Treasury Enforcement and Communication System (TECS) is a computerized information system designed to identify individuals and businesses suspected of, or involved in, violation of Federal law. Treasury Enforcement and Communication System is also a communications system permitting message transmittal between Treasury law enforcement offices and other Federal, national, state, and local law enforcement agencies. The TECS provides access to the FBI's National Crime Information Center (NCIC) and the National Law Enforcement Telecommunication Systems (NLETS) with the capability of communicating directly with state and local enforcement agencies. The NLETS provides direct access to state motor vehicle departments.

The responsibility for TECS lies both in Headquarters (HQ) and the field offices. The following subsections provide a brief description of these responsibilities.

Individual records available from the TECS database come from the Immigration and Customs Enforcement (ICE), Bureau of Alcohol, Tobacco and Firearms (ATF), Treasury Inspector General Tax Administration (TIGTA) and IRS-CI.

The Currency or Monetary Instruments (CMIR) file contains a record of every individual who has filed a Financial Crimes Enforcement Network (FinCEN) Form 105 (formerly Customs Form 4790), Report of International Transportation of CMIR. This form is required to be filed by each person who physically transports, mails, ships, receives, or causes to be physically transported, mailed, shipped, or received currency or other monetary instruments in an aggregate amount exceeding $10,000 on any one occasion from the United States to any place outside the United States, or into the United States from any place outside the United States. A transfer of funds through normal banking procedures, which does not involve the physical transportation of currency or monetary instruments, is not required to be reported.

If a TECS query results in a positive response, information contained on the CMIR will be received. If it becomes necessary to obtain a copy or certified copy of the CMIR, a request which includes the Report Control Number (RCN), should be directed to the Director of FinCEN at the Financial Crimes Enforcement Network, Post Office Box 39, Vienna, Virginia 22183. The request should include all available identifying data including:

For a certified copy of the CMIR, the request must also include the scheduled court date.

The FBAR, Form 90-22.1, is a Treasury form used by individuals, partnerships, trusts, or corporations having a financial interest in or authority, signatory or otherwise, over one or more bank accounts, securities accounts, or other financial accounts in a foreign country, when such account(s) have an aggregate value in excess of $10,000. This form is required to be filed at the Memphis Fraud Detection Center or at any local IRS office. The Memphis Fraud Detection Center presently processes all Forms 90-22.1 for input to TECS.

The TECS foreign bank account files contain a record of entities who have submitted FBARs. If a TECS query results in a positive response, the name, address, SSN or EIN of the subject, and a microfiche number will be received.

If it becomes necessary to obtain a copy or certified copy of a Treasury Form 90-22.1, a request should be directed to the Currency and Banking Reports Division, Criminal Investigation Program Coordinator, Detroit Computing Center, 985 Michigan Ave., Room 1043, Detroit, MI 48226. The request should include the microfiche number of all forms requested.

Requests for special computer runs summarizing FBAR data should be made to the IRS Detroit Computing Center, Attn: CI Representative, 985 Michigan Ave., Room 1043, Detroit MI 48226. Requests should be signed by the SAC, and should include:

Other records accessible through TECS include the NCIC and the NLETS.

The TECS queries can be useful to CI when evaluating information or in an investigation.

A Confidential Informant (CI) is any individual who:

i. expects their identity to remain confidential
ii. faces the potential of any type of retaliation
iii. receives payment or other compensation for future information or services (a memorandum of understanding must be prepared)
iv. is a federal prisoner, or
v. is a current or former member of the witness security program

If deemed necessary, a special agent or supervisor may classify an individual as a confidential informant for any other reason not listed that would require confidentiality.

The identity of the confidential informant is legally protected under the Freedom of Information Act (FOIA). Exemption (b)(7)(D) of the FOIA provides for the protection of records or information that can disclose the identity of a confidential source. The Supreme Court has ruled that confidentiality should not be applied automatically by law enforcement, but on a case by case basis. Consideration may include the understanding by the informant that the communications are confidential, threats of retaliation, prior retaliatory acts, or dangers faced by prison informants.

Confidentiality is not an assurance of complete anonymity or secrecy, but an assurance that the IRS will not disclose the cooperation of the confidential informant, the information they provide, or their identity unless absolutely necessary.

To prevent the CI from testifying, the special agent will put forth every effort to secure other evidence and witnesses in place of the CI.

Confidential Informants will be handled in accordance with the following subsections.

A Cooperating Witness (CW) is any individual who:

Unlike a Confidential Informant, there is no expectation of confidentiality with a cooperating witness. A CW is expected to testify so they must understand that their identity may eventually be disclosed pursuant to judicial or administrative proceedings.

Cooperating Witnesses will be handled in accordance with the following subsections.

Sources of Information can be categorized into two types.

A subject of a criminal investigation or the defendant in a criminal proceeding who provides information to a special agent will either be classified as a CI, CW, or SOI; whichever is more appropriate.
• As an example, if the subject of an investigation cooperates, agrees to record conversations with co-conspirators at the direction of the IRS, is expected to testify and does not require confidentiality, then the subject is a cooperating witness. If there is a concern of a retaliatory act against this subject, they will be classified as a confidential informant.
• If a defendant cooperates and simply provides testimony against co-conspirators, then the individual is a Source of Information.

A special agent should consult a Federal Prosecutor and/or a Criminal Tax Attorney prior to utilizing these individuals as a CI, CW, or SOI.

Prior to seeking authorization to utilize a CI, a special agent will obtain a control number from the Office of Special Investigative Techniques (CI:OPS:SIT). A Form 9830 will be prepared and submitted to SIT via email to *CI HQ-SIT-Confidential Informants. In exigent circumstances an individual can be utilized as a CI prior to registration, however, verbal authorization is required, followed by the submission of Form 9830 no later than seven (7) calendar days after verbal authorization is granted.

Special Investigative Techniques will conduct a search to determine if the CI has been or is currently being utilized by Criminal Investigation. If a conflict is identified, SIT will review the CI’s history and report their findings to the requesting special agent for further action and/or resolution.

Special Investigative Techniques will provide the requesting agent a control number for the CI. From this point forward, the CI will be referenced by his/her control number. It is then the responsibility of the special agent to obtain the required authorization to utilize the CI, comply with the reporting requirements, and deactivate the informant at the appropriate time pursuant to the following subsections.

It is essential to evaluate the reliability and credibility of every CI/CW. Form 9831, Approval to Utilize a Confidential Informant or Cooperating Witness, will be used to evaluate the individual’s suitability to serve as a CI/CW. The special agent will complete Form 9831 and forward it through management to the proper approving official. The approving official should consider, at a minimum, the following suitability factors to determine whether or not to authorize the use of the individual:

Although not required, the use of a polygraph to test the individual's credibility should be considered by the approving official.

Verbal approval to authorize the use of a CW/CI can be obtained in exigent circumstances, but must be followed up with the Form 9831.

The approved Form 9831 will be placed in the control file for CIs (see IRM 9.4.2.5.5 on control file) or the case file for CWs.

An index file maintained by the SAC in each field office to track CIs and CWs will be updated (see IRM 9.4.2.5.6 on index file).

Upon completion of the Form 9831, it must be forwarded through management to the proper approving official. The following subsections list the levels of approval for the various types of CI/CWs

The SAC may authorize the use of most CI/CWs except when any one of the following factors are present, in which case the Director, Field Operations is the approving official:

Verbal authorization may be obtained in exigent circumstances followed by the written authorization no later than seven (7) calendar days after verbal authorization is granted.

If any one of the following situations is known at the time of authorization, is identified at a later date, or subsequently develops, approval by the Director, Operations Policy and Support (CI:OPS) is required:

The SAC of the field office will submit a memorandum through the Director, Field Operations to the Director, CI:OPS requesting approval to use the CI/CW. The memorandum should be routed to the Office of Special Investigative Techniques for processing. The memorandum should address the following factors:

Verbal authorization may be obtained in exigent circumstances followed by the written authorization no later than seven (7) calendar days after verbal authorization is granted.

Consistent with DOJ requirements, approval by DOJ, Criminal Division, Office of Enforcement Operations (OEO) is required for:

The United States Parole Commission (USPC) requires that Federal probationers, parolees, detainees and supervised releasees agree in writing not to act as informants or in other similar capacities for a law enforcement agency. However, exceptions may be granted on a case by case basis.

If a special agent desires to utilize one of these types of individuals as a confidential informant or cooperating witness, the IRS must obtain the permission of a Federal probation, parole, or supervised release official with the authority to grant such permission, and this permission shall be documented. If such permission is denied or it is inappropriate for operational reasons to contact the appropriate Federal official, the IRS may seek to obtain authorization for the use of such individual from the court that is responsible for the individuals’ probation, parole, or supervised release provide that the IRS first consults with Criminal Tax and/or the Unites States Attorney’s Office.

In October of each year an annual suitability review will be performed for all open Confidential Informants. The controlling special agent will complete Form 9832 to evaluate the suitability and justification to continue the use of the CI.

During this review, the special agent will determine that the CI reported all taxable payments received in the previous tax year. In the event that the suitability review results in a determination that the CI did not report the payments as required, the IRS may utilize this information to discontinue the CI’s relationship with the government and, in so doing, may disclose the reason for discontinuing the relationship to other government agencies associated with the investigation, including the United States Attorney’s Office. In Non-Title 26 investigations where taxable payments were made to a CI who is required to file a tax return, the special agent should ensure that a "Consent to Disclosure of Tax Information " (Consent), which is attached to a Form 9835, was signed by the CI.

If the review of the CI's tax account and/or tax return identifies issues of possible noncompliance the CI should be re-contacted. The controlling special agent will attempt to resolve the matter and advise the CI of the proper income tax reporting treatment for the particular issue. This meeting and advisement will be documented and filed in the CI's control file. Subsequent IDRS research will be conducted to ensure the CI has filed an amended or corrected return.

If the CI still fails to comply with their Federal income tax obligations, the CI will be deactivated for cause and must not be used again. An Information Report Referral, Form 3949, will be prepared and forwarded for civil or criminal action. The narrative section should simply state that the individual received a taxable payment, refer to the amount received from the IRS, and generally describe the area of noncompliance. While the CI’s name shall be reported, the narrative should not disclose the nature of the relationship or the services performed on behalf of Criminal Investigation.

If any other adverse findings are uncovered pursuant to this suitability review, they should be reviewed to determine whether deactivation is warranted. If it is recommended that the CI be deactivated for any cause, the deactivation procedures will be followed.

The Form 9832 will be forwarded to the SAC for approval to continue the use of or deactivate the CI.

The Form 9832 and signed consent (if prepared) will be placed in the CI’s control file.

After authorization to utilize the CI is granted, the controlling special agent will prepare Form 9833, CI Identity Record, and obtain a photograph of the CI.

This form must be prepared manually as it contains the CI’s personal information. No electronic version will be prepared.

Although not required, it is recommended that fingerprints be obtained for identification purposes.

The Form 9833, photograph, and fingerprints (if obtained) will be filed in the control file.

Special agents will fully debrief the CI concerning his/her knowledge of criminal or unlawful activities. Special agents should always make every effort to elicit all facts known by the CI/CW at the initial contact. CI/CWs frequently supply only the information they think is important rather than relating all facts.

Special agents must avoid conveying any confidential investigative information to a CI/CW (e.g., information relating to undercover activity, surveillance, search warrants, or the identity of other actual or potential informants), other than necessary for operational reasons.

The special agents will advise the CI/CW that any information submitted by him/her concerning violations not under the IRS' jurisdiction will be furnished to the appropriate enforcement agency in accordance with IRS procedures, (see IRM 9.3.1, Disclosure, and IRM 11.3, Disclosure of Official Information).

Prior to utilizing a CI/CW, the controlling special agent, in the presence of the backup agent or other law enforcement officer, will review the applicable information on Form 9834 with the CI/CW, which covers the following:

The content and meaning of each of the foregoing instructional points must be clearly conveyed to the CI/CW. Immediately after these instructions have been given, the agent shall require the CI/CW to acknowledge his/her receipt and understanding of the instructions by initialing each applicable instruction on the Form 9834. The agent and the other law enforcement official shall document that the instructions were reviewed with the CI/CW and that the CI/CW acknowledged the instructions and his/her understanding of them by signing Form 9834.

If the CI/CW refuses to initial the Form 9834 or, for operational reasons, the agent decides against requiring the CI/CW to sign or initial a written acknowledgment, the agent and the other law enforcement official shall document that the instructions were read verbatim to the CI/CW and that the CI/CW orally acknowledged the instructions.

The instruction and documentation procedures shall be repeated whenever it appears necessary or prudent to do so.

Form 9834 will be filed in the control file for a Confidential Informant or the case file for a Cooperating Witness.

Form 9835, Receipt for Cash, will be completed whenever a payment is made to a CI or any other individual receiving payment.

Form 9835 will be filed in the control file for Confidential Informant.