-CITE-

5 USC CHAPTER 95 - PERSONNEL FLEXIBILITIES RELATING TO

THE INTERNAL REVENUE SERVICE 01/06/03

-EXPCITE-

TITLE 5 - GOVERNMENT ORGANIZATION AND EMPLOYEES

PART III - EMPLOYEES

Subpart I - Miscellaneous

CHAPTER 95 - PERSONNEL FLEXIBILITIES RELATING TO THE INTERNAL

REVENUE SERVICE

.

-HEAD-

CHAPTER 95 - PERSONNEL FLEXIBILITIES RELATING TO THE INTERNAL

REVENUE SERVICE

-MISC1-

Sec.

9501. Internal Revenue Service personnel flexibilities.

9502. Pay authority for critical positions.

9503. Streamlined critical pay authority.

9504. Recruitment, retention, relocation incentives, and relocation

expenses.

9505. Performance awards for senior executives.

9506. Limited appointments to career reserved Senior Executive

Service positions.

9507. Streamlined demonstration project authority.

9508. General workforce performance management system.

9509. General workforce classification and pay.

9510. General workforce staffing.

-CITE-

5 USC Sec. 9501 01/06/03

-EXPCITE-

TITLE 5 - GOVERNMENT ORGANIZATION AND EMPLOYEES

PART III - EMPLOYEES

Subpart I - Miscellaneous

CHAPTER 95 - PERSONNEL FLEXIBILITIES RELATING TO THE INTERNAL

REVENUE SERVICE

-HEAD-

Sec. 9501. Internal Revenue Service personnel flexibilities

-STATUTE-

(a) Any flexibilities provided by sections 9502 through 9510 of

this chapter shall be exercised in a manner consistent with -

(1) chapter 23 (relating to merit system principles and

prohibited personnel practices);

(2) provisions relating to preference eligibles;

(3) except as otherwise specifically provided, section 5307

(relating to the aggregate limitation on pay);

(4) except as otherwise specifically provided, chapter 71

(relating to labor-management relations); and

(5) subject to subsections (b) and (c) of section 1104, as

though such authorities were delegated to the Secretary of the

Treasury under section 1104(a)(2).

(b) The Secretary of the Treasury shall provide the Office of

Personnel Management with any information that Office requires in

carrying out its responsibilities under this section.

(c) Employees within a unit to which a labor organization is

accorded exclusive recognition under chapter 71 shall not be

subject to any flexibility provided by sections 9507 through 9510

of this chapter unless the exclusive representative and the

Internal Revenue Service have entered into a written agreement

which specifically provides for the exercise of that flexibility.

Such written agreement may be imposed by the Federal Services

Impasses Panel under section 7119.

-SOURCE-

(Added Pub. L. 105-206, title I, Sec. 1201(a), July 22, 1998, 112

Stat. 712.)

-CITE-

5 USC Sec. 9502 01/06/03

-EXPCITE-

TITLE 5 - GOVERNMENT ORGANIZATION AND EMPLOYEES

PART III - EMPLOYEES

Subpart I - Miscellaneous

CHAPTER 95 - PERSONNEL FLEXIBILITIES RELATING TO THE INTERNAL

REVENUE SERVICE

-HEAD-

Sec. 9502. Pay authority for critical positions

-STATUTE-

(a) When the Secretary of the Treasury seeks a grant of authority

under section 5377 for critical pay for 1 or more positions at the

Internal Revenue Service, the Office of Management and Budget may

fix the rate of basic pay, notwithstanding sections 5377(d)(2) and

5307, at any rate up to the salary set in accordance with section

104 of title 3.

(b) Notwithstanding section 5307, no allowance, differential,

bonus, award, or similar cash payment may be paid to any employee

receiving critical pay at a rate fixed under subsection (a), in any

calendar year if, or to the extent that, the employee's total

annual compensation will exceed the maximum amount of total annual

compensation payable at the salary set in accordance with section

104 of title 3.

-SOURCE-

(Added Pub. L. 105-206, title I, Sec. 1201(a), July 22, 1998, 112

Stat. 712.)

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 9501, 9503, 9504, 9507 of

this title.

-CITE-

5 USC Sec. 9503 01/06/03

-EXPCITE-

TITLE 5 - GOVERNMENT ORGANIZATION AND EMPLOYEES

PART III - EMPLOYEES

Subpart I - Miscellaneous

CHAPTER 95 - PERSONNEL FLEXIBILITIES RELATING TO THE INTERNAL

REVENUE SERVICE

-HEAD-

Sec. 9503. Streamlined critical pay authority

-STATUTE-

(a) Notwithstanding section 9502, and without regard to the

provisions of this title governing appointments in the competitive

service or the Senior Executive Service and chapters 51 and 53

(relating to classification and pay rates), the Secretary of the

Treasury may, for a period of 10 years after the date of enactment

of this section, establish, fix the compensation of, and appoint

individuals to, designated critical administrative, technical, and

professional positions needed to carry out the functions of the

Internal Revenue Service, if -

(1) the positions -

(A) require expertise of an extremely high level in an

administrative, technical, or professional field; and

(B) are critical to the Internal Revenue Service's successful

accomplishment of an important mission;

(2) exercise of the authority is necessary to recruit or retain

an individual exceptionally well qualified for the position;

(3) the number of such positions does not exceed 40 at any one

time;

(4) designation of such positions are approved by the Secretary

of the Treasury;

(5) the terms of such appointments are limited to no more than

4 years;

(6) appointees to such positions were not Internal Revenue

Service employees prior to June 1, 1998;

(7) total annual compensation for any appointee to such

positions does not exceed the highest total annual compensation

payable at the rate determined under section 104 of title 3; and

(8) all such positions are excluded from the collective

bargaining unit.

(b) Individuals appointed under this section shall not be

considered to be employees for purposes of subchapter II of chapter

75.

-SOURCE-

(Added Pub. L. 105-206, title I, Sec. 1201(a), July 22, 1998, 112

Stat. 712.)

-REFTEXT-

REFERENCES IN TEXT

The provisions of this title governing appointments in the

competitive service, referred to in subsec. (a), are classified

generally to section 3301 et seq. of this title.

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.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 9501, 9504, 9507 of this

title; title 26 section 7803.

-CITE-

5 USC Sec. 9504 01/06/03

-EXPCITE-

TITLE 5 - GOVERNMENT ORGANIZATION AND EMPLOYEES

PART III - EMPLOYEES

Subpart I - Miscellaneous

CHAPTER 95 - PERSONNEL FLEXIBILITIES RELATING TO THE INTERNAL

REVENUE SERVICE

-HEAD-

Sec. 9504. Recruitment, retention, relocation incentives, and

relocation expenses

-STATUTE-

(a) For a period of 10 years after the date of enactment of this

section and subject to approval by the Office of Personnel

Management, the Secretary of the Treasury may provide for

variations from sections 5753 and 5754 governing payment of

recruitment, relocation, and retention incentives.

(b) For a period of 10 years after the date of enactment of this

section, the Secretary of the Treasury may pay from appropriations

made to the Internal Revenue Service allowable relocation expenses

under section 5724a for employees transferred or reemployed and

allowable travel and transportation expenses under section 5723 for

new appointees, for any new appointee appointed to a position for

which pay is fixed under section 9502 or 9503 after June 1, 1998.

-SOURCE-

(Added Pub. L. 105-206, title I, Sec. 1201(a), July 22, 1998, 112

Stat. 713.)

-REFTEXT-

REFERENCES IN TEXT

The date of enactment of this section, referred to in text, is

the date of enactment of Pub. L. 105-206, which was approved July

22, 1998.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 9501, 9507 of this title.

-CITE-

5 USC Sec. 9505 01/06/03

-EXPCITE-

TITLE 5 - GOVERNMENT ORGANIZATION AND EMPLOYEES

PART III - EMPLOYEES

Subpart I - Miscellaneous

CHAPTER 95 - PERSONNEL FLEXIBILITIES RELATING TO THE INTERNAL

REVENUE SERVICE

-HEAD-

Sec. 9505. Performance awards for senior executives

-STATUTE-

(a) For a period of 10 years after the date of enactment of this

section, Internal Revenue Service senior executives who have

program management responsibility over significant functions of the

Internal Revenue Service may be paid a performance bonus without

regard to the limitation in section 5384(b)(2) if the Secretary of

the Treasury finds such award warranted based on the executive's

performance.

(b) In evaluating an executive's performance for purposes of an

award under this section, the Secretary of the Treasury shall take

into account the executive's contributions toward the successful

accomplishment of goals and objectives established under the

Government Performance and Results Act of 1993, subtitle III of

title 40, Revenue Procedure 64-22 (as in effect on July 30, 1997),

taxpayer service surveys, and other performance metrics or plans

established in consultation with the Internal Revenue Service

Oversight Board.

(c) Any award in excess of 20 percent of an executive's rate of

basic pay shall be approved by the Secretary of the Treasury.

(d) Notwithstanding section 5384(b)(3), the Secretary of the

Treasury shall determine the aggregate amount of performance awards

available to be paid during any fiscal year under this section and

section 5384 to career senior executives in the Internal Revenue

Service. Such amount may not exceed an amount equal to 5 percent of

the aggregate amount of basic pay paid to career senior executives

in the Internal Revenue Service during the preceding fiscal year.

The Internal Revenue Service shall not be included in the

determination under section 5384(b)(3) of the aggregate amount of

performance awards payable to career senior executives in the

Department of the Treasury other than the Internal Revenue Service.

(e) Notwithstanding section 5307, a performance bonus award may

not be paid to an executive in a calendar year if, or to the extent

that, the executive's total annual compensation will exceed the

maximum amount of total annual compensation payable at the rate

determined under section 104 of title 3.

-SOURCE-

(Added Pub. L. 105-206, title I, Sec. 1201(a), July 22, 1998, 112

Stat. 713; amended Pub. L. 107-217, Sec. 3(a)(2), Aug. 21, 2002,

116 Stat. 1295.)

-REFTEXT-

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.

The Government Performance and Results Act of 1993, referred to

in subsec. (b), 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.

-MISC2-

AMENDMENTS

2002 - Subsec. (b). 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)''.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 9501, 9507 of this title.

-CITE-

5 USC Sec. 9506 01/06/03

-EXPCITE-

TITLE 5 - GOVERNMENT ORGANIZATION AND EMPLOYEES

PART III - EMPLOYEES

Subpart I - Miscellaneous

CHAPTER 95 - PERSONNEL FLEXIBILITIES RELATING TO THE INTERNAL

REVENUE SERVICE

-HEAD-

Sec. 9506. Limited appointments to career reserved Senior Executive

Service positions

-STATUTE-

(a) In the application of section 3132, a ''career reserved

position'' in the Internal Revenue Service means a position

designated under section 3132(b) which may be filled only by -

(1) a career appointee; or

(2) a limited emergency appointee or a limited term appointee -

(A) who, immediately upon entering the career reserved

position, was serving under a career or career-conditional

appointment outside the Senior Executive Service; or

(B) whose limited emergency or limited term appointment is

approved in advance by the Office of Personnel Management.

(b)(1) The number of positions described under subsection (a)

which are filled by an appointee as described under paragraph (2)

of such subsection may not exceed 10 percent of the total number of

Senior Executive Service positions in the Internal Revenue Service.

(2) Notwithstanding section 3132 -

(A) the term of an appointee described under subsection (a)(2)

may be for any period not to exceed 3 years; and

(B) such an appointee may serve -

(i) two such terms; or

(ii) two such terms in addition to any unexpired term

applicable at the time of appointment.

-SOURCE-

(Added Pub. L. 105-206, title I, Sec. 1201(a), July 22, 1998, 112

Stat. 714.)

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 9501, 9507 of this title.

-CITE-

5 USC Sec. 9507 01/06/03

-EXPCITE-

TITLE 5 - GOVERNMENT ORGANIZATION AND EMPLOYEES

PART III - EMPLOYEES

Subpart I - Miscellaneous

CHAPTER 95 - PERSONNEL FLEXIBILITIES RELATING TO THE INTERNAL

REVENUE SERVICE

-HEAD-

Sec. 9507. Streamlined demonstration project authority

-STATUTE-

(a) The exercise of any of the flexibilities under sections 9502

through 9510 shall not affect the authority of the Secretary of the

Treasury to implement for the Internal Revenue Service a

demonstration project subject to chapter 47, as provided in

subsection (b).

(b) In applying section 4703 to a demonstration project described

in section 4701(a)(4) which involves the Internal Revenue Service -

(1) section 4703(b)(1) shall be deemed to read as follows:

''(1) develop a plan for such project which describes its

purpose, the employees to be covered, the project itself, its

anticipated outcomes, and the method of evaluating the

project;'';

(2) section 4703(b)(3) shall not apply;

(3) the 180-day notification period in section 4703(b)(4) shall

be deemed to be a notification period of 30 days;

(4) section 4703(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) shall be deemed to read as follows:

''(1) subchapter V of chapter 63 or subpart G of part III of

this title;'';

(6) the requirements of paragraphs (1)(A) and (2) of section

4703(d) shall not apply; and

(7) notwithstanding section 4703(d)(1)(B), based on an

evaluation as provided in section 4703(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).

(c) At least 90 days before waiving the termination date under

subsection (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.

-SOURCE-

(Added Pub. L. 105-206, title I, Sec. 1201(a), July 22, 1998, 112

Stat. 715.)

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 9501 of this title.

-CITE-

5 USC Sec. 9508 01/06/03

-EXPCITE-

TITLE 5 - GOVERNMENT ORGANIZATION AND EMPLOYEES

PART III - EMPLOYEES

Subpart I - Miscellaneous

CHAPTER 95 - PERSONNEL FLEXIBILITIES RELATING TO THE INTERNAL

REVENUE SERVICE

-HEAD-

Sec. 9508. General workforce performance management system

-STATUTE-

(a) In lieu of a performance appraisal system established under

section 4302, the Secretary of the Treasury shall, within 1 year

after the date of enactment of this section, establish for the

Internal Revenue Service a performance management system that -

(1) maintains individual accountability by -

(A) establishing one or more retention standards for each

employee related to the work of the employee and expressed in

terms of individual performance, and communicating such

retention standards to employees;

(B) making periodic determinations of whether each employee

meets or does not meet the employee's established retention

standards; and

(C) taking actions, in accordance with applicable laws and

regulations, with respect to any employee whose performance

does not meet established retention standards, including

denying any increases in basic pay, promotions, and credit for

performance under section 3502, and taking one or more of the

following actions:

(i) Reassignment.

(ii) An action under chapter 43 or chapter 75 of this

title.

(iii) Any other appropriate action to resolve the

performance problem; and

(2) except as provided under section 1204 of the Internal

Revenue Service 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's performance

planning procedures, including those established under the

Government Performance and Results Act of 1993, subtitle III of

title 40, Revenue Procedure 64-22 (as in effect on July 30,

1997), and taxpayer service surveys, and communicating such

goals or objectives to employees;

(B) using such goals and objectives to make performance

distinctions among employees or groups of employees; and

(C) using performance assessments as a basis for granting

employee awards, adjusting an employee'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), the term ''performance

assessment'' means a determination of whether or not retention

standards established under subsection (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).

(2) For purposes of this title, the term ''unacceptable

performance'' with respect to an employee of the Internal Revenue

Service covered by a performance management system established

under this section means performance of the employee 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 who, as individuals or members 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 may be granted

to an employee of the Internal Revenue Service without the need for

any approval under section 4502(b).

(d)(1) In applying sections 4303(b)(1)(A) and 7513(b)(1) to

employees of the Internal Revenue Service, ''30 days'' may be

deemed to be ''15 days''.

(2) Notwithstanding the second sentence of section 5335(c), an

employee of the Internal Revenue Service shall not have a right to

appeal the denial of a periodic step increase under section 5335 to

the Merit Systems Protection Board.

-SOURCE-

(Added Pub. L. 105-206, title I, Sec. 1201(a), July 22, 1998, 112

Stat. 715; amended Pub. L. 107-217, Sec. 3(a)(3), Aug. 21, 2002,

116 Stat. 1295.)

-REFTEXT-

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.

-MISC2-

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)''.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 9501, 9507, 9510 of this

title.

-CITE-

5 USC Sec. 9509 01/06/03

-EXPCITE-

TITLE 5 - GOVERNMENT ORGANIZATION AND EMPLOYEES

PART III - EMPLOYEES

Subpart I - Miscellaneous

CHAPTER 95 - PERSONNEL FLEXIBILITIES RELATING TO THE INTERNAL

REVENUE SERVICE

-HEAD-

Sec. 9509. General workforce classification and pay

-STATUTE-

(a) For purposes of this section, the term ''broad-banded

system'' means a system for grouping positions for pay, job

evaluation, and other purposes that is different from the system

established under chapter 51 and subchapter III of chapter 53 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 covering all or any portion of the

Internal Revenue Service workforce.

(B) With the approval of the Office of Personnel Management, a

broad-banded system established under this section may either

include or consist of positions that otherwise would be subject to

subchapter IV of chapter 53 or section 5376.

(2) The Office of Personnel Management may require the Secretary

of the Treasury to submit information relating to broad-banded

systems at the Internal Revenue Service.

(3) Except as otherwise provided under this section, employees

under a broad-banded system shall continue to be subject to the

laws and regulations covering employees under the pay system that

otherwise would apply to such employees.

(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

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

within a pay band;

(E) establish requirements for setting the pay of a supervisory

employee whose position is in a pay band or who supervises

employees whose positions are in pay bands; and

(F) establish requirements and methodologies for setting the

pay of an employee upon conversion to a broad-banded system,

initial appointment, change of position 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 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 employees who are covered by a

broad-banded system established under this section, provide for

variations from the provisions of subchapter VI of chapter 53.

-SOURCE-

(Added Pub. L. 105-206, title I, Sec. 1201(a), July 22, 1998, 112

Stat. 716.)

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 9501, 9507 of this title.

-CITE-

5 USC Sec. 9510 01/06/03

-EXPCITE-

TITLE 5 - GOVERNMENT ORGANIZATION AND EMPLOYEES

PART III - EMPLOYEES

Subpart I - Miscellaneous

CHAPTER 95 - PERSONNEL FLEXIBILITIES RELATING TO THE INTERNAL

REVENUE SERVICE

-HEAD-

Sec. 9510. General workforce staffing

-STATUTE-

(a)(1) Except as otherwise provided by this section, an employee

of the Internal Revenue Service may be selected for a permanent

appointment in the competitive service in the Internal Revenue

Service through internal competitive promotion procedures if -

(A) the employee has completed, in the competitive service, 2

years of current continuous service 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'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, 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 in the same line of work as a position to which the

employee received a term appointment under competitive procedures.

(b)(1) Notwithstanding subchapter I of chapter 33, the Secretary

of the Treasury may establish category rating systems for

evaluating applicants for Internal Revenue Service positions in the

competitive service 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 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 to be filled.

(3) Within each quality category established under paragraph (1),

preference eligibles shall be listed ahead of individuals who are

not preference eligibles. For other than scientific and

professional positions at or higher than GS-9 (or equivalent),

preference eligibles who have a compensable service-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 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), the appointing authority 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) or 3318(b), as applicable, are satisfied.

(c) The Secretary of the Treasury may detail employees among the

offices of the Internal Revenue Service without regard to the

120-day limitation in section 3341(b).

(d) Notwithstanding any other provision of law, the Secretary of

the Treasury may establish a probationary period under section 3321

of up to 3 years for Internal Revenue Service positions 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.

(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; or

(2) any obligation under a court order or decree relating to

the employment practices of the Internal Revenue Service or the

Department of the Treasury.

-SOURCE-

(Added Pub. L. 105-206, title I, Sec. 1201(a), July 22, 1998, 112

Stat. 717.)

-REFTEXT-

REFERENCES IN TEXT

GS-9, referred to in subsec. (b)(3), is contained in the General

Schedule which is set out under section 5332 of this title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 9501, 9507 of this title.

-CITE-