Review of the IRS’s Purchase Card Violations Report and Status of Recommendations

Report Information

Summary

The IRS’s purchase card program controls are generally effective, and the number of purchase card violations identified by the IRS were minimal. According to the IRS, between April 1 and September 30, 2025, its purchase card program included an average of 1,790 purchase cardholders. These cardholders made 9,478 purchases totaling just over $7.5 million. Additionally, authorized cardholders wrote 11 convenience checks totaling $7,088. The IRS identified six confirmed purchase card violations for the period April 1 through September 30, 2025. The 6 confirmed purchase card cases collectively totaled $55,799 and included 5 instances of split purchases and 1 violation where the cardholder exceeded the single transaction limit. These employees received nondisciplinary actions ranging from written and oral counseling to closed without action with a cautionary statement. The Credit Card Services office also identified 1 purchase card transaction totaling $140 that did not comply with the IRS’s internal charge card policies and procedures but was not reportable to the Office of Management and Budget. The Office of Management Budget requires that only certain inappropriate purchase card transactions be reported in an agency’s Purchase Card Violations Report. Reportable inappropriate transactions are those indicating that abuse, internal fraud, or misuse has occurred. The Office of Management and Budget excludes from its reporting requirements administrative discrepancies, such as actions that violate operational policies or procedures but do not violate federal law or regulation. In addition, we are required to report annually on the implementation of recommendations related to purchase and travel card findings. Our review of prior TIGTA reports found no open recommendations related to purchase or travel card findings. This report is for information only. IRS officials reviewed the report and agreed with our facts and conclusions.