IRS, NTEU Reach Settlement on non-1203(b) Tax Discipline Cases
NTEU National President Colleen Kelley has announced the settlement of a tax discipline grievance filed in 2007. It deals with tax discipline cases not connected with Section 1203(b). This settlement provides tax preparation help from IRS and 2 hours of work time to receive this help. In 2012, this assistance will only be available at campus locations, but will be rolled-out more widely in 2013. The settlement will also expand the availability of the IRS free file program to employees. Below is a summary of the settlement provisions.
The IRS disciplines employees for willful failure to file taxes or understatement of tax liability pursuant to sections 1203(b) (8) and (9) of the IRS’s Restructuring and Reform Act of 1998. In addition, the IRS disciplines employees for non-1203(b) tax misconduct, including failure to timely file or timely pay taxes. This settlement addresses the non-1203(b) tax conduct and discipline rules.
The settlement creates an on-site employee tax assistance program whereby employees may receive hands-on assistance with their tax returns and tax questions. Highlights of the tax assistance program include:
• The IRS will create an expanded Voluntary Income Tax Assistance (VITA) program and make it available for all employees whose tax return will involve an adjusted gross income of $75,000 or less.
• The program will be offered annually from February 1 through March 31 of each year.
• Eligible employees may receive up to two (2) hours of administrative time annually to receive tax preparation assistance from Agency employee VITA volunteers. This time shall be accounted for under the terms of Article 36, Section 12 of the parties’ 2009 National Agreement, but will not increase the total number of hours (4) provided annually to employees by that Section.
• Starting with the 2012 tax filing season, on-site tax preparation assistance through Agency employee VITA volunteers will be made available to employees on a first-come, first-serve basis at the Andover, Austin, Atlanta, Fresno, Kansas City, Ogden, Philadelphia, Cincinnati, Memphis, and Brookhaven Service Centers. For the 2012 tax filing season, face-to-face assistance will generally be available to eligible employees from 2:00 p.m. to 6:00 p.m. on Tuesdays and Thursdays. Individual campuses may provide additional hours of access subject to the availability of the VITA volunteers.
• Starting in 2013, if demand for assistance exceeds available resources, priority assistance will be given to eligible employees in grade 8 or below who are not employed in a professional tax-related job series, before other eligible employees.
• Starting in 2013, the IRS will ensure that remote access to tax preparation assistance through Agency employee VITA volunteers is available for eligible employees, including those not located at the campuses where the VITA sites are established.
• Employees eligible to participate in the program may use IRS computers, fax machines and telephones for the purpose of receiving remote tax preparation assistance.
• The IRS will staff the on-site VITA program through Agency employee volunteers, and solicit for them on an annual basis. Volunteers will receive training to provide tax assistance to eligible IRS employees. Volunteer training and tax preparation assistance will be provided off duty time.
• Over time, qualified employee access to the tax assistance program will be expanded.
In addition to the employee VITA program, the settlement includes the following benefits:
• Starting in 2013, IRS employees who meet the established eligibility limits to utilize “Free File” will be given access to “Free File” on IRS computers for the purpose of preparing personal tax returns. Employees may utilize their up to two (2) hours of administrative time annually for this purpose.
• The IRS will provide employees with annual training concerning their personal tax obligations and how that relates to conduct and discipline.
• The IRS will create and distribute a “Guide to Employee Personal Tax Obligations and Disciplinary Actions” with input from NTEU.
• The IRS will annually distribute targeted factual written advice on “best practices” related to tax obligations.
• The IRS will disseminate centralized guidance to managers with regard to determining whether discipline for non-1203 tax misconduct is appropriate and, if so, the level of discipline to impose, and encourage consistency in the imposition of such discipline. The guidance will advise managers that counseling may be more appropriate than discipline for first offenses involving non-willful non-1203(b) tax infractions.
• Beginning in 2012, the IRS will collect and maintain data relating to the imposition of discipline and adverse actions taken against Agency employees based on non-1203(b) tax-related misconduct, and share that information with NTEU. Any statistical analysis of the data by the IRS will also be shared with NTEU.
• The IRS and NTEU will meet at least annually to discuss the employee VITA program and any issues related to the implementation of this settlement.
