Has Made Limited Progress Achieving 2026-IE-R003
Paperless Processing
2026-408-003 The IRS Has Made Limited Progress Implementing
Zero Trust Data Principles
Despite Progress Made Onboarding New Employees, 2026-208-013
Many Did Not Timely Receive Equipment and
Performance Expectations The IRS Canceled Contracts Potentially Saving
2026-108-005 Hundreds of Millions of Dollars, but the Impact on
Taxpayer Service Remains Unknown
Independent Attestation Review of the IRS’s Fiscal 2026-1S0-015
Year 2025 Budget Formulation Compliance Report
and Detailed Accounting Report of Drug Control Assessment of the IRS’s Individual Taxpayer
Funds Identification Number Program
2026-100-008 2026-400-016
More Than 99 Percent of Deceased Taxpayers’ Telework Decreased After the Return to In-Person
Accounts Are Accurately Locked Work Directive, but the IRS Will Face Challenges
2026-400-004 Monitoring Compliance
2026-IE-R004
12 Unless otherwise noted, IRS management decisions were made by the end of the reporting period for all audit
products listed in this appendix.
13 Dollar values for any recommendations with Questioned Costs and/or Funds Put to Better Use are available in the
Outcome Measure Appendix of the report, if applicable.
Semiannual Report to Congress | October 1, 2025–March 31, 2026
33
TREASURY INSPECTOR GENERAL FOR TAX ADMINISTRATION
Appendix III
Funds Put to Better Use
October 1, 2025 – March 31, 2026
Recovery Rebate Credit Payments Were Issued to 300,000 Ineligible Taxpayers
2026-406-007
$130,690,775
SharePoint Online Access and Security Controls Need Improvement
2026-200-010
$1,055,782
Assessment of the IRS’s Individual Taxpayer Identification Number Program
2026-400-016
$3,934,002
Grand Total: $135,680,559
Questioned Costs
None.
Semiannual Report to Congress | October 1, 2025–March 31, 2026
34
TREASURY INSPECTOR GENERAL FOR TAX ADMINISTRATION
Appendix IV
Appendix IV
Inspector General Peer Review Activity
This appendix implements § 989C of the Dodd-Frank Wall Street Reform and Consumer
Protection Act.14
For the period October 1, 2025 – March 31, 2026:
Peer Reviews Conducted of TIGTA by Another Office of Inspector General
None.
Outstanding Recommendations From Peer Reviews of TIGTA
There are no outstanding recommendations from prior peer reviews of TIGTA.
Peer Reviews Conducted by TIGTA
TIGTA’s Office of Inspections and Evaluations completed a peer review of the Office of Inspector General for
the Board of Governors of the Federal Reserve System and the Consumer Financial Protection Bureau on
February 2, 2026.
Outstanding Recommendations From Peer Reviews Conducted by TIGTA
There are no outstanding recommendations from peer reviews conducted by TIGTA.
Most Recent Peer Reviews Conducted of TIGTA
• The Department of Agriculture OIG completed a peer review of TIGTA’s Office of Investigations on May
11, 2024.
• The Department of Veterans Affairs OIG completed a peer review of TIGTA’s Office of Audit on
September 18, 2024.
• The Department of Labor completed a peer review of TIGTA’s Office of Inspections and Evaluations on
March 28, 2024.
14 Codified in 5 U.S.C. §405(b)(8)-(10).
Semiannual Report to Congress | October 1, 2025–March 31, 2026
35
TREASURY INSPECTOR GENERAL FOR TAX ADMINISTRATION
Appendix V
Appendix V
Data Tables Provided by the IRS
The memorandum copied below is the IRS’s transmittal to TIGTA. The IRS provided the tables that follow
the memorandum. They consist of IRS employee misconduct reports from the IRS Automated Labor and
Employee Relations Tracking System (ALERTS) and Service Central for the period October 1, 2025, through
March 31, 2026. Also, data concerning substantiated RRA 98 § 1203 allegations for the same period are
included. See Appendix VI for § 1203 Standards. IRS management conducted inquiries into the cases
reflected in these tables.
IRS Memorandum
Semiannual Report to Congress | October 1, 2025–March 31, 2026
36
TREASURY INSPECTOR GENERAL FOR TAX ADMINISTRATION
Appendix V
Report of Employee Misconduct by Disposition Groups
Employee
Employee Tax TIGTA
Administrative Character Compliance Report of
Disposition Case Investigation Case Investigation Totals
Removal
56 0 9 32 97
(Probation Period complete)
Removal at OPM Direction ND 6 ND ND 6
Probation/Separation 118 0 0 ND 118
Separation of Temp ND ND ND ND ND
Resign.,Ret., etc.
34 6 53 42 135
(SF50 noted)
Resign. Ret., etc.
80 14 99 49 242
(SF50 not noted)
Suspension, 14 days or less 98 ND 26 25 149
Suspension, more than
13 ND 10 11 34
14 days
Indefinite Suspension 0 ND ND ND 0
Reprimand 105 0 41 17 163
Admonishment 80 4 122 10 216
Written Counseling 56 7 154 18 235
Oral Counseling 9 ND 5 ND 14
Alternative Discipline:
9 ND 8 0 17
In Lieu of Reprimand
Alternative Discipline:
4 ND 0 0 4
In Lieu of Suspension
Clearance Letter 30 ND 14 12 56
Closed Without Action
91 33 173 23 320
Cautionary Letter
Closed Without Action Letter 55 7 26 16 104
Termination for Abandonment
7 ND ND ND 7
of Position
Case Suspended Pending
ND ND ND ND ND
Employee Return to Duty
Prosecution Pending for TIGTA’s
ND ND ND ND ND
Report of Investigation
Closed - Supplemental
ND ND ND ND ND
Requested
Forwarded to TIGTA 30 ND ND 0 30
Totals 875 77 740 255 1947
Note: Columns containing numbers of three or less and protected by I.R.C. Section 6103 are annotated with a zero.
ND=No Data. Source: Automated Labor and Employee Relations Tracking System (ALERTS) and Service Central. This
report is being produced in accordance with 26 USC§7803(b)(2) and §4(a)2 of Treasury Delegation Order 115-01,
January 14, 1999. Extract Date: April 1, 2026.
Semiannual Report to Congress | October 1, 2025–March 31, 2026
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TREASURY INSPECTOR GENERAL FOR TAX ADMINISTRATION
Appendix V
Report of Employee Misconduct National Summary
Cases Closed
Cases
Conduct Merged Non-
Open Cases Conduct With Other Conduct Ending
Inventory Case Type Inventory Received Issues Cases Issues Inventory
Administrative Case 1312 1031 1412 46 0 885
Employee Character
165 63 153 0 ND 75
Investigation
Employee Tax Compliance
1551 509 1214 30 ND 816
Case
TIGTA Report of Investigation 621 1869 438 7 ND 442
Totals 3649 1869 3217 83 0 2218
Source: Automated Labor and Employee Relations Tracking System (ALERTS) and Service Central (extract was pulled
on April 1, 2026).
Administrative Case—Any matter involving an employee in which management conducted an inquiry into
alleged misconduct.
Background Investigations—Any matter involving a National Background Investigation Center investigation
into an employee’s background that is referred to management for appropriate action.
Employee Tax Compliance Case—Any conduct matter identified by the Employee Tax Compliance program
and becomes a matter of official interest.
TIGTA Investigation—Any matter involving an employee in which TIGTA conducted an investigation into
alleged misconduct and referred a Report of Investigation to IRS for appropriate action.
Summary of Substantiated Section 1203
Inquiries Recorded in ALERTS
Removed In
Resigned/ Probation on Other Penalty Personnel
§ 1203 Violation Removals Retired Separation Grounds Mitigated Process Total
1203(b)(2): False
ND ND ND ND ND ND ND
Statement Under Oath
1203(b)(3): Civil Rights/
0 ND ND 0 ND ND 0
Constructive Violation
1203(b)(8): Willful
12 0 ND 0 0 63 75
Untimely Return
1203(b)(9): Willfull
9 0 ND 0 0 22 31
Understated Tax
Totals 21 0 ND 0 0 85 106
Source: ALERTS (extract was pulled on April 1, 2026). Columns containing numbers of three or less and protected by
I.R.C. § 6103 are annotated with a zero and are not reflected in the column and row totals. Columns containing no data
are annotated with ND.
Cases reported as “Removals” and “Penalty Mitigated” do not reflect the results of any third-party appeal.
Semiannual Report to Congress | October 1, 2025–March 31, 2026
38
TREASURY INSPECTOR GENERAL FOR TAX ADMINISTRATION
Appendix VI
Appendix VI
Section 1203 Standards
In general, the IRS Commissioner shall terminate any IRS employee if there is a final administrative or
judicial determination that, in the performance of official duties, such employee committed any misconduct
violations outlined below. Such termination shall be a removal for cause on charges of misconduct.
Misconduct violations include:
• Willfully failing to obtain the required approval signatures on documents authorizing the seizure of a
taxpayer’s home, personal belongings, or business assets;
• Providing a false statement under oath with respect to a material matter involving a taxpayer or taxpayer
representative;
• Violating, with respect to a taxpayer, taxpayer representative, or other employee of the IRS, any right under
the Constitution of the United States, or any civil right established under Title VI or VII of the Civil Rights
Act of 1964; Title IX of the Education Amendments of 1972; Age Discrimination in Employment Act of
1967; Age Discrimination Act of 1975; Section 501 or 504 of the Rehabilitation Act of 1973; or Title I of
the Americans With Disabilities Act of 1990;
• Falsifying or destroying documents to conceal mistakes made by any employee with respect to a matter
involving a taxpayer or taxpayer representative;
• Committing assault or battery on a taxpayer, taxpayer representative, or another employee of the IRS, but
only if there is a criminal conviction or a final judgment by a court in a civil case with respect to the assault
or battery;
• Violating the I.R.C., the Treasury Department regulations, or policies of the IRS (including the Internal
Revenue Manuals) for the purpose of retaliating against or harassing a taxpayer, taxpayer representative,
or other employee of the IRS;
• Willfully misusing provisions of I.R.C. § 6103 for the purpose of concealing information from a
congressional inquiry;
• Willfully failing to file any return of tax required under the I.R.C. on or before the date prescribed therefore
(including any extensions), unless such failure is due to reasonable cause and not to willful neglect;
• Willfully understating federal tax liability, unless such understatement is due to reasonable cause and not
to willful neglect; and
• Threatening to audit a taxpayer for the purpose of extracting personal gain or benefit.
The Commissioner may mitigate the penalty of removal for the misconduct violations outlined above. The
exercise of this authority shall be at the sole discretion of the Commissioner and may not be delegated to any
other officer. The Commissioner may establish a procedure that will be used to decide whether an individual
should be referred to the Commissioner for determination. Any mitigation determination by the Commissioner
in these matters may not be appealed in any administrative or judicial proceeding.
Semiannual Report to Congress | October 1, 2025–March 31, 2026
39
TREASURY INSPECTOR GENERAL FOR TAX ADMINISTRATION
Glossary
ALERTS Automated Labor and Employee Relations Tracking System
Commissioner Commissioner of Internal Revenue
EIDL Economic Injury Disaster Loan
FTP Failure to Pay
Inspector General Act Inspector General Act of 1978
IRA Inflation Reduction Act
IRC § 6103 IRC § 6103 establishes that federal tax returns and return information are
confidential, prohibiting the IRS and other government employees from disclosing
this information except as authorized.
IRS Internal Revenue Service
ND No Data
OIG Office of the Inspector General
RRA 98 IRS Restructuring and Reform Act of 1998
SBA Small Business Administration
TIGTA Treasury Inspector General for Tax Administration
USC United States Code
Semiannual Report to Congress | October 1, 2025–March 31, 2026
40
TREASURY INSPECTOR GENERAL FOR TAX ADMINISTRATION
Reporting Requirements
The table below cross-references the reporting requirements prescribed by the Inspector General Act, as
amended, to the specific pages where they are addressed.
Section Requirement Page
§ 405(b)(1) Significant Problems, Abuses, & Deficiencies Throughout the report.
§ 405(b)(2) Recommendations with Respect to Significant Problems,
Abuses & Deficiencies 7-13, 33
§ 405(b)(3) Recommendations Described in Previous Semiannual Reports on Which
Corrective Actions Have Not Been Completed 24-28
§ 405(b)(4) Referrals to Prosecutive Authorities & Resulting Prosecutions and Convictions 14-21
§ 405(b)(5) Summary of Instances Where Information Was Refused 29
and 406(c)(2)
§ 405(b)(6) Reports with Dollar Values 6-10, 33-34
§ 405(b)(7) Summaries of Significant Reports 4-18
§ 405(b)(8)-(9) Audit Reports and Total Dollar Value of Questioned Costs and Funds Put
to Better Use 30-34
§ 405(b)(10) Audit Recommendations More Than 6 Months Old for Which No Management
Decision Has Been Made 29
§ 405(b)(11) Significant Management Decisions That Were Revised During the Reporting Period 29
§ 405(b)(12) Significant Management Decisions with Which the IG Disagreed 29
§ 405(b)(13) Instances and Reasons When an Agency Has Not Met the Intermediate Target
Dates In the Remediation Plan 29
§ 405(b)(14)-(16) Peer Review Information 35
§ 405(b)(10) Outstanding Unimplemented Recommendations 24
§ 405(b)(17)(A), Investigative Statistical Tables 19-21
(B), (C), & (D)
§ 405(b)(18) Metrics Used to Develop the Investigative Statistics for Tables 19-21
§ 405(b)(19)(A,B) Investigations of Senior Employees with Substantiated Misconduct 22
§ 405(b)(20)(A,B) Whistleblower Retaliation 23
§ 405(b)(21)(A,B) Agency Interference with OIG Independence 23, 29
§ 405(b)(22)(A,B) Non-Public Audit, Evaluation or Inspection Reports 29
Public Law 117– Summary of Activity Relating to Complaints of Human Trafficking 21
348 117th
Congress §
122(e)
Semiannual Report to Congress | October 1, 2025–March 31, 2026
41
TREASURY INSPECTOR GENERAL FOR TAX ADMINISTRATION
DEPARTMENT OF THE TREASURY
Office of the Inspector General for Tax Administration
901 D Street, SW, Suite 600 • Washington, DC 20024
This report and complete copies of TIGTA audit reports are available online at www.tigta.gov.
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