IMPROVED OVERSIGHT IS NEEDED
TIGTA also determined that Whistleblower
TO EFFECTIVELY PROCESS
Program officials did implement a quality review
process to ensure claims are accuratelycontrolled in the Entellitrak system. However,
guidance to employees did not specify thatemployees review the received date of a claim,which is critical when reporting business resultsto internal and external stakeholders. During
Final Report issued on April 30, 2012
this review, TIGTA determined that additionalreports could be generated to evaluate theHighlights of Reference Number: 2012-30-045effectiveness of the Whistleblower Program.to the Internal Revenue Service Director,Also, timeliness standards for processing claimsWhistleblower Office.
have not been fully established, and the existingmonitoring process was not fully developed to
IMPACT ON TAXPAYERS
improve efficiencies with processingThe IRS has authority to pay awards towhistleblower claims in the IRS operatingwhistleblowers for credible information relatingdivisions.to violations of Internal Revenue laws that resultIn August 2011, the Government Accountabilityin the Federal Government’s recovery of taxes,Office issued a report on the IRS’spenalties, interest, and additional amounts
Whistleblower Program that included eightcollected. Without adequate oversight ofrecommendations. These recommendationswhistleblower claims, the IRS is not as effectivefocused on the IRS collecting more informationas it could be in responding timely to taxin its claim tracking system and case processingnoncompliance issues. Also, the IRS’s effort toactivities, and incorporating more data whenimprove compliance is important in reducing thereporting on the effectiveness of theTax Gap and maintaining the integrity of theWhistleblower Program.voluntary tax compliance system.
WHAT TIGTA RECOMMENDEDWHY TIGTA DID THE AUDIT
TIGTA made no recommendations in this reportIn August 2009, TIGTA issued a report citingbecause the IRS Whistleblower Office isdeficiencies in the IRS’s internal controls andaddressing the Government Accountabilitytimely resolution of whistleblower claims. TheOffice’s August 2011 report recommendations.objective of this review was to follow up on theThe IRS plans to fully implement its correctiveadequacy of the corrective actions the IRSactions to the Government Accountability Officeagreed to take on the Fiscal Year 2009 reportedreport by October 15, 2012.internal control weaknesses.
While TIGTA did not make any
WHAT TIGTA FOUND
recommendations in this report, theWhistleblower Office provided commentsThe IRS did not fully and adequately addressindicating that “direct access to the informationthe prior reported internal control weaknessessystem was not provided after discussions andon the processing of whistleblower claims. Inagreement between the Whistleblower Officeour prior report, TIGTA found that informationand TIGTA management.” Additionally, thecaptured on three inventory systems wasWhistleblower Office commented that “it isinaccurate. In this review, TIGTA determinedimportant to note that no instances of errors inthat employees manually transferred claimthe received data have been identified.”information from the three systems into a singleTIGTA’s response to the IRS’s comments isinventory control system, Entellitrak. However,included in the transmittal memorandum.IRS officials did not ensure steps were taken toreconcile and correct the inaccurate informationthat was reported in our Fiscal Year 2009review.