The Internal Revenue Service Restructuring and Reform Act of 1998 (RRA ’98), Section 1204, requires all IRS employees to be evaluated on the fair and equitable treatment of taxpayers. This requirement has been incorporated into a Retention Standard for the fair and equitable treatment of taxpayers that is the same for all employees.

For information on Discussing The Retention Standard for the Fair and Equitable Treatment of Taxpayers, see IRM 6.430.2.2.5 and Exhibit 6.430.2-1.

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

In most cases, the supervisor will start with an existing performance plan that is appropriate for the employee’s position. However, the supervisor may need to obtain a new performance plan if appropriate CJEs and performance aspects for the employee’s SPD do not exist. In the latter case, the supervisor contacts the business unit representative for guidance in obtaining the appropriate performance plan from the CJE Resource Center at https://irsgov.sharepoint.com/sites/EmployeeResources/SitePages/CareerOpportunities6.aspx?OR=Teams-HL&CT=1697136730253&clickparams=eyJBcHBOYW1lIjoiVGVhbXMtRGVza3RvcCIsIkFwcFZlcnNpb24iOiIyNy8yMzA5MDExMjIyOSIsIkhhc0ZlZGVyYXRlZFVzZXIiOmZhbHNlfQ%3D%3D.

The performance of bargaining unit and non-bargaining unit employees assigned to the following supervisory codes are evaluated against CJEs and performance aspects:

The supervisor must annotate the accuracy of the SPD on Form 6774, Receipt of Critical Job Elements and Fair and Equitable Treatment of Taxpayers Retention Standard, each year. If the SPD is no longer accurate, the supervisor should contact their business unit for further guidance.

The supervisor reviews the employee position specific CJE performance plan, which is composed of the CJEs and performance aspects describing the "Meets," "Exceeds," and "Fails" levels. The CJE performance plans may be found in the CJE Resource Center at https://irsgov.sharepoint.com/sites/EmployeeResources/SitePages/CareerOpportunities6.aspx?OR=Teams-HL&CT=1697136730253&clickparams=eyJBcHBOYW1lIjoiVGVhbXMtRGVza3RvcCIsIkFwcFZlcnNpb24iOiIyNy8yMzA5MDExMjIyOSIsIkhhc0ZlZGVyYXRlZFVzZXIiOmZhbHNlfQ%3D%3D.

All CJE performance plans, including any new or revised performance plans, are approved and controlled by the HCO, Performance Management and Recognition office.

The CJE performance plans are developed by teams of subject matter experts (SMEs) using the following process:

Business units must ensure the above process is followed when new CJE performance plans are developed or existing performance plans are revised.

Since CJE performance plans and performance aspects are intended to be as cross functional as possible, business units should coordinate development of a new or revised CJE performance plan with other divisions or functions that may use that plan.

Business units must perform a complete job analysis when creating or modifying performance plans. This job analysis should include the following documentation:

The HCO, Performance Management and Recognition office will retain this written record including the job analysis and supporting documentation for as long as the CJE performance plan is current.

Business units must submit the new or revised performance plans to the HCO, Performance Management and Recognition office, for review and approval.

After approval, the HCO, Performance Management and Recognition office will provide a copy of the new or revised CJE performance plans covering bargaining unit employees to the HCO’s Labor/Employee Relations & Negotiations division for inclusion as part of the notice process as specified in the National Agreement (Document 11678).

The National Treasury Employees Union (NTEU) will be given the opportunity to bargain impact and implementation before the new or revised CJE performance plans for bargaining unit employees are put into effect.

The HCO will forward the approved performance plans to Media and Publications, Publishing Services, to be put into the proper format and retained in the Electronic Publishing Product Catalog.

Establishing the appropriate CJE performance plan is a three-step process that includes:

The supervisor must discuss with the employee behaviors that allow the employee to meet the Retention Standard for the fair and equitable treatment of taxpayers as well as, 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 for the fair and equitable treatment of taxpayers. Exhibit 6.430.2-1 provides examples of behavior that may result in a "Met" or "Not Met" rating. See Exhibit 6.430.2-1.

Discussion of the Retention Standard for the fair and equitable treatment of taxpayers will include:

The supervisor should monitor the employee's performance plan through the following:

Supervisors should avoid:

The supervisor may NOT use Records of Tax Enforcement Results (ROTERs) in monitoring progress against CJEs. ROTERs do not convey how an employee performed in relation to requirements of the CJE performance plan.

The supervisor should keep performance data organized in the EPF. All documents used in formulating an evaluation must be shared with the employee prior to placing it in the employee’s EPF. Supervisors must share any written evaluative recordation with bargaining unit employees within time periods established in the National Agreement (Document 11678). If not, it cannot be used as evaluative recordation.

The supervisor observes the employee’s performance on a regular basis throughout the employee’s appraisal period.

At a minimum, the supervisor must conduct a mandatory mid-year progress review on the requirements of the CJE performance plan.

The supervisor should provide meaningful feedback, relating it specifically to CJEs, opportunities for improvement, and the manner in which progress is being achieved. The supervisor should also cite outcomes and specific examples and offer feedback when it can be discussed and when it is most useful, that is as soon as the work is completed or before the employee will be doing a similar task. The supervisor should also coach the employee in ways to improve performance. The supervisor should combine formal and informal feedback often throughout the appraisal period to highlight changes in performance and next steps. Monthly or quarterly one-on-one sessions may be appropriate in addition to the mandatory mid-year progress review.

The supervisor should combine formal and informal feedback often throughout the appraisal period to highlight changes in performance and next steps. Monthly or quarterly one-on-one sessions may be appropriate in addition to the mandatory mid-year progress review.

All performance recordations and discussions must be documented and shared with the employee prior to being filed in the EPF. Any employee comments concerning the recordations must also be filed in the EPF. The date the progress review was conducted should be noted on the performance appraisal form. Supervisors must share any written progress reviews with bargaining unit employees within time periods established in the National Agreement (Document 11678). If not, they cannot be used as evaluative recordation.

If the supervisor notes that an employee’s performance has declined from the previous appraisal period, the supervisor must note it and conduct a counseling session with the employee. Although performance feedback is always encouraged, supervisors are not required to notify a non bargaining unit employee prior to lowering the employee's average CJE score from the previous annual rating.

Generally, employees may not grieve progress reviews until they are used in the annual rating of record. This is because the supervisor may change their evaluation of performance before the end of the appraisal period and the performance documentation may not be used in the performance appraisal. Grievances filed before that time would be premature. However, an employee may attach documentation regarding matters of concern to their progress review.

It is the supervisor’s responsibility to inform the employee whenever a decrease in work performance is observed either from the prior year’s appraisal or from the mid-year progress review. A decrease in performance necessitating supervisory involvement normally refers to the decline of one or more rating levels (i.e.," Exceeds Fully Successful" to" Fully Successful" ). In this event, the following steps may be taken:

Supervisors must provide assistance to employees at any time during the appraisal period that performance is determined to be "Minimally Successful" or "Unacceptable" in one or more CJEs or the Retention Standard for the fair and equitable treatment of taxpayers.

The supervisor must consult with their servicing Labor Relations/Employee Relations Office regarding any performance rating of "Unacceptable" or "Minimally Successful" 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, or are performing below "Minimally Successful" in any of the CJEs should be counseled as early as possible in the appraisal period. Failure to improve or to sustain at least a" Minimally Successful" rating could impact an employee’s ability to remain in their position.

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

"Unacceptable" 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 (i.e., "Minimally Successful" ) in one or more CJEs or the Retention Standard for the fair and equitable treatment of taxpayers, the supervisor must notify the employee in writing. This notice must advise the employee of the following:

The employee must be provided a minimum of 60 days during which to raise their work performance to an acceptable level. While a rating of record showing the "Unacceptable" performance is not required at this time, the supervisor must communicate to the employee in writing the specifics for the "Unacceptable" rating.

If an employee’s performance does not improve to an acceptable level (i.e., Minimally Successful), an adverse action may result (e.g., reduction in grade, reassignment, or removal). The supervisor must contact the servicing Labor Relations/Employee Relations Office before initiating any formal performance based action.

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 "Unacceptable" employees under 5 USC Section 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 Successful" or "Unacceptable" will also lead to the employee’s ineligibility to receive a WGI, career ladder promotion, or to complete their probationary period.

The EPF is a system consisting of all performance ratings and other performance-related records maintained on an employee in accordance with 5 CFR Part 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 IRS the supervisor must remove all of the ratings of record completed within the last four years from the separating employee’s EPF, attach these ratings of record to Form 3210, Document Transmittal, and forward the package to the following address:

The National Archives and Records Administration staff will ensure the ratings of record with appropriate CJE performance plan documents 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. There is no minimum period of time required for this authority.

The employee’s 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 employee’s performance under a signed performance plan for 60 days or more.

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

Bargaining unit and non bargaining unit employees covered by CJE performance plans are evaluated in accordance with a schedule based on the employee’s last digit of their Social Security Number (SSN). The schedule for appraisal periods and due dates is shown in the National Agreement (Document 11678).

In addition, an appraisal period will begin each time an employee is assigned to a new position for at least 60 days (e.g., temporary promotions, details, projects, or task forces) or issued a new CJE performance plan.

If the employee has not been observed by the current or another supervisor for 60 days on their performance plan at the time the employee's annual rating is due, the supervisor must:

A new performance plan is not required for an employee returning to their permanent position following a temporary personnel action if the employee is returning during the same appraisal cycle. In this case, the supervisor of the employee’s permanent position may reinstate the performance plan previously in effect rather than complete a new performance plan. The time previously accrued under the original performance plan would count toward the 60 day period for rating eligibility.

The supervisor should begin monitoring probationary employees immediately to determine if they are able to perform the work, and are otherwise suited for retention in their position. Although formal performance improvement plans are not required for probationary employees, the supervisor should provide the probationary employees who are not meeting their CJE performance plan with sufficient information to help them understand how they are failing and how they can improve.

Probationary employees are included in the appraisal schedule shown in the National Agreement (Document 11678). Their scheduled annual appraisal period is based on the last digit of their SSN. If the probationary employee has at least 60 days under a signed performance plan (Form 6774, Receipt of Critical Job Elements and Retention Standard) at the time the annual rating is due, the supervisor must prepare a Form 6850-BU or Form 6850-NBU even if the employee has not been in the position for a full year.

If the probationary employee's performance does not improve, then the supervisor should immediately begin action to terminate the employee from the position and/or Federal service.

Supervisors should consult with the servicing Labor Relations/Employee Relations Office regarding any performance rating of "Minimally Successful" or "Unacceptable" to ensure that all parties understand the implications of failing to improve.

A rating of "Fully Successful" or higher, rendered early during the probationary period does not preclude a subsequent decision that the employee is not performing at the expected level, or is otherwise unsuitable to be retained. However, the supervisor should provide specific examples of how performance deteriorated after the rating was assigned if the decision to remove during probation is for unacceptable performance.

See the National Agreement (Document 11678) for more information.

Self-assessments are narrative descriptions or lists of accomplishments that the employee develops for the annual rating to describe their realization of goals, objectives, achievements, and significant accomplishments or challenges during the specified appraisal period.

An effective self-assessment describes the specific actions taken by the employee to accomplish work requirements identified by the CJE performance plan and the Retention Standard for the fair and equitable treatment of taxpayers.

Bargaining unit employees are not required to submit a self-assessment but should be encouraged to do so.

Within the last 30 days of the appraisal period, the supervisor should ask the employee to prepare a self-assessment.

A bargaining unit employee must be given up to four hours of official time to prepare a self-assessment, if the employee requests it. This requirement has not been extended to non bargaining unit employees.

Bargaining unit employees should submit their self-assessment to their immediate supervisor no later than the last workday of their appraisal cycle.

Non bargaining unit employees should submit their self-assessment to their immediate supervisor by the date requested by their supervisor.

The supervisor must consider the employee’s self-assessment when preparing the employee’s annual appraisal.

If the employee prepares a self-assessment, it should be attached to the employee’s revalidated annual appraisal for all purposes.

Self-assessments are limited to four pages regardless of the format chosen. Employees may (but are not required to) use Form 13335, Performance Appraisal Self-Assessment Form in preparing and submitting a self-assessment.

Narratives can reinforce corporate values, particularly customer service. It is beneficial to comment on significant accomplishments and narratives need to accurately reflect the employee’s performance for the appraisal period.

Normally, performance appraisal narratives should not exceed two single-spaced, typed pages. There are situations when a narrative may not be required as discussed further in this section.

All documentation must be reviewed, considered, and summarized for work performed during the appraisal period. These documents support numerical ratings assigned, possible performance awards, merit promotion opportunities, and help to identify continuing educational needs.

Supervisors should review each performance aspect and prepare a written narrative describing the level of performance for each applicable performance aspect. The supervisor should write the narrative before assigning levels to performance aspects.

The narrative should contain brief highlights of an employee’s performance for a specified appraisal period. It must describe performance as it relates to the employee’s CJEs and for every performance aspect observed and serves as the basis for the overall rating.

Well-written narratives contain specific goals and objectives, examples of achievements, significant accomplishments and/or, if necessary, performance shortfalls of measurable and observable performance during the appraisal period. They should:

Narratives must NOT contain Records of Tax Enforcement Results (ROTERs). For additional information, see IRM 1.5.2, Managing Statistics in a Balanced Measurement System, Uses of Section 1204 Statistics.

Narratives are permanent records that become part of the performance appraisal.

Once completed, the narratives must be attached to the performance appraisal form (Form 6850-BU or Form 6850-NBU).

The supervisor must determine whether the employee has performed duties with potential impact on taxpayer issues or outcomes during the appraisal period.

If the employee has performed such duties, the supervisor must determine whether the Retention Standard for the fair and equitable treatment of taxpayers has been "Met."

If a rating of "Not Met" is proposed, the supervisor must contact their servicing Labor Relations/Employee Relations Office for guidance on developing a Performance Improvement Plan. Failure of the Retention Standard for the fair and equitable treatment of taxpayers will result in an Overall Rating of "Unacceptable."

If the employee has not performed such duties the supervisor must check "Not Applicable" for the Retention Standard for the fair and equitable treatment of taxpayers on Form 6850-BU and Form 6850-NBU.

Annual appraisals are completed on Form 6850-BU. The supervisor lists each performance aspect under the appropriate CJE on the Form 6850-BU or Form 6850-NBU.

The supervisor evaluates the employee’s performance in each performance aspect and rates each aspect as "Exceeds," , "Meets," or "Fails" .

If the supervisor has not observed the employee’s performance in a performance aspect for the mandatory minimum time required or such information is not available from other supervisors for the minimum time required, the supervisor assigns a rating of "Not Applicable" . Instances of "Not Applicable" should be rare and must be documented in the attached appraisal narrative. The "Not Applicable" designation should not be used when the employee has failed to perform the required tasks or duties because of performance restrictions based on safety, security, or integrity issues.

The supervisor’s determination of the employee’s level of performance in each aspect determines the employee’s subsequent CJE score and overall rating.

The supervisor must always use careful judgment in determining if an employee has a rating of "Exceeds," "Meets," or "Fails," in each performance aspect of the CJE. Normally, the supervisor should not allow one incident to unduly influence the rating of an aspect. In assigning the performance level, supervisors should consider the quality, quantity, and complexity of the assignment or task in relationship with the employee’s grade and skill level.

The employee must consistently perform all applicable tasks (performance standards) listed at the "Exceeds" rating level, including any additional tasks not found in the "Meets" level, in order to receive a rating of "Exceeds" for that aspect.

The rating for each CJE will be based upon the ratings of all observed performance aspects of the CJE, using the following required scale:

The numerical scale above for each CJE is used to determine the average CJE score. While the average CJE score has no direct relationship to the overall rating, it is used as the basis for calculating bargaining unit performance awards.

Each annual performance appraisal will include an overall rating, as follows:

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.

Overall ratings should be assigned at the end of the appraisal period for the annual performance appraisal and for other types of performance appraisals that become the employee’s rating of record, such as a departure appraisal within the last 60 days of the appraisal period.

Supervisors should not assign overall ratings for other types of appraisals that do not become an employee’s rating of record.

The overall rating provides one rating for the combined performance against the Retention Standard for the fair and equitable treatment of taxpayers and the CJEs and becomes the employee's rating of record.

The supervisor should only assign the overall rating at the end of the appraisal period for an employee who is on a permanent assignment or who is on a temporary promotion at the end of the employee’s appraisal period and meets the conditions specified in IRM 6.430.5.3(2).

It is not necessary for the supervisor to have observed the employee’s performance under a signed performance agreement for 60 days or more. However, the employee’s 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.

The reviewing official has the final authority on whether to approve the overall rating.

Revalidated annual appraisals are not permitted for non-bargaining unit employees.

The bargaining unit revalidation process requires the supervisor to conduct the same thorough review and evaluative process to determine if the rating of record remains exactly the same.

To revalidate an employee’s annual rating, the supervisor must determine that the employee would receive a rating of record for the current performance rating period identical to the rating of record for the previous period. Identical means that the ratings for the performance aspects, CJEs, and overall rating have not changed.

To receive a revalidated appraisal, the employee must be at the journey level or above and at least in the second year of their position.

The supervisor must advise the employee before revalidating an appraisal.

The supervisor may revalidate a previous year’s annual rating even if the supervisor did not prepare the prior appraisal.

When revalidating an appraisal, supervisors are also revalidating the Retention Standard rating from the previous rating of record.

The narratives that accompanied the previous appraisal being revalidated must be considered valid and must remain a component of the revalidated performance appraisal. If the supervisor wants to update the narrative, they must prepare a new appraisal instead of revalidating.

The employee’s self-assessment is attached to the revalidated appraisal for all purposes. If the supervisor objects to the accuracy of a self-assessment, the supervisor may prepare a new appraisal with narratives. If the supervisor decides not prepare a new appraisal it does not indicate they agree with the employee’s self–assessment.

The supervisor must still conduct a performance discussion with the employee.

A supervisor may revalidate a rating of record indefinitely for bargaining unit employees only.

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

The employee's performance must have been observed under a signed performance plan for at least 60 days.

Each CJE is rated; however, an overall rating is not assigned unless the employee departs their position within 60 days of the end of the appraisal period or the supervisor departs their position within 60 days of the end of the employee’s appraisal period and the departure appraisal becomes the rating of record as discussed below.

Reasons for departure appraisals:

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

The supervisor must sign the departure appraisal and provide a copy to the employee for the employee’s signature. The reviewing 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 be 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 employee’s 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.

Departure appraisals are required for employees leaving the IRS for other Federal employment through transfer to other Federal agencies or reassignment to other Treasury bureaus and for employees accepting new appointments with the IRS or other Federal agencies.

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

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

A MPA cannot be used as the employee's rating of record and is valid for all merit promotion actions until the employee receives an annual rating of record.

Since a MPA cannot become a rating of record, no reviewing official signature is required and no overall rating is assigned.

An employee who has served 90 days on a competitive appointment but has not served 60 cumulative days under a signed performance plan (e.g., seasonal employee or a full time union official) is considered "Not Ratable" for merit promotion purposes. These "Not Ratable" employees cannot receive any type of performance appraisal for merit promotion, even a "presumptive" Fully Successful appraisal. Employment offices cannot accept "presumptive" Fully Successful appraisals for merit promotion.

The supervisor must use the following procedures to document that the employee is "Not Ratable" for merit promotion.

Bargaining unit employees only:

The performance ranking process for the release and recall of bargaining unit seasonal employees is based on the employee's most recent annual performance appraisal.

In the absence of an annual appraisal, the supervisor will prepare an ad hoc performance appraisal for those employee's meeting the minimum appraisal period requirements.

These ad hoc appraisals are only used for the release and recall of bargaining unit seasonal employees and cannot be used for the annual rating of record.

The OPM regulations require that the decision to grant or deny a WGI 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.

Examples of when a new rating of record is required:

This rating of record prepared to support or deny the WGI 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 performance appraisal period.

Examples of "Not Ratable" situations include:

If the supervisor determines that the employee is "Not Ratable" at the end of the employee’s designated performance appraisal period, the supervisor must complete a Form 6850-BU or Form 6850-NBU and indicate in the overall rating block that the employee is "Not Ratable" and specify the reason for that determination in the space provided.

The supervisor will enter the "Not Ratable" designation into the automated personnel system to indicate that the employee could not be rated and to ensure that the employee is not shown as missing a rating of record.

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

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

Exceptions to the restrictions on retroactive appraisals include appraisals changed as a result of:

Presumptive ratings, for ratings of record, are prohibited by 5 CFR Section 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.