Establishes the term of office of each IG as seven years and permits reappointment. Makes similar amendments respecting the appointment of IGs of certain designated federal entities.

Authorizes an IG to annually transmit an appropriation estimate and request to the Director of the Office of Management and Budget (OMB) and to the appropriate congressional committees, in addition to the head of the establishment concerned. Requires the President to include in each annual budget specified IG appropriation information.

Establishes within the Executive Branch the Council of the Inspectors General on Integrity and Efficiency to increase the professionalism and effectiveness of personnel in IG offices.

Establishes an Integrity Committee for the Council to review and refer for investigation allegations that are made against IGs and certain staff of the IG Offices.

Considers each Office of IG to be a separate federal agency.

Empowers IGs of certain designated federal entities with the same law enforcement authority provided to other IGs.

Provides for the application of semiannual reporting requirements concerning the activities of offices of the IG with respect to inspection and evaluation reports.

Establishes the term of office of each IG as seven years and permits reappointment.

(Sec. 3) Authorizes an IG to annually transmit an appropriation estimate and request to the Director of the Office of Management and Budget (OMB) and to the appropriate congressional committees, in addition to the head of the establishment concerned. Requires the President to include in each annual budget specified IG appropriation information.

(Sec. 4) Establishes within the executive branch the Inspectors General Council, the mission of which shall be to increase the professionalism and effectiveness of personnel in IG offices. Requires the Council to: (1) continually identify, review, and discuss areas of weakness and vulnerability in federal programs and operations with respect to fraud, waste, and abuse; (2) develop plans for coordinated, government-wide activities that address these problems and promote economy and efficiency in federal programs and operations; (3) develop policies that will aid in the maintenance of a corps of well-trained and highly skilled Office of Inspector General personnel; (4) maintain electronic systems for the benefit of all IGs and one or more academies for the professional training of auditors, investigators, inspectors, evaluators, and other personnel; and (5) make such reports to the Congress as the Chairperson determines are necessary or appropriate.

Declares that the creation and operation of the Council shall not affect: (1) the Department of Justice's (DOJ) preeminent policy-setting role in law enforcement and litigation; (2) the authority or responsibilities of any government agency or entity; and (3) the authority or responsibilities of Council members.

Establishes an Integrity Committee for the Council to review and refer for investigation allegations that are made against IGs and certain staff of the IG Offices. Sets forth requirements concerning when an IG must refer allegations against its staff to the Committee. Requires investigations to be conducted in accordance with the most current Quality Standards for Investigations issued by the Council or its predecessors. Requires the Committee, in conjunction with the Council Chairperson, to establish additional policies and procedures necessary to ensure fairness and consistency in: (1) determining whether to initiate investigations; (2) conducting investigations; (3) reporting the results of investigations; and (4) providing people who are subjects of investigations with opportunities to respond to any Committee report.

Requires the Committee Chairperson to submit a report on the results of any investigation that substantiates any allegation to the Council's Executive Chairperson within 180 days and to Congress within 30 days after submission to the Executive Chairperson.

Declares that Executive Order 12805, dated May 11, 1992, and Executive Order 12993, dated March 21, 1996, have no force or effect.

(Sec. 5) Prohibits IGs from receiving cash awards or cash bonuses. Sets forth the basic pay for IGs.

(Sec. 6) Considers each Office of IG to be a separate federal agency.

Empowers IGs of certain designated federal entities with the same law enforcement authority provided to other IGs.

Authorizes the Treasury Inspector General for Tax Administration to provide physical security in protecting the Internal Revenue Service (IRS).

Requires the Comptroller General to report to Congress on agencies' cooperation in providing information to the Government Accountability Office (GAO).

(Sec. 7) Includes certain designated federal entities within the definition of "authority" for purposes of federal provisions concerning administrative remedies for false claims and statements.

(Sec. 8) Provides for the application of semiannual reporting requirements concerning the activities of IG offices with respect to inspection and evaluation reports.

Requires the head of a federal entity that intends to remove from office or transfer an IG to communicate the reasons to both Houses of Congress at least 30 days before such removal or transfer.

Establishes the term of office of each IG as seven years and permits reappointment. Requires: (1) a committee of IGs of the Inspectors General Council to review nominations of IGs and provide the results to the Senate prior to the confirmation process; and (2) the head of the designated federal entity to ask such committee for a report on the qualifications of each final candidate for IG and to review such report before appointing an IG.

(Sec. 3) Requires an IG to annually inform the appropriate committees of Congress if the budget request submitted by the head of the relevant establishment would substantially inhibit the IG from performing the duties of the office. Requires the President to include in each annual budget a separate statement of the amount of appropriations requested by each IG.

(Sec. 4) Establishes within the executive branch the Inspectors General Council to coordinate and enhance governmental efforts to promote integrity and efficiency and to detect and prevent fraud, waste, and abuse in federal programs. Requires the Council to: (1) continually identify, review, and discuss areas of weakness and vulnerability in federal programs and operations with respect to fraud, waste, and abuse; (2) develop plans for coordinated, government-wide activities that address these problems and promote economy and efficiency in federal programs and operations; (3) develop policies and professional standards that will aid in the maintenance of a corps of well-trained and highly skilled Office of Inspector General personnel; (4) maintain electronic systems for the benefit of all IGs and one or more academies for the professional training of auditors, investigators, inspectors, evaluators, and other personnel; and (5) report to Congress.

Declares that the creation and operation of the Council shall not affect: (1) the Department of Justice's (DOJ) preeminent policy-setting role in law enforcement and litigation; (2) the authority or responsibilities of any government agency or entity; and (3) the authority or responsibilities of Council members.

Establishes an Integrity Committee for the Council to review and refer for investigation allegations that are made against IGs and certain staff of the IG Offices. Sets forth requirements concerning when an IG must refer allegations against its staff to the Committee. Requires investigations to be conducted in accordance with the most current Quality Standards for Investigations issued by the Council or its predecessors. Requires the Committee, in conjunction with the Council Chairperson, to establish additional policies and procedures necessary to ensure fairness and consistency in: (1) determining whether to initiate investigations; (2) conducting investigations; (3) reporting the results of investigations; and (4) providing people who are subjects of investigations with opportunities to respond to any Committee report.

Sets forth reporting requirements for the Committee and the Council. Requires the Council to provide detailed information about specific allegations upon request from the chairman or ranking member of the House Committee on Oversight and Government Reform, the Senate Committee on Homeland Security and Governmental Affairs, and the congressional committees of jurisdiction.

Declares that Executive Order 12805, dated May 11, 1992, and Executive Order 12993, dated March 21, 1996, have no force or effect. Requires the IG to adopt policies and procedures to implement this Act that include, to the maximum extent practicable, all provisions in such orders.

(Sec. 5) Prohibits IGs from receiving cash awards or cash bonuses. Sets forth the basic pay for IGs.

(Sec. 6) Considers each Office of IG to be a separate federal agency.

Empowers IGs of certain designated federal entities with the same law enforcement authority provided to other IGs.

Requires an IG to be appointed without regard to political affiliation and solely on the basis of integrity and demonstrated ability in accounting, auditing, financial analysis, law, management analysis, public administration, or investigations.

Authorizes the Treasury Inspector General for Tax Administration to provide physical security in protecting the Internal Revenue Service (IRS).

Requires the Comptroller General to report to Congress on agencies' cooperation in providing information to the Government Accountability Office (GAO).

(Sec. 7) Includes certain designated federal entities within the definition of "authority" for purposes of federal provisions concerning administrative remedies for false claims and statements.

(Sec. 8) Provides for the application of semiannual reporting requirements concerning the activities of IG offices with respect to inspection and evaluation reports.

(Sec. 9) Requires agencies to establish and maintain on their website homepages direct links to the website of the Office of the Inspector General of that agency. Requires the IG of each agency to: (1) post reports and audits no later than one day after such reports or audits are made publicly available; (2) provide specified web services; and (3) establish and maintain a direct link on the Office of the Inspector General's website homepage for individuals to report waste, fraud, and abuse.

(Sec. 10) Repeals a requirement that the DOJ's IG refer to the Counsel, Office of Professional Responsibility of the Department, allegations of misconduct involving Department attorneys, investigators, or law enforcement personnel, where the allegations relate to the exercise of the authority of an attorney to investigate, litigate, or provide legal advice.

(Sec. 11) Makes it the principal duty and responsibility of each entity's IG to review annually the operations, efficiency, and effectiveness of federal programs within his or her entity and submit annually to Congress and the President recommendations, accompanied by proposed legislation, on whether an abolishment, reorganization, consolidation, or transfer of existing federal programs and agencies is necessary to: (1) reduce federal expenditures; (2) increase efficiency of government operations; (3) eliminate overlap and duplication in federal programs and offices; (4) abolish agencies or programs that no longer serve an important governmental purpose; and (5) identify reductions in amounts of discretionary budget authority or direct spending that can be dedicated to federal deficit reduction.

(Sec. 3) Requires the President and the heads of designated federal entities to communicate to Congress in writing the reasons for removing or transferring an IG no later than 30 days before such removal or transfer.

(Sec. 4) Sets the pay for presidentially appointed IGs at Executive Schedule III plus 3%. Requires IGs of designated federal entities to be classified at a grade, level, or rank designation at or above those of a majority of the senior level executives of their entity. Limits the total increase in pay to such IGs for any pay adjustments made before FY2013. Prohibits: (1) the pay of such an IG from being less than the average total compensation of the senior level executives of that entity calculated on an annual basis; or (2) the pay of specified career federal employees, not including any bonus or performance award, from being reduced as a result of being appointed to the position of Inspector General.

(Sec. 5) Prohibits IGs from receiving cash awards or bonuses.

(Sec. 6) Requires each IG to: (1) appoint a Counsel to the IG; (2) obtain the services of a counsel appointed by and directly reporting to another IG on a reimbursable basis; or (3) obtain the services of the Council of the Inspectors General on Integrity and Efficiency's staff on a reimbursable basis.

(Sec. 7) Establishes within the executive branch the Council of the Inspectors General on Integrity and Efficiency to: (1) address integrity, economy, and effectiveness issues that transcend individual government agencies; and (2) increase the professionalism and effectiveness of personnel by developing policies, standards, and approaches to aid in the establishment of a well-trained and highly skilled workforce in the IG offices. Requires the Council to: (1) continually identify, review, and discuss areas of weakness and vulnerability in federal programs and operations with respect to fraud, waste, and abuse; (2) develop plans for coordinated, government-wide activities that address these problems and promote economy and efficiency in federal programs and operations; (3) develop policies that will aid in the maintenance of a corps of well-trained and highly skilled IG office personnel; (4) maintain electronic systems for the benefit of all IGs and one or more academies for the professional training of auditors, investigators, inspectors, evaluators, and other personnel; (5) submit individuals' recommendations for any IG appointment to the appropriate authority; and (6) report to Congress.

Allows the Council's Executive Chairperson to authorize the use of interagency funding for: (1) government-wide training of IG office employees; and (2) the functions of the Integrity Committee of the Council.

Authorizes the Council to: (1) establish in the Treasury a revolving fund to be called the Inspectors General Council Fund; or (2) enter into an arrangement with a department or agency to use an existing revolving fund. Authorizes such Fund to be used to implement the Council's functions and duties and to maintain training academies.

Establishes an Integrity Committee for the Council to review and refer for investigation allegations of wrongdoing that are made against IGs and IG office staff members. Sets forth requirements concerning when an IG must refer allegations against its staff to the Committee. Requires investigations to be conducted in accordance with the most current Quality Standards for Investigations issued by the Council or its predecessors. Requires the Committee, in conjunction with the Council Chairperson, to establish additional policies and procedures necessary to ensure fairness and consistency in: (1) determining whether to initiate investigations; (2) conducting investigations; (3) reporting the results of investigations; and (4) providing people who are subjects of investigations with opportunities to respond to Committee reports.

Sets forth reporting requirements for the Committee and the Council. Requires the Council to provide detailed information about specific allegations upon request from the chairperson or ranking member of the Senate Committee on Homeland Security, the House Committee on Oversight and Government Reform, and the congressional committees of jurisdiction.

Provides that an allegation against the Special Counsel of the Office of Special Counsel or the Deputy Special Counsel may be received, reviewed, and referred for investigation by the Committee to the same extent and in the same manner as an allegation against an IG.

Declares that: (1) this Act does not eliminate access to the Merit Systems Protection Board for review; and (2) Executive Order 12805, dated May 11, 1992, and Executive Order 12993, dated March 21, 1996, shall have no force or effect beginning on the earlier of the date on which the Council becomes operational or 180 days after this Act's enactment. Requires the Council to be operational no later than 180 days after this Act's enactment. Requires the IG to adopt policies and procedures to implement this Act that include, to the maximum extent practicable, all provisions in such orders.

(Sec. 8) Requires: (1) each IG to annually transmit a budget estimate and request to the head of the entity to which he or she reports; (2) such requests to specify the funds requested for operations, training needs, and Council support; (3) the head of each entity to include in a proposed budget to the President amounts for such purposes and its IG's comments on the proposal; and (4) the President to include in each U.S. budget submitted to Congress a statement of each IG's budget estimates, the amounts for such purposes requested by the President, and any comments of an IG who concludes that the budget submitted would substantially inhibit the IG from performing the duties of office.

(Sec. 10) Includes designated federal entities within the definition of "authority" for purposes of provisions concerning administrative remedies for false claims and statements.

(Sec. 11) Empowers IGs of designated federal entities with the same law enforcement authority provided to other IGs.

(Sec. 12) Provides for the application of semiannual reporting requirements concerning the activities of IG offices to inspection and evaluation reports.

(Sec. 13) Requires agencies to maintain on their website homepages direct links to the website of their IG office. Requires each IG to: (1) post reports and audits no later than three working days after such reports or audits are made publicly available; and (2) maintain a direct link on the office's website homepage for individuals to report waste, fraud, and abuse. Provides that reporting individuals shall not be required to provide personally identifying information. Prohibits agency IGs from disclosing the identity of any individual making a report without consent unless such a disclosure is unavoidable during the course of the investigation.

Makes conforming changes to the Financial Services and General Government Appropriations Act, 2008 and repeals provisions that require each Office of Inspector General to provide a website service to allow an individual to request automatic receipt of related information and receive its electronic transmittal or notice of its availability without further request.

(Sec. 14) Considers each IG office to be a separate federal agency.

Provides that the Treasury Inspector General for Tax Administration may provide physical security for Internal Revenue Service (IRS) employees but shall not be responsible for protecting the Commissioner of Internal Revenue.