Modernizing America’s Tax Agency 65
Modernizing America’s Tax Agency
Department of the Treasury
Internal Revenue Service
PART 801--BALANCED SYSTEM FOR MEASURING
ORGANIZATIONAL AND EMPLOYEE PERFOR-
MANCE WITHIN THE INTERNAL REVENUE
801.1 Balanced performance measurement system; in
801.2 Measuring organizational performance.
801.3 Measuring employee performance.
801.4 Customer satisfaction measures.
801.5 Employee satisfaction measures.
801.6 Business results measures.
Authority: 5 U.S.C 9501 et seq. ; secs. 1201, 1204, Pub. L.
105-206, 112 Stat. 685, 715-716, 722 (26 U.S. C. 7804 note).
801.1 Balanced performance measurement system; In
(a) In general-- (1) The regulations in this part 801 imple-
ment the provisions of sections 1201 and 1204 of the
Internal Revenue Service Restructuring and Reform Act of
1998 (Public Law 105 -106, 112 Stat. 685, 715-716, 722)
and provide rules relating to the establishment by the
Internal Revenue Service of a balanced performance
(2) Modern management practice and various statutory
and regulatory provisions require the IRS to set perfor-
mance goals for organizational units and to measure the
results achieved by those organizations with respect to
those goals. To fulfill these requirements, the IRS has
established a balanced performance measurement system,
composed of three elements: Customer Satisfaction
Measures; Employee Satisfaction Measures; and Business
Results Measures. The IRS is likewise required to estab-
lish a performance evaluation system for individual
(b) Effective date. This part 801 is effective September 7,
801.2 Measuring organizational performance
(a) In general. The performance measures that comprise
the balanced measurement system will, to the maximum
extent possible, be stated in objective, quantifiable and
measurable terms and, subject to the limitation set forth in
paragraph (b) of this section, will be used to measure the
overall performance of various operati