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The Criminal Investigation (CI) Narcotics Program involves Organized Crime Drug Enforcement Task Force (OCDETF) and High Intensity Drug Area (HIDTA) investigations of members of high-level drug trafficking organizations. Additionally, the Narcotics Program includes Non-OCDETF/Non-HIDTA and localized need investigations that involve the financial activities of individuals who transport, distribute, or finance illegal drugs or launder significant illegal drug proceeds.
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The OCDETF program was established to identify, investigate, and prosecute members of high-level drug trafficking enterprises and to dismantle the operations of those organizations. The program is designed to achieve this goal by adding Federal resources to investigate and prosecute organized crime connected with drug trafficking, other major drug trafficking organizations, and to improve interagency coordination and cooperation in the investigation and prosecution of major drug organizations.
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The Department of Justice (DOJ) Guidelines for the Drug Enforcement Task Forces established regional task forces based on US judicial district boundaries. Each regional task force maintains its own organizational identity and is coordinated by a Regional Advisory Council. The DOJ Guidelines contain the goals, policies, and standards of the program, national and field organizational structures, national and field responsibilities, and task force procedures which apply to anyone working on a task force investigation, regardless of whether there has been an official designation of a task force attorney, agent, or support person.
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Disclosure of any tax information must be consistent with 26 USC §6103, Confidentiality and Disclosure of Returns and Return Information. Internal Revenue Manual (IRM) 11.3, Disclosure of Official Information provides guidance on this subject. The local Disclosure Officer is also a reliable avenue for assistance.
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The Commissioner of the Internal Revenue; Chief, CI; Director, Operations Policy & Support; Directors, Field Operations; and Special Agents in Charge (SAC) are responsible for administering and providing general guidelines for IRS objectives and responsibilities under the program.
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Primary liaison between IRS and DOJ will be maintained at the CI Headquarters level of IRS and the Associate Attorney General level of DOJ.
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The Chief, CI, is designated the Senior Coordinating Official responsible for implementing IRS objectives and responsibilities under the program and for monitoring its progress.
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The Director, Narcotics and Counterterrorism Section (CI:OPS:NC), will monitor all aspects of the program to ensure that IRS objectives under the program are achieved.
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Coordinators for the OCDETF regions work at the direction of the Director, Narcotics and Counterterrorism, CI:OPS:NC, and represent Headquarters in the overall administration of the IRS-OCDETF effort. The duties and responsibilities of the OCDETF Coordinators include:
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monitoring activities and programs of all OCDETF cases within the region
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conducting on-site OCDETF case reviews
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evaluating and approving all investigation initiation proposals submitted to the OCDETF Regional Coordination Group
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overseeing the State and Local Overtime and Reimbursement Program
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serving as liaison with the local HIDTA
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working full-time as the IRS representative on the Regional Coordination Group
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advising the Director, Field Operations, in the overall administration of the program
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assisting the Director, Field Operations, in resolving conflicts and disagreements between and among IRS offices and between IRS and US Attorney's Offices involved in the task force operation
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working with the SAC to ensure that full and effective IRS participation in the program is achieved
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monitoring, with other agency representatives, the patterns of money laundering and drug trafficking in area and field offices
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preparing all necessary agency OCDETF reports
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not disclosing to the task force any return information whose disclosure is not consistent with 26 USC §6103
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performing other related duties
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The SAC will monitor all aspects of the program to ensure IRS objectives under the program are achieved. Further, as re-delegated by the Commissioner under Delegation Order No. 263 (as revised), the Chief, CI, is authorized to review, approve, and refer task force investigations directly to the Criminal Section, Tax Division, Department of Justice, 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, CI, to the SAC, see Delegation Order No. 3, Criminal Referral Authority.
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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 District Drug Enforcement Coordination Group(s) within the field office's jurisdiction.
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The task force regions and core cities, established according to US judicial jurisdictions, are found on the CI Web.
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The investigation selection criteria are:
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major drug trafficking organizations that warrant involvement of more than one investigative agency
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major drug trafficking organizations that demand significant attorney resources during the investigative stage
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significant and complex financial transactions warranting CI resource commitment
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Examples of such investigations would be matters involving electronic surveillance, extensive use of the grand jury, the presence of substantial property or cash that is likely to be subject to forfeiture, the likelihood of income tax violations, and the corruption of public officials.
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Major drug trafficking organizations generally involve a sizable number of individuals or large actual or potential profits gained from the trafficking. Major drug trafficking organizations may include:
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Criminal groups formed for the purpose of importing or distributing large amounts of controlled substances or financing such operations.
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Criminal groups formed for money laundering operations to transfer or legitimize narcotics-related monies of the foregoing. These organizations may be established or emerging groups.
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Task Force resources and efforts are to concentrate on the following:
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Investigations that focus on criminal activities in order to achieve high-level prosecutions within an organization concentrating on the financial aspects of the case, including tax violations.
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Investigations that focus on prosecutions at the highest possible level of an organization seeking to maximize the amount of illegal assets forfeited and seeking to recover the cost of prosecution wherever authorized.
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Investigations and prosecutions that are expected to result in the conviction of persons engaged in the well-organized activities related to the importation, manufacture, distribution, crop cultivation, diversion, sales, financial backing, and money laundering associated with the illicit trafficking of any illegal drug or narcotic substance, including pharmaceuticals trafficking and the purchase and use of precursor chemicals.
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Investigations which have the potential of disrupting the organization through the substantial seizure and forfeiture of money, conveyances, real estate, or other non-drug assets.
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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 cases. Questions concerning the current OCDETF Program guidelines should be directed to the OCDETF Executive Office; the IRS Regional OCDETF Coordinator; or Headquarters Office, Narcotics and Counterterorrism Section, CI:OPS:NC.
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The SAC is authorized to approve requests for income tax grand jury investigations under the program.
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All investigations will be conducted using the grand jury process.
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The CI Program (CIP) Codes 201 and 204 have been assigned to track OCDETF activity under the Criminal Investigation Management Information System (CIMIS). The CIP Code 201, OCDETF (NAROC), tracks activity solely related to OCDETF investigations. The CIP Code 204, HIDTA/OCDETF (HIDOC), tracks activity on investigations that are related to both the HIDTA and OCDETF task forces.
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As a result of its participation in the OCDETF program, the IRS is reimbursed for certain incurred expenditures. The reimbursement procedures require all qualifying OCDETF investigative time be reported on the Criminal Investigation Monthly Activity Report (Form 5043). The qualifying reimbursable time is limited to qualifying task force investigative time for all resources expended on an approved Criminal Investigation OCDETF investigation or prosecution and qualifying task force investigative time which includes:
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Assisting opened OCDETF investigations or prosecutions when CI does not have an open investigation.
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Evaluation and information gathering time relating to an open OCDETF investigation being considered to be opened as a CI investigation.
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All Task Force Coordinators' time.
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Money from the Treasury Forfeiture Fund may be used to pay reimbursable costs incurred by local, county, and state police law enforcement agencies when their members participate in joint operations with Treasury law enforcement agencies.
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Treasury and IRS, CI Headquarters procedures are summarized as follows:
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The costs to be funded must be costs of local, county or state Law Enforcement Officers (LEO). The authority does not include the cost of Federal personnel, private individuals, administrative personnel, or other local, county, or state officials who are not classified as "law enforcement officers" . Costs incurred by local or state prosecutors are reimbursable.
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The local, county, or state LEO must be involved in a joint law enforcement operation. All costs to be funded must be directly related to a joint law enforcement operation. A joint operation is defined as an operation, including OCDETF cases, where the Treasury law enforcement agency is the lead or sole Federal agency.
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Monies funded for a particular joint law enforcement operation may only be used for that operation. These funds are not a grant to the local, county, state agency.
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Payments may be made to the extent they are included in the Treasury law enforcement agency's Fiscal Year Plan and the monies are available within the fund to satisfy the request. If a joint law enforcement operation extends into the next fiscal year, a new authorization must be made. Unused funds remaining at the end of an operation or at the end of the fiscal year must be de-obligated. Authorizations/funds cannot be carried over from one fiscal year to the next.
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It is the responsibility of the Treasury law enforcement agency to ensure that the local, county, or state costs are permissible costs under the statute and are costs directly related to the joint law enforcement operation.
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The following expenses may be reimbursed:
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overtime travel and training for law enforcement personnel, surveillance equipment, cellular telephone costs, payments to confidential informants, and purchase of stolen property as evidence
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remote body-worn transceivers for undercover work, and lease of unmarked vehicles
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rental of off-site locations for electronic monitoring, command post, or other office/storage space needs
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leasing of copying, translation, transcription, or facsimile machines as well as the costs of translation and evidentiary tapes
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Reimbursement may not be made for salaries or benefits, nor for public education, violent crime and rape assistance programs, and similar outreach efforts.
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Each SAC, must consult with their OCDETF Coordinator, or with the Narcotics and Counterterrorism Section, CI:OPS:NC, regarding TFF funds availability prior to entering into any agreement. A new agreement must be approved each fiscal year.
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Agreements will be processed in the order received based upon available funds. Overtime requests will receive priority over other expenses. Early approval of existing agreements should be sought to avoid disruption in the payment process when transitioning to a new fiscal year. The forms necessary to initiate agreements are:
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Form 9975, Agreement Between Treasury Enforcement Agencies and Local, County and State Law Enforcement Agencies For The Reimbursement Of Expenses
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Form 9973, Reimbursement Request for Overtime Costs and Authorized Expenses (Attachment to Agreement).
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Form 9974, Request to Establish Reimbursement for Local, County or State Law Enforcement Agencies Participating in Joint Law Enforcement Operations with Treasury Law Enforcement Agencies
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Form 9972, Request for Reimbursement of Joint Operations Expenses
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Form L-2963, Amended State and Local Overtime Agreements
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Field offices must judiciously estimate overtime and other expenses for each agreement. The Executive Office for Asset Forfeiture Directive Number 18 (located on the CI Web), should be reviewed to determine reimbursable joint operation expenses. A request to establish and monitor an agreement and the related reimbursable procedures will be prepared and forwarded for approval as follows:
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Form 9975, Agreement Between Treasury Enforcement Agencies and Local, County and State Law Enforcement Agencies For The Reimbursement Of Expenses — This form is the actual overtime reimbursement contract that is entered into between the local, county, or state agency and the Special Agent in Charge (SAC) of the field office. A separate contract is required for each agency or police department that has officers working on the joint Treasury operation. These contracts are effective for the duration of the operation or throughout the end of the fiscal year, whichever comes first. A new agreement must be approved, if the investigation continues beyond the end of the fiscal year.
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Form 9975, Part IV, Projected Dates of Remaining Operation — The projected dates should begin with the date that the officers are expected to begin to assist in the joint operation. The period should end on the projected ending date of the investigation or the end of the fiscal year, whichever comes first.
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Form 9975, Part V, B-4 — The name and address listed at the bottom of the form as the primary IRS contact should be the Supervisory Special Agent (SSA) or in some cases, the OCDETF Regional Coordinator.
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Form 9975, Part V, B-6 — The amount of the contract should be estimated. This can be done by using the following formula: (number of officers × average overtime reimbursement rate × estimated total number of overtime hours each officer is expected to work per week × the number of weeks remaining until the projected end of the operation provided in Part IV). Treasury regulations limit the total amount of overtime any one officer can be reimbursed for during any one year to a maximum of $13,000. Once the total estimated cost is computed, the field office should contact its OCDETF Regional Coordinator to discuss available funding. Each year, Treasury Executive Office of Asset Forfeiture (TEOAF) grants IRS an amount for the reimbursement of overtime and other expenses. As the year progresses these monies are obligated and paid.
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Travel and related expenses under certain circumstances can also be reimbursed. The field office should consider discussing anticipated travel and related expenses with its OCDETF Regional Coordinator, if such expenses are anticipated.
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Once Form 9975 has been completed and reviewed by field office management, it must be presented to the local/state agency for signature. A signature is required from a high ranking police official who has the authority to sign contracts for the department or the municipality that the police department serves. It is important that the local, county, or state officials understand that the reimbursement of overtime and other expenses is contingent upon the approval of both the SAC, the Director, Narcotics and Counterterrorism, CI:OPS:NC, and ultimately by the funding source. Until all necessary approvals are obtained and a TEOAF or reimbursement number (REIM) is assigned, there is no obligation on the part of the IRS/Treasury to reimburse overtime or other expenses. The authorization forms must be contemporaneously completed with the start of the joint operation or as soon as it is determined that overtime is required.
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It is important that each local, county, or state official enter the date they signed the form.
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Form 9973, DEPARTMENT OF THE TREASURY LOCAL, COUNTY, AND STATE LAW ENFORCEMENT AGENCY Reimbursement Request for Overtime Costs and Authorized Expenses (Attachment to Agreement) — This form identifies the officers from a specific local/state agency participating in a joint law enforcement operation and for whom overtime will be reimbursed. If an officer is not listed on this form, overtime cannot be submitted for reimbursement. The top portion of the form must be completed with identifying information from the police department or state agency including its tax identification number (formerly known as the employer identification number or EIN). Each officer's badge number, rank, SSN, DOB, and date of last firearms qualification must be provided. Make sure the information is current throughout the life of the operation. A new/revised form must be submitted when an officer is added to an operation at a later time. Please note that officers must have passed firearms qualifications within the last year and generally, approval will not be given for officers whose annual qualification anniversary will expire within two months of the date the Form 9975 is submitted.
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Form 9974, Request to Establish Reimbursement for Local, County or State Law Enforcement Agencies Participating in Joint Law Enforcement Operations with Treasury Law Enforcement Agencies — This form is used to transmit the contract package (Forms 9975 and 9973) to Headquarters. It requires the signature of the SAC inside the box titled "TREASURY AGENCY FIELD OFFICE APPROVAL" . "TOTAL ESTIMATED COSTS" must appear on the same page as the signature(s).
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Form 9974 must not be longer than one page.
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Form 9972, Request for Reimbursement of Joint Operations Expenses — This form can be completed by a case agent, SSA, or an official from the local/state agency. However, the form does require the signature of an official from the local/state agency before being submitted. On the upper right hand corner in the box titled "TFF Tracking Number" the REIM number assigned to the agreement must be inserted. Each officer should be individually listed in the "Overtime Expenses" section of the form with the dates worked, total number of hours worked, overtime payment rate, and the total overtime requested. The cost per hour is limited to the actual amount paid to the officer (actual hourly overtime rate) and should not include benefits. The middle of the form requires the "total number of regular hours worked during this billing period on cases for which overtime was requested by the officers listed above" . Generally, this number will be 40 hours per week per officer. An individual Form 9972 should be completed and submitted to the OCDETF Regional Coordinator for each calendar month. Forms 9972 should not include more than one calendar month. The OCDETF Coordinator will forward completed Forms 9972 each month to the Director, Narcotics and Counterterrorism, CI:OPS:NC.
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If an operation incurs no expenses over three consecutive months, the field office will be contacted by the OCDETF Coordinator to discuss the de-obligation of outstanding funds.
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The local/state agency must provide documentation for the overtime hours worked by each officer. The documentation should be attached to the Form 9972 and a local/state official and the SAC must sign the form. Acceptable documentation for overtime costs includes copies of time cards or overtime approval forms or the records used by the local/state agency to account for or control overtime. At a minimum the documentation should identify the officer and the task force or joint Treasury law enforcement operation for which the overtime was incurred and list the hours worked.
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Documentation for travel and other related expenses must be attached to Form 9972. Acceptable documentation for travel and related expenses include receipts for travel, lodging, meals, cell phone expenses, space/vehicle rental, etc. If the local/state agency has a per diem policy for meals and incidental expenses, an official statement on local/state letterhead indicating what the officers were paid by the agency should be included.
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Once the Form 9972 is completed and signed by a local/state official, with required documentation attached, either the SSA or case agent should review the form and certify that the request is reasonable and reflects actual hours worked on the joint Treasury investigation by initialing the front page and forwarding to the SAC for signature. The completed Form 9972 is sent to the Director, Narcotics and Counterterrorism, CI:OPS:NC, through the OCDETF Regional Coordinator for review, signature, and forwarding to TEOAF.
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Form L–2963, Amended State and Local Overtime Agreements — This form is used to request additional funds or de-obligate remaining funds. If additional funds are needed, the Form L-2963, must be submitted through the OCDETF Coordinator. Headquarters will prepare Form 9974 for signature of the Director, Narcotics and Counterterrorism, CI:OPS:NC, before forwarding the form along with Letter 2963 signed by the SAC to TEOAF.
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At the end of an operation, the end of the fiscal year, or as soon as it is determined that requested funds will not be used, Letter 2963 (L-2963) should be submitted to de-obligate any remaining funds. If funds are to be de-obligated at the end of the fiscal year, the letter should be submitted immediately after all reimbursement requests for expenses incurred during the fiscal year have been submitted and approved.
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After Form 9975 is signed and dated by the local officials, it should be forwarded along with Form 9974 and Form 9973 to the SAC for signature and date.
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The signature of the SAC and the date signed must appear on Form 9975. As a general rule, the contractual obligation to reimburse local, county, and state overtime will begin no earlier than the first day of the month that the SAC signs Form 9975.
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Completed, signed, and dated forms are forwarded to the OCDETF Regional Coordinator for review. After reviewing the package, the OCDETF Coordinator retains a copy and will forward the forms to the Director, Narcotics and Counterterrorism, CI:OPS:NC, for review, signature, and forwarding to TEOAF for approval and funding. The TEOAF will assign a REIM number to the contract. Copies of the approved forms will be returned to the field office with a copy going to the OCDETF Coordinator.
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Once the REIM number is assigned, the local, county, or state agency must begin to file monthly reimbursement requests for overtime and other expenses related to the joint Treasury operation. Reimbursement requests should be submitted via Form 9972 to the OCDETF Regional Coordinator.
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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.
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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 such employee must have been the subject of a recently (within 5 years) completed full field background investigation favorably adjudicated.
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Any 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 CI Web.
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Routine involvement and assignment to OCDETF will not necessitate the issuance of a Top Secret Security Clearance. Top Secret Clearance requests should be initiated only 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 through the Background Investigation Coordinator, St. Louis Personnel office, see Obtaining a Security Clearance on the CI Web.
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The Commissioner of the Internal Revenue Service, through the Chief, CI; Director, Operations Policy and Support; Directors, Field Operations; and the SAC are responsible for administering and providing general guidelines for IRS aspects of narcotics related investigations.
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Primary liaison between IRS and Drug Enforcement Administration (DEA) will be maintained at the Headquarters level of IRS, and at the Headquarters level of DEA.
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Regional OCDETF coordinators will closely monitor all aspects of non-OCEDTF activities to ensure that Narcotics Program objectives are achieved.
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The SAC is the responsible official for implementing an effective liaison program with all DEA offices located within the IRS field office.
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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.
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Criminal Investigation will aggressively 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) Part 9 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 Coordinator; or Headquarters Office, Narcotics and Counterterrorism, CI:OPS:NC.
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Field offices are encouraged to establish Financial Investigative Task Forces (FITFs) or other investigative initiatives, such as the HIDTAs and OCDETFs and High-Risk Money Laundering and Related Financial Crimes Areas (HIFCAs) 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.
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Narcotic-related primary and subject investigations not related to either the HIDTA or OCDETF program will be tracked under CI Program Code 202, Narcotics-Other (NAROT). The HIDTA-related investigations will be tracked under CI Program Codes 203 and 204. The CIP Code 203, HIDTA (HIDTA), tracks activity solely related to HIDTA investigations. CIP Code 204, HIDTA/OCDETF (HIDOC), tracks activity on investigations that are related to both the HIDTA and OCDETF task forces.
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The SAC and territory managers in the other operating divisions, respectively, shall make the final determinations as to which cases shall be subject to either a criminal investigation or an audit examination, using established IRS standards.
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All HIDTA and Narcotics-Other investigations that are developed and meet OCDETF investigative standards will be proposed for inclusion in the OCDETF program.
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The investigation and prosecution of controlled substance violations by DEA will generally take precedence over the investigation and prosecution of tax violations.
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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.
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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.
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All such requests from DEA Special Agents in Charge (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.
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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.
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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.
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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 CI Director, Field Operations.
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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, CI and the DEA Headquarters coordinating official. If a determination cannot be reached at the Commissioner of the operating division and Chief, CI level, the final decision will be made by the Deputy Commissioner, IRS.
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Until the matter is resolved, no IRS action will be taken that would endanger DEA personnel and cooperating individuals.
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Disclosure of information to DEA in connection with the above matters will be made in accordance with disclosure law and regulations (see subsection 9.5.7.3.6, Disclosure and Exchange of Information in Narcotics Investigations).
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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.
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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 SAIC, or RAIC.
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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 CI through DEA Headquarters.
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Investigative Reports will be processed in accordance with standard procedures. See IRM 9.5.12, Formal Conferences and Processing Completed Criminal Investigation Reports.
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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 United States in their entirety and, thus, would not be an available source for satisfaction of any tax liability. However, the local IRS office will be contacted so that a tax levy on seized funds can be instituted on the chance that the forfeiture proves to be unsuccessful.
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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 procedure.
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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, International District Operations. Before authorizing the use of IRC 6851 or 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 and IRM 4.3.9, Jeopardy/Termination Assessments for more specific instructions.
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Disclosures of tax returns and return information are governed by 26 USC §6103, as amended. Refer to CI procedures relating to information concerning possible violations of Federal, state, and local criminal laws.
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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.
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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).
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Internal Revenue Service 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.
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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 personnel to determine whether the individuals involved had complied with the Internal Revenue laws. However, as provided in IRM 9.4.9, Search Warrants, 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 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.
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Criminal Investigation 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" .
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When it appears that an IRS informant is knowledgeable concerning potential narcotics violations, CI personnel will encourage the informant to meet directly with DEA or FBI personnel. If the informant declines, 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, Criminal Division, Department of Justice, in accordance with the disclosure laws and regulations.
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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.
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Double-sealed mailing envelopes will be used whenever project reports, memoranda, correspondence, or other written data are transmitted.
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The DEA will furnish the IRS Headquarters with strategic information and studies relating to the domestic and international flow of funds used in narcotics trafficking. The CI Headquarters 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 CI, the additional information will be routed through channels to the CI Headquarters 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.
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The DEA and IRS Senior Coordinating Officials may authorize joint studies which would benefit both agencies.
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The CI Program Code 201 has been assigned to OCDETF (NAROC) investigations. (See IRM 9.9, CIMIS.) The CI Program Code 201 relates to investigations that involve members of high-level narcotics trafficking and/or narcotics/money laundering organizations and are authorized by Regional OCDETF coordination committee.
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The CI Program Code 202 has been assigned to NARCOTICS-OTHER (NAROT) investigations. (See IRM 9.9, CIMIS.) The CI Program Code 202 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.
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The CI Program Code 203 has been assigned to HIDTA investigations. (See IRM 9.9, CIMIS.) The CI Program Code 203 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).
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The CI Program Code 204 has been assigned to HIDTA/OCDETF (HIDOC) investigations. (See IRM 9.9, CIMIS.) The CI Program Code 204 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.
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The High Intensity Drug Trafficking Area (HIDTA) Program was established to provide assistance to Federal, state and local law enforcement agencies operating in areas most adversely affected by drug trafficking. The Director, Office of National Drug Control Policy (ONDCP), has oversight of the HIDTA's.
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The HIDTA Program takes a strategic approach to drug trafficking in those areas of the country most impacted by drugs through:
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focusing on the major drug trafficking organizations
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facilitating coordination of drug control efforts of Federal, state and local law enforcement agencies
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facilitating the flow of intelligence among Federal, state and local law enforcement agencies
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by measurably reducing drug trafficking to lessen the impact of illicit drug trafficking in other areas of the United States
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The HIDTA program requires the collocation of participating agencies in a joint task force setting which concentrates on the most significant international, national-level, or regional-level drug trafficking and drug money laundering organizations.
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Investigations initiated as part of IRS-CI's participation in the HIDTA are considered non-OCDETF. High Intensity Drug Trafficking Area cases that meet the required guidelines established by the Executive Office of OCDETF for submission as an OCDETF approved investigation must be submitted to the regional coordination committee for OCDETF approval.
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The current designated HIDTA locations are found on the CI Web.