Except in rare circumstances such as when the employee is on extended sick leave, the supervisor must meet with the employee within the first 30 days of the beginning of an employee's appraisal period, or when the employee is assigned to a new position for at least 60 days (e.g., temporary promotions, details), to review responsibilities and establish commitments or objectives and discuss the Retention Standard for the fair and equitable treatment of taxpayers.

The performance appraisal cycle for managers, management officials, and confidential management/program analysts is based on the fiscal year and normally begins October 1.

The supervisor reviews the employee's assigned SPD, verifying that it accurately reflects the assigned duties. If it does not, the supervisor contacts the Human Capital Office (HCO) for assistance in identifying the appropriate SPD or developing a new one.

Managers, management officials, and confidential management/program analysts are rated against critical performance expectations.

Critical performance expectations consist of three components:

Both the supervisor and the employee should review the responsibilities found in Part I, Section A, of the appropriate performance agreement to ensure mutual understanding of how each responsibility applies to the employees expected performance during the upcoming performance appraisal period.

Commitments and objectives enable managers, management officials, and confidential management/program analysts to develop action items that will, in turn, carry out the Service's day-to-day operations, linking their activities to the IRS' goals and objectives. Each commitment or objective should relate to, and support, one or more of the responsibilities listed in the performance agreement.

The supervisor should share his or her commitments with the employee prior to the employee's commitments or objectives being developed. The supervisor discusses how the employees commitments or objectives should link to the organizational workplans and balanced measures.

The supervisor should review documents such as organizational program plans, business plans, site-specific issues/priorities, Equal Employment Opportunity/Affirmative Action plans, and balanced measures data when preparing to discuss with the employee what needs to be included in his or her commitments or objectives.

The supervisor and employee should identify the most important areas on which to focus.

The supervisor and the employee jointly develop the employee's commitments or objectives, with the reviewing official having the final authority for approval of the performance agreement.

The supervisor must discuss with the employee behaviors that will allow the employee to meet the Retention Standard for the fair and equitable treatment of taxpayers, circumstances that may result in a determination that the employee does not meet the Retention Standard for the fair and equitable treatment of taxpayers, and the potential impact of not meeting the Retention Standard. IRM Exhibit 6.430.2-1, Performance Management Program for Evaluating BU & NBU Employees Assigned to CJEs provides examples of Retention Standard behavior that may result in a "Met" or "Not Met" rating.

Discussions concerning the Retention Standard for the fair and equitable treatment of taxpayers may include:

Executive Order 12958, Classified National Security Information, requires that all managers and management officials whose duties significantly involve the creation or handling of classified information and who handle national security information on a regular basis must have a critical element in their annual performance agreement dealing with this activity.

Holding a national security clearance does not automatically require that the National Security Critical Element be included in the performance plan. The critical element is only applicable for managers and management officials who have regular, hands-on-work that requires classifying, safeguarding, and declassifying national security information. Each manager must determine on a case-by-case basis if their employees should be covered by this critical element.

The U.S. Department of the Treasury Classified National Security Information Critical Element form should be added as a separate attachment to the performance agreements of affected managers, supervisors, and management officials.

Because this element affects a limited number of employees, it has not been incorporated into Form 12450-A, Manager Performance Agreement, or Form 12450-B, Management Official Performance Agreement. The element should be attached to the performance agreement as long as the employee continues to perform work that meets the requirements of the Executive Order.

Upon deciding to incorporate the element into the performance agreement of a manager, supervisor, or management official, the manager must discuss the critical element with the employee and have the manager or management official acknowledge receipt via signature on the form.

Information about the Classified National Security Information Critical Element, a Decision Table for Implementation of the National Security Information Critical Job Element (For Managers, Supervisors, and Management Officials), and a link to the Classified National Security Information Critical Element for Evaluating Managers, Supervisors, and Management Officials form can be found under the “Related Links” heading on the Managers Performance Plan page of the HCO Performance Management website at: http://hco.web.irs.gov/perfmgmt/perfplan/mgrperfplan/index.html.

The rating official, reviewing official, and employee sign and date the performance agreement to acknowledge that they have discussed the critical performance expectations. This discussion should occur within 30 days of the beginning of the appraisal period.

The performance agreements for employees covered by the requirements of this section are:

Following the discussion, the supervisor should give a copy of the performance agreement to the employee and file the original in the Employee Performance File (EPF). For more information on the EPF, see IRM 6.430.3.3.3 and the Employee Performance File document at: https://portal.ds.irsnet.gov/sites/ERCDocs/2002/HCO/CompLvBr/EPFGuideforMgrs.pdf.

The employee and supervisor should use the performance agreement and the critical performance expectations to monitor accomplishments or other significant events as they occur.

After the supervisor and employee have reached agreement on a set of commitments or objectives, the supervisor should monitor the employee's progress in meeting the responsibilities and achieving the commitments or objectives throughout the appraisal period.

At a minimum, the supervisor must conduct a mandatory mid-year progress review. This progress review generally occurs in April and should include a discussion of the employees progress in meeting expectations (Responsibilities, Commitments or Objectives, and Retention Standard for the fair and equitable treatment of taxpayers). This mandatory mid-year progress review must be documented on the Manager, Management Official, or Confidential Management/Program Analyst Performance Agreement.

The supervisor should also document any other progress reviews held and provide a copy to the employee. Documented observations throughout the performance appraisal period serve as an aid in completing the mandatory mid-year progress review and the annual evaluation. The supervisor should identify the actions taken to accomplish commitments or objectives, and responsibilities.

The supervisor should focus on the employees performance as it relates to the Retention Standard for the fair and equitable treatment of taxpayers and progress toward achieving commitments or objectives. If necessary, the supervisor should identify improvement opportunities.

At any point during the performance cycle, the supervisor and the employee can review and revise commitments or objectives to reflect changes in the priorities of the Service.

The supervisor may NOT use Records of Tax Enforcement Results (ROTERs) in monitoring progress against critical performance expectations. The ROTERs do not convey whether an individual performed well under his or her critical performance expectations. For additional information on ROTERs, see IRM 1.5.2, Managing Statistics in a Balanced Measurement System - Section 1204, Certification and Independent Review Processes.

Progress reviews including mid-year reviews may not be disputed. Assessments of performance at the time of a progress review may differ from the annual summary evaluation. Disputes filed before the end of the appraisal period would be premature. However, employees may submit documentation to the supervisor regarding matters of concern on the progress review.

The following includes actions the supervisor should take to monitor progress against critical performance expectations:

If at any time during the appraisal period an employee's performance in one or more critical performance expectations (Responsibilities, Commitments or Objectives, or the Retention Standard for the fair and equitable treatment of taxpayers) falls below the "Met" level, the manager must provide assistance.

The supervisor must consult with their servicing Labor Relations/Employee Relations Office regarding any performance rating of "Not Met" or "Minimally Satisfactory" to ensure that all parties understand the implications of failing to improve.

Employees who do not meet the Retention Standard for the fair and equitable treatment of taxpayers, Commitments or Objectives and/or Responsibilities should be counseled as early as possible in the appraisal period. Failure to improve or to sustain a "Met" rating could impact an employee's ability to remain in his or her position. Failure to improve or to sustain a "Met" rating could also impact an employee's salary review and cause the employee to be ineligible for a pay increase under an IRS Payband System.

Before a supervisor begins the formal process of taking a performance-based action, the supervisor needs to be aware that he or she has certain options. The law provides for two different processes for taking performance-based actions:

"Not Met" ratings must be reviewed and approved by an official higher than the rating official.

When an employee's performance fails to meet established performance expectations at an acceptable level in one or more critical performance expectations (i.e., Retention Standard for the fair and equitable treatment of taxpayers, Commitments or Objectives and/or Responsibilities), the supervisor must notify the employee in writing. This notice must advise the employee of the following:

If the employee demonstrates acceptable performance during the opportunity period, the rating official retains the notice of unacceptable performance in the EPF for one year from the date the opportunity period became effective.

Saving Provision - Any administrative action initiated (e.g., an action taken against "Not Met" employees under 5 U.S.C 4303) must continue to be processed consistent with the procedures and requirements of the program in effect when the action was initiated.

A rating of "Minimally Satisfactory" or "Not Met" will also lead to the employee's ineligibility to receive a within-grade increase, career ladder promotion, or to complete his or her probationary period.

A rating of "Minimally Satisfactory" or "Not Met" will also lead to the employee's ineligibility to receive a basic pay increase under an IRS Payband System.

The EPF consists of all performance ratings and other performance-related records maintained on an IRS employee in accordance with 5 CFR 293, Subpart D.

.

Management is responsible for creating records concerning employee performance and maintaining them in accordance with the Privacy Act and Freedom of Information Act regulations.

At a minimum, the EPF should contain forms and documents which:

The following documents must be maintained for four years:

The supervisor must keep performance records in the EPF as long as necessary, if needed in connection with a grievance, appeal or judicial proceeding.

For employees who are permanently changing positions within the IRS, the supervisor will ensure the employee's entire EPF is forwarded to the gaining supervisor.

For employees who are accepting outside employment and leaving the IRS, who are accepting employment with another government agency, or who are resigning or retiring from the IRS, the supervisor must remove all of the ratings of record completed within the last four years from the separating employees EPF, attach these ratings of record to Transmittal Form 3210, and forward the package to the following address:

The National Archives and Records Administration staff will ensure the ratings of record are filed in the Official Personnel Folder (OPF) before being sent to the Federal Records Center if the employee resigns or to the gaining agency if the employee transfers.

Supervisors must destroy any remaining performance related documents unless such records are needed in connection with a grievance, appeal, or judicial proceeding.

All employees who have served the minimum appraisal period of 60 calendar days are entitled to an annual performance appraisal that becomes the rating of record.

Permanent supervisors, complete the annual performance appraisals for employees under their authority.

Employees who are temporarily promoted or detailed to a supervisory position have the authority to complete the annual performance appraisals for employees under their supervision, as long as the employees meet the requirements for an annual performance appraisal. There is no minimum period of time required for this authority.

The employees performance must have been observed a minimum of 60 days in the appraisal period by any supervisor who was responsible for assigning, reviewing, and evaluating the employee's work. However, it is not necessary for the employee's current supervisor to have observed the employees performance under a signed performance plan for 60 days or more.

The supervisor should consider the following when evaluating performance to complete an annual appraisal:

Self-assessments are narrative descriptions or lists of accomplishments that the employee develops to describe his or her realization of goals, objectives, achievements, and significant accomplishments or shortfalls during a specified appraisal period.

An effective self-assessment describes the specific actions taken by the employee to accomplish work requirements identified by responsibilities, commitments or objectives, and the Retention Standard for the fair and equitable treatment of taxpayers.

As the end of the performance appraisal period approaches, the supervisor should request that the employee prepare a written summary of his or her performance not to exceed two pages. The supervisor should explain that the self-assessment becomes a part of the manager's, management official's, or confidential management/program analyst's performance agreement. Providing a self-assessment contributes to the preparation of an accurate summary evaluation.

This narrative is limited to the space on the form and should outline the key accomplishments for each commitment or objective and relate accomplishments to performance in the responsibilities. The supervisor should also consider all the performance agreements completed during the appraisal period for temporary assignments.

Do not include ROTERs in the Summary Narrative; ROTERs are not an indication of whether the employee performed well against the critical performance expectations.

In completing the Summary Narrative:

While the Retention Standard for the fair and equitable treatment of taxpayers is not normally addressed in the Summary Narrative, it must be discussed if the rating for the Retention Standard is "Not Met."

The supervisor must use the rating definitions found in this section.

The summary evaluation provides one rating for the combined performance against the Retention Standard for the fair and equitable treatment of taxpayers, the Responsibilities, and the Commitments or Objectives.

The supervisor must also consider the rating for the National Security Critical Element for those managers or management officials who are covered by that element. Failure of the National Security Critical Element is treated in the same manner as the failure of the Retention Standard for the fair and equitable treatment of taxpayers.

The summary evaluation balances the Retention Standard for the fair and equitable treatment of taxpayers, Responsibilities, and Commitments or Objectives for the final rating and ties the Commitments or Objectives directly to the five Responsibilities and should ensure balance among all of the Responsibilities.

The supervisor should only assign the annual summary evaluation at the end of the appraisal period for an employee who is on a permanent assignment or who is on a temporary promotion or detail at the end of the employees appraisal period and meets the conditions specified in IRM 6.430.5.3, IRM 6.430.5.4, and IRM 6.430.5.5.

Office of Personnel Management (OPM) regulations prohibit setting quotas for summary evaluation ratings (i.e., a forced distribution of summary levels).

Supervisors can complete a rating up to 364 days following the end of the appraisal period. Lengthy delays should be extremely rare due to the potentially negative impact on both the individual and the organization.

The approving official has final authority to approve the summary rating.

It is not necessary for the supervisor to have observed the employees performance under a signed performance agreement for 60 days or more. However, the employees performance must have been observed by at least one other supervisor under a signed agreement for a minimum of 60 days within the appraisal period. In rare cases, it may be necessary to extend the appraisal period until the minimum 60 days has been met.

If the employee has insufficient performance during the appraisal period to be assigned a rating of record, the employee will be designated "Not Ratable" for that period.

A new employee begins his or her regularly scheduled annual appraisal period upon entrance on duty. This may be at any point in the period of October 1 through September 30. A supervisor should begin monitoring a new employee immediately to determine if the employee is willing and able to perform the work and is otherwise suited for retention in the position.

Although formal performance improvement plans are not required for employees who are serving probationary periods, a supervisor should provide an employee who is not meeting his or her Responsibilities and Commitments or Objectives with enough information to help the employee understand how he or she is failing and how the employee might improve.

Upon determination that a probationary employee either will not or cannot meet expectations, the supervisor must begin action to terminate the employee from his or her position and/or from Federal service.

A rating of "Met" or higher rendered early during a probationary or trial period does not preclude a subsequent decision that the employee is not performing at expected levels or otherwise suitable to be retained. However, a supervisor should be able to provide specific examples either:

Supervisors should consult with the servicing Labor Relations/Employee Relations Office regarding any performance rating of "Not Met" to ensure that all parties understand the implications of failing to improve.

Employees serving probationary periods for initial appointments to supervisory/managerial positions who do not meet expectations set forth in performance plans that relate to supervisory/managerial responsibilities will be returned to non-supervisory positions. That decision can be made at any time during the one year probationary period.

Although formal notice and opportunity to improve are not required, supervisors generally should provide at least enough information so that the new supervisor understands specific deficiencies in time to make corrections.

A rating of "Met" or higher rendered early during the supervisory/managerial probationary period does not preclude a subsequent decision that the individual is not successfully performing the supervisory/managerial aspects of his or her position. However, a supervisor should be able to provide specific examples of deficiencies that occurred after the rating was rendered.

Decisions to remove probationary employees may be made at any time during the probationary period.

Supervisors should consult with the servicing Labor Relations/Employee Relations Office regarding any performance rating of "Not Met" to ensure that all parties understand the implications of failing to improve.

A departure appraisal is a performance appraisal prepared when either the supervisor or employee moves from a permanent or temporary assignment to another permanent or temporary assignment.

The employee must have been provided a performance agreement and served in the position for a minimum of 60 days to receive a departure appraisal.

Each critical performance expectation is given a rating; however, a summary evaluation is not assigned unless the employee or supervisor departs his or her position within the last 60 days of the appraisal period and the appraisal becomes the rating of record.

Types of departure appraisals:

If a supervisor is assigned to a new organization and the employee accompanies the supervisor to the new organization and will occupy the same position, a departure appraisal is not required.

The supervisor must sign the departure appraisal and provide a copy to the employee for the employee's signature. The approving official's signature is not required unless the departure appraisal will become the employee's rating of record.

All departure appraisals must either be sent to the employee's new office (with the employee's EPF), if the employee is changing positions, or placed in the employee's EPF when the supervisor changes positions.

The rating official should consider all departure appraisals as input for preparation of the employees annual rating of record.

Departure appraisals are not required for employees leaving the IRS and not going to other Federal employment. For example, departure appraisals are not required for employees who resign or retire.

The employee's most recent rating of record will be used for merit promotion in nearly all cases.

A supervisor may prepare a new performance appraisal for merit promotion purposes only when the employee is newly hired or has returned to duty after a lengthy absence and has no rating of record on file.

These merit promotion appraisals cannot be used as the employee's rating of record and are valid only for the specific merit promotion action.

Since a merit promotion appraisal cannot become a rating of record, no approving official signature is required and no summary evaluation is assigned.

Managers, management officials, and confidential management and program analysts who apply for bargaining unit positions must have their most recently completed performance appraisal converted to the performance appraisal form used for bargaining unit employees. Exhibit 6.335.1-4 of IRM 6.335, Promotion and Internal Placement, contains guidance on how that is accomplished.

For a "Not Ratable" employee who has served 90 days on a competitive appointment but not served 60 cumulative days under a signed performance agreement, the supervisor must submit a statement to the servicing Employment Office indicating that the employee is "Not Ratable."

These "Not Ratable" employees cannot receive any type of performance appraisal for merit promotion, even a "presumptive" Fully Successful appraisal. Employment Offices will not accept "presumptive" Fully Successful appraisals for merit promotion.

The OPM regulations require that the decision to grant or deny a WIGI must be supported by the employee's most recent rating of record. If the most recent rating of record does not support the decision, a new rating must be prepared.

A new rating of record is required when:

This rating of record prepared to support or deny the WIGI becomes the employee's new rating of record for all purposes.

A supervisor may be unable to rate an employee at the end of the performance appraisal period, in which case no rating of record shall be recorded for the employee for that appraisal period.

Examples of "Not Ratable" situations :

If the supervisor determines that the employee is "Not Ratable" at the end of the employees designated performance appraisal period, the supervisor must complete the performance agreement in the automated performance appraisal system and indicate that the employee is "Not Ratable" and specify the reason for that determination in the space provided.

In those cases where an non paybanded employee cannot be rated, the employee may be granted a "Waiver of Requirement for Determination" for a WIGI as specified in 5 CFR 531.409(d).

The OPM regulations and IRS policy prohibit retroactive ratings of record.

Exceptions include appraisals changed as a result of:

Presumptive ratings for ratings of record are prohibited by 5 CFR 430.208 (a)(2).

A rating of record can be based only on the evaluation of actual job performance for the designated performance appraisal period. A supervisor must not issue a rating of record that assumes a level of performance by an employee without an actual evaluation of that employee's performance.

Supervisors are also required to discuss Form 13236, Evaluation of Managerial Potential (EMP). The EMP is completed at the end of each appraisal period to identify leadership competencies for development and to determine potential in the competitive process. Recently many managers completed the four stages of the Leadership Succession Review (LSR) assessment which also identifies leadership competencies for development. Until further notice, managers who have completed all four stages of the LSR will not be required to complete the EMP annually as part of the appraisal process. Managers who have not completed all four stages of the LSR assessment will continue to complete the EMP as part of the annual appraisal process. Note: In the near future the EMP will be obsoleted and be replaced with LSR leadership competency ratings in the Merit System Promotion competitive process.