Criminal Investigation Senior Executives, HQ, Program Area Directors along with Assistant Director, Finance, develop budget investments to include in the IRS budget requests sent to the IRS-CFO, Department of the Treasury, OMB, and Congress.

Each year, the Director, Finance requests financial plan requirements from the various HQ entities and field offices. These requirements are compared to the budget availability received from the IRS-CFO. Funds are then allocated to each HQ entity field office based on historical expenditures, projections, relative need, CI priorities for that budget year, and current budget conditions.

The Finance staff manages all labor and nonlabor resources, appropriated and reimbursable, including asset forfeiture funding. CI adheres to the CFO’s policies and procedures outlined in the Financial Operating Guidelines (IRM 1.33.4) and completes all required CFO deliverables (e.g. AUC/AUOs, labor projections, mid-year review, spend plans, Key Program reporting, etc.). In addition, provides operational procurement guidance based on Procurement policy and procedures.

Some funds are allocated directly to the individual offices. These include:

Other funds are provided to the offices to reimburse expenses that relate to specific projects. These include:

Other funds are controlled centrally and paid at the HQ level. These include:

The Director, Strategy in coordination with Director, Finance and Director, HR manages staffing based on the Hiring Plan staffing ceiling that is assigned by Human Capital Transformation (HCT) in coordination with HCO Workforce Planning and the Chief Financial Officer (CFO).

The exception hiring process is discontinued. In situations where onboarding patterns will cause CI to exceed its staffing ceiling at fiscal year-end, CI will coordinate with HCT to determine hiring capacity availability and sequencing before the hiring action is submitted to Talent Acquisition or new hires are selected.

Confidential Expenditures for Informants (SOC 9101) - Represents the cost of payments to informants for:

Costs incurred because of payments on behalf of an informant are also confidential expenditures. This includes payments on behalf of an informant, instead of a direct payment, such as purchasing an airline ticket for an informant or similar expenditures and payments made to reimburse expenses of the informant for gathering information for the IRS.

This terminology is not intended to include such minor "courtesy" expenses that an investigator may pay when meeting an informant, payments to or for an informant in connection with an approved undercover operation, or expenses for protecting an informant whose identity has been compromised (see subsection 9.11.1.4.1.4).

Reimbursement for confidential expenditures is claimed only through imprest funds for investigative purposes and not on travel vouchers.

Confidential Expenditures for Undercover Operations (SOC 9102-9UNDE)- Represents the cost of all confidential expenditures incurred in connection with the undercover program:

It does not include travel and per diem incurred by agents outside of their undercover assignment. Reimbursement for confidential expenditures is claimed only through imprest funds for investigative purposes and not on travel vouchers.

Case agent or management travel should not be included in expenses for the undercover operation unless the case agent or manager are part of the cover team.

"Other" Confidential Expenditures (SOC 9103) - Represents expenditures not included in SOC 9101, 9102, or 9104. Other confidential expenditures may include the following types of expenditures:

Reimbursement for confidential expenditures may be claimed only through imprest funds for investigative purposes and not on travel vouchers.

Confidential Expenditures for Protection and Maintenance of Witnesses and Informants (SOC 9104) - Represents the cost of all confidential expenditures incurred in protecting and relocating an informant or witness.

Reimbursement for confidential expenditures may be claimed only through imprest funds for investigative purposes and not on travel vouchers.

Once a field office identifies a need to pay a confidential expenditure, the field office will follow current established procedures to prepare and obtain an approved Form 8561 (Request for Recoverable/Confidential/Incidental/Seizure Funds (see Unified Checklist). Approval levels can be found in IRM 9.11.1.4.3(1).

Written requests for approval for an authorization for confidential expenditures should originate from a special agent and contain the following information on Form 8561, Request for Recoverable/Confidential/Incidental/Seizure Funds (see Unified Checklist):

Once approved, the field office will forward the signed Form 8561 to the SIT UPM covering that field office.

The UPM will forward the approved Form 8561 to the SIT Storefront SSA for forwarding it to the SIT cashier and assignment to the SFCA covering the respective DFO area.

The SFCA will contact the field office agent and send back Form 8561, including the authorization number, once processed by the SIT cashier.

If the original request is insufficient, the special agent should submit an amended request for the additional expenditures and obtain the required approval levels (IRM 9.11.1.4.3(1)).

Authorization requests requiring approval of either the Director, Field Operations or the Chief, CI, should also include the amount of imprest funds authorized and total payments made to date.

Authorization may be established based on oral approval in emergency situations. When oral approval is given at the above-authorized levels, the special agent must submit a follow-up written request (Form 8561, see Unified Checklist) for authorization within 24 hours.

In all requests, on all forms, and in other documentation, a special agent will refer to an informant by code name and/or number. None of the imprest fund files will include any information that would compromise the identity or confidentiality of the informant.

The SAC is responsible for ensuring the security and confidentiality of any grand jury information received in relation to an authorization, including information for the grand jury from an informant. Grand jury information cannot be disclosed to IRS personnel not assisting in the grand jury. See IRM 9.5.2, Grand Jury Investigations.

Confidential expenditures do not include normal travel and per diem expenses incurred by special agents. The only exceptions are:

If appropriate, the SAC may request authorization for confidential expenditures to pay costs incurred by cover agents and trained undercover agents in obtaining and maintaining cover documentation which is not associated with a specific undercover operation (SOC 9102-9COVE).

All requests for cover documentation expenditures must be approved by the Director, Field Operations or the Chief, CI. For those requests exceeding $100,000, approval authority rests with the Chief, CI. Cover documentation expenditure authorizations may be approved for the duration of the general investigation. Authorized funding for this type of GI is cumulative. For example, the GI is originally approved for two years with authorized funding (SOC 9102-9COVE) of $75,000. At the end of two years, the GI is extended for 18 months with additional funds (SOC 9102-9COVE) of $50,000 being requested. The total authorization for this GI now becomes $125,000.

Requests for this type of authorization should be made on Form 8561.

All requests for cover premises (storefronts) must be approved by the Chief, CI (see IRM 9.14.2, Undercover Operations, Law Enforcement Manual).

The Chief, CI, is responsible to review confidential expenditure activity during regularly scheduled HQ reviews to ensure compliance with IRS policy and guidelines.

The Director, Field Operations is responsible for monitoring the overall program of expenditures made from investigative imprest funds in the area and field offices. This will be accomplished through a vigorous program of evaluation and follow up to ensure that:

The Director, SIT is responsible for:

The SAC is the one determining the size of the fund for SOC 9101, 9103, and 9104. The Director, SIT is responsible for SOC 9102.

Considerations, such as average usage in comparison to the dollar size of the fund, will not be the only factor to determine the dollar limitation of the imprest fund. The SAC/Director, SIT is responsible to ensure that adequate funds are maintained to meet any reasonable need. At times, this may require funds on hand, which are many times greater than the average monthly usage. The SAC/Director, SIT must consider the lead time to process the reimbursement voucher and the return of the replenishment check, including mail time. In addition, the SAC/Director, SIT should recommend increases and decreases in the amount of maintained funds following the field office’s needs in relation to major investigations and projects in progress.

When a determination is made that the amount of the investigative imprest fund should be either increased or decreased, (within the maximum amount if it’s an increase) the SAC/Director, SIT responsible for the field office in which the imprest fund is located will request permission through the Assistant Director, Finance. The Assistant Director, Finance must approve before sending the request to BFC. Beckley will not process increases or decreases without the approval of Finance (CI) and a corresponding RTS action. See the IRS Imprest Funds guidance for further instructions.

Once Form 8561 is approved and processed by the SIT cashier, the SFCA will prepare Form 8562 and forward it to the SIT Storefront SSA to request funding per the approved Form 8561.

The SFCA will notify the field office agent when funds are available.

In the case of an emergency, a request for an advance may be made through prescribed channels by telephone, telegraph, teletype facsimile, or electronic mail. Proper personal identification and official written documentation are to be made in every case by both the sender and receiver of such communication.

Form 8562 also serves as a receipt for the advance of funds. The cashier or an alternate is the only individual who can make an advance of funds. The cashier(s) may not disburse more than the amount authorized by the ASAC; SAC; or Director, Field Operations; or Director, SIT and cannot release money from the imprest fund without an approved copy of the authorization or written notification from the SAC or Director, Field Operations; or Director, SIT of an emergency approval.

There are no subsidiary imprest funds except in undercover operations wherein the cover agent is allowed to receive advances thru the SFCA from the imprest fund cashier and make advances to other special agents. A special agent may not receive an advance from the SFCA and advance all or part of it to another special agent or group of special agents. Each SFCA must submit a request for an advance and receive it individually from the cashier.

Special agents will not use an advance for personal purposes. At any time, a special agent should be in a position to account for advances and able to return the unused funds. For example, a special agent should not deposit an advance into a personal bank account (except for conversion into currency) or combine it with any other official funds. A special agent must keep the advance(s) intact, readily available for use on official business.

The cashier may transmit advances for expenses to SFCAs in POD’s or geographical areas outside the location of the imprest fund by wire transfer, cashier’s check, checks drawn on the imprest fund, or by courier. Such transmittals are not to be construed as establishing a subsidiary imprest fund. In such instances, the cashier is also responsible for securing proper signatures on Form 8562.

SFCA should account for an advance, as soon as possible after the expenditure(s) is made and return any excess funds. When a SFCA returns all or part of the funds advanced, the cashier will prepare and sign in duplicate Form 2507, Receipt for Money-Cashier Advance Fund (see Unified Checklist), and forward the original to the SFCA and retain the duplicate. SFCA may also deposit advances into their personal account for the purpose of returning advances to the cashier. Cashiers are not allowed to accept cash from SFCAs when they return an advance.

The SFCA will complete Form 10411 to account for expenditures made and request extensions of the outstanding balance when it is not practical to spend any portion of the advance by the end of the calendar month, from the Storefront SSA or the appropriate approving official. The SFCA will complete Form 10411 by the 5th workday after the close of the month, irrespective of when the advance was issued during the month. If the special agent spent none of the advance, he/she still must request an extension using Form 10411. The SFCA must submit a separate Form 10411 for each authorization.

Once an expenditure is identified to be paid per the approved authorization, the field office agent will prepare and sign Form 10226 (Summary of Expense/Advance Received).

The field office agent will forward the signed Form 10226 and a copy of the Invoice and/or documentation of expense to be paid to the field office SSA.

The field office SSA/ASAC will forward the signed Form 10226, copy of invoice and/or documentation of expense to be paid in an email to the SFCA indicating approval to pay the expenditure.

To account for an advance, a SFCA will prepare and submit Form 10411, a memorandum of activity, and an itemization of the expenditures. The special agent should attach to this itemization, original receipts, bills, cashier’s tape, and other documentation regarding the expenditures. A separate Form 10411 should be submitted for each authorization.

Funds expended for security deposits may be treated as recoverable or non-recoverable funds, depending upon the certainty of their recovery. (See IRM 9.4.8, Undercover Operations).

On the front of Form 10411, the special agent should list the total amount claimed under the designated SOC and enter the Amount remaining outstanding in continuing authorized assignment, which is located under the Expenditures section. Form 10411 must be approved by the Storefront SSA, and the SIT Assistant Director or SIT Director.

The special agent should not disclose sensitive confidential information on Form 10411 because the cashier forwards the original to the BFC. The receipts and other documentation are retained by the cashier with an attached photocopy of Form 10411.

After completion of all expenditures and submission of claims for reimbursement relating to an authorization, Item 13 of Form 8561, Request for Recoverable - Confidential - Incidental - Seizure Funds should be completed and forwarded to the imprest fund cashier.

The Director, SIT is responsible for implementing uniform cashier procedures and record keeping methods and ensuring that the Investigative Imprest Fund Computer Program is being utilized.

The Director, SIT is responsible for appointment of employees as cashiers (principal and alternate) whose duties do not require making investigative expenditures or granting approval for investigative expenditures.

All cashiers and alternates will be issued the Investigative Imprest Fund Computer Program and the Investigative Imprest Fund Training Database will be responsible for a working knowledge of its contents.