The authority to enforce Federal laws is derived from a variety of statutes. These statutes may assign the enforcement of any given law to a particular department such as the Treasury Department, an agency of a department such as the Internal Revenue Service (IRS), or simply that the enforcement falls to the legal arm of the government, the Department of Justice (DOJ).

Criminal Investigation has Operational and Investigative Strategies. Criminal Investigation’s strategies are classified in terms of:

See IRM 9.1.2, Authority for the delegated authority relating to IRM 9.5.11, Other Investigations.

The Director, Global Financial Crimes & Policy 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 will:

The Director, Global Financial Crimes & Policy 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:

For the purpose of these guidelines and procedures on protection, the following terms are defined:

IRM 1.16.9, Physical Security Program - Occupant Emergency Plan.

IRM 5.8, Offer in Compromise.

IRM 8.23, Offer in Compromise.

IRM 9.1.3, Criminal Statutory Provisions and Common Law.

IRM 9.3.1, Disclosure.

IRM 9.4.1, Investigation Initiation.

IRM 9.4.9, Search Warrants, Evidence, and Chain of Custody.

IRM 9.4.12, Arrests.

IRM 9.5.2, Grand Jury Investigations.

IRM 9.5.13, Civil Considerations.

IRM 9.7, Asset Seizure and Forfeiture.

IRM 9.11.1, Fiscal and Budgetary Matters.

IRM 20.1.2, Failure to File/Failure to Pay Penalties.

IRM 25.5, Summons.

Field office resources including Investigative Analysts (IA), Tax Fraud Investigative Assistants (TFIA), and Compliance Support Assistants (CSA).

The principal elements of a bribe are: promising, offering, or giving of a thing of value to an officer or an employee of the United States, or anyone acting on behalf thereof, for the purpose of influencing his/her official conduct.

To "offer" and to "give" a bribe are distinct crimes even when part of a single transaction. The test of whether a single transaction includes distinct offenses of offering and of giving a bribe is whether the separate acts have been committed with the requisite criminal intent.

Regardless of the occasion, the statute is violated when a bribe is given or an offer of a bribe is made and the acceptor or offeree of the bribe is a person described in the statute.

The Treasury Inspector General for Tax Administration (TIGTA) and the Federal Bureau of Investigation (FBI) investigate allegations of bribery, including attempted bribery of IRS employees and investigations where IRS employees are suspected of soliciting or receiving bribes. Investigative authority also includes investigations where non-IRS personnel are alleged to have solicited or received bribes while employed by the IRS.

The Treasury Inspector General for Tax Administration investigates all charges of attempted bribery of IRS employees.

The Treasury Inspector General for Tax Administration should notify Criminal Investigation (CI) of any attempt to bribe IRS personnel when the bribe attempt may have tax related issues within CI jurisdiction. This notification will be done when TIGTA determines that the tax investigation or other action by CI will not interfere with or affect the investigation of the attempted bribery.

When there has been an allegation of an acceptance of a bribe, CI may work a joint investigation with TIGTA by inquiring into the attempted evasion of income tax as to the amount of bribe received and any other possible tax violations that pertain to the alleged bribe.

Except when executing search and/or arrest warrants, when a special agent is offered a bribe, or believes that an offer will be made, he/she shall:

Title 26 USC 7217 makes it unlawful for any person to request an IRS employee to conduct or terminate an audit or investigation. The prohibition applies to both direct requests and requests made through an intermediary. As there are limited exceptions to this prohibition, each request must be evaluated individually. Any employee receiving any such request shall report the incident to TIGTA.

The essential elements of 26 USC 7212(b) are:

Investigations interpreting forcible rescue under both 26 USC 7212(b) and 18 USC 2233 permit prosecution against any individual who rescues or dispossesses, or attempts to rescue or dispossess, property of which the government has taken legal possession.

By current practice, determination of whether an alleged forcible rescue is to be investigated by CI or the FBI depends on whether the property was taken before or after it was adjudicated government property. Before undertaking an investigation, the special agent should first determine if it is to be handled by CI, as set forth above in subsection 9.5.11.3, Forcible Rescue of Seized Property.

If the investigation is within CI jurisdiction, the special agent should initially determine whether the property had been validly seized under the USC, and then determine whether it was forcibly rescued or an attempt to forcibly rescue had been made.

The underlying seizure must be valid on its face before it can be considered a forcible rescue investigation under 18 USC 2233 or 26 USC 7212(b). A seizure valid on its face will generally support a rescue conviction even if the seizure could be invalidated by a court. During a forcible rescue it should be shown the person retaking the property had knowledge of the valid seizure or of the fact the property was in the possession of the government. It is not a defense that the person retaking the property claims to be the real owner or claims the property was seized by mistake. A person’s remedy is judicial, not self-help.

To determine whether the property has been validly seized:

"Forcible" does not necessarily mean actual physical violence to an officer. It includes threatening language and/or conduct intended to intimidate the revenue officer to make him/her stop the performance of his/her official duty. It has been held that a forcible rescue under 26 USC 7212(b) includes the use of force against property, such as the breaking of a bank window, the removal of the IRS seal on a safe deposit box, and the removal of the box and its contents from the bank.

To determine whether there has been a forcible rescue or an attempted forcible rescue, the special agent should:

Criminal Investigation’s responsibility regarding OIC pertain to offers with the following factors:

Special agents should acquaint themselves with the contents of the sections of the USC dealing with offers in compromise and the pertinent sections of IRM 8.23, Offers in Compromise.

An allegation involving a potentially fraudulent OIC may be referred to CI by an IRS civil operating division. This referral may be made using established fraud referral procedures once indications of fraud have been identified regarding a false representation of a material matter made in or in connection with an OIC.

The concealment of income and/or property, false and/or intentional misstatements, or falsifying and/or destroying records in connection with any OIC may result in criminal penalties.

The principal elements of fraudulent OIC are the willful:

Criminal Investigation will investigate, report, and process OIC related fraud referrals in the same manner as other tax-related fraud referral investigations (see subsection 9.5.11.4.5, OIC Reports and IRM 5.8.4, Investigation). The customary standard for establishing willfulness and intent are applicable for OIC fraud related tax investigations. The standard for these elements and the applicable criminal statutory provisions are set forth in IRM 9.1.3, Criminal Statutory Provisions and Common Law.

Investigations of concealment involve identifying all assets belonging to the subject or to any other person liable in respect to the tax due.

Investigations involving the receipt, withholding, destruction, mutilation, or falsification of any book, document, or record are investigated in the same manner as any other tax fraud investigation by gathering evidence to document the commission of the fraudulent act, that the act was committed willfully, and with the intent to defraud the government.

The techniques used to investigate fraudulent OIC are similar to those used in investigations involving violations of Title 18 USC 1001, False Statements and Title 18 USC 1621, Perjury.

Offers in Compromise involving joint investigations with other IRS operating divisions in which the criminal aspects have been completed will be examined solely by the responsible operating division. Except as noted in paragraph 2 below, the Territory Manager of the civil operating division will, after completion of the examination, refer the entire file to the SAC for concurrence or comment when all of the following conditions exist:

If the sole issue presented in the OIC is the ability to pay, a fraud referral to CI will not be made.

The SAC should indicate his/her concurrence with the recommended disposition of the OIC by memorandum and return the entire file to the civil operating division for processing.

If the SAC does not concur and no agreement can be reached with the civil operating division as to the disposition of the OIC, the matter should be elevated to the Director, Field Operations and the respective operating division’s Area Director to resolve any differences.

If a Special Agent (SA) or Supervisory Special Agent (SSA) is contacted regarding the submission of an OIC on an open criminal investigation, the SSA should discuss the matter with the Fraud Technical Advisor, civil manager, and CT Counsel to appropriately balance the civil and criminal aspects of the case. A determination must be made regarding how to best proceed and whether or not a referral is warranted or if parallel proceedings should ensue.

Special agents must be cognizant that the Tax Increase Prevention and Reconciliation Act of 2005 (TIPRA) law includes a provision for automatic acceptance of an Offer in Compromise, if a decision has not been reached within 24 months of receipt of the OIC. IRS can no longer hold OICs open indefinitely pending a decision regarding the potential criminal investigation (see IRM 5.8.4, Investigation).

Reports relating to OIC in joint investigations, in which the criminal aspects have been closed and the SAC concurs with the disposition recommended by the civil operating division, will be returned to the referring division along with a memorandum of concurrence for further processing.

If the SAC does not concur with the recommended disposition of the OIC from the referring division and an agreement cannot be reached, the report will be forwarded along with a memorandum outlining the issues to the Director, Field Operations for resolution.

Department of Justice, Tax Division has taken the position that wagering excise or occupational tax investigations are not generally high priority investigations. The SAC will meet with the United States or Strike Force Attorney to discuss these types of wagering tax investigations to determine if they are prosecutable under DOJ, Tax Division standards. Disclosure of information for this purpose is permissible under 26 USC 4424.

The attorney for the government should be informed that any information gleaned from data subject to 26 USC 4424 must be used only for the administration or civil or criminal enforcement of the USC, and that such information may not be used for intelligence or prosecutorial purposes such as the enforcement of gambling offenses set forth in Titles 18, 26, and 31 (not all inclusive) of the USC or any other non-tax administration purpose.

Wagering taxes include three types of "excise taxes." The applicable taxes are:

See IRM 20.1.2, Failure to File/Failure to Pay Penalties for penalties relating to failure to file tax returns and failure to pay taxes.

The SAC will ensure that leads involving major customers of bookmakers are followed up for income tax purposes. Income tax information obtained by a special agent during a wagering investigation will be summarized on Form 3949, Information Report Referral, and submitted to his/ her SSA who will forward the lead to the Lead Development Center (LDC) (see IRM 9.4.1, Investigation Initiation).

In determining whether information received during wagering investigations has tax consequences, data reported on tax returns and results of prior investigations may need to be considered. If tax returns or other data are not readily available, the information may be placed in a pending status until the tax returns are obtained.

Upon receiving the requested returns, the SSA will forward the information item to the SAC for processing. The SAC may defer acting on leads involving customers until the criminal investigation against the bookmaker is concluded. The SAC, in determining when to act on these leads, should consider such factors as the civil and criminal statute of limitations as well as the effect IRS action may have on pending investigations.

Primary enforcement efforts in the wagering tax area shall be aimed at the independent initiation and development of criminal investigations against major operators and financiers along with situations involving widespread noncompliance. IRS efforts will strive to promote balanced enforcement with respect to investigations of wagering occupational, wagering excise, and income tax violations on identified subjects.

Generally, a major wagering operation is one comprised of five or more individuals who conduct, finance, manage, supervise, direct or own all or part of a gambling business and meet one or more of the following criteria:

Investigations not meeting the criteria may be investigated and recommended for prosecution only if they are associated with and are simultaneously submitted for prosecution as a package with an investigation meeting the criteria.

The most frequently used criminal statutes in wagering tax violations are:

Violation of 26 USC 7262, which provides a maximum penalty of $5,000 for not paying the special tax imposed by 26 USC 4411, is committed in the judicial district where the wager was accepted. Therefore, venue lies in the judicial district where the wager was accepted without regard to the location of the territory office.

The statute of limitations with regard to both excise and occupational wagering taxes (26 USC 7201 or 26 USC 7203) is 6 years from the date of the last overt act or statutory due date of the return, whichever is later. However, the statute of limitation for Title 26 USC 7203 with respect to, Failure to Keep Records and Failure to Supply Information, is 3 years, not 6 years.

Collateral violations related to wagering, such as filing false claims, conspiracy, and false statements, may also incur penalties prescribed by 18 USC 287, 18 USC 371, and 18 USC 1001 respectively.

Title 26 USC 4424 was intended to remove any constitutional challenges regarding enforcement of the wagering taxes resulting from improper disclosure of wagering tax information.

Investigations of wagering tax violations usually require the surveillance of violators and localities to obtain evidence of the underlying wagering activity. When appropriate, this evidence can be used to obtain probable cause for issuance of search warrants. In the affidavit for a search warrant, the special agent must state that IRS records were searched, and by whom, for the wagering tax stamp. See IRM 9.4.9, Search Warrants, Evidence, and Chain of Custody, for information concerning affidavits for search warrants.

If during the course of the investigation, a special agent participates in any type of game which requires continuous play and is exempt from wagering excise tax (i.e., blackjack, poker, craps or roulette), the accountability for amounts wagered, won or lost, will be determined at the conclusion of play. The computation will be made by comparing the amount on hand at the conclusion of the wagering activity to the amount at the outset of play.

Winnings on wagers placed by special agents may be treated the same as other profits which are received by the government in ongoing undercover operations. If winnings are to be held for use as evidence, the special agent will follow procedures for the safekeeping, control, and disposition of seized money as discussed in IRM Chapter 9.7, Asset Seizure and Forfeiture.

Income taxes are based on net income or net profits and are computed on a graduated scale. Excise taxes are not computed on a graduated scale and may be based upon any of the following factors:

The excise tax categories of interest to CI include:

Excise taxes on alcohol, tobacco, and firearms are not under the jurisdiction of IRS. Those items are taxed under Subtitle E of Title 26. Responsibility for the enforcement of excise taxes on alcohol, tobacco, machine guns, and certain other firearms is vested exclusively with the Department of Justice (DOJ), Bureau of Alcohol, Tobacco, Firearms (ATF).

Excise tax returns, unlike those for income taxes, do not lend themselves to analysis to determine the possible existence of tax violations. The information contained in quarterly excise tax returns on Form 720, Quarterly Federal Excise Tax Return, is limited to the kind of tax, the gross tax, the credit for overpaid tax in prior returns, and the net tax due.

Excise tax investigations related to false or fraudulent returns usually result from referrals following field audits of taxpayers’ books and records. As violations applicable to excise taxes often occur simultaneously with income tax offenses, field audits conducted by the operating division in income tax matters often disclose violations with respect to excise taxes.

Referrals in such investigations often relate to both excise and income tax violations. Investigations of offenses involving willful failure to file excise tax returns, or willful failure to collect and pay over excise taxes, are usually based upon referrals from the civil operating divisions.

Excise tax violations are also disclosed through surveys conducted by CI and from information obtained by special agents during his/her investigation of income tax offenses. As most excise tax offenses are committed in conjunction with income tax violations, investigation of both types of violations usually arise from the same sources.

Although the criminal penalties for most excise tax violations are imposed by the same Title 26 sections that relate to income taxes, the nature of the evidence needed to sustain prosecution of excise tax violations differs in many respects from that required in income tax investigations.

Excise tax is based on specifically enumerated articles or services, whereas income tax is based strictly on income.

For this reason, the established methods for determining income in income tax investigations may be inadequate to sustain a criminal prosecution for evasion of the excise tax on specifically enumerated articles or services.

Under certain circumstances the specific item method of proving income may be effectively used in excise tax investigations, especially if adequate records are maintained by the taxpayer.

Any other method of proving income may be used if the circumstances are such that the evidence developed will serve to establish or buttress proof of a violation of the excise tax on the specifically enumerated articles or services involved.

In general, the investigative techniques applicable to income tax investigations may be used in excise tax investigations.

Title 26 USC 6862 provides that if the secretary believes the collection of any tax (other than income tax, estate tax, gift tax, and the excise taxes imposed by Chapters 41, 42, 43, and 44) under any provision of the Internal Revenue laws will be jeopardized by delay, he/she should, whether or not the time otherwise prescribed by law for making a return and paying such tax has expired, immediately assess such tax (together with all interest, additional amounts, and additions to the tax provided for by law).

Criminal penalties for most violations of excise taxes are imposed by the same USC sections that relate to income taxes and cover offenses such as:

The USC also provides specific penalties that are only applicable to the various excise taxes. (The various criminal penalties are enumerated in IRM 9.1.3, Criminal Statutory Provisions and Common Law.) For example, 26 USC 7215 and 26 USC 7512, relate to offenses involving collected taxes and cover noncompliance with an official notice to collect and deposit "trust fund" taxes.

All voluntary disclosures must meet the requirements contained in subsection 9.5.11.9.

Taxpayers must utilize Form 14457 – Voluntary Disclosure Practice Preclearance Request and Application to participate in the Voluntary Disclosure Practice. For detailed information on how to complete Form 14457, taxpayers should review the Instructions for Form 14457, found on https://www.irs.gov/pub/irs-pdf/f14457.pdf.

Form 14457 is submitted to IRS-Criminal Investigation (IRS-CI) in two parts. Part I – Preclearance Request is submitted to request preclearance. Preclearance involves supplying key information for IRS-CI to determine if the taxpayer is eligible to make a voluntary disclosure, including establishing if the unreported income is from legal sources and that the timeliness requirements are met. IRS-CI will provide the taxpayer with written notification of whether the preclearance request is approved or denied.

After receiving written confirmation of preclearance, the taxpayer must submit Part II – Voluntary Disclosure Application within 45 days. One additional 45-day extension may be granted upon written request. Part II cannot be submitted without first obtaining preclearance and a case control number in the written confirmation of preclearance.

Part II requires a narrative, signed under the penalties of perjury by the taxpayer (and their spouse if making a joint disclosure), with specific facts that detail the complete story of the willful on compliance. The narrative must address the taxpayer’s personal and professional background. The narrative must identify all professional advisors that rendered services to the taxpayer from the inception of the noncompliance. And the narrative must provide the whole story with all favorable and unfavorable facts including the entire history of noncompliance from the inception through the present. Instructions for Form 14457 provide guidance for taxpayers in preparing narratives. Any submission that does not contain a narrative statement of facts including all elements addressed in the Instructions to Form 14457 will be considered incomplete.

CI will review Part II of Form 14457 and determine if the taxpayer may participate in the Voluntary Disclosure Practice. If approved to participate, CI will provide the taxpayer with a Preliminary Acceptance Letter and forward the Form 14457 to a civil section of the IRS. Once the case is assigned, an examiner will contact the taxpayer.

For additional guidance and definitions to complete the Form 14457, please see the Instructions for Form 14457 - Voluntary Disclosure Preclearance Request and Application found on https://www.irs.gov/pub/irs-pdf/f14457.pdf.

All Voluntary Disclosures are submitted to and processed by CI-Headquarters-Global Operations (CI-HQ-GO).

Upon receipt of a Form 14457 – Part I, Preclearance Request, the assigned CI-HQ-GO employees will input the request into CIMIS, assigning a voluntary disclosure number to the request.

The CI-HQ-GO employee will review the request to verify all items are complete and every question is answered. If the taxpayer meets the definition of timely and the preclearance request is complete, the CI-HQ-GO employee will issue a preclearance letter to the taxpayer, advising them to submit Part II of Form 14457- Voluntary Disclosure Application within 45 days.

Upon receipt of Part II of Form 14457, the CI-HQ-GO employee will review the disclosure. If all items are complete and meet eligibility requirements, a preliminary acceptance letter will be issued to the taxpayer.

Once preliminary acceptance is granted, CI will forward the disclosure to the LB&I Offshore Identification Unit for further civil processing to the appropriate business operating division. An examiner assigned to the case will contact the taxpayer with an initial contact letter.

In responding to inquiries concerning the IRS voluntary disclosure practices, all IRS employees will refer to subsection 9.5.11.9.

Employees will provide the taxpayer with their title, name, employee ID number, and telephone number.

Employees should direct taxpayers and representatives tohttps://www.irs.gov/pub/irs-pdf/f14457.pdf or this section of the IRM for detailed explanations.

If the taxpayer requests further information, refer the taxpayer to the CI Headquarters Global Operations Office. All employees who receive questions from taxpayers and representatives regarding the status of a preclearance request or preliminary acceptance should instruct them to send an email to the Voluntary Disclosure Program Manager (Senior Analyst) at ovdcidirect@ci.irs.gov.

Taxpayers and representatives with questions about completing any portion of Form 14457 may contact CI-HQ-GO personnel by emailing ovdcidirect@ci.irs.gov.

If a taxpayer answers “yes” to any of the following questions on the Form 14457 – Part I, the taxpayer may be ineligible from participating in the Voluntary Disclosure Practice.

If a taxpayer makes any false statement as to any material matter on any part Form 14457, then the taxpayer may be ineligible from participating in the Voluntary Disclosure Practice or may have eligibility revoked.

Taxpayers are required to comply with U.S. law for all tax years following the disclosure period and timely file returns according to standard filing procedures. Taxpayers that made any prior voluntary disclosure will be subject to enhanced review by IRS-CI to determine whether accepting another voluntary disclosure violates the requirement of compliance following the disclosure period.

If the taxpayer is not eligible to make a voluntary disclosure, IRS-CI will send a letter informing them that they were not preliminarily accepted into the Voluntary Disclosure Practice, or that preliminary acceptance has been revoked.

CI-HQ-GO employees, to include the Voluntary Disclosure Program Manager (Senior Analyst) will evaluate disclosures to determine if the information provided is truthful and complete.

If research reveals potentially disqualifying information, the application will be denied and the taxpayer will be provided with a declination letter.

If research reveals no disqualifying information and the disclosure is complete, IRS-CI will preliminarily accept the voluntary disclosure and will refer the case to civil for further civil processing.

Once a preliminary acceptance letter has been sent to the taxpayer by CI, CI-HQ-GO personnel will electronically transfer all documentation related to the disclosure to the LB&I Offshore Identification Unit in Austin, Texas.

The monthly transfer of disclosures received from CI to LB&I is completed as follows:

If the IRS later determines that the taxpayer has not cooperated fully or has provided materially false information, the matter will be referred back to CI for further evaluation and possible criminal investigation via the fraud referral process.

If a taxpayer fails to fully cooperate with the civil examination, the examiner may request CI revoke a taxpayer’s preliminary acceptance. If it is determined that the taxpayer provided materially false information, the matter will be referred to CI for criminal evaluation and possible criminal investigation via the fraud referral process.

If an examiner requests revocation of preliminary acceptance, a Request for Revocation of Preliminary Acceptance memo will be sent to CI. If CI concurs with the request, CI will issue a Revocation Letter.

If a CI special agent or civil examiner discovers that a taxpayer made materially false statement(s) on the Form 14457, the agent/examiner may request revocation of preliminary acceptance by writing a memo to the Senior Analyst assigned to Voluntary Disclosure Practice outlining the facts and circumstances surrounding the alleged false statement(s).

If after review of the agent/examiner’s memo, the Senior Analyst agrees with the revocation recommendation, the Senior Analyst will direct the revocation request, along with the memo, to a Director of International Field Operations for final approval. If approved, IRS-CI will notify the taxpayer/representative informing them of the revocation.

All voluntary disclosure requests are recorded in CIMIS and assigned a voluntary disclosure CIMIS number.

CI will maintain documents relating to voluntary disclosures according to standard document retention procedures.

The IRM 10.2.9, Physical Security Program-Occupant Emergency Plan, contains IRS requirements and responsibilities for developing occupant emergency plans for offices and facilities occupied by the IRS in accordance with Federal Property Management Regulations 101–20.5.

Special agents may be assigned as armed guards to protect government property in emergency situations where normal safeguards are not available. This might include guarding unusually large amounts of currency receipts prior to deposit, guarding against forcible rescue of seized property, or other guard details resulting from catastrophic situations.

When special agents receive an armed escort assignment, they should meet with the appropriate TIGTA personnel to discuss the facts of the request.

It is TIGTA’s responsibility to assess the risk of the armed escort on which CI is assisting; however, TIGTA’s risk assessment should be confirmed by CI.

Security considerations and checks the assisting CI agent(s) should discuss and verify with the responsible TIGTA personnel include, but are not limited to:

Representatives from both functions should become familiar with applicable procedures and responsibilities so that, during the armed escort, each representative understands his/her role.

When assisting TIGTA, CI special agents accompanying IRS personnel who are attempting to make a seizure of personal property for payment of delinquent taxes, the special agents must bear in mind that the seizure must be accomplished without the use of force.

The primary function of special agents in these assignments is to protect the IRS personnel in the performance of his/her duties.

The responsibility for the security and maintenance of witnesses and his/her family is placed with the US Marshals Service. Protection and maintenance will be allowed upon the finding of the Director, DOJ-OEO that the proposed witness meets all the following conditions:

Authorized confidential expenditures made for protection and maintenance provided by IRS will only be charged to Sub-Object Class Code (SOC) 9104 — Confidential Expenditures for Protection and Maintenance of Witnesses and Informants. See IRM 9.11.1, Fiscal and Budgetary Matters, concerning the use of imprest funds and reimbursement procedures for confidential expenditures.

Payments to or on behalf of informants or witnesses may not be made for reimbursement for loss of income, personal inconvenience, or any other type of monetary damage suffered, i.e., a distress sale of a business or residence.

Sensitive information that could compromise the safety of the informant or witness will not be furnished to Fiscal Management offices. Reimbursement for confidential expenditures may be claimed only through imprest funds for investigative purposes. Reimbursement for these expenditures may not be claimed on travel vouchers.

Upon receipt by an IRS employee of information alleging a threat or possible danger to a past or present government informant or witness, and/or his/her family or close associates, the employee will forward the information to the SAC. The SAC will exercise his/her judgment to decide whether or not any protective arrangements are necessary and appropriate under the circumstances.

In the event an informant or witness, and/or his/her immediate family or close associates, may be in immediate danger, the SAC is authorized to provide protective arrangements of a temporary nature, not to exceed seven days, and expend confidential funds up to $10,000.

Once the informant or witness is temporarily protected from the immediate danger, the SAC should determine the necessity for long-term protection arrangements. The SAC should consider entering the informant or witness into the DOJ Witness Security Program if he/she has determined that long-term protection is necessary.

When making his/her determination regarding witness protection arrangements, the SAC should refer to the following subsections: 9.5.11.11.5, 9.5.11.11.7, and 9.5.11.11.8. In addition, the SIT Witness Security Coordinator may be consulted for assistance.

While a final determination for long-term protection arrangements is under consideration and during the period prior to the institution of those arrangements, temporary protection may be necessary. Once the initial seven-day period has lapsed, or the amount of confidential expenditures will exceed $10,000, the SAC will obtain Director, Field Operations, approval to continue to provide temporary protection arrangements. If the confidential expenditures exceeds $20,000, Chief, CI, approval is required.

In those situations where the investigation is under the jurisdiction of the US Attorney’s Office, it is incumbent that each US Attorney, his/her assistants, and the investigative agency present to DOJ-EOE the request for authorization to place an individual in the Witness Security Program. Such requests should be made at the earliest possible time during the investigation process. Therefore, the SAC should provide to the US Attorney’s Office any assistance necessary in developing the request.

The SAC will prepare a memorandum and forward it through the Director, Field Operations, to the Director, Global Operations, ATTN: Witness Security Coordinator.

The memorandum will contain a brief synopsis of the investigation the assistance provided by the informant or witness. The memo must also include a Risk Assessment Report and Threat Assessment Report on the informant or witness who is to be protected, and his/her family members or close associates.

The Director, Global Operations, will coordinate the matter with DOJ if the witness appears to qualify for the Witness Security Program and advise the SAC through channels of the appropriate action to take in order to continue or terminate any protective arrangements.

A US Marshals Service Inspector will accompany an IRS representative to meet the witness, and/or his/her adult family members or close associates, to explain the scope of the Witness Security Program. The results of this preliminary meeting will be forwarded to the Director, DOJ-OEO, for evaluation and determination.

Under the Witness Security Reform Act, the evaluation includes the psychological testing of the witness and all relevant adult family members or close associates by the Bureau of Prisons psychologists.

A polygraph examination of all Witness Security Program candidates who are incarcerated or will be incarcerated is also required.

If it is determined the individual is eligible to be enrolled in the Witness Security Program, there will be a second meeting with the witness and a Memorandum of Understanding will be executed by the witness and the US Marshals Service.

Any protection of an individual for whom relocation is being requested remains the responsibility of the IRS until such time as the DOJ-EOE has reviewed the request and approved admission of the witness to the Program, and the US Marshals Service has had the opportunity to arrange for the safe removal of the witness and his/her family.

Once an individual has been accepted into the Witness Security Program and is under the US Marshals Service jurisdiction, no attempts by the special agents or other area or field office personnel will be made to directly contact a protected witness or the US Marshals Service. This restriction also applies to an informant or witness who has been accepted under the IRS Security Program. Any necessary contact will be coordinated through the CI Witness Security Coordinator (WSC).

When the protection agreement for a witness terminates, the SAC will submit a report through the Director, Field Operations, to the Director, Global Operations, ATTN: Witness Security Coordinator. The report should include the following:

Upon receipt by an IRS employee of information alleging a threat or possible danger to a past or present government informant or witness, and/or his/her family or close associates, the employee will forward the information to the SAC. The SAC will exercise his/her judgment to decide whether or not any protective arrangements are necessary and appropriate under the circumstances.

In the event of immediate danger or emergency, the SAC is authorized to provide protective arrangements of a temporary nature not to exceed seven days, as provided in subsection 9.5.11.11.4.

When the investigation does not fall under the jurisdiction of the US Attorney or an informant or witness refuses protection from the DOJ Witness Security Program, the SAC shall use his/her judgment to determine if temporary and/or other protective arrangements are necessary and appropriate. Consultation with the SIT Witness Security Coordinator should be sought. In addition, the SAC should also obtain a CT Counsel’s review of any proposed written protection agreements with an informant or witness. The refusal of an informant or witness to enter the DOJ Witness Security Program must be documented. The signature of the informant or witness should be obtained acknowledging his/her refusal.

The SAC is authorized to provide temporary protection for an informant or witness, and/or his/her family members or close associates, while other protection arrangements are being finalized. The procedures are set forth in subsection 9.5.11.11.

For protection arrangements that exceed seven days, the SAC will prepare a memorandum that contains an explanation of the proposed protection arrangement, the specific amounts of confidential expenditures associated with the protection arrangement, a Risk Assessment Report, and a Threat Assessment Report. This memorandum will be forwarded to the Director, Field Operations, for approval. If the cost exceeds $20,000, the Chief, CI, approval is required.

Whenever practical, any informant or witness protected by the IRS should not be protected locally. The DOJ Witness Security Program should be recommended to all informants and witnesses requiring long-term protection. If the informant or witness refuses or does not qualify for the DOJ Witness Security Program, the IRS will not relocate them. However, informants or witnesses who has received a lump sum payment based upon his/her cooperation in an investigation may use those funds, at his/her discretion, to provide for his/her own personal welfare.

Special agents are not authorized to commit any funds for compensation and expenses of informants or witnesses, and are not authorized to make protective maintenance agreements. Agreements made without authorization may become the personal responsibility of the maker.

When the protective agreements for an informant or witness terminate, the SAC will submit a report through the Director, Field Operations, to the Director, Global Operations, ATTN: Witness Security Coordinator (see subsection 9.5.11.11).

Any protective arrangements undertaken by the IRS for an informant or a witness who does not qualify for the DOJ Witness Security Program will require the approval of the Director, Global Operations, unless the confidential funds requested exceeds $20,000, which will require approval of the Chief, CI. The request must be approved by the SAC and the Director, Field Operations, then forwarded to the Director, Global Operations, ATTN: Witness Security Coordinator. When not approved, the request will be returned through normal channels to the SAC with an explanation for not approving the activity.

The following information will be provided along with the original request in securing the authorization for the expenditure of confidential funds:

If it is determined that the IRS will provide other protection arrangements for the informant or witness, the procedures set forth in subsection 9.5.11.11 will be followed.

Special agents are neither authorized to commit any funds for compensation and expenses of informants or witnesses nor authorized to make protective maintenance agreements. Agreements made without authorization may become the personal responsibility of the maker.

When the protection agreement for a witness terminates, the SAC will submit a report through the Director, Field Operations, to the Director, Global Operations, ATTN: Witness Security Coordinator (see subsection 9.5.11.11).

In all situations where the IRS provides for the protection of an informant or witness, a conference will be held with the person.

He/she will be required to attend and may have legal counsel present, if he/she so desires.

A field representative and the WSC, or his/her delegate, will also be in attendance to brief the informant or witness of the protection, relocation, and subsistence arrangements being undertaken, the responsibilities of the IRS, and the responsibilities of the informant or witness.

It should be made clear to the informant or witness that any protection or subsistence afforded them by the IRS is solely for his/her physical welfare and no compensation will be made for loss of income, personal inconvenience, or any other type of monetary damage suffered, such as a distress sale of a business or residence.

In addition, the WSC will discuss with the informant or witness his/her past and current individual and/or business tax situation.

The WSC, after consulting with the Director, General Legal Services Division of the Office of the Chief Counsel, will obtain from the informant or witness a signed "Memorandum of Understanding" (MOU) that will reflect those items discussed at the conference and his/her understanding and agreement with the terms and conditions set out in the MOU.

Criminal Investigation has the responsibility of responding to the needs of victims and witnesses in accordance with Title 42 10606 and 42 USC 10607. Title 42 10606 was superseded by the Justice for All Act of 2004.

The Victims Rights and Restitution Act of 1990 established two laws Title 42 10606 and 42 USC 10607. Title 42 10606 was superseded by the Justice for All Act of 2004.

The intent of the laws is to ensure that victims and witnesses receive the rights and services enumerated in the Justice for All Act of 2004 and Title 42 USC 10607 as outlined below:

Victims' Rights:
1) The right to be reasonably protected from the accused.
2) The right to reasonable, accurate, and timely notice of any public court proceeding or any parole proceeding involving the crime, or of any release or escape of the accused.
3) The right not to be excluded from any such public court proceeding, unless the court, after receiving clear and convincing evidence, determines that testimony by the victim would be materially altered if the victim heard other testimony at that proceeding.
4) The right to be reasonably heard at any public proceeding in the district court involving release, plea, sentencing, or any parole proceeding.
5) The reasonable right to confer with the attorney for the Government in the case.
6) The right to full and timely restitution as provided in law.
7) The right to proceedings free from unreasonable delay.
8) The right to be treated with fairness and with respect for the victim's dignity and privacy.

Services to Victims:

A victim witness (VW) coordinator can discuss return information with victims and witnesses in situations which include but are not limited to: