---
kind: "section"
citation: "5 U.S.C. § 9508"
title: "5"
title_heading: "Government Organization and Employees"
number: "9508"
heading: "General workforce performance management system"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/5/9508"
units:
  - "Part III — Employees"
  - "Subpart I — Miscellaneous"
  - "Chapter 95 — Personnel Flexibilities Relating to the Internal Revenue Service"
---

# §9508. General workforce performance management system

- (a) In lieu of a performance appraisal [system](/usc/5/8401.md?p=29) established under [section 4302](/usc/5/4302.md), the [Secretary](/usc/5/9901.md?p=2) of the Treasury shall, within 1 year after the date of enactment of this section, establish for the Internal Revenue [Service](/usc/5/8401.md?p=26) a performance management [system](/usc/5/8401.md?p=29) that—
  - (1) maintains individual accountability by—
    - (A) establishing one or more retention standards for each [employee](/usc/5/4701.md?p=a-2) related to the work of the [employee](/usc/5/4701.md?p=a-2) and expressed in terms of individual performance, and communicating such retention standards to [employees](/usc/5/4701.md?p=a-2);
    - (B) making periodic determinations of whether each [employee](/usc/5/4701.md?p=a-2) meets or does not meet the [employee](/usc/5/4701.md?p=a-2)’s established retention standards; and
    - (C) taking actions, in accordance with applicable laws and regulations, with respect to any [employee](/usc/5/4701.md?p=a-2) whose performance does not meet established retention standards, including denying any increases in [basic pay](/usc/5/8401.md?p=4), 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/5/8401.md?p=26) Restructuring and Reform Act of 1998, strengthens the [system](/usc/5/8401.md?p=29)’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/5/8401.md?p=26)’s performance planning procedures, including those established under the [Government](/usc/5/4101.md?p=3) 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/5/8401.md?p=26) surveys, and communicating such goals or objectives to [employees](/usc/5/4701.md?p=a-2);
    - (B) using such goals and objectives to make performance distinctions among [employees](/usc/5/4701.md?p=a-2) or groups of [employees](/usc/5/4701.md?p=a-2); and
    - (C) using performance assessments as a basis for granting [employee](/usc/5/4701.md?p=a-2) awards, adjusting an [employee](/usc/5/4701.md?p=a-2)’s rate of [basic pay](/usc/5/8401.md?p=4), 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/5/4701.md?p=a-2) of the Internal Revenue [Service](/usc/5/8401.md?p=26) covered by a performance management [system](/usc/5/8401.md?p=29) established under this section means performance of the [employee](/usc/5/4701.md?p=a-2) which fails to meet a retention standard established under this section.
- (c)
  - (1) The [Secretary](/usc/5/9901.md?p=2) 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/5/4701.md?p=a-2) who, as individuals or [members](/usc/5/8401.md?p=20) 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/5/4701.md?p=a-2) of the Internal Revenue [Service](/usc/5/8401.md?p=26) 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/5/4701.md?p=a-2) of the Internal Revenue [Service](/usc/5/8401.md?p=26), “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/5/4701.md?p=a-2) of the Internal Revenue [Service](/usc/5/8401.md?p=26) 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](/usc/5/8401.md?p=29) Protection [Board](/usc/5/8401.md?p=5).

## Source credit

(Added Pub. L. 105–206, title I, § 1201(a), July 22, 1998, 112 Stat. 715; amended Pub. L. 107–217, § 3(a)(3), Aug. 21, 2002, 116 Stat. 1295.)

## Notes

### Editorial Notes

### References in Text

The date of enactment of this section, referred to in subsec. (a), is the date of enactment of Pub. L. 105–206, which was approved July 22, 1998.

Section 1204 of the Internal Revenue Service Restructuring and Reform Act of 1998, referred to in subsec. (a)(2), is section 1204 of Pub. L. 105–206, which is set out as a note under section 7804 of Title 26, Internal Revenue Code.

The Government Performance and Results Act of 1993, referred to in subsec. (a)(2)(A), is Pub. L. 103–62, Aug. 3, 1993, 107 Stat. 285, which enacted section 306 of this title, sections 1115 to 1119, 9703, and 9704 of Title 31, Money and Finance, and sections 2801 to 2805 of Title 39, Postal Service, amended section 1105 of Title 31, and enacted provisions set out as notes under sections 1101 and 1115 of Title 31. For complete classification of this Act to the Code, see Short Title of 1993 Amendment note set out under section 1101 of Title 31 and Tables.

### Amendments

2002—Subsec. (a)(2)(A). Pub. L. 107–217 substituted “subtitle III of title 40” for “division E of the Clinger-Cohen Act of 1996 (Public Law 104–106; 110 Stat. 679)”.