Special agents will be assigned to a task force by CI management on an as-needed basis. Special agents assigned to a task force remain subject to all the policies and procedures of CI, to include the updated IRS Structuring Investigation Policy issued on October 17, 2014. In addition, special agents must participate in required training and management oversight meetings as directed.

Criminal Investigation does not permit its special agents to be cross-designated. It makes no difference whether an agent is assigned to an OCDETF or HIDTA, a special agent is not permitted to investigate violations that are not specifically outlined in IRM 9.1.3, Criminal Statutory Provisions and Common Law. All of the authority necessary to conduct financial-related investigations is conveyed to those special agents assigned to and participating in national task forces by the IRS, and in some instances, highlighted by various MOUs negotiated by local IRS management and various local task forces. Criminal Investigation special agents participate on national task forces as federal law enforcement officers operating within the statutory and investigative jurisdiction of the IRS. Notwithstanding IRS jurisdictions and policies, participation in an investigative task force occasionally requires participants to perform investigative tasks and activities for the benefit of and assistance to the entire task force. Consequently, it is permissible for special agents with the appropriate CI management approval to, as an example, assist the task force with the service of subpoenas, conduct interviews with third party witnesses, or assist with the execution of a search warrant, even though CI has no open Primary Investigation (PI) or Subject Criminal Investigation (SCI).

It should be noted that cross-designation is not the same as the detailing of state or local police officers. This type of arrangement occurs when CI details a state or local law enforcement officer to work with IRS-CI special agents to enforce the criminal provisions of Title 31 and 18 money laundering. The detailing of state or local Law Enforcement Officers (LEOs) is permissible under the Intergovernmental Personnel Act (IPA) and these officers are detailed, per 5 U.S.C. section 3374(a)(2), as Task Force Officers (TFOs). Once that officer is detailed, he can be allowed to directly participate in CI's Title 31 and 18 money laundering investigations utilizing their authority under 26 USC section 7608(b)(1) and (2) as authorized by a task force Supervisory Special Agent (SSA). The procedures for detailing a state or local LEO are delineated in IRM 9.4.13.7.2, Detailing of State and Local Law Enforcement Officers.

Criminal Investigation special agents in a task force are not authorized to disclose return or tax return information to detailed TFOs or deputized state and local officers who were deputized by the Drug Enforcement Administration (DEA) under 21 USC §878. Although these officers have federal authority, they are not recognized as federal law enforcement employees under the provisions of 26 USC §6103, Confidentiality and Disclosure of Returns and Return Information.

Agents participating in a task force are responsible to follow all disclosure regulations pertaining to tax returns, return information and BSA documents. Consult IRM 9.3.1, Disclosure, and 11.3, Disclosure of Official Information, for guidance.

See IRM 9.1.4, Authority for the delegated authority related to IRM 9.4.13, Financial Investigative Task Force.

The Director, Global Financial Crimes & Policy and Director, Advanced Analytics and Innovation is responsible for developing, maintaining, and overseeing this IRM and ensuring compliance with current policies and procedures.

Special agents are authorized to assist the attorney for the government in conducting investigations, preparing for indictment and trial, and obtaining evidence relative to sentencing in matters involving potential violations of Title 26, Title 18, and/or Title 31 of the United States Code committed in contravention of tax, bank secrecy, or money laundering statutes. An attorney for the government or Strike Force Attorney may request special agents to assist in such investigations by a Federal grand jury, or to make presentations to a Federal grand jury.

The Director, Global Financial Crimes & Policy and Director, Advanced Analytics and Innovation will:

The Director, Global Financial Crimes & Policy and Director, Advanced Analytics and Innovation will review the instructions and guidelines relating to the investigation of tax returns and other IRS documents for procedural, operational, and editorial changes.

The table lists commonly used acronyms and their definitions:

IRM 9.3.1, Disclosure.

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

IRM 9.4.13.8.3 , BSA Re-Dissemination Guidelines.

IRM 9.5.12, Processing Completed Criminal Investigation Reports.

IRM 9.5.13, Civil Considerations.

IRM 11.3.26, Wagering Tax Information.

IRM 11.3.28, Disclosure of Official Information, Disclosure to Federal Agencies for Administration of Non-Tax Criminal Laws.

IRM 11.3.34, Disclosure of Official Information, Disclosure for Non-tax Criminal Violations.

Law Enforcement Manual (LEM) 9.14.1.

Special agents will be assigned to a task force by IRS:CI’s management on an as-needed basis. Special agents assigned to a task force remain subject to all the policies and procedures of IRS:CI, to include the updated IRS Structuring Investigation Policy issued on October 17, 2014. In addition, special agents must participate in required training and management oversight meetings as directed.

IRS:CI does not permit its special agents to be cross-designated. It makes no difference whether an agent is assigned to an OCDETF or HIDTA, a special agent is not permitted to investigate violations that are not specifically outlined in IRM 9.1.3, Criminal Statutory Provisions and Common Law. All of the authority necessary to conduct financial-related investigations is conveyed to those special agents assigned to and participating in national task forces by the IRS, and in some instances, highlighted by various Memorandum of Understanding (MOUs) negotiated by local IRS management and various local task forces. IRS:CI special agents participate on national task forces as federal law enforcement officers (LEOs) operating within the statutory and investigative jurisdiction of the IRS. Notwithstanding IRS jurisdictions and policies, participation in an investigative task force occasionally requires participants to perform investigative tasks and activities for the benefit of and assistance to the entire task force. Consequently, it is permissible for special agents with the appropriate IRS:CI management approval to, as an example, assist the task force with the service of subpoenas, conduct interviews with third party witnesses, or assist with the execution of a search warrant, even though IRS:CI has no open Primary Investigation (PI) or Subject Criminal Investigation (SCI). When appropriate, a General Investigation (GI) should be opened for agents assigned to these task forces. Time spent on case development and other related task force assistance, described above, with no open PI or SCI, can be charged to the GI.

It should be noted that cross-designation is not the same as the detailing of state or local police officers. This type of arrangement occurs when IRS:CI details a state or local LEOs to work with IRS:CI special agents to enforce the criminal provisions of Title 31 and 18 money laundering. The detailing of state or local LEOs is permissible under the Intergovernmental Personnel Act (IPA) and these officers are detailed, per 5 U.S.C. section 3374(a)(2), as Task Force Officers (TFOs). Once that officer is detailed, he can be allowed to directly participate in IRS:CI's Title 31 and 18 money laundering investigations utilizing their authority under 26 USC section 7608(b)(1) and (2) as authorized by a task force Supervisory Special Agent (SSA). The procedures for detailing a state or local LEO are delineated in IRM 9.4.13.7.2, Detailing of State and Local Law Enforcement Officers.

IRS:CI special agents in a task force are not authorized to disclose return or tax return information to detailed TFOs or deputized state and local officers who were deputized by the Drug Enforcement Administration (DEA) under 21 USC §878. Although these officers have federal authority, they are not recognized as federal law enforcement employees under the provisions of 26 USC §6103, Confidentiality and Disclosure of Returns and Return Information.

Agents participating in a task force are responsible to follow all disclosure regulations pertaining to tax returns, return information and Bank Secrey Act (BSA) documents. Consult IRM 9.3.1, Disclosure, and IRM 11.3.1, Disclosure of Official Information, Introduction to Disclosure for guidance.

The Commissioner, IRS; Chief, IRS:CI; Director, Global Operations Policy & Support; Director, Narcotics and National Security Section, Director(s) Field Operations and Special Agents in Charge (SAC) are responsible for administering and providing general guidelines for IRS:CI objectives and responsibilities under the program.

Primary liaison between IRS:CI and Department of Justice (DOJ) will be maintained at the CI Headquarters (HQ) level of IRS:CI and the Associate Attorney General level of DOJ.

The Chief, IRS:CI, is designated the senior coordinating official responsible for implementing IRS objectives and responsibilities under the program and for monitoring its progress. The Chief sits on the OCDETF agency heads’ board. The Director, Global Operations Policy & Support, sits on the OCDETF operations chiefs’ board.

The Director, Narcotics and National Security, will monitor all aspects of the program to ensure that IRS:CI objectives under the program are achieved and regularly provide feedback to the Director, Operations Policy and Support.

The National OCDETF coordinator performs the majority of the day-to-day HQ liaison activities with the OCDETF executive office. The national coordinator sits on the OCDETF executive office’s Washington Area Representative’s Group (WARG) and on the CPOT working group.

Organized Crime and Drug Enforcement Task Force/ National Security (OCDETF/NS) coordinators for the OCDETF regions work at the direction of the Director, Narcotics and National Security, and represent HQ in the overall administration of the IRS-OCDETF and CT efforts.

The SAC will monitor all aspects of the OCDETF program within his/her field office to ensure IRS:CI objectives are met. Further, as re-delegated by the Commissioner under Delegation Order No. 9-3, Criminal Referral Authority (formerly Delegation Order No. 206, Rev. 1 and 263, Rev. 2), the SAC, is authorized to review, approve, and refer task force investigations directly to the DOJ, Tax Division, for grand jury investigation without first submitting those investigations to Area Counsel for legal review. However, the legal resources of Counsel's office will continue to be utilized when requested by DOJ or IRS officials. This authority was re-delegated by the Chief, IRS:CI, to the SAC, see CI Delegation Order No. 3, Criminal Referral Authority, located in IRM 9.1.4, Criminal Investigation Directives and Functional Delegations of Authority.

The SAC, in both core city and non-core city task forces, will provide for the selection and supervision of all field office personnel assigned to a task force and will serve on any local coordination group(s) within the field office's jurisdiction. The responsibility to attend local coordination groups cannot be delegated by the SAC below the level of an SSA.

The task force regions and core cities, established according to US judicial jurisdictions, are found on the IRS:CI website.

The investigation selection criteria are:

In addition, the investigations should possess the following characteristics:

The preceding are general standards for the types of investigations that may be accepted as task force investigations. In July 2002, the executive office for OCDETF issued revised standards for OCDETF investigations. Questions concerning the current OCDETF program guidelines should be directed to the IRS Regional OCDETF coordinator; or Director, Narcotics and National Security.

The SAC is authorized to approve requests for income tax grand jury investigations under the program.

All investigations will be conducted using the grand jury process.

The CI Program (CIP) Codes OCDETF, HIDTA OCDETF and Terrorism/OCDETF have been assigned to track OCDETF activity under the CI Management Information System (CIMIS). The CIP Code OCDETF (NAROC), tracks activity solely related to OCDETF investigations. The CIP Code HIDTA/OCDETF (HIDOC), tracks activity on investigations that are related to both the HIDTA and OCDETF task forces. The CIP Code Terrorism/OCDETF (TERROCDETF) tracks activity on investigations that are related to OCDETF with a terrorism component. It should be noted that there is no CIP code for TOC. TOC cases will use the CI Program (CIP), OCDETF.

The Internal Revenue Service receives funding as part of its annual budget appropriation for IRS:CI’s participation in counter-narcotics related investigations. In order to properly account for the investigative resources applied to counter-narcotics related investigations, all qualifying OCDETF investigative time must be input into CIMIS by either uploading the agent’s Diary entries directly into CIMIS. The qualifying OCDETF time is limited to qualifying task force investigative time for all resources expended on an approved IRS:CI OCDETF investigation or prosecution and qualifying task force investigative time which includes all time charged to an approved OCDETF GI, PI or SCI.

Each OCDETF office, under the jurisdiction of DOJ, will be equipped with physical security measures wherein OCDETF members may review and discuss information up to and including National Security information at the top secret level.

Technical IRS personnel assigned to work without escort within an OCDETF office shall be clearable to the top secret security level and, when deemed necessary, will be certified for top secret clearance and available to attend meetings in which top secret data is discussed and examined. Each of these employees must have been the subject of a recently (within five years) completed full field background investigation favorably adjudicated.

Any IRS:CI employee requiring a security clearance or a clearance elevated to top secret will follow the procedures on initiating or obtaining a security clearance found on the IRS:CI website.

Top secret clearance requests should be initiated for those technical personnel who are required to access or disseminate sensitive data which has been classified “top secret.” Clearances may also be granted for individuals required to attend briefings regarding OCDETF matters, if it is a requirement of the facility wherein the meeting is conducted. For these individuals, a memorandum requesting top secret clearance must also accompany the investigation documents. These submissions should be forwarded as expeditiously as possible , see obtaining a security clearance on the CI website.

The duties and responsibilities of the OCDETF/NS coordinators include:

Investigations will be evaluated and conducted with an emphasis on quality, impact, and in-depth investigations involving significant financial analysis. These investigations should target organizations that meet the high standards for designation as OCDETF investigations, or which, in rare and unique instances, serve a specified localized law enforcement need.

IRS:CI will investigate money-laundering activity within the established HIDTAs. Except for the unusual “local need” investigations, narcotics-related income tax and money laundering investigations must, in addition to meeting OCDETF standards, meet the Law Enforcement Manual (LEM) 9.14.1, CI Official Use Only Procedures, criteria. In selecting narcotics-related investigations, field office management should refer to the OCDETF program guidelines. Questions regarding the current OCDETF program including case selection criteria should be directed to the OCDETF executive office; the IRS Regional OCDETF/CT coordinator; or Narcotics and Counterterrorism.

Field offices are encouraged to establish FITFs or other investigative initiatives, such as the HIDTAs and OCDETFs that incorporate the concepts of multi-agency, multi-jurisdictional collaboration in coordination with the US Attorney's Office to identify significant organizations involved in financial crimes.

Narcotic-related primary and subject investigations not related to either the HIDTA or OCDETF program will be tracked under CI Program Code, Narcotics-Other (NAROT). The HIDTA-related investigations will be tracked under CI Program Codes HIDTA and HIDTA/OCDETF (HIDOC). The CIP Code, HIDTA, tracks activity solely related to HIDTA investigations. CIP Code, HIDTA/OCDETF (HIDOC), tracks activity on investigations that are related to both the HIDTA and OCDETF task forces. Terrorism/OCDETF investigations will be tracked under CIP code Terrorism/OCDETF.

The SAC and territory managers in the other operating divisions, respectively, shall make the final determinations as to which investigations shall be subject to either a criminal investigation or an audit examination, using established IRS standards.

All HIDTA and NAROT investigations that are developed and meet OCDETF investigative standards will be proposed for inclusion in the OCDETF program.

The investigation and prosecution of controlled substance violations by DEA will generally take precedence over the investigation and prosecution of tax violations.

In those instances where the tax investigation has either been completed or substantially completed, the DEA and IRS will cooperate in attempting to secure simultaneous indictments in accordance with the disclosure laws and regulations.

In order to avoid compromising DEA investigations and endangering DEA personnel and cooperating individuals, IRS will ordinarily honor DEA requests to temporarily suspend or limit specific IRS non-narcotics-related investigations. For example, IRS will ordinarily honor a DEA request to temporarily suspend any IRS activity that would expose or hinder the activities of DEA undercover personnel; however, other IRS investigation and examination activities related to the investigation would proceed.

All such requests from DEA, SAC, or Resident Agents in Charge (RAC) should be in writing and will state the specific activities to be temporarily limited and the period of time for which suspension is requested. The written request will be made part of the investigation file.

Such requests shall be submitted to the SAC of the IRS field office conducting the inquiries. If the request involves activities being conducted independently by another operating division, the request will be immediately referred to the territory manager of that division with the SAC providing advice to the division as necessary to properly resolve the issue.

If the territory manager determines that IRS activities should be limited as requested, the DEA official making the request and the affected or involved IRS personnel will be so advised.

If the territory manager determines that, because of extraordinary circumstances such as imperilment of a substantial civil liability, IRS activities should not be temporarily limited, the matter will be discussed with the requesting DEA official. If agreement cannot be reached, the matter will be referred immediately to the area manager of the other operating division and IRS:CI Director, Field Operations

If the area manager determines that the investigative inquiries should be temporarily limited, he/she will so advise the territory manager; Director, Field Operations; and the SAC. If the area manager determines otherwise, the matter will be immediately referred to the Commissioner of the operating division for coordination with the Chief, IRS:CI, and the DEA HQ coordinating official. If a determination cannot be reached at the Commissioner of the operating division and Chief, IRS:CI, level, the final decision will be made by the appropriate Deputy Commissioner, IRS.

Until the matter is resolved, no IRS action will be taken that would endanger DEA personnel and cooperating individuals.

Disclosure of information to DEA in connection with the above matters will be made in accordance with disclosure law and regulations.

The DEA information will be reviewed by the SAC. If a name or other information provided by DEA is selected for further evaluation, it will become an information item and will be handled in accordance with IRS procedure.

To assist in the evaluation of the information item, the SAC may supplement the information furnished by DEA by contacting the local DEA office and by developing additional tax-related information. Case file information will be obtained from the DEA division office level with the approval of the SAC or RAC.

If sufficient information is still not available to evaluate the information item, a primary investigation on the individuals identified by DEA may be authorized by the SAC, in accordance with IRS information gathering procedures. Similarly, the SAC may authorize information gathering on individual(s) identified, during the investigative process or by sources other than DEA, as high-level drug leaders or financiers in order to determine whether the individual warrants investigation or examination and whether the individual should be included in this category. To avoid interference with an ongoing DEA investigation when conducting a primary or subject investigation, the first investigative contact outside the IRS must be with DEA. This mandatory field contact with DEA should be made on any subject provided to IRS:CI through DEA HQ.

Investigative Reports will be processed in accordance with standard procedures. See IRM 9.5.12, Processing Completed Criminal Investigation Reports.

Predicated on the forfeiture provision under the Controlled Substances Act, 21 USC §881(a)(6), DEA will seize and forfeit funds identifiable with and traceable to drug violations. Any such funds and assets are generally subject to forfeiture to the US in their entirety and, thus, would not be an available source for satisfaction of any tax liability. However, the local IRS operating division will be contacted so that a tax levy on seized funds can be instituted on the chance that the forfeiture proves to be unsuccessful.

Jeopardy and termination assessments of taxable years will be made only in accordance with the provisions of the Internal Revenue Code and with IRS policy and procedures. (See IRM 9.5.13, Civil Considerations).

Jeopardy and termination assessments of taxable years will be used sparingly and only to protect the revenue when collection is in doubt. Either type of assessment must receive the approval of the Director, other operating division, Director with jurisdiction over the assessment. Before authorizing the use of 26 USC §6851 or 26 USC §6861, establish that the taxpayer intends to perform one of the acts that will prejudice collection of the tax unless collection action is begun without delay. Care must be taken to avoid excessive and unreasonable assessments. See Policy Statements P–4–88 and P–4–89, IRM 4.15.1, Jeopardy and Terminations, and IRM 9.5.13, Civil Considerations, for more specific instructions.

Disclosures of tax returns and return information are governed by 26 USC §6103, as amended. Refer to IRS:CI procedures relating to information concerning possible violations of federal, state, and local criminal laws.

Facts or information relating to the commission and/or violation of non-tax federal, state, or local criminal acts not directly or indirectly related to a tax return or a tax investigation may be disclosed in accordance with IRM 11.3, Disclosure of Official Information.

The IRS will furnish information involving substantive narcotics violations either directly to DEA, the Federal Bureau of Investigation (FBI), or to the Assistant Attorney General, Criminal Division, DOJ, in accordance with the disclosure laws and regulations. Pursuant to 26 USC §6103(i)(1), designated officials of the DOJ may obtain for DEA or the FBI any information that the IRS has collected or obtained from a taxpayer or from someone acting on behalf of such taxpayer for federal non-tax criminal purposes by making application to a federal district court for an ex parte court order. Under 26 USC §6103(i)(2), designated officials of the DOJ may obtain for federal non-tax criminal purposes, upon written request, tax information that the IRS did not obtain from a taxpayer or from someone acting on behalf of such taxpayer. The IRS may disclose in writing, return information, other than taxpayer return information which may constitute evidence of a violation of federal criminal laws to the extent necessary to apprise the head of the appropriate federal agency charged with the responsibility for enforcing such laws. In instances where the information alleging the subject's possible violation of a federal non-tax crime was furnished to the IRS by a federal law enforcement agency, it is not necessary to channel that information back to the same agency, unless additional information is developed and is disclosable under 26 USC §6103(i)(3).

IRS personnel may actively participate in the execution of a federal non-IRS search or arrest warrant related to the IRS mission (e.g., in joint IRS/DEA grand jury investigations where a Title 26 or an IRS Title 18 or 31 investigation is not involved in the particular search or arrest) upon the prior approval of the SAC.

Tax-related books, records, and other documents seized by DEA personnel as a result of the execution of search and arrest warrants may be examined by IRS:CI personnel to determine whether the individuals involved had complied with the Internal Revenue laws. However, when IRS personnel accept the fruits of an executed non-IRS search and before they expend staff power to conduct an investigation, they should consult with Criminal Tax (CT) Counsel as to the legality of the warrant, the methods used in the search, and any other legal problem that may arise if the evidence were to be subsequently used in a criminal or civil tax investigation.

Agents should contact their respective Regional OCDETF Coordinator in Narcotics and National Security Section to discuss current database queries and other resources available for narcotics investigations.

IRS:CI personnel will not discourage potential sources of information from furnishing information to DEA or the FBI and will not compete with DEA or FBI personnel for informants or information. The cooperation with DEA or the FBI should be made known to potential sources of information in order to discourage informants from “agency shopping.”

When it appears that an IRS informant is knowledgeable concerning potential narcotics violations, IRS:CI personnel will encourage the informant to meet directly with DEA or FBI personnel. If the informant declines, IRS:CI personnel will debrief the informant of the information relating to potential narcotics violations and will transmit such information either directly to DEA, the FBI, or to the Assistant Attorney General, DOJ, Criminal Division, in accordance with the disclosure laws and regulations.

The IRS will be responsible for evaluating and, where appropriate, making payment for financial information concerning potential tax, currency, and money laundering violations. The DEA or the FBI will be responsible for evaluating and, where appropriate, making payment for information relating to potential narcotics violations. The IRS and DEA or the FBI will coordinate at the local level to the extent necessary to prevent duplicate or excessive payments for the same information.

Double-sealed mailing envelopes will be used whenever project reports, memoranda, correspondence, or other written data are transmitted.

The DEA will furnish HQ with strategic information and studies relating to the domestic and international flow of funds used in narcotics trafficking. The HQ program coordinator shall review and disseminate such information, as appropriate, to the OCDETF coordinators for further distribution, to the SAC, as appropriate. To the extent this strategic information, unrelated to tax matters, is further developed by IRS:CI, the additional information will be routed to the HQ program coordinator and will be furnished to the DEA. In the event the study data incorporates tax information, DEA will be furnished the information only in accordance with applicable disclosure laws and regulations.

The DEA and IRS senior coordinating officials may authorize joint studies which would benefit both agencies.

The CIP Code OCDETF has been assigned to OCDETF investigations. The CIP Code OCDETF relates to investigations that involve members of high-level narcotics trafficking and/or narcotics/money laundering organizations and are authorized by the regional OCDETF coordination committee.

The CIP Code NAROT has been assigned to NAROT investigations. The CIP Code NAROT relates to investigations that involve financial activities or significant individuals or entities who transport, distribute, or finance illegal drugs and/or launders illegal drug proceeds.

The CIP Code HIDTA has been assigned to HIDTA investigations. The CIP Code HIDTA relates to investigations that involve organizations and/or individuals who participate in narcotics trafficking and/or narcotics money laundering worked through the HIDTA program, overseen by Office of National Drug Control Policy (ONDCP).

The CIP Code HIDTA/OCDETF has been assigned to HIDTA/OCDETF investigations The CIP Code HIDTA/OCDETF relates to investigations that involve organizations and/or individuals who participate in narcotics trafficking and/or narcotics money laundering worked jointly through the OCDETF and HIDTA programs. The CIP Code Terrorism/OCDETF should be used for Terrorism/OCDETF investigations.

In addition, Special Purpose Codes (SPC) are also used to accurate track case coordination and data inquiries. The following SPC Code should be input into CIMIS when the respective case is requesting resources from or coordinated by the following task forces:

These procedures apply to IRS offices located within geographic areas where DOJ has established a strike force.

Strike force investigations, in which IRS:CI participates, generally should involve principal figures involved in organized crime, as defined, or:

Strike force investigations are identified in CIMIS, by creating an entry in the Nationally Coordinated Task Forces sub-activity in CIMIS. Each entry must contain the appropriate strike force based on the city in which the investigation is controlled or was initiated and the date upon which the strike force accepted the investigation.

The IRS:CI can only disclose tax information in accordance with 26 USC §6103 or other provisions of the Code. Severe limits have been placed on disclosures made in non-tax criminal investigations. As a general rule, disclosures to strike force AUSAs are limited to the circumstances set forth below.

Special agents are authorized by 26 USC §6103(k)(6) to disclose return information to the extent necessary to gather data, which may be relevant to a tax investigation. Under the authority of 26 USC §6103(k)(6) and the regulations promulgated there-under, the IRS may request from the strike force any information within its files which may have tax administration consequences or will in any way assist in the investigation, but only if the necessary information cannot otherwise reasonably be obtained in accurate and sufficiently probative form or in a timely manner, and without impairing the proper performance of official duties or if such activities cannot otherwise properly be accomplished without making such disclosure.

The IRS may disclose in writing return information, other than taxpayer return information, which may constitute evidence of a violation of federal criminal laws to the extent necessary to apprise the head of the appropriate Federal agency charged with the responsibility for enforcing such laws.

Under certain circumstances, IRS:CI employees may advise federal, state, or local law enforcement authorities immediately, or after securing an authorization, of the facts necessary to apprise such law enforcement authorities of possible violations of serious non-tax criminal laws. Such disclosures are permitted only where the information to be disclosed is not tax information. For example, an employee may have information of a homicide, burglary, rape, robbery, or similar crime and disclose this to appropriate law enforcement officials according to the procedures found in IRM 9.3.1, Disclosure, and IRM 11.3.28, Disclosure of Official Information, Disclosure to Federal Agencies for Administration of Non-Tax Criminal Laws, IRM 11.3.34, Disclosure of Official Information, Disclosure for Non-tax Criminal Violations.

Generally, disclosures of information will be coordinated with the Disclosure Officer to assure compliance with the pertinent disclosure statutes, regulations, and IRS procedures. All disclosures under 26 USC §6103(i)(3) and disclosures of non-tax criminal violations should be in writing or sufficiently documented to provide a permanent record of the information released. This documentation should be retained in the investigative file.

IRS participation in strike force activities may involve grand jury matters. IRS personnel so participating should be especially mindful of the provisions and procedures of IRM 9.3.1, Disclosure; Fed. R. Crim. P. R 6(e); 26 USC §6103; and the federal grand jury. Restrictions governing the receipt and dissemination of grand jury information must be carefully observed. The provisions of the procedures and statute must be carefully observed.

Where strike forces are active, every level of IRS:CI management has a responsibility for their activities.

Most FITF matters having criminal potential will result in a specific federal grand jury investigation. All FITF personnel, including detailed officers, must then be placed on a grand jury disclosure list and be advised of Fed. R. Crim. R. 6(e), grand jury secrecy provisions.

In investigative matters that lead to tax administration, a related statute call must be made by the SAC for IRS personnel to access returns and return information used to evaluate FITF information received (see IRM 9.3.1, Disclosure). Returns and return information may not otherwise be disclosed to Treasury (including IRS) or Justice Department employees except through the ex parte court order provisions of 26 USC §6103(i)(1) or the request provisions of 26 USC §6103(i)(2). Additionally:

Organized Crime Drug Enforcement Task Force deputations and FITF detailees are different in that OCDETF deputation are for “case specific” operations, whereas the FITF mission is to develop investigations. As a result, an FITF detailee is focused on the entire FITF operation as a whole.

Each field office which contemplates allowing FITF detailed personnel access to IRS office space must review office security and access and be able to track any after-hours entry by non-Service personnel so as to avoid unauthorized or illegal disclosure.

Detailed TFOs are considered IRS employees for certain purposes, including use of IRS resources and liability for official actions. IRS:CI management must ensure that TFOs are properly supervised by an IRS:CI SSA and that they are advised of relevant IRS rules and regulations in such matters. For further information, consult IRM 9.4.13.7.2 (4).

The detailing of state or LEOs is permissible under the IPA and these officers are detailed, per 5 U.S.C. section 3374(a)(2), as Task Force Officers (TFOs). Once an officer is detailed, he or she is allowed to directly participate in IRS:CI investigations utilizing the authority under 26 U.S.C. section 7608(b)(1) and (2).

IRS:CI may detail state or local LEOs to participate in a FITF and thereby assist in conducting investigations of Title 18 money laundering and Title 31 currency crimes. A state or local LEO may not be detailed to investigate violations of Title 26 and may not be given access to tax information (see IRM 9.3.1,Disclosure).

The detailed officer duties will include the authority to investigate, execute, and serve search warrants and arrest warrants, serve subpoenas, make arrests without warrant, make seizures of property subject to forfeiture and to require and receive information, as to all matters in support of the federal task force and at the direction of the IRS:CI SSA responsible for the task force.

The detailing of a state or local officer is initiated by completion of a task force officer detail application. The application, complete with original signatures of the TFO and the sponsoring SSA will be maintained in the SAC office of that field office. A scanned copy of the application will be appropriately filed and maintained, with a notification e-mail to the TFO detail program analyst in Financial Crimes (FC).

A current Task Force Memorandum of Understanding (TF MOU) with the state or local police department must be in place before an application will be processed. If one does not already exist, a TF MOU must precede or accompany the application. See IRM 9.4.13.9 for guidance on the processing of TF MOUs.

The HQ FC section processes the detail application and requests credentials for the TFO upon receipt of:

Detailed TFO credentials will be sent from HQ to the appropriate field office CIMIS equipment coordinator who assigns custody to the SSA responsible for the task force. All credentials remain the property of IRS and upon leaving the task force assignment, all TFO credentials must be returned to the appropriate IRS:CI official. The new TFO credentials will be forwarded to the appropriate SAC (or his/her designee) to “swear in” the TFO and obtain a signed oath of office and statement of understanding. The original document will be maintained in the SAC office and a scanned copy will be placed on the shared server folder(see (4)). A notification e-mail should be sent to the TFO detail program analyst when the document is placed on the server.

The administration of oath by the SAC (or designee) authorizes the detailed state or local LEO to investigate Title 18 and 31 violations. This authority will be authorized for a period of two years and biannual renewals are required for the TFO to remain detailed to IRS:CI. Biannual renewals provide HQ, SACs, ASACs and SSAs the opportunity to review the effectiveness of the TFO detail program and ensure TFO compliance with all relevant IRS requirements.

In consultation with the SAR-RT for their assigned judicial district, IRS:CI personnel should establish criteria for reviewing SAR information to identify specific SARs for further analysis and possible referral for investigation as a separate matter. Often, the USAO will establish criterion using transaction frequency and dollar thresholds based upon the U.S. Sentencing Guidelines, but the USAO may not use this as the sole criteria. IRS:CI personnel assigned to assist a SAR-RT, however, must follow minimum review criterion (listed below) to identify SARs for possible SAR-RT action. The SAC can designate an alternate criterion, if the volume of SARs meeting this criterion is too large to review and develop the information properly. Changes to the criterion must be documented, signed by the SAC and filed in SAR-RT files. IRS:CI members of the SAR-RT are generally required to review:

Group of four or more SARs filed in a 12-month period on a single subject or related individual or entity that total $250,000 or more.

If the SAC determines that closer coordination with other federal, state and local LEA’s would identify and target significant criminal activity, including structuring, money laundering, narcotics trafficking and terrorist financing, the SAC may form an FCTF. The mission of FCTFs is to conduct financial investigations of potential violations of Titles 18 and 31, with a focus on identifying assets subject to seizure. At times, FCTFs leads develop into Title 26 investigations, which are investigated by the IRS:CI special agents on the FCTF, or disseminated as a lead to other groups.

Each FCTF formed by a field office will utilize a MOU with the participating agencies. The FC section has a template available specifically for FCTF, which has been approved by CT Counsel. The template is available on the FC Web page. See IRM 9.4.13.9.1, Processing a Memorandum of Understanding for Approval.

Each field office FCTF will adhere to the following case numbering practices and CIMIS recording:

If a reviewed SAR indicates possible criminal violations of tax, money laundering and/or BSA statutes, the information will be processed for assignment as outlined in IRM 9.4.13.8.1(2).

If a reviewed SAR solely denotes possible civil tax violations, the SAR information will be referred to the local SBSE Exam Planning and Special Programs (PSP) branch via Prime Lead Referral Form.

If a reviewed SAR indicates possible civil Title 31 violations, or civil Title 26 violations under Forms 8300, Report of Cash Payments Over $10,000 Received in a Trade or Business, a referral memorandum should to be sent to: IRS SBSE Fraud/BSA BSA Workload Identification, Selection, Delivery & Monitoring (WISDM) Attn: Section Chief 290 Broadway, 5th Floor New York, NY 10007 .

If a reviewed SAR indicates only non-CI criminal violations, it should be forwarded directly to the appropriate agency pursuant to FinCEN’s re-dissemination guidelines for BSA information. Only the SAR form(s) itself may be provided. Tax return Information, including tax returns, must not be provided.

IRS:CI field offices may receive requests to de-conflict its cases and task force activities with proposed SBSE BSA examinations of Money Services Businesses (MSBs), credit unions, casinos, check cashiers and certain other non-regulated industries. FinCEN has delegated BSA compliance authority over these Non-Bank Financial Institutions (NBFI) to IRS, which has re-delegated the authority to SBSE Fraud/BSA. IRS:CI field office BSA coordinators should take steps to de-conflict the proposed listing of examinations with on-going IRS:CI cases and task forces.

IRS:CI field offices may receive information items or referrals for potential criminal violations of T31 by NBFI’s from SBSE Fraud/BSA examination groups. Fully developed referrals of potential criminal violations of the IRC must be evaluated following the procedures at IRM 9.4.1, Investigation Initiation. Information received from SBSE Fraud/BSA regarding other potential criminal violations should be treated as an information item.

In cases where IRS:CI is the initiator of the MOU (CI-sponsored task forces), IRS:CI field offices will use one of three approved MOU templates. Specifically, (1) a MOU template when IRS:CI is working with only federal agencies (Fraud-MOU-Template-no-TFO), (2) a fraud MOU template when IRS:CI is working with both federal agencies and state and local law enforcement (Fraud-MOU-Template-w/TFOs), and (3) a Fraud MOU template when IRS:CI is working with only state and local law enforcement FCTF.

The MOU templates have been approved by HQ sections, CT Counsel, Disclosure, GLS, and Privacy, Governmental Liaison, & Disclosure. Accordingly, use of the MOU templates will not require an HQ review unless changes to the MOU template are requested. These templates can be found in the MOU section on the FC Web page or by contacting the assigned senior analyst in FC. A copy of the final signed MOU should be provided to FC for filing and maintenance.

In cases where IRS:CI is not the originator of the MOU (external MOUs), field offices will continue to negotiate these MOUs with assistance from their local CT Counsel. Upon completion of the proposed MOU, SACs will send the MOU and any related documentation to the assigned FC analyst. FC will facilitate the review process. The MOU will be reviewed by HQ sections; CT Counsel; Privacy, Governmental Liaison, & Disclosure (PGLD) and any other relevant headquarters section, including but not limited to:

These external MOUs will be reviewed with the understanding that (1) the IRS:CI specific model clauses will not be present as these MOUs are created by other agencies; and (2) the MOU does not supersede IRS:CI policy and/or procedure.

Given the importance of these joint endeavors all HQ sections will have 15 calendar days to review. If no comments are provided within 15 days IRS:CI will move forward with the understanding that the MOU does not supersede IRS:CI policy and/or procedure; and no adverse issues have been identified. Upon completion of the review process, the FC analyst will notify the field office via e-mail as follows:

The MOU that impacts more than one field office or that is national or international in scope will be forwarded to the Director, Operations Policy & Support, who will negotiate and sign on behalf of IRS:CI. Field offices affected by these MOUs will be consulted and encouraged to provide suggestions and recommendations.

Upon signature by all parties, a scanned copy of the any executed MOUs should be sent via email to the assigned FC analyst.