Part 11. Communications and Liaison

Chapter 5. Legislative Affairs

Section 1. 180-Day Letter Program

11.5.1 180-Day Letter Program

Manual Transmittal

August 12, 2022

Purpose

(1) This transmits revised IRM 11.5.1, Legislative Affairs, 180-Day Letter Program.

Material Changes

(1) This IRM section has been substantially revised due to the reassignment of the Government Accountability Office (GAO) and Treasury Inspector General for Tax Administration Program (TIGTA) audit process procedures, which now fall under the jurisdiction of the Office of the Chief Risk Officer’s Enterprise Audit Management Program. The title and purpose have been changed to reflect its current contents.

(2) The following crosswalk details the disposition of the previous IRM subsections:

Content previously found in: Is now found in:
11.5.1.1 - Purpose IRM 11.5.1.1, Program Scope and Objectives (expanded to include Background, Authority, Responsibilities, Program Management and Review, Terms and Acronyms, and Related Resources)
11.5.1.2 - Introduction to General Accountability Office Program IRM 1.29.1.2.1(1), External Entities with Audit Authorities (GAO)
11.5.1.3 - Introduction to the Treasury Inspector General for Tax Administration Program IRM 1.29.1.2.1(2), External Entities with Audit Authorities (TIGTA)
Exhibit 11.5.1-1 Definitions IRM 11.5.1.1.5, Terms and Acronyms. Exhibit was deleted.

(3) This IRM now contains procedures on the 180-Day Letter Program, formerly known as the 60-Day Letter Program under IRM 11.5.1.2.8 (4).

Effect on Other Documents

IRM 11.5.1, dated 08-21-2006, is superseded. This IRM incorporates Interim Guidance Memo OCRO-01-0121-00001, 180-Day Letter Guidance, dated 01-07-2021.

Audience

Audit lead stakeholders and Enterprise Audit Management.

Effective Date

(08-12-2022)

Kevin McKeon
Acting Director, Office of Legislative Affairs

11.5.1.1 (08-12-2022)

Program Scope and Objectives

  1. Purpose. This IRM provides information and guidance on the letters sent by the IRS to congressional committees in response to Government Accountability Office (GAO) reports.

  2. Audience. Audit lead stakeholders and Enterprise Audit Management (EAM) are the business units with primary responsibility for the subject matter of the audits.

  3. Policy Owner. The Office of Legislative Affairs (LA).

  4. Program Owner. The Legislation and Reports Branch (LR) of the LA Office.

  5. Primary Stakeholders. All IRS business units.

11.5.1.1.1 (08-12-2022)

Background

  1. When a GAO final report contains recommendations for the IRS, letters are to be sent to the congressional committees having oversight over the IRS within 180 days of the report’s issuance.

11.5.1.1.2 (08-12-2022)

Authority

  1. 31 U.S.C. Section 720, Agency Reports, as amended by the Good Accounting Obligation in Government Act (P.L. 115-414), and Treasury Directive 40-02, Government Accountability Office Audits. P.L. 115-414 changed the deadline for agency statements on GAO reports from within 60 days of the report’s issuance date to within 180 days of the report’s issuance date.

11.5.1.1.3 (08-12-2022)

Responsibilities

  1. This subsection lists responsibilities for EAM, audit lead stakeholders, and the LR branch.

11.5.1.1.3.1 (08-12-2022)
Enterprise Audit Management

  1. The EAM’s role is to provide a collaborative enterprise approach to the IRS TIGTA/GAO audit management process. The EAM program is principally responsible for:

    1. Serving as the single point of contact for all IRS audit activity. All formal audit correspondence (i.e., Notifications of Planning, Engagement Letters, Draft and Final Reports, etc.) between the IRS and our external oversight bodies (TIGTA and GAO) come through this office.

    2. Maintaining a collaborative relationship with the embedded business unit liaisons to ensure audit information, concerns and issues are properly elevated for resolution and awareness.

    3. Engaging liaisons and Joint Audit Management Enterprise System (JAMES) coordinators by leading a Community of Practice.

    4. Elevating audits to IRS senior leadership that may result in external scrutiny, significant findings or contain sensitive/significant information.

    5. Notifying the audit lead stakeholder and the LA of the issuance of a GAO final report with recommendations for the IRS.

11.5.1.1.3.2 (08-12-2022)
Audit Lead Stakeholders

  1. The audit lead stakeholders’ role is to manage the audit process within the business unit and respond to the subject matter of the audit. Audit lead stakeholders are responsible for coordinating the draft letter response and the approval process within their organization.

11.5.1.1.3.3 (08-12-2022)
Legislative Affairs, Legislation and Reports Branch

  1. The LR’s role is to send an updated response to a GAO final report containing recommendations for IRS to the congressional committees having oversight over the IRS. The LR is responsible for:

    1. Facilitating the 180-day letter approval process with the business units, including routing the letter package to one of the deputies commissioner for signature by one of the deputies commissioner or the Commissioner and mailing the letters to Congress.

    2. Establishing the e-Trak control for the letter upon the issuance of the final report by GAO, and providing it to EAM and the audit lead stakeholder for tracking.

11.5.1.1.4 (08-12-2022)

Program Management and Review

  1. E-Trak is the web- based servicewide document tracking application used for assigning letter cases to the audit lead stakeholder. The LR opens an e-Trak case with a due date that is 180 days after the date the GAO final report is published, assigns the case to the lead stakeholder, and notifies the lead stakeholder and EAM. When the package is returned to the LR with the signed letters, the letters are delivered to the congressional committees by the LA’s NCA. Upon confirmation of delivery, the LR notifies the lead stakeholder, EAM, GAO, Office of Management and Budget (OMB), and Treasury, and closes the e-Trak case.

11.5.1.1.5 (08-12-2022)

Terms and Acronyms

  1. The following table defines terms used throughout this IRM:

    Term Definition
    180-Day Letter A response to a GAO final report with recommendations sent to Congress. The IRS has 180 days from the issuance of the final audit report to respond to Congress with the detailed corrective actions to be taken and time frames within which they will be implemented to carry out the recommendation(s).
    Audit An examination of government programs, operations, and/or financial records. Audit is interchangeable or synonymous with review.
    Corrective Action A detailed description of how management will implement a recommendation to address the audit finding(s).
    e-Trak A web-based service wide document tracking application system used for assigning letter cases to the audit lead stakeholder.
    Final Report The final report is the final version of the GAO draft report that may or may not contain modifications to the findings and recommendations identified in the draft report. The final report contains the IRS management response to the draft report. Final reports are released to the public, unless designated as Limited Official Use (LOU).
    Audit Lead Stakeholder (Note: Also referred to as “Lead”) The business unit with primary responsibility for the subject matter of the audit and for specific audit process actions/tasks.
    Planned Corrective Action A detailed description of how management will implement a recommendation to address the audit finding(s). The PCA also includes due date(s) and the responsible official(s).
    Recommendation Addresses the audit finding and provides GAO comments to management that, when implemented, will correct the issue.

  2. The following table defines acronyms used throughout this IRM:

    Acronym Definition
    EAM Enterprise Audit Management
    e-Trak Entellitrak
    GAO Government Accountability Office
    LA Office of Legislative Affairs
    LR Legislation and Reports Branch
    NCA National Congressional Affairs Branch
    OMB Office of Management and Budget

11.5.1.1.6 (08-12-2022)

Related Resources

  1. IRM 1.29.1, Audit Coordination Process, Authorities and Responsibilities

  2. Treasury Directive 40-02, Government Accountability Office Audits.

11.5.1.2 (08-12-2022)

180-Day Letter Process

  1. Government Accountability Office Final Reports with Recommendations for IRS. When a GAO final report contains recommendations for the IRS, letters are sent to the congressional committees having oversight over the IRS within 180 days of the report’s issuance. The letters contain updates on the planned corrective actions that address the recommendations, along with estimated completion dates, and are signed by one of the deputies commissioner or the Commissioner. When the package is returned to the LR with the signed letters, the letters are delivered to the congressional committees by the NCA.

  2. Within 180 days of the report’s issuance date, the letters are sent to the following committees:

    • The Senate committee on Homeland Security and Governmental Affairs

    • The House committee on Oversight and Reform

    • The Senate committee on Appropriations

    • The House committee on Appropriations

  3. When a GAO final report with recommendations for IRS is published, EAM notifies:

    • IRS’s lead stakeholder for the GAO audit.

    • LR

  4. The LR takes the following actions:

    1. Opens an e-Trak case with a due date that is 180 days after the date the GAO final report is published.

    2. Assigns the case to the lead stakeholder.

    3. Notifies the lead stakeholder and EAM.

  5. By noon on the day that is seven days before the due date, the lead stakeholder delivers the following to the LR:

    • Routing sheet (signed by the head of the lead stakeholder)

    • Note to Reviewers

    • Draft letter

  6. By close of business on the day that is seven days before the due date, the LR delivers a signature package containing the following to one of the deputies commissioner:

    • Routing sheet signed by the chief, LR

    • Routing sheet of the lead stakeholder

    • Note to Reviewer

    • Final letter

  7. When the package is returned to the LR with the signed letters, the letters are delivered to the congressional committees by the NCA. Upon confirmation of delivery, the LR notifies the lead stakeholder, EAM, GAO, OMB, and Treasury, and closes the e-Trak case.