Who must be notified if IRS-loaned equipment is lost or stolen?

The correct response is that the IRS must be notified if IRS-loaned equipment is lost or stolen because they are the agency responsible for providing that equipment. This ensures that they can take appropriate action, which may include tracking the missing equipment or providing guidance on what steps to take next. Notifying the IRS is part of adhering to the policies and procedures established for maintaining accountability for government property.

While informing local law enforcement may be necessary as a separate official protocol for theft, it does not fulfill the requirement to report the loss to the IRS specifically. Volunteer coordinators and taxpayer clients are not the appropriate parties to notify regarding equipment loss, as they do not have jurisdiction or responsibility concerning federally issued property. Notifying the IRS helps maintain the integrity of the VITA/TCE program and ensures compliance with federal regulations.