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Part 11. Communications and Liaison

Chapter 53. Small Business/Self-Employed

Section 4. GAO/TIGTA/Legislative Implementation

11.53.4  GAO/TIGTA/Legislative Implementation

11.53.4.1  (11-07-2006)
History

  1. The IRS modernization initiative established the Small Business/Self-Employed (SB/SE) Division during FY 2000.

  2. In July 2001, SB/SE established the Customer Liaison Branch to oversee division legislative and audit processes.

  3. In FY 2006 when SB/SE Communications, Liaison and Disclosure (CLD) was reorganized, Customer Liaison Branch became GAO/TIGTA/Legislative Implementation (GTL).

11.53.4.2  (11-07-2006)
GTL Mission

  1. The mission of GTL is to establish and maintain beneficial relationships with Government Accountability Office (GAO), Treasury Inspector General for Tax Administration (TIGTA), Legislative Affairs (LA), Legislative Analysis Tracking and Implementation Services (LATIS), and Taxpayer Advocate Service (TAS) to ensure SB/SE Division compliance with tax law and oversight directives.

  2. GTL is charged with establishing effective programs to facilitate legislative implementation, legislative proposals and GAO/TIGTA audit processes for the SB/SE Commissioner. GTL fosters partnerships with internal and external stakeholders to improve tax administration.

11.53.4.3  (11-07-2006)
GTL Responsibilities

  1. Coordinate and monitor all GAO/TIGTA audit activities throughout SB/SE to:

    1. Maximize positive findings

    2. Identify high-risk issues

    3. Develop corrective actions that properly address recommendations

    4. Establish cordial relationships

  2. Serve as a conduit for information transmitted to GAO and TIGTA and ensure copies for agency historical files.

  3. Serve as the liaison with LA, SB/SE operating units, business operating divisions (BODs) and TAS concerning GAO/TIGTA oversight processes that impact SB/SE.

  4. Serve as the liaison with LATIS, SB/SE operating units, BODs and TAS concerning pending and passed legislation that impacts SB/SE, ensuring that all provisions are assigned and specific actions are created to execute the law.

  5. Monitor the Legislative Implementation Tracking System (LITS) for timely status of legislative provisions and actions.

  6. Serve as the liaison with LA, LATIS, BODs and TAS concerning SB/SE legislative proposals.

  7. Provide internal guidance for developing SB/SE legislative proposals.

  8. Solicit and evaluate the administrative feasibility of SB/SE legislative proposals.

  9. Forward SB/SE legislative proposals having merit through LA for consideration by Treasury.

11.53.4.4  (11-07-2006)
GTL Structure

  1. The Chief, GTL reports to the Director, Policy and Strategic Planning (PSP) in CLD.

  2. The Director, PSP reports to the Director, CLD.

  3. GTL analysts coordinate, implement and monitor the audit and legislative processes for the Commissioner, SB/SE.

  4. Contact information is available on the "SB/SE, CLD, PSP, Contacts" web page at: http://sbse.web.irs.gov/CL2/psp/About/Contacts.htm

11.53.4.5  (11-07-2006)
The GAO/TIGTA Programs

  1. GAO and TIGTA review SB/SE operations then share audit findings and recommendations with Congress, other federal agencies, and the public.

  2. The SB/SE executives place a high priority on audits since findings can significantly impact the IRS' strategic plan and program initiatives.

  3. The goal of GTL is to bring the necessary stakeholders together.

11.53.4.5.1  (11-07-2006)
Roles and Responsibilities

  1. GTL partners with other stakeholders to coordinate the SB/SE GAO/TIGTA Program.

  2. GTL coordinates with the SB/SE business owner to ensure that the:

    1. Scope of the audit is defined

    2. Periodic updates are given

    3. Activities are directed as needed

    4. Responses are prepared in a timely manner

    5. Corrective actions are monitored and implemented timely

    6. All impacted operating divisions have the opportunity to provide input to the response

  3. The business owner responsibilities are to:

    1. Provide GAO and TIGTA with all necessary information during the audit process

    2. Coordinate and arrange the review of cases, databases, etc., deemed appropriate and authorized

    3. Coordinate or elevate preliminary findings/ communicate issues found prior to exit conference - or similar activities.

    4. Prepare the audit response

  4. GAO/TIGTA liaisons in other BODs have oversight responsibility for the coordination, implementation, and monitoring of the GAO/TIGTA audits that impact their organization. When their audits also affect SB/SE, they will coordinate with GTL for input. The reverse is also true.

  5. SB/SE Communications has oversight responsibility for the review/clearance of responses to ensure proper tone, grammar and format.

  6. The SB/SE Commissioner’s staff has oversight responsibility for the review and clearance of responses requiring the SB/SE Commissioner and/or the Deputy Commissioner Services and Enforcement or the IRS Commissioner’s signature.

  7. LA has oversight responsibility for the coordination, implementation, and monitoring of the GAO/TIGTA audit process for the IRS Commissioner. See IRM 11.5.1 for detailed information and Exhibit 11.5.1-1 for basic terms used in the audit program.

11.53.4.6  (11-07-2006)
Government Accountability Office (GAO) Audits

  1. GAO is the investigative arm of Congress. They examine the use of public funds and federal programs. GAO provides analysis, options, and recommendations to Congress for effective oversight, policy, and funding decisions. The GAO website can be found at: http://cl.no.irs.gov/la/BranchC/GAOTIGTA/ARC/program.htm

  2. The GAO audit process includes the following steps:

    1. Entrance Letter

    2. Opening Conference

    3. Audit Review Phase

    4. Exit Conference

    5. Draft Report Phase (30 Day Response)

    6. Final Report Phase (Congressional 60 Day Letter Response)

    7. GAO Response Clearance/Approval Process

  3. The GAO Workflow Process flowchart provides a snapshot overview of the process and can be found at: http://sbse.web.irs.gov/cl2/psp/TGLI/WorkFlow/GAO-WorkFlow.htm

11.53.4.6.1  (11-07-2006)
Entrance Letter

  1. In the majority of cases, the GAO Director of Tax Issues sends a study notification to the National Director, LA, as the designee of the IRS Commissioner, to notify the IRS of a new audit.

    Note:

    Occasionally an audit letter may come from another office within GAO.

  2. The entrance letter, also known as the "Notification Letter, " is the official notification that GAO will conduct a formal audit. LA will forward the entrance letter to the Chief, GTL and other impacted stakeholders to initiate the opening of an audit. The audit is assigned to a GTL staff analyst who serves as the POC throughout the audit process.

  3. LA communication includes:

    1. Entrance letter (see example below)

      Date:
      Mr. Floyd Williams
      National Director, Legislative Affairs Division
      Internal Revenue Service

      Dear Mr. Williams:

      At the request of the Chairman of the Senate Committee on Finance, we are beginning work on capital gains tax noncompliance, under job code XXXXXX. Based on the request, our initial objectives are to provide information on:

      1. How IRS addresses capital gains tax noncompliance for investment income from stocks, bonds, and mutual funds;

      2. What steps, if any, could improve IRS’ ability to address noncompliance for such income and how might they be addressed.


      The Chairman has authorized GAO, pursuant to section 6103(f)(4)(A) of the Internal Revenue Code, to have access to all information necessary to perform this work. A copy of the Chairman’s letter is enclosed.

      We plan to contact representatives from IRS’ National Office in Washington D.C., including the Office of Research, Analysis and Statistics and the National Research Program, and from the research and compliance components of the Wage and Investment and Small Business/Self-Employed Divisions at their headquarters.

      We would appreciate your notifying the appropriate offices in your agency and identifying a point of contact for this engagement. We expect to begin our work immediately and would like to hold the entrance conference as soon as possible.

      If you have any questions please contact _______, Assistant Director at (XXX) XXX-XXXX, xxxx@gao.gov or ____ at (XXX) XXX-XXXX, yyy@gao.gov.

      Sincerely yours,

      ZZZZZ
      Director, Tax Issues
      Strategic Issues Team

      Enclosure

    2. Cover memo – see example located on LA Web site at: http://cl.no.irs.gov/la/BranchC/GAOTIGTA/ARC/handbook/Attachment2.doc

    3. Identification of a contact within LA

    4. Identification of the lead operating division

    5. Specific direction regarding disclosure concerns. For additional information on Disclosure to GAO, refer to IRM 11.3.23.

  4. If the lead operating unit is not identified and/or is in question, the GTL analyst attempts to resolve the issue with the assigned LA point of contact. If the issue cannot be resolved then it is raised to the Chief, GTL for resolution with LA.

11.53.4.6.2  (11-07-2006)
Opening Conference Phase

  1. The GTL analyst performs the following tasks to implement the audit:

    1. Determines the impacted SB/SE business unit(s).

    2. Forwards the entrance letter electronically to all impacted functions, indicating the audit number, title and reply due date on the subject line of the e-mail. The SB/SE business unit ensures the executive or his/her designee participates for their functional area at the opening conference.

      Note:

      The standard language in the example below is used when transmitting the entrance letter:

      Subject line: Action: GAO Job Code, Title, Response Due to GTL XX/XX/XXXX
      GAO is initiating a review on (Audit Title and job code). Legislative Affairs will be scheduling the entrance conference. Please let us know by COB (date) which of the following days you are available: Weekday, XX/XX/XXXX, Weekday XX/XX/XXXX, or Weekday XX/XX/XXXX at Time XX:XX A.M. Attached is the entrance letter and cover memorandum for your review. The entrance letter contains an overview of the scope and objectives for the review.

      If you have any questions, please contact me at (XXX)XXX-XXXX.

    3. Enters the audit on the SB/SE GAO/TIGTA Inventory Tracking spreadsheet and continuously updates the spreadsheet throughout the process.

    4. Forwards the meeting invitation to all impacted stakeholders, encouraging SB/SE executive(s) participation. The executive has the option to appoint a designee within their function/program area to participate in the conference.

    5. Provides a list of participants and briefing notes on the meeting if requested.

11.53.4.6.3  (11-07-2006)
Audit Review Phase

  1. The audit review phase is GAO’s research and information gathering phase.

  2. The GTL analyst:

    1. Follows up with the GAO audit team to determine the status of the audit.

    2. Schedules a meeting (if necessary) to discuss the preliminary audit findings. Audit work papers can be reviewed at this time, if requested.

    3. Updates the audit on the SB/SE GAO/TIGTA Inventory Tracking Spreadsheet.

    4. Maintains records for permanent files.

11.53.4.6.4  (11-07-2006)
Exit Conference Phase

  1. GAO conducts an exit conference on all audits. GAO provides a briefing document for discussion.

  2. The purpose of the exit conference is to discuss and resolve findings and questions contained in the briefing document.

  3. GAO provides an estimate of the number of recommendations that may be included in the draft report. Recommendations are not specifically identified until the draft report is issued.

  4. GAO use this phase to discuss, clarify or correct data and/or significant issues that may be included in the draft report.

  5. The GTL analyst:

    1. Coordinates with LA to schedule the exit conference.

    2. Notifies the impacted SB/SE unit(s) of the scheduled exit conference.

    3. Updates the audit on the SB/SE GAO/Inventory Tracking Spreadsheet.

11.53.4.6.5  (11-07-2006)
Draft Report Phase (30 Day Response)

  1. GAO prepares a draft audit report at the conclusion of an audit, requesting a formal agency response addressing recommendations.

  2. The draft report is assigned a new audit number that Treasury uses to track corrective actions on the Joint Audit Management Enterprise System (JAMES), discussed in See IRM 11.53.4.8.

  3. The IRS Commissioner generally has 30 calendar days to respond to a draft report. However, the GAO required response can be as few as seven calendar days from the date of the draft report if there is a Congressional request for the report. The electronic cover memorandum accompanying the draft report will clearly stipulate the response time required.

  4. SB/SE will provide a response that includes the following:

    1. An agreement or disagreement with finding(s) and recommendation(s)

    2. Highlights of successes, achievements or directives

    3. Corrective actions that address the recommendation(s)

    4. Due date for each corrective action

    5. Identification of a responsible official

    6. Corrective Action Monitoring Plan

      Note:

      Use the following format example to address the Corrective Action Monitoring Plan in the response.

      CORRECTIVE ACTION MONITORING PLAN Examination Planning and Delivery will determine the projected volume of reports that would be tracked along with the cost of establishing a new tracking system and time table for implementation.

  5. The IRS' response to the GAO draft report is addressed to the assigned GAO Director.

  6. The GTL analyst:

    1. Forwards the draft report electronically to the impacted SB/SE business units and BOD(s), indicating the audit title, number and reply due date in the subject line.

    2. Advises the impacted organizations of the pre-established due dates of the response.

    3. Forwards guidance electronically on preparing the response. See IRM 11.53.4.6.6.

      Note:

      The standard language in the example below is used when transmitting the draft report:

      Subject line: Action: GAO Job Code, Audit Title, Response Due to GTL XX/XX/XXXX
      Attached is GAO’s draft report titled Report Title and Job Code. The response is due to GAO on XX/XX/XXXX. To meet GAO’s due date, your response is due to GTL by XX/XX/XXXX. The following information is attached to assist you with the preparation of the response:

      • Response template

      • GAO Audit Response Processing Record

      • Staff Summary Sheet

      • Sample response

        If you have any questions, please contact me at (XXX) XXX-XXXX.

    4. Schedules and coordinates, if necessary, a draft report meeting. Meetings are recommended when the business unit disagrees with documentation in the report, there is disagreement with the ownership of a recommendation, or to ensure agreement with the response.

    5. Identifies program manager responsible for drafting the management response and establish timeframes for completing the response.

    6. Updates the audit on the SB/SE GAO/TIGTA Inventory Tracking Spreadsheet.

    7. Contacts LA to request an extension from GAO if a response cannot be drafted within the required time frame. Contact the PSP Technical Advisor to request an extension on i-trak upon approval of an extension request. Build in a half day for an i-trak update.

11.53.4.6.6  (11-07-2006)
Preparation of the GAO Audit Response

  1. The GTL analyst will coordinate and provide guidance on the preparation of the audit response to the lead SB/SE program owner.

  2. The analyst will provide the following information to the program owner to prepare the response:

    1. GAO response template

    2. Staff summary sheet

    3. Processing record

    4. Draft report

    5. Exit conference or draft report meeting notes, if required

    6. An example of an approved SB/SE GAO response

  3. The SB/SE program owner should prepare the response with the following in mind:

    1. Use appropriate correspondence format. See IRM 1.10.1 , The IRS Correspondence Manual and IRM 1.10.2 , Reference Materials for Preparing Correspondence, for guidance

    2. Write using a positive tone

    3. Agree or disagree with recommendation(s) in the first few paragraphs

    4. Address the recommendation and what corrective action are to be been taken

    5. State positive results and/or next steps that address the recommendation(s)

    6. Estimate a realistic implementation date to complete the recommendation(s) See IRM 11.53.4.6.7. for guidance

    7. Identify the responsible official (BOD executive) for the recommendation(s)

    8. State how the progress of the recommendation(s) will be monitored

    9. Identify the appropriate program manager and executive approval See IRM 11.53.4.6.9. for response clearance/approval guidance.

11.53.4.6.7  (11-07-2006)
Establishing Realistic Corrective Action Due Dates

  1. SB/SE’s goal is to establish achievable corrective action due dates. All implementation dates are on the 15th of the month. Delaying actions should be rare; however, certain delays, such as those relating to funding and Request for Information Systems (RIS) prioritization, may be necessary.

  2. To ensure achievable due dates, the GTL analyst will advise the SB/SE business units to:

    1. Brainstorm when findings and recommendations are first presented

    2. Discuss and evaluate each recommendation

    3. Consider all obstacles when establishing due dates

    4. Consider drafting a timeline including major milestone dates to arrive at the completion date

    5. Add additional time to allow for unforeseen obstacles

  3. For consistency throughout SB/SE, use the 15th of the month as the due date for all corrective actions.

11.53.4.6.8  (11-07-2006)
Final Report Phase (Congressional 60 Day Letter Response)

  1. The final report phase (Congressional 60 day letter response) is somewhat similar to the GAO draft report phase, except the agency must prepare a response for Congressional committee members. See the LA website for the GAO 60 Day Letter List of Chairmen and Ranking Members at: http://cl.no.irs.gov/la/BranchC/GAOTIGTA/ARC/handbook/Attachment12.doc

  2. GAO issues the final report that includes the agency's official response to the draft report.

  3. The final report audit number remains the same as the draft report.

  4. The GTL analyst provides a copy of the final report to the impacted SB/SE business unit(s).

  5. Recommendations and corrective actions included in the final report are input on JAMES. See IRM 11.53.4.8. for additional information on JAMES.

11.53.4.6.9  (11-07-2006)
GAO Response Clearance/Approval Process

  1. The GTL analyst prepares the Staff Summary Sheet and forwards it to the lead SB/SE business unit to initiate the clearance and approval process for an audit response.

  2. The GTL analyst includes the following individuals and information on the Staff Summary Sheet for review and approval:

    1. Responsible SB/SE Director

    2. Responsible Program Manager

    3. LA GAO/TIGTA Coordinator

    4. SB/SE Communications Reviewer

    5. Chief, GTL

    6. Director, PSP

    7. Senior Operations Advisors, CLD

    8. Director, CLD

    9. Executive Assistant, SB/SE Executive Staff

    10. SB/SE Deputy Commissioner

    11. SB/SE Commissioner

    12. File names (short and descriptive) such as Audit number, Shortened Title Draft Report.doc or Audit number, Shortened Title IRS Response.doc

    13. Document Subject Line should read: Review: Audit number, Shortened Title Response Due to GTL XX/XX/XXXX or Approval: Audit number, Shortened Title Response Due XX/XX/XXXX (To Director, PSP/Director, CLD & Above)

    14. Document Summary/Note to Reviewer Line should read: This response was developed by SB/SE, Title of director/function

    15. i-trak control number

  3. The lead SB/SE business unit initiates the clearance process for the response via e-mail.

  4. The lead SB/SE business unit obtains review and approval from the following individuals:

    1. SB/SE Program Manager

    2. Director and/or Program Manager of other impacted BODs

    3. SB/SE Director

  5. The GTL analyst continues the clearance process for the response through:

    1. LA and SB/SE Communications (simultaneous clearance review of the response)

    2. Chief, GTL (consolidation and review of the response)

    3. Director, PSP (review of the response)

    4. Senior Operations Advisors, SB/SE CLD (review & finalize the response with SB/SE business unit)

    5. Director, CLD (review of the response)

    6. Executive Assistant, SB/SE Executive Staff (review of the response for the SB/SE Commissioner's approval)

    7. SB/SE Deputy Commissioner (signature approval for the SB/SE Commissioner, if required)

    8. SB/SE Commissioner (signature approval)

  6. LA continues the clearance process for the response through Deputy Commissioner to obtain the IRS Commissioner’s approval and signature.

11.53.4.7  (11-07-2006)
Treasury Inspector General for Tax Administration (TIGTA)

  1. TIGTA established in January 1999 in accordance with the IRS Restructuring and Reform Act of 1998 (RRA 98) provides independent oversight of IRS activities. As mandated by RRA 98, TIGTA assumed most of the responsibilities of the IRS’ former Inspection Service. For additional information, see the TIGTA Web site at: http://www.treas.gov/tigta/about_what.html

11.53.4.7.1  (11-07-2006)
TIGTA Audit Program

  1. The TIGTA audit program is comprised of reviews mandated by statute or regulations, as well as reviews identified through the audit planning and evaluation process.

  2. The TIGTA audit program is presented in the Annual Audit Plan published at the beginning of each fiscal year.

11.53.4.7.2  (11-07-2006)
TIGTA Audit Plan

  1. The Annual Audit Plan is based on significant management issues facing IRS, as well as areas of concern from Congress, the IRS Commissioner and IRS Oversight Board. Emphasis is placed on the statutory coverage imposed by RRA 98.

11.53.4.7.3  (11-07-2006)
TIGTA Workflow Process

  1. TIGTA audits provide independent oversight of IRS activities to promote efficiency and effectiveness in administering the nation’s tax system.

  2. The Office of Audit strategically evaluates IRS programs, activities and functions so that resources are expended to reduce vulnerabilities in the nation’s tax system.

  3. The TIGTA Workflow Process flowchart provides a snapshot overview of the process and is available for review at: http://sbse.web.irs.gov/CL2/psp/TGLI/WorkFlow/TIGTA-WorkFlow.htm.

  4. The TIGTA process includes the following steps:

    1. Research Project

    2. Engagement Letter

    3. Opening Conference Phase

    4. Audit Phase

    5. Closing Conference

    6. Discussion Draft Report

    7. Draft Report (30 day Response)

    8. Final Report

11.53.4.7.4  (11-07-2006)
TIGTA Research Project Initiation

  1. TIGTA contacts LA via an e-mail or memorandum indicating the scope of work and the anticipated time frames involved for the research project. Engagement letters are not required for these TIGTA audit activities which include audit planning, research activities (surveys, information gathering, etc.), and integrity projects.

    Note:

    The following standard language is used by TIGTA to transmit a research request.

    This e-mail is to inform you that we are beginning research into the progress being made to increase the accuracy of social security numbers reported on information return documents. The work will be conducted under project code (audit number). We anticipate that the work will take about two months during which time we'll decide whether to initiate a formal review over the area. If we decide to initiate such a review, we will issue an engagement letter outlining our objectives and scope for the review.

    In conjunction with our research work, we would appreciate you notifying officials of our plans and identifying a point of contact. We would like to hold discussions with appropriate officials as soon as possible. If you or others have questions, please contact Senior Auditor (XXX) XXX-XXXX.

  2. LA forwards the e-mail to the Chief, GTL.

  3. The Chief, GTL assigns the research project to a GTL analyst and informs the LA POC.

  4. The GTL analyst:

    1. Advises TIGTA that he/she is the liaison and coordinates the research request.

    2. Forwards the e-mail to the responsible SB/SE business unit designee to obtain a POC who will work with TIGTA to address the research request.

    3. Provides the POC to TIGTA. TIGTA will coordinate the audit through the GTL analyst to obtain information unless otherwise directed.

    4. Enters the status of the research project on the SB/SE GAO/TIGTA Inventory Tracking Spreadsheet.

  5. If the research results in a formal audit, TIGTA will issue an engagement letter through LA. The GTL analyst assigned to the research project will retain the responsibility for overseeing the audit.

  6. If an audit is not warranted, the research project is closed by a TIGTA memorandum.

11.53.4.7.5  (11-07-2006)
Engagement Letter

  1. To initiate an audit, TIGTA notifies the IRS through the issuance of an engagement letter from the Deputy Inspector General for Audit to the Director(s) of the BOD(s) that is forwarded to LA as the designee of the Commissioner of the IRS.

  2. The engagement letter is the official notification that a formal audit will be conducted.

  3. The engagement letter contains the following information:

    1. Title

    2. Audit Number

    3. Scope of the review

    4. Objective of the review

    5. Offices included in the review

    6. Deliverables and estimated completion dates

    7. TIGTA executives and other points of contact

      Note:

      The following standard language is used by TIGTA when transmitting an engagement letter.

    MEMORANDUM FOR COMMISSIONER, SMALL BUSINESS/SELF-EMPLOYED DIVISION

    FROM: xxxxxxxxxxxxxxxxx
    Deputy Inspector General for Audit

    SUBJECT: Denials of Written Requests for Information (Audit # XXXXXXXXX)

    The Treasury Inspector General for Tax Administration (TIGTA) is initiating a review to evaluate the Internal Revenue Service’s (IRS) denials of written requests for information. This audit is being conducted because the Restructuring and Reform Act of 1998 requires the TIGTA to conduct periodic audits of 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 the Internal Revenue Code (I.R.C.) § 6103 or the Freedom of Information Act (FOIA) exemption (b)(7). We will be contacting the TIGTA Liaison for the Small Business/Self Employed Division to schedule an entrance conference with the appropriate IRS managers. To allow the posts-of-duty sufficient time to respond to our request for copies of sample cases, we will wait to schedule the entrance conference until (month, year).

    Overall Objective

    The overall objective of our audit is to determine if the IRS improperly withheld information requested by taxpayers in writing, based on FOIA exemption (b)(3), in conjunction with I.R.C. § 6103, and/or FOIA exemption (b)(7), or by replying that responsive records were not available.

    Offices Subject to Review

    On-site visitations will be within the Small Business/ Self-Employed Division’s Office of Governmental Liaison & Disclosure. We will also select a sample of denials of written requests for information that have been closed by all Disclosure Offices from (month, day, year) through (month day, year).

    Deliverables and Estimated Completion Dates

    Draft Report issued by (month date, year)
    Final Report issued by (month date, year)

    Information Needed From Auditee

    To accomplish the audit objectives, we require the following information:

    • An extract from the Electronic - Disclosure Information Management System (E DIMS) of all cases closed from (month day, year) to (month day, year). (A separate memorandum will be sent to you detailing our criteria for the extract.)

    • Copies of case files for a sample of cases that will be selected from the above extract



    Designated Treasury Inspector General for Tax Administration Executive Liaison xxxxxxxxxxx, Assistant Inspector General for Audit (Headquarters Operations and Exempt Organizations Programs), xxx xxx-xxxx

    Responsible Inspector General Staff

    Questions regarding this review may be directed to:
    xxxxxxxxxxx, Director, (xxx) xxx-xxxx
    xxxxxxxxxxx, Auditor Manager, (xxx) xxx-xxxx
    xxxxxxxxxxx, Lead Auditor, (xxx) xxx-xxxx
    xxxxxxxxxxx, Senior Auditor, (xxx) xxx-xxxx

  4. LA forwards the engagement letter to the Chief, GTL with a cover memorandum from the Director, LA Division. The cover memorandum identifies operating divisions or business units TIGTA expects to contact and an LA POC.

  5. Chief, GTL assigns the audit to a GTL analyst and informs LA.

  6. GTL analyst informs TIGTA via e-mail of the assignment, establishes a relationship and requests available dates for an opening conference.

11.53.4.7.5.1  (11-07-2006)
Lead Process

  1. When SB/SE has been assigned as the lead organization, the GTL analyst identifies the appropriate SB/SE business unit, SB/SE program owner and other impacted BOD(s) based on the audit objective.

  2. The assigned analyst electronically forwards the engagement letter to all impacted functions and the SB/SE executive designee regarding the initiation of an audit. Included on the subject line of the e-mail are the audit number, title, and reply due date.

    Note:

    The standard language in the example below is used when transmitting the engagement letter to the SB/SE lead directorate and other impacted BODs to establish a meeting date for the opening conference.

    Subject line: Action: TIGTA Audit Number, Audit Title, Response Due to GTL XX/XX/XXXX
    TIGTA is initiating a review on Audit Number, Title. The Commissioner, Small Business/Self-Employed Division is the lead stakeholder. Attached is the engagement letter and cover memorandum from LA for your review. Please provide the following information to me by COB XX/XX/XXXX:

    • Confirmation that your area is responsible for the above subject audit.

    • Name and telephone number of the responsible individual(s) that should attend the opening conference.

    • Your availability to participate in the opening conference.



    The proposed dates for the opening conference are as follows:

    1. Weekday, XX/XX/XXXX (Time AM or PM EST)

    2. Weekday XX/XX/XXXX (Time AM or PM EST)



    Please let me know which date above accommodates your schedule. I will forward an e-mail meeting invitation with the location and conference call information for the opening conference once your reply is received.

    If you have any questions, please contact me at (XXX)XXX-XXXX.

  3. The GTL analyst enters the audit on the SB/SE GAO/TIGTA Inventory Tracking spreadsheet.

11.53.4.7.5.2  (11-07-2006)
Non-Lead Process

  1. When another BOD has been identified as the lead, the lead BOD liaison coordinates the opening conference.

  2. The GTL analyst:

    1. Identifies the appropriate SB/SE business unit and program owner impacted by the audit objectives.

    2. Coordinates with the lead BOD liaison, advising him/her of SB/SE participation and obtaining potential opening conference dates.

    3. Electronically forwards the engagement letter and provides proposed dates, when available, for the opening conference to SB/SE business unit executive designee(s). Include the audit number, title and the reply due date on the subject line of the e-mail.

      Note:

      The standard language in the example below is used when transmitting the engagement letter to the SB/SE business unit on non-lead audits to establish a meeting date for the opening conference.

      Subject line: Action: Audit Number, Title, Response due to GTL XX/XX/XXXX
      TIGTA is initiating a review on (Audit Number and Title). The TIGTA review is assigned to the Director, Office of Professional Responsibility, and Commissioner, Small Business/Self-Employed Division. The Director, Office of Professional Responsibility is the lead stakeholder.

      Attached is the engagement letter and cover memorandum for your review. Please provide the following information by COB XX/XX/XXXX:

      • Confirm that you (or your designee) will participate in the opening conference

      • Provide any additional POCs that should attend the opening conference with names and telephone numbers

      • Provide your availability for the dates proposed:

      • Weekday, XX/XX/XXXX, (Time AM or PM EST)

      • Weekday, XX/XX/XXXX (Time Am or PM EST)



      I will forward an e-mail meeting invitation with the location and conference call information for the opening conference once it is received from the lead stakeholder.

      If you have any questions please contact me at (XXX) XXX-XXXX.

    4. Forwards a meeting invitation to POCs upon receipt from the lead BOD liaison.

    5. Enters the audit on the SB/SE GAO/TIGTA Inventory Tracking.

11.53.4.7.6  (11-07-2006)
Opening Conference Phase

  1. If SB/SE is the lead on an audit, the GTL analyst schedules the opening conference with the SB/SE business unit and other impacted BOD(s). It is the responsibility of the SB/SE business unit executive designee to ensure that an executive from their functional area participates at the opening conference.

  2. The GTL analyst performs the following tasks to implement the audit:

    1. Forwards the engagement letter electronically to all impacted functions. Include the audit number, title and the reply due date on the subject line of the e-mail.

    2. Forwards a meeting invitation to all impacted stakeholders and encourages SB/SE executive(s) participation. The executive has the option to appoint a designee within their function/program area to participate in the conference.

    3. Provides a list of participants and briefing notes on the meeting if requested.

    4. Updates the audit on the SB/SE GAO/TIGTA Inventory Tracking Spreadsheet.