10.23.3. Personnel Security/Suitability for Employment and Personnel Security Operations

(1) Purpose. This section is to provide the policies, guidelines and requirements for the administration of the Internal Revenue Service’s (IRS) personnel security program relating to the initiation of suitability/security screening and/or investigations. Every position within Treasury/IRS requires that potential employees or incumbent employees undergo a suitability screening and/or investigation conducted by an appropriate government authority based upon the sensitivity of the position, and/or need for access to classified information, and requirements of Homeland Security Presidential Directive (HSPD-12) (http://www.whitehouse.gov/sites/default/files/omb/memoranda/fy2005/m05-24.pdf).

(2) The investigative requirements shall be consistent with the guidance provided by the Office of Personnel Management (OPM). Background investigations, conducted for suitability or security determination purposes constitute the first step in the process of ensuring the highest standards of honesty, integrity, and security among IRS employees, enabling the IRS to carry out its mission and ensure the integrity of its employees. Suitability reflects the standards required for employment with the Government in general, and the IRS in particular, with reference to a person's character, reputation and overall fitness.

(3) Audience. This IRM is for all IRS Divisions and functions.

(4) Policy Owner. Personnel Security (PS, Employment, Talent, and Security (ETS)

(5) Program Owner. PS is responsible for overseeing the Personnel Security Program and providing policy and procedures related to Personnel Security matters.

(6) Contact Information. Website at: HCO - ETS - Personnel - Who to Contact - http://hco.we.irs.gov/recruitstaff/personnelsecurity/Contact/Contact.shtml

(1) The Human Capital Office (HCO) Employment, Talent and Security (ETS) Personnel Security is responsible for suitability pre-screening in accordance with 5 CFR 731. Prescreening investigative steps vary depending on the subject’s position risk level. Steps may include: Federal Bureau of Investigation (FBI) fingerprint check, credit check, Automated Labor and Employee Relations Tracking System (ALERTS) check, federal tax compliance check, citizenship check, review of required security forms, and a check to determine if an existing prior investigation can be used in lieu of requesting a new investigation.

(2) Employment Offices must employ every reasonable means available to obtain suitability information prior to the applicant's Enter on Duty (EOD) date. This applies to all applicants including:

1. Career appointments

2. Career-conditional appointments

3. Temporary appointments

4. Volunteer appointments

5. Consultants

6. Reinstatements

7. Reemployed Annuitants

8. Transfers (including CAO (Change in Appointing Office) or reassignment from another Treasury bureau)

9. Student trainees/interns

10. Excepted appointments

11. Term Appointments

(3) All tentatively selected applicants must be fingerprinted and the results of the FBI fingerprint and/or criminal history name check must be received (including disposition information when applicable) and adjudicated prior to EOD. Neither the Employment Offices nor PS has the authority to deviate from this policy.

(1) In accordance with the Fair Credit Reporting Act, all Treasury/IRS applicants and employees, including contractor employees, for whom a credit check is initiated, will be notified in writing that credit reports may be obtained for employment purposes. Written consent must be obtained prior to any such reports being procured. Individuals must be notified promptly if information in their credit report may result in any unfavorable action, such as denial of a clearance, employment, or access authorization. The disclosure and authorization form (FCRA Form 13340) to be used for this purpose appears at http://hco.web.irs.gov/recruitstaff/PersonnelSecurity/PersonnelSecurityForms.shtm

(1) Every IRS position, including those of contractors, must be designated with a suitability risk or national security sensitivity level. All employees who occupy a position, and all contractors who perform services in a like position, must meet personnel security/suitability standards commensurate with the position risk/sensitivity level of the position or services performed and are subject to personnel security background investigation requirements.

1. Public Trust positions are designated at the High or Moderate risk level. Suitability risk levels commensurate with public trust responsibilities and attributes of the position as they relate to the efficiency of the service, and as described in Title 5 Code of Federal Regulations (CFR) Part 731.

2. National Security positions are designated at the Special-Sensitive, Critical-Sensitive, or Noncritical-Sensitive sensitivity level. National Security sensitivity levels commensurate with the potential adverse impact upon the National Security that the incumbent could affect, as described in 5 CFR Part 732 (see IRM 10.23.1 for information on positions designated as National Security positions).

(1) Positions that are intermittent, seasonal, per diem, or temporary, not to exceed a total of 180 calendar days per year in either a single continuous appointment or series of appointments, do not require a background investigation as described in 5CFR 731.106(c)(1). The IRS, however, must conduct certain checks as it deems appropriate to ensure the suitability of the person. Please see chart below.

(1) OPM establishes the level of investigation required for each position risk designation. In FY 2015, the OPM implemented the following Federal Investigative Standards (FIN) issued by the Suitability and Security Executive Agents. These standards are used to determine eligibility for logical and physical access, suitability for U.S. Government employment, fitness to perform work for, or on behalf of U.S. Government as a contract employee, and eligibility for access to classified information or to hold a sensitive position.

(2) The standards consist of five tiers with an Expandable Focused Investigation (EFI) model at each tier as shown below:

• Tier 1 (investigation for positions designated as low risk

• Tier 2 (Investigation for non-sensitive positions designated as moderate risk-public trust positions)

• Tier 3 (investigation for national security positions designated as non-critical sensitive and/or requiring access to Confidential or Secret information)

• Tier 4 (investigation for high risk-public trust positions)

• Tier 5 (investigation for national security positions - top secret, sensitive compartmented information, critical sensitive and special sensitive)

(3) The minimum investigative requirements for IRS public trust positions as recommended by the Department of the Treasury and OPM are:

1. Tier 2 - Moderate Risk

2. Tier 4 - High Risk

(1) Personnel in Information Technology (IT) positions with ‘Privileged Access’ to IRS “sensitive” IT systems must be designated at the High-risk level and the requisite completed background investigation must be favorably adjudicated prior to obtaining privileged access.

(2) “Privileged Access” is defined as administrator or root access to DS, DSTEST and IRSNET domains (for example, IBM and application access Individual Master File [IMF]; Business Master File [BMF]; Customer Account Data Engine, [CADE/CADE2], Redesigned Revenue Accounting System [RRACS]; Integrated Financial System [IFS] and Corporate Files on Line [CFOL] that contain highly sensitive, critical information. Individuals in such positions (for example, system administrator, data base administrator, network administrator) with this level of access have major program responsibilities/duties and authorities that are critical to the IRS mission; and if information is compromised, it could potentially cause exceptionally serious damage to sensitive IT systems and to the national financial market.

(1) Personnel in positions designated as either High or Moderate risk are subject to reinvestigation no later than 5 years from the date of completion of their original investigation and every five years thereafter, unless the following occurs:

1. prior to the next required reinvestigation, a separate investigation is conducted to determine a person’s eligibility (or continued eligibility) for access to classified information or to hold a sensitive position.

2. a change in risk level and that investigation meets or exceeds the requirements for a public trust reinvestigation, a new public trust reinvestigation is not required. Such a completed investigation restarts the cycle for a public trust reinvestigation for that person.

(2) The minimum reinvestigation required is at least a (Tier 1) investigation. Personnel in Low Risk positions are not subject to reinvestigation while they remain in a Low Risk position. There is currently no government-wide requirement to conduct reinvestigations of employees in low-risk, non-sensitive positions.

(3) If there is a change in position risk or sensitivity level, i.e., an employee moving to a position at a higher risk or sensitivity level than the position he or she currently occupies, the following must occur:

1. Employee must meet the investigative requirements of the position risk designation of the new position.

2. Any upgrade in the investigation required for the new risk level should be initiated within 14 calendar days of the effective date of the new position designation.

(4) For an individual moving into a Critical-Sensitive or Special-Sensitive position, the investigation must be completed pre-appointment. Other than for Critical-Sensitive or Special-Sensitive levels, if the position risk or sensitivity of an incumbent’s position is increased due to an accretion of duties and responsibilities, the incumbent may remain in the position, but the investigation required by the higher risk/sensitivity level shall be initiated within 14 working days of the effective date of the new position designation.

(5) When an employee moves from a public trust position and who previously has completed the Standard Form (SF) 85P, Questionnaire for Public Trust Positions, (and was investigated for that purpose) is subsequently determined to require a security clearance to perform assigned duties, the following shall be done:

1. The public trust position designation must be re-designated to the appropriate national security designation level, commensurate with the required security clearance level, i.e., Top Secret, Secret or Confidential.

2. The employee shall complete a SF 86, Questionnaire for National Security Positions, and meet the necessary security clearance investigative criteria.

3. Managers must immediately initiate a personnel action to reassign employees to a national security Standard Position Description. Conversely, if national security duties/responsibilities are no longer required, the position’s trust level then reverts to a public trust risk designation.

(6) For an applicant occupying a position designated as a sensitive national security position (non-critical sensitive, critical sensitive, special sensitive), the position will be filled only by an individual for whom the requisite background investigation has been completed satisfactorily prior to appointment.

(7) For individuals occupying national security positions, the sensitivity/risk levels and minimum required investigations are:

1. Special Sensitive (level 4) - Top Secret, Single Scope Background Investigation (SSBI). Reinvestigation requires SSBI-Periodic Reinvestigation (PR) or Phased PR.

2. Critical Sensitive (level 3) - Top Secret or Secret, Single Scope Background Investigation. Reinvestigation requires SSBI-PR or Phased PR.

3. (Tier 3) Non-Critical Sensitive (level 2) - Secret or Confidential, SSBI for High Risk (level 6). Reinvestigation requires SSBI-PR or Phased PR.

4. (Tier 3) Non-Critical Sensitive (level 2) - Secret or Confidential, Moderate Risk Investigation for Moderate Risk (level 5).

5. (Tier 3) Non-Critical Sensitive (level 2) - Secret or Confidential, ANACI for Low Risk. Reinvestigation requires NACLC.

Note: In situations where there is a change in status of the subject (Transfers, Reemployed Annuitants and Reinstatements, Employee to Contractor and vice versa) and a prior investigation is reciprocally recognized, the PS adjudicator may grant an exception for Pre-Employment Fingerprint Checks. The exception will be documented in the case file and reviewed for concurrence by the Associate Director, PS.

(1) Investigations are used to determine suitability for employment in positions in the competitive service, excepted service and the Senior Executive Service.

(2) In accordance with the Treasury Security Manual, (chapter 2, section 1), employees appointed to any Treasury/bureau position are subject to a suitability investigation (1) upon initial appointment to the Federal service and (2) upon reappointment after a break in service of 24 or more months. Employees may also be subjected to investigation for access to national security information prior to or immediately following entrance-on-duty. Current Federal employees appointed to Treasury/IRS positions may be subjected to further investigation if the position to which they are being appointed carries a higher risk designation than that for which they were previously investigated. In general, the type of investigation to be requested is based on the position's sensitivity or risk level designation.

(3) PS will accept background investigations and adjudications conducted by other federal agencies unless it is determined that the background investigation or adjudication does not sufficiently address the Federal Investigative Standards (FIS) used by PS in determining suitability.

(4) Prior completed background investigations and final favorable adjudications will be accepted for a suitability determination when:

1. The investigation meets or exceeds the requirements for the risk designation of the position to be filled;

2. There has been no break in service of more than 24 months;

3. The favorable adjudication was based on criteria set forth in 5 CFR 731

4. The individual must have served continuously for at least one year in the position where they were favorably adjudicated; and

5. there must be no new adverse information obtained in connection with the individual’s appointment that calls into question his/her suitability under 5 CFR 731.202.

(5) Reciprocity does not need to be accepted if the issues in the prior investigation are not compatible with the core duties of the new position.

1. PS will search OPM’s investigative database to determine if reciprocity of a prior investigation applies when:
   1. The OPM Case Closing Transmittal for the Fingerprint Special Agreement Check (SAC) indicates a record under the ‘SII’ caption; and
   2. The Employment Office (EO) indicates that the applicant requires a completed background investigation

2. The results of the reciprocity search will automatically populate into PS’ Automated Background Investigation System (ABIS). The EO will determine if the completed investigation can be reciprocally accepted based on whether the investigation meets or exceeds the position risk/sensitivity level and if there is no break in service of no more than 24 months.

(6) When feasible, all background investigations shall be completed and suitability decisions made within an appointee's first year of service.

(7) The scope and coverage area of the investigation is determined by the designated position risk/sensitivity level. The investigation is designed to reveal pertinent facts, past and present, about the character, honesty, trustworthiness, reputation, etc., of the applicant or employee. Upon completion of the final investigation, a suitability decision is made by PS after reviewing the results of the required background investigation.

(8) If the subject of an investigation separates or is no longer being considered for appointment, the investigation must be discontinued.

(1) For appointees with less than one current continuous year of service, the Associate Director, Personnel Security, has delegated authority to make suitability determinations and propose suitability actions under 5 CFR Part 731, except for those cases that must be referred to the OPM. (See 5 CFR 731.103) (g). The Director for the office of Employment, Talent and Security will take suitability actions under 5 CFR Part 731, except for those cases that must be referred to the OPM. (See 5 CFR 731.103) (g).

(2) OPM has jurisdiction for investigations on all applicants and appointees serving a one (1) year probationary period and on any case under its authority as deemed necessary (5 CFR 731.202(b)(3), (4), or (8)).

(1) As outlined in 5 CFR 731.103, OPM has retained jurisdiction for adjudicating suitability in all competitive service cases involving the issues listed below. OPM has delegated certain aspects of these authorities to agencies, but retains overall responsibility:

1. Evidence of material, intentional false statements, deception, or fraud in examination or appointment, including SES career appointments;

2. Refusal to furnish testimony;

3. Statutory or regulatory bar;

(2) NOTE: A non-selection, or cancellation of eligibility for a specific position based on an objection to an eligible or pass over of a preference eligible under 5 CFR 332.406, is not a suitability action even if it is based on reasons set forth in 5 CFR 731.202.

(3) OPM has jurisdiction for investigations on all applicants and appointees serving a one (1) year probationary period and on any case under its authority as deemed necessary (5 CFR 731.202(b)(3), (4), or (8).

(1) Executive Order 13467 was amended to establish the roles and responsibilities of the NBIB in September 2016. The NBIB is established within the OPM with responsibility for conducting effective, efficient, and secure personnel background investigations pursuant to law, rule, regulation, or executive Order. The NBIB will be the primary service provider of government-wide background investigations for the Federal government with the mission of delivering background investigations to ensure the integrity and trustworthiness of the Federal workforce.

(1) The IRS has delegated authority from OPM to impose agency-specific debarment of applicants and appointees from IRS covered positions under Title, 5 Code of Federal Regulations (CFR), part 731, Suitability, and Treasury Order 102-01, Delegation of Authority Concerning Personnel Management, dated January 17, 2008 and reaffirmed, February 5, 2013.

(2) The Director, Employment, Talent and Security (ETS) within the Human Capital Office has the delegated authority for denying or approving debarment from all or specific covered positions within the IRS under Delegation Order 6-25, dated November 9, 2017.

(3) This policy provides guidance when a suitability determination warrants:

1. An agency debarment from all or specific covered positions within the IRS

2. Government-wide debarment from all covered positions in the Federal Government

(4) The IRS can determine an applicant’s suitability at any time during the hiring process however, IRS must ensure that:

1. the applicant is eligible for the position

2. the applicant is to be among the best qualified

3. and/or within reach of selection.

(5) If the individual is appointed, the minimum level of investigation must be conducted prior to determining suitability.

(1) In January 2015, the Security and Suitability Executive Agents approved the Quality Assessment Standards for Background Investigations (QAS) which were distributed to federal agencies to be implemented in 2017. The QAS establishes federal guidelines for assessing the quality of national security and suitability background investigations based on the Federal Investigative Standards (FIS), implemented in December 2012. The establishment of quality assessment standards will facilitate the measurement and continued improvement of investigative quality across the Executive Branch.

(2) The QAS are established for background investigations to determine eligibility for:

1. logical and physical access

2. suitability for government employment

3. eligibility for access to classified information and to hold a sensitive position

4. fitness to perform work for/or on behalf of the government as a contract employee

(3) The QAS also applies to the background investigations of state, local, tribal and private sectors entities as defined in EO 13549.

(4) The QAS will establish how investigative quality will be defined, measured and assessed. The QAS are not designed to determine if or what adjudicative action will be taken, but to support the standardization of background investigations which in turn supports uniformity and reciprocity.

(5) The QAS are based on four category assessments that characterizes the investigation as:

1. Complete - all coverage is obtained and all issues are resolved

2. Justified – component requirement is missing but an adequate explanation is present

3. Incomplete – component requirement is missing and no adequate explanation

4. Insufficient – known issues not resolved and/or excessively poor reporting present

   Note: An investigation can be both incomplete and insufficient.

(6) When the quality of an investigation is evaluated, it will be assigned one of the four assessment categories outlined above. The only exceptions are the investigations that are assessed as both incomplete and insufficient.

(1) To ensure independence of the adjudication and referral process and to eliminate any appearance of a conflict of interest in the handling of investigative reports conducted on employees of PS and the HCO Executives to whom PS directly reports, the following procedures shall be affected:

1. All such completed reports of investigation conducted for suitability or security purposes will be made available either electronically or in hard copy to the Office of Security Programs (OSP), Department of the Treasury by OPM.

2. Treasury OSP adjudicates the case for suitability and clearance eligibility, as implemented in the common adjudicative standards set forth by the 5CFR 731 and 732.

3. Treasury OSP sends an email notification regarding the completion of the investigation to Associate Director, PS.

4. Upon notification from Treasury, PS updates the Automated Background Investigation System (ABIS) and the Personnel Investigations Processing System (PIPS)/Clearance Verification System (CVS) with security clearance and investigative information.

5. PS briefs IRS employees and HCO Executive Team members whose cases are favorably adjudicated for access to classified information. PS provides Treasury OSP a copy of the signed SF-312 for recordation purposes.

6. PS advises Treasury OSP of any change in status of PS employees or contractors.

7. The final determination/adjudication will be referred to Labor Relations only when appropriate action is recommended. Treasury OSP will maintain a copy of the report of investigation and complete the Form 2077 (C) or TD F 15-03.2.

(1) PS will make post-investigation suitability determinations on employees with less than one current continuous year of service, using the specific factors contained in 5 CFR 731.202(b). The PS adjudicators, trained under OPM suitability guidelines, will make determinations based on a person's character and/or conduct that may have an impact on the integrity or efficiency of the service.

(1) When an agency-initiated suitability action is taken against an appointee with less than one current continuous year of service, PS or OPM prepares a Notice of Proposed Action (5 CFR 731.402).

1. PS must notify the appointee (hereinafter, the "respondent") in writing of the proposed action, the charges against the respondent, and the availability to request a review of the materials supporting the charges. The notice must outline the specific reasons for the proposed action and state the individual’s right to respond to the notice in writing. The notice must also inform the respondent of the time limit for the answer;

2. The notice must inform the respondent that he or she may be represented by a representative of the respondent's choice and that if the respondent wishes to have such a representative, the respondent must designate the representative in writing;

3. The agency must serve the notice of proposed action by mail or hand delivery no less than 30 days prior to the effective date of the proposed action. The notice must be served to the respondent's last known residence or duty station; and

4. If respondent is employed in a position covered by this part when the notice is served, the respondent may remain in a pay status during the notice period.

(2) Respondent’s answers to the Notice of Proposed Action:

1. The respondent may submit a written response, including affidavits, or other written evidence, up to 30 days of your receipt of notice; and

2. The respondent may be represented by a representative of choice if designated in writing.

(3) Agency’s decision (5 CFR 731.404):

1. The decision regarding the final action must be in writing, be dated, and inform the respondent of the reasons for the decision and that an unfavorable decision may be appealed in accordance with 5 CFR Part 731; and

2. If the decision requires removal, the employing agency must remove the appointee from the rolls within 5 workdays of the agency's decision.

(1) When OPM or an agency acting under delegated authority takes a suitability action against a person, that person may appeal the action to the Merit Systems Protection Board (hereinafter “Board”), in accordance with 5 CFR 731 Subpart E.

(2) If the Board remands the case to OPM or the Agency for review, OPM or the Agency will determine whether the action taken is appropriate based on the sustained charges, and the determination will be final without any further appeal to the Board.

(3) The procedures for filing an appeal with the Board can be found here.

(1) In accordance with Treasury Security Manual, TD P 15-71, Chapter I, Section 4, “Personnel Security Operations,” the Service will establish and maintain a personnel security file for employees in the following positions:

1. national security positions;

2. moderate and high-risk public trust positions; and

3. low-risk/non-sensitive positions where unfavorable or derogatory information has been developed or received, unless the file is maintained by the OPM.

(2) All contractors are subject to the same requirements as Treasury/IRS employees with a file maintained for contractor personnel covered by the provisions of Chapter II, Section 2, of TD P 15-71 or who require a background investigation to meet the requirements of Homeland Security Presidential Directive (HSPD-12).

(3) The Service will not maintain a file on a contract employee granted access to classified information under the National Industrial Security Program (NISP), unless there is a requirement for additional investigation relating to access to Treasury/IRS facilities or automated information systems or access to classified information not covered under the NISP.

(4) Regarding favorable investigations on employees or contractor personnel in low or moderate risk positions, the Service will retain pertinent investigative data only, such as adverse derogatory information.

(5) All personnel security files are under the control of the Associate Director, PS.

(1) In accordance with TD P 15-71, Chapter I, Section 5, when an employee transfers from the Treasury Agency office to a bureau or from one bureau to another, the complete personnel security file or a copy of it must be transferred from the personnel security office of the losing bureau to the personnel security office of the gaining bureau. Exception: when the file of an IRS employee contains tax information, the tax information is not transferred outside the IRS.

(1) Personally Identifiable Information (PII) in background investigations, records, and operations shall be carefully safeguarded to protect the interests of both the individual and the Service, pursuant to requirements of the Privacy Act. Unless classified at a higher level, personnel security information must be afforded the same degree of protection as material identified as "Controlled Unclassified Information" and must be used only for authorized official purposes. When not in use, personnel security information must be stored in a General Services Administration approved security container or in an equally secure area. All electronic records shall be safeguarded in accordance with IRM 10.5.8.

(2) Reports containing classified information must be protected in accordance with Executive Order 13526, Classified National Security Information and appropriate Treasury regulations.

(3) Personnel security investigation information requested by the subject of an investigation will be processed according to established procedures under provisions of the Privacy Act or the Freedom of Information Act, as appropriate. Requests for the release of the results of any personnel security investigation should be referred to the Treasury/bureau or non-Treasury agency that conducted it. When another agency requests a copy of a PS report of investigation under the routine use provision of the Privacy Act of 1974 (5 U.S.C. 552a), for the purpose of suitability or the granting of a security clearance, the request must be made in writing to IRS, Personnel Security, PA Section, 5000 Ellin Road, Room C1-530, Lanham, MD 20706 or by fax to 855-696-0378.

(1) Some of this IRM’s subsections were renumbered, retitled and the content reorganized to improve readability and flow. The table below displays the changes for previous and current subsections.

(1) Below are the Security Terms and Definitions.