---
kind: "range"
citation: "5 U.S.C. §§ 9507–9510"
title: "5"
from: "9507"
to: "9510"
count: 4
release: "119-102"
url: "https://uscodex.org/usc/5/9507..9510"
---

# §9507. Streamlined demonstration project authority

- (a) The exercise of any of the flexibilities under [sections 9502 through 9510](/usc/5/9502..9510.md) shall not affect the [authority](/usc/5/7103.md?p=a-6) of the Secretary of the Treasury to implement for the Internal Revenue [Service](/usc/5/8331.md?p=12) a demonstration project subject to [chapter 47](/usc/5/chptIII-sptC-ch47.md), as provided in [subsection (b)](#b).
- (b) In applying [section 4703](/usc/5/4703.md) to a demonstration project described in [section 4701(a)(4)](/usc/5/4701.md?p=a-4) which involves the Internal Revenue [Service](/usc/5/8331.md?p=12)—
  - (1) [section 4703(b)(1)](/usc/5/4703.md?p=b-1) shall be deemed to read as follows:
  - “(1) develop a plan for such project which describes its purpose, the [employees](/usc/5/5361.md?p=1) to be covered, the project itself, its anticipated outcomes, and the method of evaluating the project;”;
  - (2) [section 4703(b)(3)](/usc/5/4703.md?p=b-3) shall not apply;
  - (3) the 180-day notification period in [section 4703(b)(4)](/usc/5/4703.md?p=b-4) shall be deemed to be a notification period of 30 days;
  - (4) [section 4703(b)(6)](/usc/5/4703.md?p=b-6) shall be deemed to read as follows:
  - “(6) provides each House of Congress with the final version of the plan.”;
  - (5) [section 4703(c)(1)](/usc/5/4703.md?p=c-1) shall be deemed to read as follows:
  - “(1) subchapter V of [chapter 63](/usc/5/chptIII-sptE-ch63.md) or subpart G of part III of this title;”;
  - (6) the requirements of paragraphs [(1)(A)](/usc/5/4703.md?p=d-1-A) and [(2)](/usc/5/4703.md?p=d-2) of section 4703(d) shall not apply; and
  - (7) notwithstanding [section 4703(d)(1)(B)](/usc/5/4703.md?p=d-1-B), based on an evaluation as provided in [section 4703(h)](/usc/5/4703.md?p=h), the Office of Personnel Management and the Secretary of the Treasury, except as otherwise provided by this subsection, may waive the termination date of a demonstration project under [section 4703(d)](/usc/5/4703.md?p=d).
- (c) At least 90 days before waiving the termination date under [subsection (b)(7)](#b-7), the Office of Personnel Management shall publish in the Federal Register a notice of its intention to waive the termination date and shall inform in writing both Houses of Congress of its intention.

# §9508. General workforce performance management system

- (a) In lieu of a performance appraisal system established under [section 4302](/usc/5/4302.md), the Secretary of the Treasury shall, within 1 year after the date of enactment of this section, establish for the Internal Revenue [Service](/usc/5/8331.md?p=12) a performance management system that—
  - (1) maintains individual accountability by—
    - (A) establishing one or more retention standards for each [employee](/usc/5/5361.md?p=1) related to the work of the [employee](/usc/5/5361.md?p=1) and expressed in terms of individual performance, and communicating such retention standards to [employees](/usc/5/5361.md?p=1);
    - (B) making periodic determinations of whether each [employee](/usc/5/5361.md?p=1) meets or does not meet the [employee](/usc/5/5361.md?p=1)’s established retention standards; and
    - (C) taking actions, in accordance with applicable laws and regulations, with respect to any [employee](/usc/5/5361.md?p=1) whose performance does not meet established retention standards, including denying any increases in basic pay, promotions, and credit for performance under [section 3502](/usc/5/3502.md), and taking one or more of the following actions:
      - (i) Reassignment.
      - (ii) An action under [chapter 43](/usc/5/chptIII-sptC-ch43.md) or [chapter 75](/usc/5/chptIII-sptF-ch75.md) of this title.
      - (iii) Any other appropriate action to resolve the performance problem; and
  - (2) except as provided under [section 1204](/usc/5/1204.md) of the Internal Revenue [Service](/usc/5/8331.md?p=12) Restructuring and Reform Act of 1998, strengthens the system’s effectiveness by—
    - (A) establishing goals or objectives for individual, group, or organizational performance (or any combination thereof), consistent with the Internal Revenue [Service](/usc/5/8331.md?p=12)’s performance planning procedures, including those established under the Government Performance and Results Act of 1993, subtitle III of [title 40](/usc/40.md), Revenue Procedure 64–22 (as in effect on July 30, 1997), and taxpayer [service](/usc/5/8331.md?p=12) surveys, and communicating such goals or objectives to [employees](/usc/5/5361.md?p=1);
    - (B) using such goals and objectives to make performance distinctions among [employees](/usc/5/5361.md?p=1) or groups of [employees](/usc/5/5361.md?p=1); and
    - (C) using [performance assessments](#b-1) as a basis for granting [employee](/usc/5/5361.md?p=1) awards, adjusting an [employee](/usc/5/5361.md?p=1)’s rate of basic pay, and other appropriate personnel actions, in accordance with applicable laws and regulations.
- (b)
  - (1) For purposes of [subsection (a)(2)](#a-2), the term “performance assessment” means a determination of whether or not retention standards established under [subsection (a)(1)(A)](#a-1-A) are met, and any additional performance determination made on the basis of performance goals and objectives established under [subsection (a)(2)(A)](#a-2-A).
  - (2) For purposes of this title, the term “unacceptable performance” with respect to an [employee](/usc/5/5361.md?p=1) of the Internal Revenue [Service](/usc/5/8331.md?p=12) covered by a performance management system established under this section means performance of the [employee](/usc/5/5361.md?p=1) which fails to meet a retention standard established under this section.
- (c)
  - (1) The Secretary of the Treasury may establish an awards program designed to provide incentives for and recognition of organizational, group, and individual achievements by providing for granting awards to [employees](/usc/5/5361.md?p=1) who, as individuals or [members](/usc/5/5531.md?p=1) of a group, contribute to meeting the performance goals and objectives established under this chapter by such means as a superior individual or group accomplishment, a documented productivity gain, or sustained superior performance.
  - (2) A cash award under subchapter I of [chapter 45](/usc/5/chptIII-sptC-ch45.md) may be granted to an [employee](/usc/5/5361.md?p=1) of the Internal Revenue [Service](/usc/5/8331.md?p=12) without the need for any approval under [section 4502(b)](/usc/5/4502.md?p=b).
- (d)
  - (1) In applying sections [4303(b)(1)(A)](/usc/5/4303.md?p=b-1-A) and [7513(b)(1)](/usc/5/7513.md?p=b-1) to [employees](/usc/5/5361.md?p=1) of the Internal Revenue [Service](/usc/5/8331.md?p=12), “30 days” may be deemed to be “15 days”.
  - (2) Notwithstanding the second sentence of [section 5335(c)](/usc/5/5335.md?p=c), an [employee](/usc/5/5361.md?p=1) of the Internal Revenue [Service](/usc/5/8331.md?p=12) shall not have a right to appeal the denial of a periodic step increase under [section 5335](/usc/5/5335.md) to the Merit Systems Protection [Board](/usc/5/8401.md?p=5).

# §9509. General workforce classification and pay

- (a) For purposes of this section, the term “broad-banded system” means a system for grouping [positions](/usc/5/5531.md?p=2) for pay, job evaluation, and other purposes that is different from the system established under [chapter 51](/usc/5/chptIII-sptD-ch51.md) and subchapter III of [chapter 53](/usc/5/chptIII-sptD-ch53.md) as a result of combining grades and related ranges of rates of pay in one or more occupational series.
- (b)
  - (1)
    - (A) The Secretary of the Treasury may, subject to criteria to be prescribed by the Office of Personnel Management, establish one or more [broad-banded systems](#a) covering all or any portion of the Internal Revenue [Service](/usc/5/8331.md?p=12) workforce.
    - (B) With the approval of the Office of Personnel Management, a [broad-banded system](#a) established under this section may either include or consist of [positions](/usc/5/5531.md?p=2) that otherwise would be subject to subchapter IV of [chapter 53](/usc/5/chptIII-sptD-ch53.md) or [section 5376](/usc/5/5376.md).
  - (2) The Office of Personnel Management may require the Secretary of the Treasury to submit information relating to [broad-banded systems](#a) at the Internal Revenue [Service](/usc/5/8331.md?p=12).
  - (3) Except as otherwise provided under this section, [employees](/usc/5/5361.md?p=1) under a [broad-banded system](#a) shall continue to be subject to the laws and regulations covering [employees](/usc/5/5361.md?p=1) under the pay system that otherwise would apply to such [employees](/usc/5/5361.md?p=1).
  - (4) The criteria to be prescribed by the Office of Personnel Management shall, at a minimum—
    - (A) ensure that the structure of any [broad-banded system](#a) maintains the principle of equal pay for substantially equal work;
    - (B) establish the minimum and maximum number of grades that may be combined into pay bands;
    - (C) establish requirements for setting minimum and maximum rates of pay in a pay band;
    - (D) establish requirements for adjusting the pay of an [employee](/usc/5/5361.md?p=1) within a pay band;
    - (E) establish requirements for setting the pay of a supervisory [employee](/usc/5/5361.md?p=1) whose [position](/usc/5/5531.md?p=2) is in a pay band or who supervises [employees](/usc/5/5361.md?p=1) whose [positions](/usc/5/5531.md?p=2) are in pay bands; and
    - (F) establish requirements and methodologies for setting the pay of an [employee](/usc/5/5361.md?p=1) upon conversion to a [broad-banded system](#a), initial appointment, change of [position](/usc/5/5531.md?p=2) or type of appointment (including promotion, demotion, transfer, reassignment, reinstatement, placement in another pay band, or movement to a different geographic location), and movement between a [broad-banded system](#a) and another pay system.
- (c) With the approval of the Office of Personnel Management and in accordance with a plan for implementation submitted by the Secretary of the Treasury, the Secretary may, with respect to Internal Revenue [Service](/usc/5/8331.md?p=12) [employees](/usc/5/5361.md?p=1) who are covered by a [broad-banded system](#a) established under this section, provide for variations from the provisions of subchapter VI of [chapter 53](/usc/5/chptIII-sptD-ch53.md).

# §9510. General workforce staffing

- (a)
  - (1) Except as otherwise provided by this section, an [employee](/usc/5/5361.md?p=1) of the Internal Revenue [Service](/usc/5/8331.md?p=12) may be selected for a permanent appointment in the competitive [service](/usc/5/8331.md?p=12) in the Internal Revenue [Service](/usc/5/8331.md?p=12) through internal competitive promotion procedures if—
    - (A) the [employee](/usc/5/5361.md?p=1) has completed, in the competitive [service](/usc/5/8331.md?p=12), 2 years of current continuous [service](/usc/5/8331.md?p=12) under a term appointment or any combination of term appointments;
    - (B) such term appointment or appointments were made under competitive procedures prescribed for permanent appointments;
    - (C) the [employee](/usc/5/5361.md?p=1)’s performance under such term appointment or appointments met established retention standards, or, if not covered by a performance management system established under [section 9508](/usc/5/9508.md), was rated at the fully successful level or higher (or equivalent thereof); and
    - (D) the vacancy announcement for the term appointment from which the conversion is made stated that there was a potential for subsequent conversion to a permanent appointment.
  - (2) An appointment under this section may be made only to a [position](/usc/5/5531.md?p=2) in the same line of work as a [position](/usc/5/5531.md?p=2) to which the [employee](/usc/5/5361.md?p=1) received a term appointment under competitive procedures.
- (b)
  - (1) Notwithstanding subchapter I of [chapter 33](/usc/5/chptIII-sptB-ch33.md), the Secretary of the Treasury may establish category rating systems for evaluating applicants for Internal Revenue [Service](/usc/5/8331.md?p=12) [positions](/usc/5/5531.md?p=2) in the competitive [service](/usc/5/8331.md?p=12) under which qualified candidates are divided into two or more quality categories on the basis of relative degrees of merit, rather than assigned individual numerical ratings.
  - (2) Each applicant who meets the minimum qualification requirements for the [position](/usc/5/5531.md?p=2) to be filled shall be assigned to an appropriate category based on an evaluation of the applicant’s knowledge, skills, and abilities relative to those needed for successful performance in the [position](/usc/5/5531.md?p=2) to be filled.
  - (3) Within each quality category established under [paragraph (1)](#b-1), preference eligibles shall be listed ahead of individuals who are not preference eligibles. For other than scientific and professional [positions](/usc/5/5531.md?p=2) at or higher than GS–9 (or equivalent), preference eligibles who have a compensable [service](/usc/5/8331.md?p=12)-connected disability of 10 percent or more, and who meet the minimum qualification standards, shall be listed in the highest quality category.
  - (4) An appointing [authority](/usc/5/7103.md?p=a-6) may select any applicant from the highest quality category or, if fewer than three candidates have been assigned to the highest quality category, from a merged category consisting of the highest and second highest quality categories.
  - (5) Notwithstanding [paragraph (4)](#b-4), the appointing [authority](/usc/5/7103.md?p=a-6) may not pass over a preference eligible in the same or higher category from which selection is made unless the requirements of section [3317(b)](/usc/5/3317.md?p=b) or [3318(c)](/usc/5/3318.md?p=c), as applicable, are satisfied.
- (c) The Secretary of the Treasury may detail [employees](/usc/5/5361.md?p=1) among the offices of the Internal Revenue [Service](/usc/5/8331.md?p=12) without regard to the 120-day limitation in [section 3341(b)](/usc/5/3341.md?p=b).
- (d) Notwithstanding any other provision of law, the Secretary of the Treasury may establish a probationary period under [section 3321](/usc/5/3321.md) of up to 3 years for Internal Revenue [Service](/usc/5/8331.md?p=12) [positions](/usc/5/5531.md?p=2) if the Secretary of the Treasury determines that the nature of the work is such that a shorter period is insufficient to demonstrate complete proficiency in the [position](/usc/5/5531.md?p=2).
- (e) Nothing in this section exempts the Secretary of the Treasury from—
  - (1) any employment priority established under direction of the President for the placement of surplus or displaced [employees](/usc/5/5361.md?p=1); or
  - (2) any obligation under a court order or decree relating to the employment practices of the Internal Revenue [Service](/usc/5/8331.md?p=12) or the Department of the Treasury.