83 FR 9700 - Balanced System for Measuring Organizational and Employee Performance Within the Internal Revenue Service

DEPARTMENT OF THE TREASURY
Internal Revenue Service

Federal Register Volume 83, Issue 45 (March 7, 2018)

This document contains final regulations regarding management and personnel within the IRS. The final regulations relate to the ``employee satisfaction measures'' utilized by the IRS in its Balanced System for Measuring Organizational and Employee Performance. These regulations affect internal operations of the IRS and the systems employed to evaluate the performance of organizations within the IRS and individuals employed by the IRS.

[Federal Register Volume 83, Number 45 (Wednesday, March 7, 2018)]
[Rules and Regulations]
[Pages 9700-9701]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-04231]


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DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 801

[TD 9831]
RIN 1545-BL88


Balanced System for Measuring Organizational and Employee 
Performance Within the Internal Revenue Service

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Final regulations and removal of temporary regulations.

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SUMMARY: This document contains final regulations regarding management 
and personnel within the IRS. The final regulations relate to the 
``employee satisfaction measures'' utilized by the IRS in its Balanced 
System for Measuring Organizational and Employee Performance. These 
regulations affect internal operations of the IRS and the systems 
employed to evaluate the performance of organizations within the IRS 
and individuals employed by the IRS.

DATES: 
    Effective Date: These regulations are effective on March 7, 2018.
    Applicability Date: These regulations are applicable for the 
reporting of employee satisfaction information within the meaning of 26 
CFR 801.5 that occurs on or after March 7, 2018.

FOR FURTHER INFORMATION CONTACT: Julie Barry, at (202) 317-5759 (not a 
toll free number).

SUPPLEMENTARY INFORMATION: 

Background

    On November 13, 2014, the IRS published in the Federal Register (79 
FR 67351) a temporary regulation (TD 9703) modifying the regulations 
governing the IRS Balanced System for Measuring Organizational and 
Employee Performance. A notice of proposed rulemaking (REG-138605-13) 
cross-referencing the temporary regulation was published in the Federal 
Register (79 FR 67396) on the same day. The text of the temporary 
regulation served as the text of the proposed regulation.

Summary of Comments and Explanation of Revisions

    The IRS provided an opportunity for comment and an opportunity for 
a public hearing. No public hearing was requested, and the IRS received 
one written comment. The written comment did not substantively address 
the proposed change, but instead expressed appreciation for the IRS's 
efforts to obtain public feedback to support an open, measurable, and 
user-friendly government.
    The regulation being modified concerns ``employee satisfaction 
measures'' and requires the collection of information from employees 
through various means, including employee surveys. Once collected, the 
information is used to measure and report on employee satisfaction, one 
of three elements comprising the IRS balanced performance measurement 
system. To be consistent with other government-wide employee 
satisfaction surveys, the proposed regulation provides that employee 
satisfaction measures can be reported at a higher agency level.
    Specifically, the proposed regulation relates to the employee 
satisfaction measure, Sec.  801.5, of the IRS Balanced System for 
Measuring Organizational and Employee Performance (26 CFR part 801). As 
originally implemented in 1999, the employee satisfaction measure 
required the IRS to gauge and report the satisfaction of employees in 
pay and duty status (non-seasonal employees) to the first-level 
supervisor organizational level, as well as to all succeeding 
management levels of the organization. Consequently, the IRS utilized 
and modified a pre-existing survey to enable the reporting of data to 
first-level supervisors. Other surveys, such as OPM's Federal Employee 
Viewpoint Survey (FEVS), however, report employee satisfaction data to 
a level of agency management higher than that of the first-level 
supervisor. Consequently, the IRS conducted both the FEVS survey and 
the internal survey that complied with Sec.  801.5. The administration 
of both surveys resulted in an unnecessary expenditure of funds, an 
undue burden on employees, and the duplication of efforts by the IRS.
    The proposed regulation permits the IRS to report employee 
satisfaction data at higher organization levels, thereby permitting the 
IRS to use the FEVS and eliminate the use of its internal survey. The 
corresponding temporary regulation was effective on or after November 
13, 2014, and expired on or before November 10, 2017. This document 
adopts, without modification, the proposed regulation as final and 
removes the corresponding temporary regulation.

Special Analyses

    Certain IRS regulations, including this one, are exempt from the 
requirements of Executive Order 12866, as supplemented and reaffirmed 
by Executive Order 13563. Therefore, a regulatory impact assessment is 
not required. Because the regulation would not impose a collection of 
information on small entities, the Regulatory Flexibility Act (5 U.S.C. 
chapter 6) does not apply.
    Pursuant to Section 7805(f) of the Internal Revenue Code, the 
notice of proposed rulemaking preceding this final regulation was 
submitted to the Chief Counsel for Advocacy of the Small Business 
Administration for comment on its impact on small business. No comments 
were received from the Small Business Administration.

Drafting Information

    The principal author of these regulations is Julie A. Barry, Office 
of Associate Chief Counsel (General Legal Services). However, other 
personnel from the Treasury Department and the IRS participated in 
their development.

List of Subjects in 26 CFR Part 801

    Federal employees, Organization and functions (Government 
agencies).

Adoption of Amendments to the Regulations

    Accordingly, 26 CFR part 801 is amended as follows:

PART 801--BALANCED SYSTEM FOR MEASURING ORGANIZATIONAL AND EMPLOYEE 
PERFORMANCE WITHIN THE INTERNAL REVENUE SERVICE

0
Paragraph 1. The authority citation for part 801 continues to read in 
part as follows:

    Authority:  5 U.S.C. 9501 * * *


0
Par. 2. Section 801.5 is revised to read as follows:


Sec.  801.5   Employee satisfaction measures.

    (a) The employee satisfaction numerical ratings to be given to a 
Business Operating Division (BOD) or equivalent office within the IRS 
will be determined on the basis of information gathered through various 
methods. For example, questionnaires, surveys, and other information 
gathering mechanisms may be employed to gather data regarding 
satisfaction. The information

[[Page 9701]]

gathered will be used to measure, among other factors bearing upon 
employee satisfaction, the quality of supervision, and the adequacy of 
training and support services. All full and part-time permanent 
employees of a BOD or equivalent office who are in pay and duty status 
will have an opportunity to provide information regarding employee 
satisfaction under conditions that guarantee them confidentiality.
    (b) This section applies to the reporting of employee satisfaction 
information that occurs on or after March 7, 2018.


Sec.  801.5T  [Removed]

0
Par. 3. Section 801.5 T is removed.

Kirsten Wielobob,
Deputy Commissioner for Services and Enforcement.
    Approved: January 24, 2018.
David J. Kautter,
Assistant Secretary of the Treasury (Tax Policy).
[FR Doc. 2018-04231 Filed 3-6-18; 8:45 am]
 BILLING CODE 4830-01-P