Open Recommendations

The Commissioner, LB&I Division, should review the Division’s examination procedures to determine whether changes are needed in support of effective tax administration for large complex taxpayers e.g., large multinational corporations. This should include, but not be limited to, the use of the Economic Substance Doctrine, Principles of Collaboration, and the CAP program.

Evaluate the plan to effectively manage Operational Precision Performance during peak season.

Subsequently remind agencies with late-filed SSRs or CAPs of best practices at least 60 days prior to their next scheduled filing due date, and that they may request a filing extension at least 30 days before their scheduled due date if extenuating circumstances exist.

Offer standardized training to any new HOA on the safeguard review process and best practices for submitting agency documentation.

Update policies to require follow-up with State agencies concerning any unsubmitted mitigation plans after their mitigation plan due dates have passed.

Develop procedures to ensure that finding information is accurately documented in the PFR, the SRR, and eCase as well as that case updates, case notes, relevant correspondence, and mitigation plan receipt dates are accurately documented in eCase.

Send an annual reminder to all State agencies to notify staff of their responsibility to report data incidents within 24 hours of identification.

Apply the RRA 98 § 1204(b) retention standard when evaluating IRS Collection employees, managers, and executives who intentionally disregard IRS policies concerning levy action on a tax period in which NFTL appeals were filed timely and determinations were still pending, and consider appropriate discipline in accordance with IRM 6.751.1, the manager’s guide to penalty determinations, and in consultation with Labor Relations and Small Business/Self-Employed Division Collection leadership.

The Director, Collection Policy, Small Business/Self-Employed Division, should review disaster procedures for NFTL processing and consider updates, as needed, to reduce burden for taxpayers impacted by disasters.

We recommend that the General Counsel, U.S. National Science Foundation, in coordination with the Office Head, Office of Information and Resource Management, assess whether NSF should include the full statement from 5 USC § 2302(b)(13) in NSF Form 1230P and the NSF Personnel Manual.

We recommend the Under Secretary for S&T clearly identify the appropriate entity with the authority and responsibility for updating critical infrastructure research and development strategic plans and annual homeland threat assessments and ensure that entity publishes each document in accordance with each of the prescribed timeframes.

We recommend the Under Secretary for S&T develop and implement improved controls to ensure all S&T offices adhere to program and project management principles per the Operating Model Blueprint, including, but not limited to, policies, procedures, and training. These controls should ensure that tailored project approaches are documented and approved, standardized project management language is used, project and program plans are appropriately integrated, and roles and responsibilities are clearly defined.

We recommend the Under Secretary for S&T develop and implement data validation controls to ensure accurate and consistent financial and project information in S&T’s centralized project tracking system, including, but not limited to, implementation policies, procedures, and training.

We recommend CBP’s Office of Field Operations develop and implement a formalized risk assessment process when developing, expanding, or modifying mobile applications.

We recommend CBP’s Office of Field Operations implement a mechanism to analyze CBP One™ advanced information for trends and patterns of fraudulent behaviors by users of CBP One™ and communicate its results to the eight ports of entry that process CBP One™ appointments.

We recommend CBP’s Office of Information Technology implement a mechanism to routinely assess CBP applications and supporting infrastructure operating systems for configuration and patch management vulnerabilities and timely implement corrective actions.

We recommend the Deputy Director and Senior Official Performing theDuties of the Director for ICE evaluate the use of manual processes for information sharing within ICE and with other stakeholders, such as the Department of Justice; identify funding; then develop and implement an automated system to document court appearances and maintain address information of unaccompanied migrant children.

We recommend the Deputy Director and Senior Official Performing theDuties of the Director for ICE develop and implement a formal process to identify unaccompanied migrant children who fail to appear for immigration hearings, and share this information internally within ICE and externally with the U.S. Department of Health and Human Services.

The Division of Federal Home Loan Bank Regulation should issue written guidance on the FHLBanks’ collateral subordination practices.

The Division of Federal Home Loan Bank Regulation should complete the development and implementation of protocols for DBR personnel to follow in times of member distress and failure, including heightened oversight of the FHLBanks and coordination of communication and actions with the appropriate federal and state regulators.

FHFA should update the Examination Manual’s Credit Risk Management module and Advances and Collateral module to include guidance on the review of topics and issues related to the Spring 2023 bank failures and otherwise incorporate lessons learned from the 2023 examinations of member credit risk management.

The Division of Federal Home Loan Bank Regulation should adopt a process to ensure the appropriate examination coverage of all topics within its Examination Manual guidance.

Consider developing a TECU workstream for taxpayers that potentially have multiple delinquencies.

Issue clear and consistent procedural guidance for TECU examiners to follow when conducting compliance checks.

Revise the initial contact letters to provide taxpayers the option to submit the requested returns electronically.