5 U.S.C. § 412 — Special provisions concerning the Department of the Treasury

(a) In General. (1) The Treasury's Inspector General usually works independently. But the Secretary of the Treasury takes charge over any audit, investigation, or subpoena that needs access to very sensitive information — about (A) ongoing criminal investigations, (B) undercover operations, (C) confidential sources, including protected witnesses, (D) policy decisions that could significantly affect the economy or markets, (E) intelligence or counterintelligence matters, or (F) other matters that would seriously threaten national security or the safety of people protected under Secret Service law. (2) For that same sensitive information, the Secretary can stop the Inspector General from starting, finishing, or accessing an audit or investigation, or from issuing a subpoena for it — even after the Inspector General already decided to act — if the Secretary decides that's necessary to keep the information secret or to protect the national interest. (3) If the Secretary uses this power, the Secretary must notify the Inspector General in writing, explaining why. The Inspector General then has 30 days to send that notice to the Senate Homeland Security and Finance committees and the House Oversight and Ways and Means committees, plus any other appropriate committees. (4) The Secretary cannot use this power against the Treasury Inspector General for Tax Administration (TIGTA) — TIGTA is exempt from it. (b) Oversight Responsibility for Internal Investigations. (1) The Inspector General oversees the internal investigations done by the Tax and Trade Bureau's Office of Internal Affairs. That office must promptly report its significant activities to the Inspector General. (2) The Inspector General handles all the usual inspector general duties for Treasury, except the duties TIGTA handles for tax matters. (3) The Secretary must set up procedures so the Inspector General and TIGTA can (A) decide who investigates when their jurisdiction overlaps, and (B) coordinate, cooperate, and work efficiently together. (c) Despite subsection (b), the Inspector General can still start, run, and supervise any audit or investigation in the Treasury Department — including in the Tax and Trade Bureau — whenever the Inspector General thinks it's appropriate. (d) If the Inspector General starts an audit or investigation of the Tax and Trade Bureau under subsection (c), the Inspector General may give that bureau's head written notice of it. Once that notice is given, no one else may start a competing audit or investigation into the same matter, and any that already exist must stop. (e) Treasury Inspector General for Tax Administration. (1) TIGTA can access tax returns and return information only the way the tax code (26 U.S.C. § 6103) and this chapter allow. (2) The IRS must keep the same standardized records of TIGTA's requests to inspect or disclose returns — including the reasons and dates — that the tax code already requires, and make them available for review the same way. (3) TIGTA must follow the same safeguards for handling returns and return information that the tax code requires of others. (f) An audit or investigation by either Inspector General cannot change a final decision the Secretary (or the Secretary's delegate) already made under 26 U.S.C. § 6406. (g) Reports. (1) Any report the Secretary must send certain congressional committees under section 405(e) must also go, within that same 7-day period, to the Senate Homeland Security and Finance committees and the House Oversight and Ways and Means committees. (2) Any TIGTA report the Secretary must send to Congress under section 405(e) must also go, within that same 7-day period, to the IRS Oversight Board and the IRS Commissioner. (h) TIGTA has all the normal duties of an inspector general for Treasury and the Secretary on everything related to the IRS. Only TIGTA — no one else — may audit or investigate the IRS Oversight Board and the IRS Chief Counsel. (i) Besides the usual requirements for appointing an inspector general, the person appointed TIGTA should have shown they can lead a large, complex organization. (j) A person appointed TIGTA, or as an Assistant Inspector General for Auditing, Assistant Inspector General for Investigations, or Deputy Inspector General within TIGTA's office, cannot have been an IRS employee (1) during the 2 years before the appointment, or (2) during the 5 years after leaving that position. (k) Additional Duties and Responsibilities. (1) Besides the normal inspector general duties, TIGTA (A) must enforce certain criminal laws under 26 U.S.C. § 7608(b); (B) may carry firearms, on top of what § 7608(b)(2) already allows; (C) must protect the IRS against outside attempts to corrupt or threaten its employees, but is not responsible for background checks or protection for the IRS Commissioner; and (D) may assign any TIGTA employee to enforce those laws and carry out those functions. (2) Reporting violations. (A) When TIGTA does law enforcement work and finds reasonable grounds to believe someone broke federal criminal law, TIGTA must report it to the Attorney General, at a time TIGTA decides is appropriate — even though section 404(d) would otherwise apply. (B) When the Secretary sends a required report about a problem, abuse, or deficiency involving TIGTA under section 405(e) and subsection (g)(2), the Secretary may choose the timing if the issue involves TIGTA's law enforcement work or the sensitive matters listed in (a)(1)(A) through (F). (3) Nothing in this subsection limits anyone else's authority to enforce these same laws. (l) Request for Audit or Investigation Relating to Internal Revenue Service. (1) The IRS Commissioner or the IRS Oversight Board can ask TIGTA in writing to audit or investigate the IRS. If TIGTA decides not to, TIGTA must promptly give the requester a written explanation why. (2) Reports. (A) TIGTA must promptly send the Commissioner and the Oversight Board the final report of any audit it completes. (B) TIGTA must periodically give the Commissioner and Board a list of finished investigations, and must hand over a copy of any such report they ask for. (C) This paragraph applies whether or not the audit or investigation was requested under paragraph (1).