TREASURY INSPECTOR GENERAL FOR TAX ADMINISTRATION
Review of the August 2010 Small Business/Self-Employed Division’s Conference in Anaheim, California
May 31, 2013Reference Number: 2013-10-037
This report has cleared the Treasury Inspector General for Tax Administration disclosure review processand information determined to be restricted from public release has been redacted from this document.
Phone Number | 202-622-6500 E-mail Address | TIGTACommunications@tigta.treas.gov Website | http://www.treasury.gov/tigta
HIGHLIGHTS
REVIEW OF THE AUGUST 2010
searching for the most cost-effective location as
SMALL BUSINESS/SELF-EMPLOYED
required. Instead, SB/SE Division management
DIVISION’S CONFERENCE IN
approached two non-governmental event
ANAHEIM, CALIFORNIA
planners to identify a suitable off-site location for the conference. These two planners were not
Highlights
under contract with the IRS; hence they had noincentive to negotiate a favorable room rate for the IRS. Instead, the three hotels paid the eventplanners an estimated $133,000 commission
Final Report issued on May 31, 2013
based on the cost of rooms paid for by the IRS.Highlights of Reference Number: 2013-10-037The IRS may have been able to negotiate ato the Internal Revenue Service Chief Financiallower lodging rate to reduce conferenceOfficer.expenses if it had not used non-governmentalevent planners
and eliminated some of the
IMPACT ON TAXPAYERS
negotiated concessions provided by the hotels(
e.g.
, daily continental breakfast, a welcomeExcessive spending by Federal agencies onreception with two drink coupons for allmanagement conferences has been highlightedattendees, a significant number of suiteby recent Inspectors General reports and theupgrades)
.
TIGTA also identified other subject of congressional hearings. Effectivequestionable expenses related to the conferencecost management is especially important givenincluding planning trips, outside speakers, videothe current economic environment and focus onproductions, an information corridor, andefficient spending. TIGTA identified severalpromotional items and gifts for IRS employees.ways the IRS could enhance controls over conference spending.
WHAT TIGTA RECOMMENDEDWHY TIGTA DID THE AUDIT
TIGTA recommended that the IRS verify thatcosts are being tracked for recent conferences;This audit was initiated to identify the IRS’strack conference attendance; ensure thatspending on conferences during Fiscalapplicable IRS personnel are used to plan futureYears 2010 through 2012. Our primary focusconferences; develop procedures outlining thewas on the August 2010 Small Business/appropriate use of non-governmental eventSelf-Employed (SB/SE) Division’s All Managersplanners for IRS conferences; establishConference in Anaheim, California. Thisprocedures related to planning trips, informationconference was selected because TIGTAcorridors, videos, and other technology for futurereceived an allegation of excessive spendingconferences; evaluate whether hotel upgradesand it was the most expensive conferenceshould be used for future conferences; andduring this period.ensure that taxable travel is identified and
WHAT TIGTA FOUND
Forms W-2,
Wage and Tax Statement
, areissued to applicable employees.The SB/SE Division conducted a conference for an estimated 2,609 SB/SE Division executivesIn their response to the report, IRS managementand managers
at a reported cost of $4.1 millionagreed with all of TIGTA’s recommendations.at the Marriott, Hilton, and Sheraton hotelsThe IRS plans to issue additional guidancelocated in Anaheim, California. Procedures atrelated to conference spending and attendance,the time of the conference did not require IRStracking Continuing Professional Educationmanagement to track and report actualcredits, the use of event planners, soliciting hotelconference costs. As a result, TIGTA could notroom upgrades, video productions, planningvalidate the conference cost reported by thetrips, and the conference approval process. TheIRS.IRS also stated that it plans to issue Forms W-2to all applicable employees.
TIGTA determined that the IRS did not useavailable internal personnel to assist in
DEPARTMENT OF THE TREASURY
WASHINGTON, D.C. 20220
TREASURY INSPECTOR GENERALFOR TAX ADMINISTRATION
MEMORANDUM FOR
FROM:
SUBJECT:
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