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Part 4. Examining Process

Chapter 62. Tax Administration Advisory Services Procedural Manual

Section 3. Requests for Representation Funds and Gifts for Foreign Officials

4.62.3  Requests for Representation Funds and Gifts for Foreign Officials

4.62.3.1  (06-30-2002)
General Background

  1. The Representation Fund is a budget allocation used to facilitate official reception and representation activities that further the interests of the U.S. tax administration system. Such activities are intended to increase cooperation with foreign governments and with public or private organizations outside of the Federal Government.

  2. A memorandum making the Assistant Commissioner (International) the Plan Manager for the Representation Fund was signed by the Acting Assistant Commissioner (Human Resources) on July 20, 1986.

  3. With the reorganization of the Internal Revenue Service (IRS), the Director, International (LMSB) replaced the Assistant Commissioner (International) as the "authorizing official" for the Representation Fund. The Director, International (LMSB) in turn delegated this responsibility to the Manager, Tax Administration Advisory Services (TAAS) Division.

  4. The Representation Fund is intended to cover allowable expenditures by IRS employees in providing suitable representation to foreign government officials or other agents, within the limitations described in this text.

  5. It is the responsibility of the Beckley Finance Center to record all obligations against the fiscal year in which the event occurred and make all reimbursements and payments associated with the Representation Fund.

  6. Representation Fund obligations may not be recorded by other offices.

4.62.3.2  (06-30-2002)
Representation Fund Budget Allocation Process

  1. During the first week of August, the Representation Fund Coordinator requests Representation Fund (Rep Fund) users to submit their next fiscal year needs.

  2. The Rep Fund Coordinator develops a chart comparing last year's allocation to what is requested for this fiscal year. The chart is submitted to the Manager, TAAS Division to develop a proposed allocation based on needs for the fiscal year, keeping within the total approved appropriation. Any IRS-hosted international meetings scheduled for the fiscal year receive strong funding priority.

  3. The proposed allocation is submitted to the Director, International (LMSB) for concurrence; then forwarded to the Director, National Headquarters Management and Finance for approval.

  4. Upon receipt of an approved allocation, the Rep Fund Coordinator notifies users of their fiscal year allocation.

  5. The allocation process for the subsequent fiscal year is normally completed by the middle of September. No one is to conduct an event until receiving funding notification and proper approval for the scheduled event.

  6. In July of the funded year, the Rep Fund Coordinator contacts users to inquire if they will use the remainder of their allocation. If the response is no, the funds are distributed to other areas needing additional funds.

4.62.3.3  (06-30-2002)
Criteria for Representation Fund Expenditures

  1. Certain types of expenses associated with fulfilling the functions of the IRS are normally allowable at the discretion of the authorizing official. These expenses include:

    1. Entertainment costs incurred to promote official relationships with foreign governments, state officials and representatives of organizations necessary to enhance the performance of IRS.

    2. The purchase of centerpieces or other items dictated by custom for official functions or events. (This type of expense must receive prior approval because of certain appropriation prohibitions and fund limitations.).

  2. Prior to approving any expenditure, the authorizing official examines the intended expenditure to determine whether:

    1. The scale of the entertainment is suited to the purpose for which the funds are to be expended. The rank and importance of the persons in attendance to the nature and expense of the entertainment is evaluated.

    2. The number of federal employees and their spouses in attendance at a function hosted by the Service is appropriate in relation to the number of other attendees. (Additional IRS personnel beyond the number authorized may attend the representation functions at their personal expense.)

    3. Participation by relatives or companions of IRS employees attending an event for which Representation Funds are expended will be reviewed to ensure that attendance is appropriate and necessary as dictated by proper etiquette. (In the presence of the spouse of a foreign dignitary, it would be appropriate for the IRS official to include his/her spouse).

    4. In the world of international business, the exchange of gifts between officials is commonplace. The Representation Fund may be used to purchase gifts for foreign dignitaries as part of the expected code of behavior. However, such purchases and their accompanying circumstances must be reviewed and approved by the Manager, TAAS Division prior to purchase.

4.62.3.4  (06-30-2002)
Prohibitions in the Use of the Representation Fund

  1. All Representation Fund requests must be pre-approved by the Manager, TAAS Division and processed through the RTS system prior to the funds being used.

  2. Expenses should not exceed the pre-approved amount. If an exception unavoidably occurs, the Manager, TAAS Division reviews the circumstances after the fact, and makes the determination regarding additional reimbursement.

  3. The fund may not be used for:

    1. The hire, purchase, operation or repair of any passenger-carrying vehicle.

    2. Expenses of printing or for the purchase of stationery or cards except for invitations to official functions.

    3. Expenses incurred for entertainment solely for employees of the Internal Revenue Service and/or their families.

  4. An IRS employee who has a meal paid for by the Representation Fund and who is on per diem is not allowed to claim the entire Meal and Incidental Expenditures (M & IE) amount on his/her travel voucher. If a person on per diem has a meal paid for by the Representation Fund, he/she reduces the allowable M & IE rate on their travel voucher as specified in IRM 1763, Travel Handbook, Subsection 523. See IRM 1763 for specific M & IE amounts prior to filing a travel voucher.

4.62.3.5  (06-30-2002)
Procedures for Requesting Representation Funds

  1. Figure 4.62.3-1 contains specific guidelines for requesting Representation Funds. Paragraphs (2) through (6) provide additional information regarding this process.

  2. Obtain forms required to request and process Representation Fund expenditures by contacting the Rep Fund Coordinator. These forms are also available on the IRS Intranet. Contact the Rep Fund Coordinator regarding any Representation Fund questions.

  3. Same day approval of a Rep Fund request is not possible, as the Plan Manager must approve the requisition in the RTS System prior to funds being spent.

  4. If a purchase order or an imprest funds advance is not practical, or if a vendor does not accept Federal Government purchase orders, requestors may have certain goods and/or services for the Representation Fund purchased via the Government bankcard.

  5. In those cases where a SF 1034, Public Voucher for Purchases and Services Other than Personal, is used, Beckley Finance Center makes the payment by direct deposit to the claimant or vendor whose name and address appears on SF 1034.

  6. If the invoice is in a foreign currency or does not equal the amount claimed:

    1. Form 9261, Methodology to Rectify Amount Claimed With Invoice or Receipt, should be completed and attached to Form 9259, Information With Respect to Reimbursement Of Representational Expenses.

    2. Complete Section I of Form 9261. The exchange rate to be used is the rate in effect on the date on which the expenditure is paid.

  7. If persons attend an international business activity who are not pre-approved by the authorizing official, complete Section 2 of Form 9261. This process is outlined in 4.62.3.3(2)(b), which covers non-authorized IRS employees who may attend representation activities at their own expense.

4.62.3.6  (06-30-2002)
Accountability for Representa-tion Funds

  1. The Rep Fund Coordinator prepares all reimbursement requests for approval by the Manager, TAAS Division, and transmittal to the Beckley Finance Center. The following documents are forwarded:

    1. SF 1034, Public Voucher for Purchases and Services Other than Personal (Exhibit 4.62.3-1),

    2. Form 9258, Request for Representation Funds (Exhibit 4.62.3-2),

    3. Form 9259, Information with Respect to Reimbursement of Representation Expenses Form (Exhibit 4.62.3-3),

    4. Form 9260, Invoice/Receipt (Exhibit 4.62.3-4),

    5. Form 9261, Methodology to Rectify Amount Claimed with Invoice or Receipt Form (Exhibit 4.62.3-5), and

    6. RTS documentation showing full acceptance.

  2. The Representation Fund expenditures will be recorded on Form 1034, Public Voucher for Purchases and Services Other than Personal or Form 1334 (via RTS) obligated against the fiscal year in which the event occurred.

  3. The Rep Fund Coordinator is responsible for maintaining the following data:

    1. The list of IRS employees and guests participating in representation activity, including participants' titles. In the case of foreign guests, the country represented should be listed.

    2. The date of activity, name and location (city/state) of the vendor providing the representation activity.

    3. The amount of funds expended and photocopies of receipts.

    4. The purpose of activity or expenditure.

    5. The name and title of person receiving reimbursement.

  4. The Rep Fund Coordinator and the Manager, TAAS Division will conduct a Quarterly Reconciliation of the Representation Fund.

  5. The Rep Fund Coordinator generates two reports based on information submitted by the requesting offices for the Director, International. These reports are:

    Figure 4.62.3-1

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    Representation Fund Reports

    Figure 4.62.3-2
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    Representational Fund Guidelines

4.62.3.7  (06-30-2002)
Representation Fund Gift Distribution Guidelines

  1. The requester is to obtain a TAAS Report Of Representation Fund Gift Distribution Form (Figure 4.62.3-2) from the Rep Fund Coordinator. This form is to be completed identifying the specifics of the distribution of gift(s). The Rep Fund Coordinator will get the original and the requester will keep a copy for their records. Use one form for each different type of gift; multiple names can be listed on this form if the same gift is presented.

  2. Gifts that are not distributed are to be returned to the Rep Fund Coordinator to be added back to the inventory. A note will be added to the original request about the return gift(s).

    Figure 4.62.3-3
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    TAAS Report of Representation Fund Gift Distribution

Exhibit 4.62.3.7-1  (06-30-2002)
Public Voucher For Purchases and Services Other than Personal

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Exhibit 4.62.3.7-2  (06-30-2002)
Request for Representational Funds

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Exhibit 4.62.3.7-3  (06-30-2002)
Information With Respect to Reimbursement of Representation Expenses

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Exhibit 4.62.3.7-4  (06-30-2002)
Invoice/Receipt

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Exhibit 4.62.3.7-5  (06-30-2002)
Methodology to Rectify Amount Claimed With Invoice or Receipt

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