6-1.100
Department of Justice Policy and ResponsibilitiesTax
Division
The Assistant Attorney General for the Tax Division, subject
to the general supervision of the Attorney General and under the
direction of the Associate Attorney General, is responsible for
conducting, handling, or supervising all matters arising under
the internal revenue laws. 28 C.F.R. § 0.70.
The Department of Justice, including the United States
Attorneys, is responsible for conducting all federal tax
litigation in the federal bankruptcy, district, and appellate
courts and in state courts. The Department's responsibilities
include:
- prosecuting criminal tax cases
- defending refund suits
- litigating adversary proceedings and contested matters in
bankruptcy and other insolvency proceedings
- litigating contested claims in probate proceedings
- defending actions involving property upon which there are
federal tax liens, including mortgage foreclosure suits,
interpleaders, and actions to quiet title to, partition or
condemn property
- litigating collection suits against delinquent taxpayers
- obtaining orders enforcing administrative summonses and
defending actions to quash administrative summonses
- obtaining orders allowing entry into private property to
effect a levy or seizure of property
- obtaining orders allowing the administrative seizure of a
personal residence
- defending actions for damages brought under the Internal
Revenue Code
- defending actions for damages against IRS employees
Only attorneys whom the Department of Justice employs or
authorizes to represent the United States may handle federal tax
litigation in courts other than the Tax Court. Attorneys from
the Office of the Chief Counsel, Internal Revenue Service (IRS),
represent the Commissioner of Internal Revenue in Tax Court
litigation, and may be appointed as Special Assistant United
States Attorneys (SAUSAs) to handle certain tax-related
bankruptcy litigation.
The information that the IRS provides to the Department of
Justice for the Department's use in representing the United
States in federal tax litigation is confidential. The
Department may use that information only in accordance with 26
U.S.C. § 6103. Its attorneys and support staff must
safeguard the information to prevent unauthorized disclosure and
use. See Tax Information Security Guidelines for Federal,
State, and Local Agencies (IRS Pub. 1075 (Rev. 2-07)).
[updated September 2007]
6-1.110
Criminal Tax Cases
The Tax Division oversees all federal criminal tax
enforcement and handles the investigation and/or prosecution of
certain criminal tax cases. For a map reflecting the
geographical assignments of the Tax Division Criminal Enforcement
Sections, see
Tax Resource Manual 1. For contact
information, including mailing addresses and telephone and fax
numbers, see
Tax Resource Manual 2.
With certain exceptions set forth in this chapter, only the
Tax Division may authorize grand jury investigations of potential
criminal tax violations and the designation of any individual or
entity as a target of the investigations. Only
after the Tax Division has authorized a grand jury
investigation, may a United States Attorney issue subpoenas and
undertake other investigative actions. In addition, only
after the Tax Division has authorized the prosecution of
individuals and entities for criminal tax violations, may a
United States Attorney seek an indictment or file any tax
charges. Criminal tax violations include not only federal
criminal charges arising under the internal revenue laws but also
related statutes contained in provisions other than Title 26,
United States Code. See
USAM 6-4.200.
Once the Tax Division authorizes a tax investigation or
prosecution, a United States Attorney generally has
responsibility for handling the case. Upon the request of the
United States Attorney, and provided that the Tax Division has
sufficient resources, the Tax Division may assist the United
States Attorney in investigating and/or prosecuting a tax case.
The Tax Division may assign one or more of its highly qualified
trial attorneys to handle the grand jury investigation and/or
trial responsibilities or to work as co-counsel with an Assistant
United States Attorney in one or more cases or investigations.
If needed, the Tax Division can assign a Division attorney to
assume responsibility for the United States Attorney's criminal
tax docket for a period of time. Tax Division attorneys can also
assist with criminal tax policy and litigation matters, including
foreign evidence-gathering problems. Contact the Chief of the
appropriate Criminal Enforcement Section for assistance.
[updated September 2007]
6-1.120
Civil Tax Cases
Tax Division Responsibility. Attorneys in the Tax
Division's Civil Trial Sections have primary responsibility for
most civil tax litigation in the federal district and bankruptcy
courts, as well as in state trial courts; attorneys in the Tax
Division's Appellate Section have primary responsibility for
civil tax cases in federal and state appellate courts. A United
States Attorney's responsibilities in civil tax and tax-related
bankruptcy cases will vary, depending on the nature of the case,
local practice, and other circumstances. For a map reflecting
the geographical assignments of the Tax Division Civil Trial
Sections, see Tax Resource Manual 3.
For contact information,
including mailing addresses and telephone and fax numbers for the
Civil Trial Sections, Appellate Section, and Office of Review,
see Tax Resource Manual 4.
Counsel of Record. Generally, even when a Tax
Division attorney has primary responsibility for the litigation,
the United States Attorney will be listed as an attorney on the
case. Depending on local practice, and after consultation, an
Assistant United States Attorney may be listed as counsel of
record in a particular case.
Tax Division Referrals. On occasion, the Chief or
Assistant Chief of a Civil Trial Section may determine that the
United States Attorney, rather than a Tax Division trial
attorney, should represent the Government. When the Tax Division
Chief or Assistant Chief authorizes the United States Attorney to
handle a civil tax case, a Tax Division trial attorney may also
be assigned to the case.
Direct Referrals by the IRS. The IRS refers some
types of civil tax and tax-related bankruptcy cases directly to
the United States Attorneys. These include certain types of
bankruptcy proceedings, actions under 28 U.S.C. § 2410
(other than interpleaders), and some summons litigation. If the
United States Attorney is unable to staff a civil tax case for
which the United States Attorney has litigation responsibilities
because of personnel shortages or for other uncontrollable
circumstances, the United States Attorney should request
assistance from the Tax Division. If, in certain bankruptcy
matters, the Tax Division is unable to provide the requested
assistance, the Office of the Chief Counsel, IRS, may permit one
of its attorneys to assist the United States Attorney. In that
case, the United States Attorney then may authorize the IRS
attorney to act as a Special Assistant United States Attorney
(SAUSA) for a limited period of time and for purposes of handling
the particular matter for which the Tax Division could not
provide assistance. The Tax Division can assist the United
States Attorney in preparing the paperwork necessary to obtain
IRS permission and/or appoint the SAUSA.
Special Assistant United States Attorneys. The
United States Attorney's district, the United States Attorney and
the IRS Counsel may arrange to have one or more IRS Counsel
attorneys appointed as Special Assistant United States Attorneys
to handle bankruptcy matters that the IRS would ordinarily refer
to the United States Attorney. The Tax Division can assist the
United States Attorney in preparing the paperwork necessary to
obtain IRS permission and/or appoint the SAUSA.
[updated September 2007]
6-1.130
Tax Division Manuals
The Tax Division has prepared several manuals that the United
States Attorney may find useful
Should the above-listed manuals conflict with this Title of
the USAM, this Title of USAM controls.
[updated September 2007]
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