The Director, Planning and Strategy (CI:S:PS) develops budget initiatives to include in the IRS budget requests sent to the IRS’ Chief Financial Officer (CFO), Department of the Treasury, Office of Management and Budget, and Congress. The Director, CI:S:PS provides additional information as requested and monitors the progress of the initiatives through the CFO, Treasury, Office of Management and Budget (OMB) and Congress.

Each year, the Director, CI:S:F requests financial plan requirements from the field offices. These requirements are compared to the budget availability received from the IRS CFO. Funds are then allocated to each field office based on historical expenditures, projections, and current budget conditions.

The Budget Execution Section of CI:S:F monitors and reviews field offices and HQ expenditures to ensure appropriate use of resources. Financial Operating Guidelines are issued annually to assist field offices in the most effective use of available resources. Staff provides advice and assistance to field offices. Reviews are conducted to compare overall resource use and financial plan availability.

Some funds are allocated directly to the individual field offices. These include:

Other funds are provided to the field offices to reimburse expenses that relate to specific projects. These include:

Other expenses are controlled centrally and paid at the HQ level. These include:

The Director, CI:S:PS is also responsible for the authorization of appropriate staffing levels. The Authorized Staffing Pattern (ASP) report is the authorizing document for distribution of positions (by employment category and grade) to field offices, FDC's and HQ.

Written requests for changes in the ASP should be submitted in accordance with procedures found on the Planning and Strategy WEB page.

Confidential Expenditures for Informants (SOC 9101) - Represents the cost of payments to informants for:

Costs incurred because of payments on behalf of an informant are also confidential expenditures. This includes payments on behalf of an informant, instead of a direct payment, such as purchasing an airline ticket for an informant or similar expenditures and payments made to reimburse expenses of the informant for gathering information for the IRS.

This terminology is not intended to include such minor " courtesy" expenses that an investigator may pay when meeting an informant, payments to or for an informant in connection with an approved undercover operation, or expenses for protecting an informant whose identity has been compromised (see IRM 9.11.1.4.1.4). The SOC 9101 also does not include the cost of rewards to informants awarded in tax investigations, which are chargeable to SOC 1182.

Reimbursement for confidential expenditures is claimed only through imprest funds for investigative purposes and not on travel vouchers.

Confidential Expenditures for Undercover Operations (SOC 9102-9UNDE)- Represents the cost of all confidential expenditures incurred in connection with the undercover program:

It does not include travel and per diem incurred by agents outside of their undercover assignment. Reimbursement for confidential expenditures is claimed only through imprest funds for investigative purposes and not on travel vouchers.

Case agent or management travel should not be included in expenses for the undercover operation unless the case agent or manager are part of the cover team.

"Other" Confidential Expenditures (SOC 9103) - Represents expenditures not included in SOC 9101, 9102, or 9104. Other confidential expenditures may include the following types of expenditures:

Reimbursement for confidential expenditures may be claimed only through imprest funds for investigative purposes and not on travel vouchers.

Confidential Expenditures for Protection and Maintenance of Witnesses and Informants (SOC 9104) - Represents the cost of all confidential expenditures incurred in protecting and relocating an informant or witness.

Reimbursement for confidential expenditures may be claimed only through imprest funds for investigative purposes and not on travel vouchers.

Written requests for approval for an authorization for confidential expenditures should originate from a special agent and contain the following information on Form 8561, Request for Recoverable/Confidential/Incidental/Seizure Funds (see Document Manager):

If the original request is insufficient, the special agent should submit an amended request for the additional expenditures and obtain the same level of approvals as the original request.

For requests requiring the approval of the Chief, CI, the Director, Field Operations will approve the initial $20,000, as well as concur with the request for the additional funds.

Authorization requests requiring approval of either the Director, Field Operations or the Chief, CI, should also include the amount of imprest funds authorized and total payments made to date.

Authorization may be established based on oral approval in emergency situations. When oral approval is given at the above-authorized levels, the special agent must submit a follow-up written request (Form 8561, see Document Manager) for authorization within 24 hours.

In all requests, on all forms, and in other documentation, a special agent will refer to an informant by code name and/or number. None of the imprest fund files will include any information that would compromise the identity or confidentiality of the informant.

The SAC is responsible for ensuring the security and confidentiality of any grand jury information received in relation to an authorization, including information for the grand jury from an informant. Grand jury information cannot be disclosed to IRS personnel not assisting in the grand jury. See IRM 9.5.2, Grand Jury Investigations.

Confidential expenditures do not include normal travel and per diem expenses incurred by special agents. The only exceptions are:

If appropriate, the SAC may request authorization for confidential expenditures to pay costs incurred by cover agents and trained undercover agents in obtaining and maintaining cover documentation which is not associated with a specific undercover operation (SOC 9102-9COVE).

All requests for cover documentation expenditures must be approved by the Director, Field Operations or the Chief, CI. For those requests exceeding $20,000, approval authority rests with the Chief, CI. Cover documentation expenditure authorizations may be approved for the duration of the general investigation. Authorized funding for this type of general investigation is cumulative. For example, the general investigation is originally approved for two years with authorized funding (SOC 9102-9COVE) of $15,000. At the end of two years, the general investigation is extended for 18 months with additional funds (SOC 9102) of $6,000 being requested. The total authorization for this general investigation now becomes $21,000.

Requests for this type of authorization should be made on Form 8561.

All requests for cover premises (storefronts) must be approved by the Chief, CI (see IRM 9.14.2, Undercover Operations, Law Enforcement Manual).

The Chief, CI, is responsible to review confidential expenditure activity during regularly scheduled HQ reviews to ensure compliance with IRS policy and guidelines.

The Director, Field Operations is responsible for monitoring the overall program of expenditures made from investigative imprest funds in the area and field offices. This will be accomplished through a vigorous program of evaluation and follow up to ensure that:

The Special Agent in Charge (SAC) is responsible for:

The SAC is responsible for determining the dollar size and any increase or decrease in an investigative imprest fund.

Considerations, such as average usage in comparison to the dollar size of the fund, will not be the only factor to determine the dollar limitation of the imprest fund. The SAC is responsible to ensure that adequate funds are maintained to meet any reasonable need. At times, this may require funds on hand, which are many times greater than the average monthly usage. The SAC must consider the lead time to process the reimbursement voucher and the return of the replenishment check, including mail time. In addition, the SAC should recommend increases and decreases in the amount of maintained funds following the field office’s needs in relation to major investigations and projects in progress.

When a determination is made that the amount of the investigative imprest fund should be either increased or decreased, (within the maximum amount if it's an increase) the SAC responsible for the field office in which the imprest fund is located will request permission through the Director, CI:S:F. The Director, CI:S:F must approve before sending the request to BFC. Beckley will not process increases or decreases without the approval of Finance, CI:S:F and a corresponding RTS action. See the IRS Imprest Funds guidance for further instructions.

When an authorization has been approved, special agents should obtain advances from the imprest fund. Requests for advance of funds must be made on Form 8562, Request/Receipt For Advance From Investigative Imprest Fund/Or Non-Recoverable Funds (see Document Manager) and approved by the SSA and authorized by either the Assistant Special Agent in Charge (ASAC); SAC; or Director, Field Operations. An agent may spend no more than $500 in personal funds for "out-of-pocket" confidential expenditures for any approved authorization.

When appropriate, the SAC may wish to personally make a confidential expenditure. In other instances, confidential expenditures may be made on behalf of the SAC, such as a special agent purchasing beverage and food that the SAC may consume at a meeting with an informant. In these situations, if the SAC is personally making the request for an advance from the imprest fund, or a request is being made on behalf of the SAC, Form 8562 will be submitted to the Director, Field Operations for approval and will detail the amount, nature, and purpose of the proposed expenditure.

If the SAC wishes to personally make an expenditure or another CI employee desires to make a confidential expenditure on behalf of the SAC against an authorized fund without securing an advance from the imprest fund, he/she can only do so with the prior written approval of the Director, Field Operations. The record of approval can be accomplished by memorandum that will be attached to Form 10411, Claim for Reimbursement for Expenditures on Official Business.

In the case of an emergency, a request for an advance may be made through prescribed channels by telephone, telegraph, teletype facsimile, or electronic mail. Proper personal identification and official written documentation are to be made in every case by both the sender and receiver of such communication.

Form 8562 also serves as a receipt for the advance of funds. The cashier or an alternate is the only individual who can make an advance of funds. The cashier(s) may not disburse more than the amount authorized by the ASAC; SAC; or Director, Field Operations and cannot release money from the imprest fund without an approved copy of the authorization or written notification from the SAC or Director, Field Operations of an emergency approval.

There are no subsidiary imprest funds except in undercover operations wherein the cover agent is allowed to receive advances from the imprest fund cashier and make advances to other special agents. A special agent may not receive an advance from the cashier and advance all or part of it to another special agent or group of special agents. Each special agent must submit a request for an advance and receive it individually from the cashier.

Special agents will not use an advance for personal purposes. At any time, a special agent should be in a position to account for advances and able to return the unused funds. For example, a special agent should not deposit an advance into a personal bank account (except for conversion into currency) or combine it with any other official funds. A special agent must keep the advance(s) intact, readily available for use on official business.

The cashier may transmit advances or make payments for expenses to special agents in POD’s or geographical areas outside the location of the imprest fund by wire transfer, cashier’s check, checks drawn on the imprest fund, or by courier. Such transmittals are not to be construed as establishing a subsidiary imprest fund. In such instances, the cashier is also responsible for securing proper signatures on Form 8562.

Special agents should account for an advance, as soon as possible after the expenditure(s) is made and return any excess funds. When a special agent returns all or part of the funds advanced, the cashier will prepare and sign in duplicate Form 2507, Receipt for Money-Cashier Advance Fund (see Document Manager), and forward the original to the special agent and retain the duplicate. Special agents may also deposit advances into their personal account for the purpose of returning advances to the cashier. Cashiers are not allowed to accept cash from special agents when they return an advance.

The special agent will complete Form 10411 to account for expenditures made and request extensions of the outstanding balance when it is not practical to spend any portion of the advance by the end of the calendar month, from the SAC or the appropriate approving official. The special agent will complete Form 10411 by the 5th workday after the close of the month, irrespective of when the advance was issued during the month. If the special agent spent none of the advance, he/she still must request an extension using Form 10411. The special agent must submit a separate Form 10411 for each authorization.

To account for an advance, a special agent will prepare and submit Form 10411, a memorandum of activity, and an itemization of the expenditures. The special agent should attach to this itemization, original receipts, bills, cashier’s tape, and other documentation regarding the expenditures. A separate Form 10411 should be submitted for each authorization.

If the SAC makes the confidential expenditure, or another CI employee makes a confidential expenditure on behalf of the SAC, Form 10411 will be approved by the Director, Field Operations. The Director, Field Operations is responsible for reviewing and monitoring confidential expenditures.

Receipts for all items claimed as confidential expenditures should be obtained whenever possible. The receipts should be original, dated, itemized as to the services or supplies obtained, and show amount(s) expended. In undercover operations, the nature of some expenditures will render it impossible to obtain receipts. For expenditures of $25.00 or more in which a receipt was not obtained, the agent should include information as to the date, nature and amount of expenditures, as well as describe the reason(s) or circumstances as to why a receipt was not obtained using Form 10224, Confidential Expenditure Explanation (Optional) (see Document Manager) or by memorandum. The Form 10224 or memorandum should be attached to the Daily Expense Sheet claiming the expense.

Expenditures without receipts that are less than $25.00 should be fully described on the agent’s Daily Expense Sheet or Form 10226, Summary of Daily Expenses/Advances Received (see Document Manager). In certain circumstances, the agents may retain original receipts for evidentiary, warranty or backstopping purposes. In these situations, the agents should submit a photocopy of the receipt annotated with the agent’s initials, date, and submit a memo with the reason(s) for maintaining the original receipt. The original receipt(s) maintained by the submitting agent should always be retained for audit purposes. All receipts must be initialed and dated by the special agent making the purchase. Copies of bank statements for all existing accounts are also to be forwarded to the cashier.

Funds expended for security deposits may be treated as recoverable or non-recoverable funds, depending upon the certainty of their recovery. (See IRM 9.4.8, Undercover Operations).

On the front of Form 10411, the special agent should show only the total amount claimed and describe it only as "Confidential Expenditures " . The special agent should also include a statement about the amount of advance to remain outstanding. The special agent is responsible for designating the correct SOC and authorization number. Form 10411 must be approved by the SAC.

The special agent should not disclose sensitive confidential information on Form 10411 because the cashier forwards the original to the BFC. The receipts and other documentation are retained by the cashier with an attached photocopy of Form 10411.

After completion of all expenditures and submission of claims for reimbursement relating to an authorization, Item 13 of Form 8561, Request for Recoverable - Confidential - Incidental - Seizure Funds should be completed and forwarded to the imprest fund cashier.

Each Director, Field Operations is responsible for implementing uniform cashier procedures and record keeping methods within their areas and ensuring that all field offices with imprest funds use the Investigative Imprest Fund Computer Program.

The SAC is responsible for appointment of employees as cashiers (principal and alternate) whose duties do not require making investigative expenditures or granting approval for investigative expenditures.

All cashiers and alternates will be issued the Investigative Imprest Fund Computer Program and the Investigative Imprest Fund Training Database will be responsible for a working knowledge of its contents.