The FAR, Subpart 13.2 states that the purchase card is the preferred method of making and paying for micro purchases.

The purchase credit card program is for IRS employees who are authorized to purchase goods and/or services for official government business. It is also for supervisory and administrative personnel who authorize, direct or review the activities of purchase cardholders.

The authorities for this IRM include:

This section provides responsibilities for:

Program reports to Treasury and TIGTA: Credit Card Services prepares reports quarterly and semi-annually. Some of these reports are used to monitor policy compliance with the Government Charge Card Abuse Prevention Act of 2012 requirements.

The following chart lists the reports and their reporting frequency:

Program effectiveness is measured through a series of transaction reviews:

Appendix B to OMB Circular A-123, Improving the Management of Government Charge Card Programs, mandates agencies to have internal controls that include standard minimum requirements for the issuance and retention of a PC to reduce the administrative costs associated with the government PC.

The following terms and definitions apply to this program:

The following acronyms apply to this program:

Related resources for this IRM include:

Criteria have been established to ensure that each PC is issued to responsible IRS employees who have a need and will adhere to all PC policies and procedures. These guidelines also address requirements for PC approving officials who likewise must adhere to established PC policies and procedures and must ensure that their purchase cardholders properly follow all policies and procedures.

The micro-purchase card is a MasterCard issued to authorized individuals to purchase goods and services for official IRS government use. Purchases must be less than or equal to the single purchase transaction limit for the purchase cardholder's account. Transaction limits are based on the business needs of the purchase cardholder. The maximum single purchase transaction limit for micro-purchases is $10,000 ($2,500 for services, $2,000 for construction/alterations). All prospective purchase cardholders, regardless of the card type, must complete formal training before a PC is issued.

Revenue officers directly involved with enforcement activity are issued a micro-purchase card that is restricted to enforcement related buys. Enforcement purchase cardholders cannot use their PC to purchase office supplies or routine services. SB/SE collection territory management assistants who have been issued a micro-purchase card for supplies and services may have enforcement purchase authority added to the card.

Criminal investigators directly involved with enforcement activity are issued a PC that is restricted to enforcement related buys. CI enforcement purchase cardholders cannot use their card to purchase routine office supplies and services.

Convenience checks are an alternative form of payment for specific programs where other methods of payment cannot be used. Convenience checks are associated with a PC account established with the government credit card contractor.

Convenience checks should be used as a payment method of last resort only when no reasonable alternative vendor is available who accepts the PC and can only be used when the request is for safety, security or enforcement.

Purchase cardholders procuring supplies or services greater than $10,000 ($2,500 for services; $2,000 for construction) must comply with all procurement laws and regulations, including competition, small business requirements and all instructions contained in the electronic Purchase Card Guide. Purchase cardholders must also comply with the limitations of their Certificate of Appointment.

The PC can only be used to purchase goods and services for official government use and:

The PC cannot be used to purchase:

See the Restricted Purchase List and IRM 1.32.4, Government Travel Card Program, for additional guidance.

PC accounts are restricted by MCC and monthly and single transaction/dollar limits. If the PC is declined by a vendor because of a restriction, contact Credit Card Services through IRS Service Central.

A purchase cardholder may not make a series of purchases from the same vendor on the same day in a total amount that exceeds his/her single transaction limit. This is true even if the purchase cardholder is ordering from the federal supply schedule contract.

For most purchase cardholders, the single transaction limit is $10,000 ($2,500 for services, $2,000 for construction/alterations). Purchase requirements exceeding the single transaction limit must be processed by Procurement. The split purchase rules also apply to the maximum allowable of $2,500 for convenience checks.

Splitting purchases is considered inappropriate use and is a conduct issue that could result in disciplinary action.

Inappropriate use can be summarized in several general categories as follows:

Inappropriate use of the PC is a conduct issue that could result in disciplinary action. The Inappropriate Use Guide contains specific instances of misuse of the PC and their resolutions. The IRS Manager's Guide to Penalty Determinations provides Labor Relations guidance for penalty determinations for the misuse of the PC.

Personal use of the PC may require the IRS “to take steps to recover the cost of any illegal, improper or erroneous purchase” that results in loss to the government made with a PC or convenience check per the Government Charge Card Abuse Prevention Act of 2012.

See the Restricted Purchase List and IRM 1.35.4.3.4, Split Purchases, for additional guidance.

IRS acquisition policy requires separation of duties associated with approval, funding, procurement and acceptance to minimize opportunities for unauthorized, fraudulent or otherwise improper acts. Separation of duties of purchase cardholders, PC approving officials and funding officials is necessary to avoid situations where one employee or a small group of employees performs more than one step in the process.

Purchase cardholders are allowed to conduct the purchase and receive supplies or services. Separation of duties guidance for participants in the PC program is as follows:

Span of control is required by the OMB Circular A-123, Appendix B: Improving the Management of Government Charge Card Programs for PC approving officials and is based on the number of transactions approved per billing cycle.

The electronic Purchase Card Guide summarizes IRS policies and procedures relating to use of the PC. The procedures outlined in the guide apply to all IRS business units. The procedures may be supplemented by operating guidelines issued within a business unit. The electronic Purchase Card Guide is maintained as an electronic reference document.

See the Purchase Card Guide for additional guidance.

The Office of Procurement Policy provides guidance on restricted goods and services that purchase cardholders are prohibited from buying or that can only be purchased with the appropriate approvals. Purchase cardholders must be familiar with these restrictions and review the Restricted Purchase List before making a purchase. Business units may further limit what can be purchased with the PC. These restrictions can be found in the operating guidelines issued by the business unit.

Office supplies must be purchased from mandatory supply schedules. Purchases must be made according to the priority listing chart located in the electronic Purchase Card Guide.

For approved purchases other than office supplies, see FAR Part 8, Required Sources of Supplies and Services, for the priority of sources.

See the Purchase Card Guide for additional guidance.

All Information and Communication Technology (ICT) purchases made with the government PC must comply with Section 508 of the Rehabilitation Act of 1973.

Section 508 requires that when federal agencies develop, procure, maintain or use ICT, they must ensure that:

Requesters or purchase cardholders must perform market research to find a product that conforms to Section 508, if applicable. Proper supporting documentation for the PC transaction is required.

For ICT purchases $10,000 or less, Section 508 requires the completion of the Accessibility Requirement Tool (ART) and the report maintained as part of the supporting documentation.

For ICT purchases that are $10,000 or greater, Section 508 requires that an ART report be completed and signed by the division director. A copy of a Determination and Findings or Undue Burden Exception Form, along with the approval confirmation, must be printed and maintained as part of the supporting documentation for each PC transaction.

The required retention period for all PC documentation is six years from the cycle ending date of the purchase. See the General Records Schedule 1.1 for additional guidance.

Purchase cardholders and convenience check cardholders must attach their receipts to the Purchase Card Module order log for PC approving official review and approval immediately after reconciliation.

All prospective purchase cardholders must complete the Micro-Purchase Card Training Curriculum and, if necessary, the required training for their assigned program before a PC will be issued. Cardholders with procurement authority over the micro-purchase threshold must complete additional requirements specified in the Treasury Acquisition Certification Management Program Handbook.

PC training requirements for specific card types:

Each business unit designates employees to be PC approving officials and complete an eligibility form prior to enrollment in the PC Approving Official Training Curriculum.

Prospective PC approving officials begin the enrollment process by completing the purchase card approving official training request form found on the IRS Source Credit Card Services narratives.

Purchase cardholders and PC approving officials are required to complete refresher training every two years.

Purchase cardholders and PC approving officials will be notified by email with detailed instructions when they are required to complete refresher training within 60 days of receipt.

Purchase cardholders must create and add a funded requisition to a PC order log prior to making a purchase. The PC order log tracks each step of a purchase and documents transaction details.

When goods or services are received, the PC order log item received date field must be updated.

Purchase cardholders must associate/reconcile and PC approving officials must approve transactions within 10 business days of the transaction download date in the Purchase Card Module.

In the absence of the purchase cardholder, the PC approving official must review, associate and approve transactions. In addition, the PC approving official must indicate when the purchase cardholder is expected to return in the comments area in the Purchase Card Module. When the purchase cardholder returns to the office, they must reconcile all transactions within five business days.

In the absence of the PC approving official, the purchase cardholder must have another trained, established PC approving official designee in the same business unit to review and approve transactions. The PC approving official designee should be selected in advance of the projected PC approving official's absence date.

An IRS Service Central ticket should be submitted if the purchase cardholder or PC approving official require assistance with the selection of a PC approving official designee.

The overall processing time frame is not extended as a result of the absence of a purchase cardholder or PC approving official.

Purchase cardholders must complete required actions for each purchase: