IRS / Treasury

The IRS/Treasury's authority structure is shaped by the federal chain of command, with tax administration creating specific authority concentration patterns. Political appointees hold authority over career senior executive service, creating a dual-layer authority structure. The Commissioner of Internal Revenue is appointed with the approval of the U.S. Treasury Regulations. The IRS has a CEO, Frank Bisignano, who was charged by the president to "make the IRS great again." Mr. Bisignano brings extensive leadership experience from the financial services sector and is recognized for his expertise in operational management. The IRS organization includes leadership, operating divisions, and principal offices.

The IRS/Treasury operates with institutional sacred assumptions about its regulatory or operational role. Tax administration defines how the agency frames its mandate against political and industry pressure. In a letter to Christians Engaged, an IRS director of exempt organizations, Stephen Martin, stated that "Bible teachings are typically affiliated with the Republican party and candidates." This statement was made in the context of denying a request from Christians Engaged, explaining that the group used Bible teachings "typically affiliated with the [Republican] party and candidates" and instructed individuals on issues prominent in politics. The Secretary of the Treasury is authorized to establish the 'Religious Freedom Peace Tax Fund' within the U.S. Treasury.

The IRS/Treasury's mission framing creates a public service purpose that sustains career federal employee commitment through bureaucratic frustration and political pressure. The U.S. Department of the Treasury's mission is tied to a historical narrative of patriotism and sacrifice, dating back 250 years. The IRS mission is to "Provide America's taxpayers top quality service by helping them understand and meet their tax responsibilities and enforce the law with integrity and fairness." The IRS Strategic Plan for FY 2022-2026 outlines the agency's mission, values, and priorities. The Taxpayer Advocate Service aims to codify the IRS mission statement to clarify its objectives regarding taxpayer rights and service.

The IRS/Treasury creates a professional federal employee identity through civil service membership, institutional expertise development, and mission alignment. This identity produces varying degrees of commitment depending on agency mission intensity. The IRS Ethics Handbook, a product of the Office of Government Ethics and Treasury, summarizes rules of ethical conduct for employees. The National Treasury Employees Union (NTEU) provides guidance relevant to IRS employees regarding ethics and conduct. Dress code policies exist within the IRS. Conformity in organizational behavior is typically defined as the expectation for employees to adapt to company policies and standards and use traditional business practices.

The IRS/Treasury's information environment is shaped by a rule-following culture. Clearance requirements and professional norms create information compartmentalization. Policy requirements ensure the confidentiality of Federal Tax Information (FTI) by agencies utilizing Integrated Eligibility Systems (IES). Confidentiality is presented as an assurance that the IRS will not disclose the cooperation or information provided by Confidential Informants (CI). Disclosure of returns and return information to a taxpayer's designee, including a member of Congress inquiring on behalf of a constituent, may be made in accordance with IRC Section 6103. Disclosure to Congressional committees, Treasury personnel outside the Service, other Federal agencies, and states is governed by specific IRM sections.

The IRS/Treasury uses specialized federal bureaucratic vocabulary, including program names, regulatory citation conventions, GS classifications, and budget line designations, which mark insider status within the federal workforce. The Treasury Financial Experience (TFX) glossary defines terms related to federal financial management and accounting. The IRS Statistics of Income (SOI) Tax Stats Data Book includes a glossary of terms related to tax data. Tax law and administration utilize specific terminology for concepts like refunds, which are amounts received from the U.S. Treasury due to overpayment or refundable tax credits. A glossary of tax terminology is also provided in government publications, acknowledging that tax language can be overwhelming.

The IRS/Treasury's Us-Versus-Them dynamics operate between the agency and its regulated industries, between career and political staff, and between the agency and Congress. These dynamics reflect tax administration. Accusations have been made of the IRS targeting political groups applying for tax-exempt status, with such actions revealed in 2013 under the Obama administration. Republican Party opponents of the Clintons alleged pressure on IRS agents. Senators have raised concerns about the "weaponization of the IRS against the free speech rights of Trump opponents," stating that any effort to use the IRS against perceived enemies is unlawful and an abuse of power. Historically, some presidents have allegedly used the IRS to harass political opponents, such as Andrew Mellon, Treasury secretary under President Coolidge, who reportedly used the tax code against a political rival.

The IRS/Treasury expects substantial professional commitment from career employees, including overtime, geographic inflexibility, and compensation below private sector equivalents for specialized expertise. Compensation is typically based on the General Schedule (GS) scale, which is often below market rates for equivalent roles in the private sector. During government shutdowns, federal employees, including those at the IRS, have been ordered to work without pay, which has led to lawsuits alleging violations of the Fair Labor Standards Act (FLSA). The Department of Labor's Wage and Hour Division holds back wages for up to three years if they cannot locate an employee, after which the wages are remitted to the U.S. Treasury if the employee remains unlocated. Information on unpaid/withheld wages and wage supplements is available from the Department of Labor, detailing wage theft investigations and wages returned to workers.

Exit costs within the IRS/Treasury can be considered moderate within the federal employment framework. These costs are influenced by the federal pension system, the geographic concentration of jobs in Washington D.C., and the development of specialized tax and fiscal policy skills that may have limited equivalence in the private sector. Recent events indicate potential shifts in exit dynamics; for example, layoffs that were previously considered off the table are now deepening short-staffing concerns. The IRS has also planned to rescind some deferred resignation offers to fill critical vacancies. The National Treasury Employees Union has filed grievances regarding these actions. The Treasury Department has terminated union contracts for IRS and Bureau of the Fiscal Service workers. The acting IRS commissioner resigned amid internal chaos and an exodus of senior officials.

The IRS/Treasury's documented institutional behavior reflects patterns concerning politically targeted actions. An exhaustive report by the Treasury Department's Inspector General found that from 2004 to 2013, the IRS used certain criteria to screen applications for tax-exempt status, leading to a controversy over targeting specific political groups. The Office of Inspector General (OIG) accepts reports of fraud, waste, and abuse, with matters involving tax fraud schemes, money laundering, abusive return preparers, questionable refunds, identity theft, and international tax avoidance schemes being priorities for reporting. The Treasury is focused on detecting and eliminating fraud and abuse of taxpayer dollars. There are documented allegations of the misuse of the IRS for political purposes throughout history, with the "IRS Scandal" echoing a long history of political harassment.