ATTACHMENT 18 IRS MEMORANDUM TO ALL NATIONAL OFFICE EMPLOYEES October 29, 1971 FROM ACTING CHIEF, NATIONAL OFFICE BRANCH UPDATING OF OFFICIAL PERSONNEL FOLDERS The purpose of this memorandum is to remind you of the importance of maintaining up-to-date information in your Official Personnel Folder (OPF) about your experience and qualifications. The OPF is the basic source of factual data about your employment, qualifications, education, training, awards received, etc. and is referred to quite frequently, especially when you are being considered for promotion. The National Office Branch, Services Section, Room 1023 maintains your OPF. If you feel that you would like to inspect your folder, you may do so by requesting it at that office. If your OPF does not reflect current information about your training classes, outside awards, self-development, etc., we recommend that you obtain SF-172 (Supplemental Experience and Qualifications Statement), available in Room 1028, complete it, and send it to the Services Section for filing in your folder. THOMAS H. NEUHAUSER. 4010.10 State and Territorial Income Taxes.-The Act of July 17, 1952, 5 U.S.C. 84b et. seq., and Executive Order 10407, dated November 6, 1952, provide for withholding State and Territorial income taxes from the compensation of Federal employees if an agreement has been entered into between the Secertary of the Treasury and the proper official of the State or Territory. A copy of each consummated agreement is appended to this Part. 4010.20 District of Columbia Income Taxes.-Pursuant to the Act of March 31, 1956 (70 Stat 77; 47 DC Code 1586g) and Executive Order 10672 dated July 9, 1956, the Secretary of the Treasury and the Commissioners of the District of Columbia entered into an agreement for the withholding of the District of Columbia income taxes from the compensation of Federal employees. A copy of that agreement is appended to this Part. 4010.30 Severance Pay.-Compensation of Federal employees subject to withholding of State, Territorial and District of Columbia income taxes includes severance pay pursuant to the Act of October 29, 1965 (79 Stat 1118; 5 U.S.C. 1117) if paid to the former employee. Severance pay remaining unpaid upon the death of a former employee is not subject to such withholding upon payment to a survivor or survivors. 4010.40 Information Returns.-Instructions for furnishing information returns to State and local tax authorities are contained in Bureau of the Budget Circular No. A-38. 20-550 O 74 pt. 5 23 SECTION 4020-AGREEMENTS 4020.10 Contents.-The agreements entered into between the Secretary of the Treasury and the respective States (or Territories) constitute the basis on which Federal agencies withhold the State (Territorial) income tax on the compensation of Federal employees. The agreements contain the general provisions required by Executive Orders 10407 and 10672 as well as certain specific provisions providing conformity, as nearly as practicable, with the usual fiscal practices of Federal agencies. SECTION 4030-ADMINISTRATION OF THE AGREEMENTS 4030.10 Agency Responsibility.-The heads of agencies or their designees will comply, subject to the provisions in the agreements, with the State (or Territorial or District) laws with respect to withholding the tax, filing returns, and paying the tax. Agencies will deal directly with the respective tax authorities, obtaining from the appropriate authority the needed forms, instructions, etc., making returns, and paying the tax. The address of the authority to whom communications should be sent is a part of the appended agreements. 4030.20 Withholding Agent.-Agencies may use the same withholding agency for State, Territorial, and/or District of Columbia taxes as are designated for withholding Federal taxes. When required by the State, Territorial, or District law, the appropriate authorities will be notified of the Federal officers or employees designated to perform the withholding duties. 4030.30 Report of Non-compliance. At the request of the Secretary of the Treasury, heads of agencies will furnish a report of any non-compliance with the provisions of any agreement or any information in connection with the administration of the agreements. SECTION 4040-VOLUNTARY DEDUCTIONS 4040.10 Regulations.-The pay regulations of the United States Civil Service Commission provide for voluntary payroll deductions of State (Territories and District of Columbia) income taxes from salaries of Federal employees on the basis of residence in situations where, by law or by reciprocal agreement, there is no requirement for non-resident withholding in Federal employees at their place of employment. 4040.20 Employees Affected.-Allotment may be made only by employees who are residents of States (Territories and District of Columbia) with which the Secretary of the Treasury has entered into withholding agreements and who commute regularly to another State (Territory or District of Columbia) in which they are employed. 4040.30 Amounts of Allotments.-The allotments of pay for this purpose will be on the basis of (1) the claimed personal exemptions on the appropriate withholding exemption certificate executed by the employee and (2) the amount of taxes developed by the applicable State withholding tables or State approved formulae. 4040.40 Accounting for Voluntary Withholdings.-The amounts of voluntary withholdings will be deposited in the deposit fund account and paid over to the State (Territory or District of Columbia) in the method prescribed in 3 Treasury FRM 4060 and 4080. SECTION 6010-LAW AND REGULATIONS 6010.10 Public Law. The act of September 26, 1961, Public Law 87-304, 75 Stat. 662, 5 U.S.C. 3075, provides that the head of each department is authorized to establish procedures under which each civilian employee of such department is permitted to make allotments and assignments of amounts from his compensation for such purpose as such department head deems appropriate. 6010.20 Regulations.-The President, with respect to the executive branch, and the head of the department concerned, with respect to the appropriate department outside the executive branch, is required by P.L. 87-304 to prescribe and issue, or provide for the formulation and issuance of, such regulations as are necessary and appropriate to carry out the provisions, accomplish the purposes, and govern the administration of the act. The Civil Service Commission has issued regulations to coordinate the policies and procedures of the respective departments in the executive branch under the act. SECTION 6020-AUTHORIZATION The employee will give written authorization for making, changing, or discontinuing deductions from his compensation for allotments or assignments. The authorization will specifically state (1) the basis under which the allotment or assignment is permitted, (2) the name and address of the allottee or assignee, and (3) the purpose for which the allotment or assignment is being made. SECTION 6030-RECURRING PAYMENTS Agencies may make arrangements with the Treasury Department for the establishment of a recurring payment file. This will permit the issuance of checks by automatic data processing or addressing machine equipment in a manner similar to the procedure used for the Simplified Payroll System. SECTION 6040-ORDER OF PAYMENT If the gross compensation of an employee is not sufficient to permit all deductions to be made, deductions will be made in the order of (1) retirement or F.I.C.A., (2) Federal income taxes, (3) health benefits, (4) group life insurance, (5) indebtedness due the United States, (6) State income taxes, and (7) other voluntary deductions in the order determined by the paying agency. SECTION 6050-ACCOUNTING FOR ALLOTMENTS AND ASSIGNMENTS The amount deducted each pay period for allotments and assignments will be recorded on the employee's individual earnings record or its equivalent. Each agency will maintain adequate controls to assure the accuracy of the deductions. A voucher (or voucher and schedule of payments) will be prepared for payment of the allotments and assignments as specified by the employee. The payment for the allotments, assignments, and payroll will be made from the same appropriation. SECTION 6060-NOTIFICATION TO ALLOTTEES AND ASSIGNEES If required by the allottee or assignee, they will be notified of the name of the employee and the purpose for the allotment or assignment. Where disbursements are made by regional disbursing offices of the Division of Disbursement, Bureau of Accounts, agencies will forward the information on an agency designed pay list and the disbursing office will use that list to notify the allottees and assignees. If more than one allotter or assignor is covered by the check to the allottee or assignee, the agency will also furnish a mailing notice to accompany the check. The mailing notice should be a by-product of the pay list. SECTION 6070-OTHER FORMS AND PROCEDURES Except as indicated in this Section, the employing agency will determine the other forms and procedures necessary to implement these instructions. 6070.10 Employee Organization Dues.-SF 1187, Request and Authorization for Voluntary Allotment of Compensation for Payment of Employee Organization Dues, and SF 1188, Revocation of Voluntary Authorization for Allotment of Compensation of Payment of Employee Organization Dues, will be used in implementing the instructions of the Civil Service Commission for the authorization and revocation of payroll deductions for payment of employee organization dues. 6070.20 Pledges to Combined Charity Drives.-Authorization forms in standard format printed and distributed by the combined campaign organization will be used in implementing the instructions of the Civil Service Commission for the authorization and revocation of payroll deductions for payment of pledges to combined charity drives. SECTION 6080-REIMBURSEMENT FOR CERTAIN ALLOTMENTS The employee organization and the combined charity campaign organization will be charged a fee in an amount specified by the Civil Service Commission. The amounts collected will be deposited to the miscellaneous receipt account "2412, Fees and other charges for accounting and auditing services." SECTION 7010-SCOPE AND APPLICABILITY This chapter prescribes procedures with respect to the option available to Federal employees of having recurring payroll deductions for savings in specified amounts, to be remitted regularly to financial organizations of their choice for credit to their savings accounts, and the option of having the full amount of net pay due remitted regularly to financial organizations of their choice for credit to their accounts. These procedures do not relate to allotments and assignments of amounts of employees compensation made under regulations issued under Subchapter III of Chapter 55 of Title 5 of the United States Code. (See Chapter 6000.) SECTION 7020-LAW AND REGULATIONS These options for payments to financial organizations for credit to accounts of employees are made available pursuant to Section 3620 of the Revised Statutes, as amended (31 U.S.C. 492), as further amended by Public Law 90-365 (82 Stat. 274). Regulations governing these payments appear in Treasury Department Circular No. 1076 (First Revision), dated November 22, 1968. SECTION 7030-DEFINITION OF TERMS IN THIS CHAPTER 7030.10 Agency.-Means any department, agency, independent establishment, board, office, commission, or other establishment in the executive, legislative (except the Senate and House of Representatives), or judicial branch of the Government, any wholly owned or controlled Government corporation, and the municipal government of the District of Columbia. 7030.20 Financial Organization.-Means any bank, savings bank, savings and loan association or similar institution, or federal or State chartered credit union. (See Section 7070.40.) 7030.30 Employee.-Means a civilian employee of an agency. 7030.40 Allotment of Pay for a Savings Account.-Means an authorization from an employee for a recurring payroll deduction from salary or wages due, in a specified dollar amount, to be remitted to a financial organization of his choice, for credit to his savings account. ATTACHMENT 20 THURSDAY, FEBRUARY 6, 1964. INTERNAL REVENUE SERVICE WITNESSES MORTIMER M. CAPLIN, COMMISSIONER, INTERNAL REVENUE SERVICE WILLIAM H. SMITH, ASSISTANT COMMISSIONER (PLANNING AND RESEARCH) EDWARD F. PRESTON, ASSISTANT COMMISSIONER (ADMINISTRATION) VERNON D. ACREE, ASSISTANT COMMISSIONER (INSPECTION) ROBERT L. JACK, ASSISTANT COMMISSIONER (DATA PROCESSING) SHELDON S. COHEN, CHIEF COUNSEL GRAY W. HUME, FISCAL MANAGEMENT OFFICER ERNEST C. BETTS, JR., DIRECTOR, OFFICE OF BUDGET AND FINANCE, TREASURY DEPARTMENT * IRS DATA CENTER Mr. GARY. The initial long-range plan presented to the committee did not include a computer center at Detroit. It is my understanding that such an installation is now contemplated. Would you give the committee some information on that, please? Mr. CAPLIN. The installation in Detroit is not a part of the ADP system. It has no relation to a master file. The IRS Data Center at Detroit is a combination of a data system for statistics of income, plus payroll and other administrative documents, and a training center. It is part of the regional training center pattern we have been experimenting with and which has been considered by the committee that studied our training program last year. The Service at all times anticipated there would be need for some supplementary type of activity, which would be non-ADP oriented. The timing of the construction of this building became more acute the last year in our discussions on where we were going to locate different buildings. At one time there had been some consideration of possible location of the eighth or ninth ADP service center in Detroit. We decided against that. There had been some site inspection. We also had some preliminary planning_in connection with the overall consideration of the site of the Data Center. We finally decided that the Data Center would be located in Detroit. I think it is going to make an important contribution. There would have been need to have the activity some place, and we think Detroit was as good a location as any. From the standpoint of training programs it is very well located. Mr. GARY. When is it anticipated this center will be placed in operation and what is the purpose and what is the total amount of money expected to be required for that purpose? Mr. JACK. In answer to the first question, it will be opened at the end of 1965 and begin operation in 1966 and it will employ about 900 people on a year-round basis when fully operational in 1970. It is a more permanent-type installation than our regional service centers where the work is seasonal and we go from, say, 800 people up to 1,600 or 1,700 at peak and back down to the 800 permanent employees. Mr. CAPLIN. I would like to suggest, Mr. Chairman, that we make available to you our projection on this and insert it in the record. Mr. GARY. If you will I shall appreciate it. Please include personnel in that, additional personnel that are required for the data center there. Are they included in the proposed budget for fiscal 1965? Mr. CAPLIN. Yes; there were 12 people for 1965. Mr. GARY. What will be the total number required for the operation? (The information follows:) IRS DATA CENTER The IRS Data Center will perform all computer operations not directly related to the ADP master file system. These operations would include all Treasury payroll operations, statistics of income, reimbursable jobs for States and other Federal agencies, etc., selected management type reports, service center processing and computer work related to the taxpayer compliance measurement program, special Treasury projects, etc. The Center would also house certain training operations now being performed in a number of dispersed locations. The 1970 permanent work force for computer center operations at the IRS Data Center would be approximately 900 to 950 employees, plus an average in-residence student population of 200, or approximately 1,100 to 1,150 fulltime equivalent. This activity will not have the seasonal peaks which are characteristic of our ADP service centers, so few temporary employees will be required. The annual payroll for computer operations will be approximately $4.8 million, and the total payroll, including the training function for the Center, will be about $6.3 million when fully operational in 1970. The total space requirement for the Center will be 145,000 square feet including 35,000 for the training operation. We are asking for 12 man-years in 1965 for the IRS Data Center for the initial staff to organize and direct the Center. Looking forward to 1966 and full implementation of the Center by 1970, a substantial number of the total man-years required will be funded by transfer of the operations from our three existing area service centers. As these area service centers are converted to master file processing with a change to a type of equipment not suitable for the non-master file processing work, the payroll operations and the processing and computer work for the statistics of income, taxpayer compliance measurement program, certain management reports, etc., currently being performed in the area centers will be phased into the IRS Data Center. All reimbursable work for States and other Federal agencies would be funded by the requester and we are assuming that financial adjustments would be made for the Treasury payroll operations (exclusive of the IRS payroll). The Data Center would have the potential for ultimately increasing the computer service for other components of the Treasury Department and other Federal and State agencies. |