This IRM section applies to special agent investigative reports and will provide guidance necessary to write a clear and concise investigative report. The following topics will be discussed in this section:

See IRM 9.1.4, Authority for the delegated authority relating to IRM 9.5.8, Investigative Reports.

The Director, Assurance & Advisory is responsible for overseeing this IRM and ensuring compliance with current policies and procedures.

Program owners and the Director, Assurance & Advisory will:

The Director, Assurance & Advisory and program owners will review instructions and guidelines related to special agent reports and other IRS documents for procedural, operational, and editorial changes.

The table lists commonly used acronyms and their definitions.

IRM 9.1.4, Criminal Investigation Directives and Functional Delegations of Authority.

IRM 9.5.9, Methods of Proof.

CASE - Special Agent Reports SharePoint.

The facts of an investigation should be reported with fairness and impartiality. All material facts and evidence should speak for themselves and require little or no explanation of their significance. Avoid opinions and conclusions, except when called for in the conclusions and recommendations section. Any distortion of the significance of the evidence diminishes the value of the report and the credibility of the special agent preparing the report.

Reports should be written so that the focus is strictly on the facts of the investigation and there is no appearance of opinion. In order to maintain objectivity, personal pronouns such as I, we, he, she, they, them, and us should be limited. However, do not hesitate to state "the subject informed me that" or "the subject gave me" if that information is material. Special agents should not refer to themselves as the undersigned, the writer, or your agent.

Testimony must be presented fairly. Extreme caution should be utilized when using quotes in the report. When the report includes a quotation, the agent must quote exactly from the documents or memoranda and within the proper context. Reports should reflect an impersonal attitude and should contain no offensive remarks regarding the subject.

Do not attempt to conceal or omit facts that tend to be in favor of the subject. Explain these facts in the report appropriately and as necessary.

Investigative reports are the basis for administrative and legal actions that may result in the imprisonment of the subject and the assessment of substantial amounts of taxes and penalties. Accuracy is essential; therefore, the facts should be exact. Inaccuracies can be devastating to the value of the report and to the special agent’s credibility as a witness.

The distinction between fact and opinion must be clearly shown when it is necessary to explain the theory of an investigation based largely upon circumstantial evidence. Avoid using statements such as "the subject could give no plausible explanation." That is a conclusion and others may find that the explanation is plausible. State what the subject said and let the evidence show whether the statement is worthy of belief.

Do not allow conclusions to surpass the evidence. A conservative statement that is consistent with the facts is stronger than an exaggeration. Exaggerations tend to raise doubt relating to all the evidence presented in the report.

Carelessness in detail, errors in computations, and incorrect dates materially affect the value of a report. Judgment in the choice of words, punctuation that clarifies the meaning, and a correct application of the rules of grammar are essential to accurate reports, appendices, schedules, and exhibits. Errors in these essentials have an unfavorable effect upon the mind of the reader.

Mathematical computations in the report, appendices, schedules, and exhibits must all be verified for accuracy. Although special agents have available computer applications, verify that the data and formulas are correct. For review purposes, any number appearing in the report which is a result of a calculation needs to be supported by an exhibit, appendix, or schedule showing that exact number.

Avoid using slang and technical terms, including those used in accounting and law enforcement. However, in some instances, slang terms may be necessary for clarity in reporting the results of investigations, particularly those involving subjects in illegal pursuits. The meaning of the particular term should be explained when it is first used in the report. For example, it may be advantageous in a report concerning a pyramid scheme to describe the nature of the operation, including the slang terms used therein, before presenting evidence of the violation. If numerous slang or technical terms are necessary, it is advisable to prepare a glossary.

Special agents should present the material in a report with the goal that it could be clearly understood by a reader who had no knowledge of the facts surrounding the investigation. The agent should exercise good judgment in selecting the facts that are material to the matter and take care that nothing essential to a complete understanding of the investigation will be omitted. This is especially true for any information that is favorable to the subject. All statements of material facts relating to the violation must be supported in the SAR by evidence that will establish the truth and accuracy of the statement. The source of the evidence must be documented.

All elements of the offense(s) recommended for prosecution should be supported by the evidence presented. Each statement of material fact in the investigative report, with the exception of statements made in the Theory of the Investigation and Conclusions and Recommendations sections, should be supported by evidence citations. These citations should be specific, including page and paragraph numbers. Statements made in the Theory of the Investigation and Conclusions and Recommendations sections should be supported by evidence cited elsewhere in the report. No unsupported statements may appear anywhere in the report.

All defenses raised by the subject and/or their representative should be refuted, and any mitigating circumstances, exculpatory evidence, or other impediments to a prosecution recommendation should also be fully addressed. Speculation concerning potential defenses or explanations that have not been raised by the subject and/or their representative should not be included in the report.

If it was impossible to interview a key witness or to take any other pertinent investigative step, this should be explained in the "Other Pertinent Data" section of the report. For example, in an evasion investigation in which the return preparer died prior to being interviewed, the reason the interview could not be conducted should be noted and discussed. Addressing such issues will underscore the thoroughness of the investigation and prevent unnecessary requests for supplemental information.

Finally, in order to ensure completeness, the report should be read and revised as often as necessary before it is submitted for review.

Conciseness necessitates the removal of all superfluous material. The rule of conciseness applies to individual structure, as well as to the report as a whole.

The narrative of the prosecution report should only address the elements of the recommended offenses and any other information directly pertinent to the investigation. Repetition should be avoided.

Schedules, summary exhibits, tables, footnotes, and appendices may be especially useful in reducing the length of the narrative and financial evidence detailed.

A well-written report may lose its effectiveness for lack of a logical presentation. A mass of data indiscriminately presented in the report is confusing and may impair the reader's ability to comprehend the facts relating to the investigation.

A well-written report requires adherence to the primary purpose of the report. Exclude all material that does not relate to that purpose. Know what you want to communicate and how best to present that information. Each sentence, paragraph, and section of the report should help develop the primary purpose of the report.

A well-written report requires careful planning, critical review, and frequent revision by the report writer.

A new topic or idea should be the subject of a new paragraph. A sentence or short passage requiring special emphasis may be paragraphed separately. Important matters can be emphasized by numbering and indenting a series of important and related facts, and by the use of summary schedules.

The Cover Sheet must include:

After adding the subject in the People section of SarGenXpress, the case agent will click and drag the subject to the Subjects role in the Explorer section. Under the Subjects, use the sections to add the case number, the violation(s), and legal representation. To add a subject’s legal representative, first input the attorney’s information in the People section then click and drag to the Explorer section.

The SA, SAC, SSA, and Assistant United States Attorney (if applicable) are first added to the Global tab on the People section of SarGenXpress. Once they are added, click and drag them to the relevant roles on the Explorer section.

It is recommended that a table of contents reflecting report sections and page numbers be submitted as part of the SAR. SarGenXpress will automatically create the table of contents. However, prior to submitting the SAR, the page numbers should be verified.

The table of contents is designed to provide quick reference to important sections of the report. The complexity of the SAR and the circumstances of the investigation will determine the amount of detail.

Additional section headings may be included in the SAR, if warranted.

The SAR is addressed to the SAC. Include the field office street address, city, state, and zip code.

The person to contact is the investigating special agent. The special agent’s cell phone number is required.

The date of the SAR will be the date forwarded by the SAC. SarGenXpress automatically puts the date the report was created, so it will need to be updated to the date forwarded by the SAC.

The following information must be reflected:
• Subject’s Name,
• Street Address,
• City, State, Zip Code,
• SSN/EIN,
• Date of Birth (DOB),
• Subject Investigation Number.

Include the representative’s full name, title, street address, city, state, zip code and telephone numbers, including area code.

If there are multiple subjects, the identifying information for the additional subject and representative must be detailed.

Type of report is "Final: Prosecution"

All witnesses and evidence used in the report should be entered into SarGenXpress.

SarGenXpress will automatically create the list of witnesses and exhibits. In order to make the list of witnesses and exhibits complete, all identifying information including the witness’ name, business title (if appropriate), business name, address, and telephone number(s) should be input into SarGenXpress

In addition, a detailed description of the evidence is necessary to produce a complete and accurate list. The exhibit description field must include sufficient detail to uniquely identify the evidence, for example:

Only those witnesses with evidence cited in the report will appear on the list of witnesses and exhibits document.

Most investigations will require one or more appendices. The number and types of appendices will vary significantly depending upon the elements of the crime, the number of years being recommended, the method of proof, the number of witnesses and exhibits, etc. All of these factors will contribute to the creation of your appendices.

Appendices are an integral part of the SAR. They summarize the evidence with references to related exhibits used to support the prosecution recommendation(s).

Well-planned appendices eliminate the need for extensive narratives in the body of the report.

Each appendix needs to contain sufficient detail for the reader to fully understand the contents of the appendix and the reason the appendix was prepared. Each appendix must be designed to be read and understood by someone who is not familiar with the facts surrounding the investigation.

Ensure to address potential Greenberg issues in the presentation of data in appendices and schedules. In Greenberg v. United States, 280 F.2d 472 (1st Cir. 1960), the court ruled that the special agent's testimony as to the classification of checks (business or personal expense) was inadmissible hearsay. Unless presented purely for informational purposes, a special agent cannot unilaterally categorize the purpose of payments or receipts. Credible third- party witness testimony or corroborated admissions by the subject or their representative is required for this purpose.

A detailed listing of evidence (i.e., analysis of cancelled checks, etc.), must not be introduced as an appendix, but is more appropriately presented in an exhibited summary schedule format.

Complete and accurate exhibit references should be included in the appendix. All appendix citations need to be done within the SarGenXpress program.

The header in the appendix must contain the subject’s name, investigation number, special agent’s name, and the date the appendix was prepared.

A well-planned appendix includes all of the compiled evidence which has relevance in supporting each appendix item, including documentary evidence and testimonial evidence.

The name of the appendix must describe in sufficient detail what the appendix represents (i.e., Computation of Taxable Income Based on the Bank Deposits and Cash Expenditures Method, etc.).

A primary appendix should be used to summarize critical factors (elements) relating to the prosecution recommendation, for example:

The use of sub-appendices to support the primary appendix is encouraged. The sub-appendices are referenced in the primary appendix.

An example of an appendix and use of sub-appendices for the Computation of Gross Income in a 26 USC 7203 investigation would be as follows:

Appendices can be created outside of the SarGenXpress program or within the program. For appendices initially created in Excel: add them to the SAR using the SarGenXpress Explorer tab. Once added to the program, add citations. All citations must be done within the SarGenXpress program.

The page numbering sequence of the SAR and list of witnesses and exhibits does not continue into the appendices. Page numbers must be included on multi-page appendices. Appendices must not be presented as numbered exhibits.

The criminal tax computation must be shown as an appendix or spreadsheet. The evidence supporting the criminal tax computation must include appropriate cite references.

When preparing a criminal tax computation, proper terminology must be consistent with the line item on the tax form at issue. The filing status must be noted on the tax computation. The mathematical computation of tax due and owing must be included either as a separate schedule or footnote to the appendix. The appropriate tax table or tax rate schedules must be included in evidence with the agent as the witness.

Numbers must always be supported by exhibits, appendices, or schedules to that exact number. Where numbers need to be calculated in an exhibit, the use of formulas in Microsoft Excel is recommended.

Exhibits should be organized logically. The witness testimony should be exhibited first, followed by any documents that the witness will introduce.

DO NOT EXHIBIT ORIGINAL DOCUMENTS.

Copies of the documents should be authenticated. Exhibits consisting of a large number of documents may be authenticated by the use of a cover sheet or certificate of authenticity at the beginning of the exhibit.

When citing exhibits consisting of a large number of documents or pages, use page or item numbers to allow for proper referencing to the SAR, appendices, and/or schedules. Highlighting of significant items is encouraged.

All exhibits reflected on the list of witnesses and exhibits should be referenced in the SAR, appendices, or supporting schedules.

Sample SARs that illustrate the format and method of presenting and arranging the facts, evidence, and conclusions are located in the Go-bys section in the SARs community of CASE.

The sample SARs include reports relating to the specific items, net worth, and bank deposits methods of proof. These sample reports include the related witness list and appendices.

The SAR Community on CASE also has other useful documents such as links to the Linked SAR, DOJ Tax Manual, US Attorney Manual, SAIT training material, and the CCR Annual Trends Reports.