Supports the Strategic Vision;

Minimizes disruption to business operations;

Promotes efficiencies within the IRS; and

Ensures continuity of essential employee services.

There is no material change in official job duties and responsibilities;

The position is re-described;

A paperwork transaction eliminates one position and creates another;

There is a change in title and/or series only.

Proposed organizational changes support the goals and strategies of the IRS;

Organizational change proposals follow all regulatory requirements, directives, executive orders, and all other policies and relevant guidance;

Treasury, IRS Oversight Board, and/or Executive Resources Board are informed and concur with, if applicable, proposed organizational changes;

Deputy Commissioner(s) is informed of, and concurs with, all levels of proposed organizational changes;

The DCOS Transformation Program Management Office (TPMO) is informed of, and concurs with, all levels of proposed organizational changes;

The IRS Human Capital Officer is informed of, and concurs with proposed organizational changes requiring Deputy Commissioner or above approval, and affirms that the initiative complies with Treasury Directive (TD) 21-01, Organizational Changes, including concurrence with organizations within HCO, as appropriate (i.e., TA, P&C, Labor/Employee Relations and Negotiations (LERN), etc.). To view, go to https://www.treasury.gov/about/role-of-treasury/orders-directives/Pages/td21-01.aspx;

The TA, PEO and Position Management/Classification (PM/C) serve as consultants on proposed organizational changes for ROCs, as appropriate;

Organizational change efforts for all ROCs are coordinated with the CFO or business unit finance function; the necessary concurrence must be obtained confirming the change is within the IRS’s budgetary authorities, complies with the Office of Management and Budget (OMB) Circular Number (No.) A-123, Management’s Responsibility for Enterprise Risk Management and Internal Controls, and that the proper data elements are established within the IRS financial system to track budget and expenditures. To view, go to https://www.whitehouse.gov/sites/whitehouse.gov/files/omb/memoranda/2016/m-16-17.pdf ;

Organizational change efforts for all ROCs are coordinated with EDI, and the necessary concurrence is obtained affirming all federal Equal Employment Opportunity (EEO) principles, policies, and laws are reflected the organizational change processes and decisions, managing diversity, and that no protected group or class is targeted or unfairly affected; and

Organizational changes are shared with the Human Capital Board (HCB), when the IRS Human Capital Officer deems it necessary due to potential impact to other business units, and that any concerns raised by the HCB are addressed.

A workforce analysis is conducted affirming that the organizational change is in line with the organization’s strategic direction (workforce planning);

Planning, proposing, and obtaining the review(s) and approval(s) of organizational changes as required;

Coordination with the appropriate business representatives, HCO, DCOS TPMO, Finance organizations, and all other internal IRS stakeholders;

All changes affecting other business units are coordinated with those business units;

Organizational change proposals follow all regulatory requirements, directives, executive orders, and all other policies and relevant guidance;

Appropriate communications and notification for (NTEU) are prepared and implemented following agency procedures;

All budgetary implications are addressed, OMB Circular No. A-123, Management’s Responsibility for Enterprise Management and Internal Controls, are considered, and the proper data elements, including Work Planning & Control (WP&C) and Form 3081, Employee Time Report, data is established within the IRS financial system to track budget and expenditures. To view, go to https://www.whitehouse.gov/sites/whitehouse.gov/files/omb/memoranda/2016/m-16-17.pdf

Federal EEO principles, policies, and laws are considered and reflected and/or addressed in the organizational change;

Deputy Commissioner(s) is informed of, and concurs, with all levels of proposed organizational changes; the DCOS TPMO ensures all packages are shared with and/or concurred by the DCOS;

Appropriate coordination has occurred with Communications and Liaison (C&L), Legislative Affairs, congressional and external stakeholder implications are identified, and a plan is established to ensure the necessary communications occur and/or are underway (only if approval is required by the Deputy Commissioner or above);

Organizational changes are inclusive of a process for tracking and monitoring affected employee movement from the current organization to the end state organization and that the Personnel Action Requests (PAR) and/or Mass Update Modules (MUMs) necessary to implement the organization change are initiated;

Organizational changes are evaluated with results on how they relate to stated business case goals; and

The necessary reviews, concurrences, and/or certifications of the organizational change request within the HCO, DCOS TPMO, C&L (Legislative Affairs), EDI, CFO, Information Technology (IT), and Facilities Management and Security Services (FMSS) occurred prior to effecting any changes.

Providing Service-wide organizational change guidance;

Providing guidance and direction in the development of business case, organizational change initiative implementation, tracking, monitoring and evaluation;

Ensuring the necessary coordination occurs with all responsible areas of the HCO to support the business units throughout the design/development and implementation of the restructuring initiative; in addition to PEO (and Workforce Restructuring Services (WRS)), this includes LERN, PM/C, Office of Executive Services (OES), Employment, Payroll, and P&C, where applicable;

Ensuring organizational changes are shared with the HCB where it is determined the initiative will affect other business units;

Ensuring the necessary reviews and concurrences of the organizational change request within the HCO, DCOS TPMO, C&L (Legislative Affairs), EDI, CFO, IT, and FMSS occur prior to effecting any changes;

Providing expert advice, guidance, and support for changes resulting in a RIF, directed reassignments, transfer of function, position abolishment, use of mitigation strategies, and employee separation policy and implementation;

Providing expert advice, guidance, and support for requesting, obtaining, and monitoring VERA/VSIP authority as deemed appropriate;

Supporting the development of a labor relations strategy and serving as a subject matter expert during negotiations;

Overseeing all aspects of reorganizations that result in a RIF, to include facilitating preparation of the business case, determining use of mitigation strategies, obtaining VERA/VSIP authority, delivering RIF briefings, preparation for all notices and letters (i.e., Reassignment Preference Notice (RPN), VERA/VSIP offers, Certificate of Expected Separation (CES), RIF, etc.), and responsible for ensuring all regulatory requirements are adhered to;

Ensuring the necessary coordination occurred with Payroll to certify an accounting of all employees and PARs associated with the final implementation of any restructuring initiative, and generating a final report for the business unit that confirms the accounting of all employees and PARs, if necessary, to include that PARs and/or MUM requests are initiated and/or submitted to implement the organizational change;

Ensuring organizational changes are documented, updated, and tracked through a centralized tracking system (e.g., PeopleTrak);

Ensuring the organizational change package is prepared for the Treasury Assistant Secretary (ASM) for Management approval when it is determined that the change met the criteria outlined in TD 21-01, Organizational Changes. To view, go to https://www.treasury.gov/about/role-of-treasury/orders-directives/Pages/td21-01.aspx; and

Assisting business units with their final report, evaluating, and documenting the results of the organizational change, as appropriate.

Providing support and advice for organizations undergoing transformations;

Ensuring all packages are shared with and/or concurred by the DCOS;

Ensuring coordination with the appropriate business representatives, HCO, Finance organizations, and all other internal IRS stakeholders;

Ensuring all changes affecting other business units are coordinated with those units;

Ensuring coordination occurred with C&L, Legislative Affairs;

Ensuring congressional and external stakeholder implications are identified;

Ensuring a plan is established to ensure the necessary communications occurred and/or are underway (only if Deputy Commissioner or above approval is required);

Ensuring the necessary coordination occurs with all responsible areas, including coordination of signature packages when the Deputy Commissioner or Commissioner of Internal Revenue must approve.

Providing support and services in the areas of real estate and equipment, and facilities management; and

Providing guidance, support, and direction to the business units regarding any architecture, engineering and relocation planning, furniture and equipment, logistics management, real estate management, and/or any other facilities management or physical security services needed to achieve the initiative.

Ensuring organizational changes are communicated with the appropriate audiences and stakeholders, such as employees, business units, NTEU, OMB, Treasury, the American Public, Congress, IRS Oversight Board, public interest groups, tax practitioner groups, Treasury Inspector General for Tax Administration (TIGTA), etc.; and;

Providing consultative services to the initiating organization, evaluating each request to determine, develop, and manage communications relative to the specific initiative.

Ensuring each request protects the IRS’s interest of being inclusive of different perspectives, improving engagement of employees, and diversity;

Ensuring the request integrates diversity and inclusion into all aspects of the business, protects the civil rights of taxpayers, provides EEO for all employees, and protects and considers employees with disabilities; and

Ensuring federal EEO principles, policies and laws are reflected in organizational change processes and decisions, managing diversity, and ensuring no protected class/group is targeted or unfairly affected.

Informing business units of potential effects on the operating budget and assisting with implementation plans to address budget concerns;

Coordinating with business units for the establishment of identifiers or codes required by IRS financial systems to track budgetary and financial activities and/or relevant appropriations;

Ensuring the new financial coding structure aligns to the proper appropriation code;

Ensuring the identifiers and codes are available for budget authority when the organizational change is implemented;

Coordinating with business units on the establishment of cost allocations in the IRS accounting system in time for the start of the fiscal year in which the organizational change is implemented;

Ensuring details on planned reorganizations, job reductions, or increases in offices and activities are reported in the IRS Operating Plan so congressional appropriations committees can be properly notified; and

Ensuring compliance with OMB Circular No. A-123, Managements’ Responsibility for Enterprise Risk Management and Internal Controls, identifying deficiencies and overseeing development of a corrective action plan to address deficiencies identified. To view, go to https://www.whitehouse.gov/sites/whitehouse.gov/files/omb/memoranda/2016/m-16-17.pdf.

Reviewing and providing support for organizational change initiatives which:
i. Impact service provided to taxpayers;
ii. Impact service provided to other business units (e.g., mail function in Submission Processing supports all business units in a campus - when consolidating, function must continue and is moved to a continuing organization); or
iii. Results in impacted employees requiring the use of mitigation strategies potentially affecting other business units. As a general guiding principle, if the outcome from the use of the available mitigation tools results in anything other than impacted employees placed voluntarily, the initiative must be brought before the HCB for vetting and concurrence.

Providing a forum for all business units to jointly address issues and challenges emerging during the development and implementation of organizational change initiatives; and

Identifying and addressing issues requiring cross-functional or Servicewide resolution.

Regardless of scope, all organizational changes begin with;
i. an identified need for change;
ii. gathering and analyzing data;
iii. considering alternatives; and
iv. preparing a business case to fully inform the approving official.

The review and concurrence of a business case depends on the scope and effect of the organizational change. All ROCs are documented and approved as outlined in the chart below.

To accomplish this, a business case requiring Deputy Commissioner or above approval, must comply with, and address, specific criteria and contain all information and attachments as outlined in the ROC Template, Exhibit A.

Authority to approve organizational changes at the Business-Owner level/Business Unit Commissioner, unless otherwise indicated, is whomever has the authority to affect a reorganization. This should be done in consultation with the appropriate official(s) within the business unit.

Authority to approve organizational changes at the Deputy Commissioner level.

Authority to approve organizational changes at the Commissioner of Internal Revenue level.

Authority to approve organizational changes within the scope of Treasury ASM.

The initiating office must develop the appropriate level business case and/or documentation to substantiate the need for the proposed change(s) and identify potential effects. As part of the business case development, the initiating office consults with their respective Finance office and other internal business stakeholders, as appropriate.

The business unit designates a Business Representative to consult and coordinate with HCO, CFO, and C&L (Legislative Affairs), as applicable.

All organizational change proposals must address the following factors/criteria or explain why they are not applicable.
i. Description of Initiative. State the purpose of the proposed organizational change. This must include description of how the proposal enhances the mission of the organization, improves alignment with the strategic plan and organizational goals, improves customer service, and improves efficiencies, use of resources, and/or saves money. The business need and expected outcomes must be clearly articulated.

ii. Justification (of Proposed Changes). Describe the proposed changes. Explain the differences between the proposed new structure and present structure. Present the advantages resulting from the change. Address impact on SOC, position management, and/or authorized staffing pattern or allocations. Clearly articulate advantages of the change as it relates to alignment with interdependent organization(s), improved accountability, elimination of duplication, and impact on customers and/or internal or external stakeholder.

iii. Current Structure. Describe the current structure(s) of the organization(s) affected by the proposed change. Include the current number of positions, including vacancies, within the impacted organization(s) and the number of bargaining and/or non-bargaining employees.

iv. Proposed Structure. Describe the proposed structure(s) of the organization(s) affected by the proposed change. This section must clearly describe the new and/or impacted organizational structures, and provide a comprehensive overview of the types of positions, changes in SOC, any impact on authorized staffing patterns, any increases or decreases in employee, manager or executive positions, changes in reporting requirements, etc.

v. Realigned Organization (if applicable). Describe the new and/or restructured organization(s). If approved, how will the organization benefit? Focus on the benefits to internal or external stakeholders and customers. Identify products, programs, or services that benefit or change because of the organizational change. Who is accountable and what they are accountable for? The goal is to convey the benefits resulting from the change, should it be approved.

vi. Impact on Employees, Managers, Executives, Authorized Personnel Ceilings, Grades, and Span of Control (SOC). Specifically address any implementation or mitigation strategies used to address staffing implications (i.e., use of directed reassignments, transfer of function, job swaps, grade or pay retention, RIF). Statements would be needed regarding any changes to position descriptions, critical job elements (CJEs), telework eligibility, tour of duty (TOD), POD, alternative work schedules (AWS).

vii. Challenges and Risks. Identify the effect of the organizational change on other organizations or agencies, and describe any coordination planned or completed. Identify associated risks (e.g., disruption of workforce, duplication of service, scheduling, transfer of work, etc.) and proposed strategies for addressing risk. Summarize any stakeholder engagement already taken place and any additional required stakeholder engagement and identify the appropriate point in the process for that engagement.

viii. Functional Statements. Identify and address whether a new or revised functional statement is required. If applicable, provide the new functional statement, and a summary to show how the function(s) will change as a because of the proposed change.

ix. Possible Controversies with Members of Congress, Employee Unions, the Public, other Agencies, or other Special Interest Groups. Identify possible controversies and what the IRS intends to do to address and/or mitigate the controversies.

x. Cost/Benefit Analysis (if applicable). Using an accepted format, identify and analyze costs, savings, and benefits. Consider costs and savings, such as personnel (including costs of mitigation strategies (e.g., VERA/VSIP, relocation allowances, etc.) and support costs (e.g., space, equipment, telecommunications, supplies)). Separate costs by budget line items. Explain or propose how additional costs will be funded and the points in time when funds are required.

xi. Communications. Describe the communications strategy, to include any communications already issued, and/or scheduled for release relative to the proposed change. Include a brief explanation, including a copy of the formal communications plan and any formal notice(s) to NTEU (includes Form 14036, Notice to National Treasury Employees Union (NTEU), and draft notice), if applicable, and/or any other critical communications.

xii. Functional Communications. Describe method of briefing the Deputy Commissioner or Designee and date concurrence received. Describe coordination with C&L, Legislative Affairs; ensure congressional and external stakeholder implications are identified and establish a plan to ensure the necessary communications occur and/or are underway (only if approval is required by the Deputy Commissioner or above).

xiii. Legal Requirements or Conditions Applicable to the Change. Describe any legal requirements, or compliance obligations, mandating or influencing the need for the proposed change. Identify any changes to delegations of authority, IRMs, etc., that may result from the proposed change. In addition, address compliance with OMB Circular No. A-123, Management’s Responsibility for Enterprise Risk Management and Internal Controls, IRS Operating Plan, and budgetary and financial activities planned and/or underway. Any deficiencies identified must be addressed and corrective actions provided that are planned and/or underway. Include a brief explanation, to include financial and organizational crosswalks, and the MUM that will affect the organizational change in the personnel and related systems, as applicable. To view, go to https://www.whitehouse.gov/sites/whitehouse.gov/files/omb/memoranda/2016/m-16-17.pdf

xiv. Conclusion. Describe the timeline for completion and how the organizational change will be evaluated and/or tracked (if applicable). Any tracking system or process used should ensure that all financial, and employee systems, PARs, IRMs, etc., are processed and accounted for promptly. All mitigation strategies will be tracked using PeopleTrak and/or other equivalent tool approved by the HCO.
 

All organizational change proposals must address and include the following attachments:
i. Attachment XX - Current Organizational Chart(s).
(1) High level organizational chart(s); and
(2) Detailed organization chart(s). Note: Must reflect permanent position of record for employees and identify:

employee names;

position titles;

PDs;

pay plans (e.g., General Schedule (GS), Wage Grade (WG) IR, etc.);

series;

grade;

work schedules (e.g., full time (F/T), part time (P/T), day shift (D/S), night shift (N/S), if applicable;

bargaining unit (BU) or non-bargaining unit (NBU);

number of positions for each organizational segment (including vacant funded positions);

clearly reflect direct lines of supervision;

enough detail to clearly identify SOC; and

clearly identify temporary assignments or details.
ii. Attachment XX - Proposed Organizational Chart(s). Provide proposed organizational chart(s), one high level and one detailed including information identified in item 2(d)(i) above. NOTE: A signature line will be added to the proposed organizational chart to include the Treasury approving official, if applicable.

iii. Attachment XX - Proposed Timeline. Provide a timeline for implementation illustrating when the proposed organization will go into effect and highlighting critical milestones. Timeline must identify critical deadlines that if not met will significantly affect the IRS’s ability to implement the organizational change initiative.

iv. Attachment XX - CFO Certification. Provide information as to certification and date in the business case.
v. Attachment XX - EDI Certification. Provide information as to certification and date in the business case.
vi. Attachment XX - Cost/Benefit Analysis (if applicable). Identify and analyze costs, savings, and benefits. Consider costs and savings, such as personnel and support costs (e.g., space, equipment, telecommunications, supplies). Separate costs by budget line items. Explain or propose how additional costs will be funded and the points in time when funds are required.
vii. Attachment XX - Treasury/HCO Checklist (if applicable).
viii. Attachment XX - Mass Update Module (MUM) Organizational Alignment Timeline (if applicable). Note: Inadequate coordination/timing could affect personnel salary.
ix. Attachment XX - Form 14036, Notice to National Treasury Employees Union (NTEU) (if applicable).
x. Attachment XX - NTEU Notification (e.g., courtesy letter to NTEU), if applicable.

The Associate Director, PEO and/or DCOS TPMO facilitated the review and coordination of all parties in the concurrence process, as applicable.
i. All proposals are reviewed for staffing (voluntary or involuntary) implications, workforce relations issues/labor management obligations, impact on position management and SOC, mitigation strategies, impact on workforce planning, succession planning, and employee development concerns, and to ensure all other applicable regulatory, policy, and/or procedure requirements are met.
ii. A determination is made as to whether the initiative needs to go the SET, HCB, and/or any other oversight or organizational boards in advance of the initiative implementation. A determination is also made as to whether Treasury approval is required.
iii. All concurrences are tracked, concerns are documented and addressed, and a final package is submitted to the appropriate Approving Official for review and signature. If the IRS offers separation incentives under any other statutory authority, a description of how the IRS is using that authority is included.

Organizational changes requiring Deputy Commissioner or above approval also include the approval and/or concurrence of the CFO, Chief, C&L, IRS Human Capital Officer, Chief Technology Officer, Chief Diversity Officer, Chief, FMSS (if space implication), Director, TPMO, Assistant DCOS, DCOS, and DCSE, if applicable, based on the type and scope of the ROC. These reviewers will analyze those aspects of the proposal specific to their responsibilities.

A proposal requiring approval of the Commissioner of Internal Revenue must include the concurrence of the Business Owner (e.g., Business Unit Commissioner/Director) who initiated the proposed change and their respective Deputy Commissioner. When the proposed change affects multiple business units, the other Business Owners and their respective Deputy Commissioner must concur in advance of submission to the Commissioner of Internal Revenue. All proposals must adhere to the approving authorities in the Authorities chart.

The business unit will implement a plan(s) to track and monitor pre- and post-implementation activities.
i. Pre-activities may include detailed timeline identifying major milestones, including financial and system changes, processing PARs, notification to NTEU and negotiations (if applicable), mitigation strategies, etc.; Post activities may include detailed timeline identifying major milestones, system changes, updating IRMs, delegation orders, permissions on mailboxes and SharePoint sites, migrating Leadership Succession Review (LSR) records, etc.;
ii. Defined roles and responsibilities for business unit functions including embedded human resources (if applicable), major stakeholders, and support functions;
iii. Identified risks and planned responses and contingencies; and
iv. A communication plan addressing information needs of project team members, affected employees, customers, and NTEU.

Business unit specific initiatives, without involuntary actions and/or the use of mitigation strategies, are coordinated and implemented through routine support channels. For example, business units ensure all PARs reflecting placement action and/or change in data element(s) are submitted timely, and all other systems are updated to reflect the new organizational structure.

The business unit is responsible for reporting the organizational change to the CFO. Budgetary and financial issues are coordinated with the CFO, as outlined under Responsibilities.

Any new organization or reorganization request for establishing identifiers/codes in the IRS financial and accounting systems meeting the following criteria must be submitted to the CFO by the annual master data call deadline in the year prior to the fiscal year the organizational change is to be implemented. Criteria includes:
i. Deputy Commissioner approval or above;
ii. Establishment of a new Financial Plan; or
iii. Moving established cost offices (centers) from one budget office (fund center) to another budget office.

Changes in identifiers/codes in the IRS financial accounting systems that do not meet any of the criteria listed above may be submitted to the CFO anytime during the fiscal year, but at least 45 days in advance of the reorganization’s effective date.

The business unit is responsible for ensuring that all IRMs, delegation orders and organization charts are updated to reflect changes in the organization. Changes to competitive areas must also be reported and documented on the annual request for updates.

As part of the organizational change process, the business unit is responsible for evaluating the effectiveness of the implemented organizational change.

For initiatives with impact beyond the initiating business unit, the initiator is responsible for preparing a final report addressing the completed organizational change.

Evaluation criteria should be consistent with those identified in the business case proposal.

The completed evaluation is shared with HCO, CFO, C&L, and Legislative Affairs.

Evaluation should include a final reconciliation of all employee/position movements.

The HCO will assist the business unit with the final evaluation.

Business unit specific organizational changes should include a final report documenting implementation and completion, if appropriate. This report is maintained by the business unit with the original business case for change.

Business units should begin planning for VERA/VSIP as soon as it appears likely that the organizational change cannot be accomplished through less severe methods (e.g., hiring freeze, normal attrition, reassignments).

Requests for use of VERA/VSIP is required per Article 19 of the National Agreement when a RIF is anticipated, subject to Office of Personnel Management Agreement (OPM) approval.

Early planning by the business unit in partnership with WRS ensures that the VERA/VSIP authority is available in time to make the most effective use of the option. Lead-time is necessary to develop the data to support the VERA/VSIP request, submit the request through required IRS and Treasury approval levels, and formally request OPM approval.

The VERA/VSIP package, which is different than the ROC, must outline the intended use of the VSIP incentive payments, and must include:
i. Identification of the specific positions and functions to be reduced or eliminated, identified by organization, geographic location (city/state), pay plan, occupational series, grade, and any other factors related to the position.
ii. A description of the categories of employees offered separation incentives identified by organization, geographic location, occupational series, grade and any other factors, such as skills, knowledge, or retirement eligibility.
iii. The timeframe during which separation incentives are paid and date by which employees will be off the rolls
iv. The number and maximum dollar amounts of the separation incentives offered.
v. A description of how the organization will operate without the eliminated or restructured positions and functions (i.e., strategic workforce plan).
vi. A proposed organizational chart displaying the expected changes in the organizational structure after the organization completes the incentive payments as well as a current organizational chart must be included.
vii. If the IRS requests, or will request, VERA, an explanation of how the IRS will use that authority in combination with separation incentives.
viii. If the IRS offers separation incentives under any other statutory authority, a description of how the IRS is using that authority.

Once the ROC is reviewed and approved, and if the use of VERA/VSIP is requested, WRS facilitates the creation of a VERA/VSIP request and business case which is reviewed and coordinated with all parties.

All proposals include concurrence of the IRS Human Capital Officer and Treasury.

Final approval authority falls with OPM.

Creation, abolishment, or substantial changes in the organization at the level that reports directly to an Assistant Secretary or above (in Departmental Offices) or a bureau head and/or a deputy bureau head;

Proposed changes in mission critical programs;

Major changes in field structures; or

Changes that will cause controversy or have a major impact on the organization’s budget, personnel, stakeholders, or Congress.