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MISSION
The Tax Division's mission is to enforce the nation's tax laws fully, fairly, and consistently,
through both criminal and civil litigation, in order to promote compliance with the tax laws and maintain confidence in the
integrity of the tax system.
OFFICE OF THE ASSISTANT ATTORNEY GENERAL
An Assistant Attorney General, who is appointed by the President and confirmed by the
Senate, runs the Tax Division. Four Deputy Assistant Attorneys General, one of whom is a career attorney, help to
manage the Division.
ORGANIZATION
The Tax Division employs more than 350 attorneys in fourteen civil, criminal, and appellate sections.
All Tax Division sections are based in Washington, D.C., except for the Southwestern Civil Trial Section, which is located in
Dallas, Texas.
CIVIL TRIAL SECTIONS
Tax Division attorneys conducting civil litigation are charged with promoting public compliance with
the internal revenue laws by ensuring strict and even-handed enforcement. The work of the Tax Division's Civil Trial Sections covers
a broad spectrum of litigation in United States District courts, United States Bankruptcy Courts, and state courts. The civil trial work
performed by the Division is handled by six regional trial sections.
The Tax Division handles most affirmative and defensive civil litigation arising under the internal revenue laws
in federal district and bankruptcy courts and in state courts. The work of the civil trial attorney includes defending the United States in
tax refund and civil damages suits, representing IRS and Justice Department employees in lawsuits for damages allegedly caused in the
performance of their official duties, and defending the Secretary of the Treasury, the Commissioner of Internal Revenue, and other officials
against lawsuits testing the validity of federal tax regulations and rulings. Civil trial attorneys also bring suits to collect unpaid assessments,
to foreclose federal tax liens or to determine the priority of such liens, to obtain judgments against delinquent taxpayers, to enforce
IRS administrative summonses, and to establish tax claims in bankruptcy, receivership and probate proceedings.
The Civil Trial Sections also represent other federal departments and agencies in cases involving the immunity
of the Federal Government from state and local taxation.
These cases present a variety of legal issues involving federal tax law, bankruptcy law, constitutional law,
commercial law and state property law, as well as a panoply of evidentiary, procedural, and jurisdictional issues.
The Tax Division's civil trial attorneys are responsible for every phase of their assigned cases from
initial pleadings through discovery and trial, including briefing and arguing motions and conducting jury and non-jury trials.
The monetary impact of the Tax Division's affirmative litigation efforts is far-reaching in scope.
During fiscal year 2006, Tax Division attorneys successfully defended lawsuits against the United States representing claims of nearly
$730 million, and, through affirmative litigation, collected $148.4 million.
In addition to the money collected and retained as a result of the
Division's cases, the judicial rulings in the cases handled by the Tax Division impact other cases and serve to deter potential violators
of the tax laws. Individual cases therefore often have tremendous significance beyond the amount directly at stake in the case.
COURT OF FEDERAL CLAIMS SECTION
The Court of Federal Claims Section defends all tax suits filed in the United States Court of
Federal Claims.
APPELLATE SECTION
The Appellate Section is responsible for handling appeals in all civil tax cases.
Appellate Section attorneys prepare briefs and present oral arguments in the
United States Courts of Appeals and the various state appellate courts, and assist the
Office of the Solicitor General in preparing briefs in the United States Supreme Court, Court of Federal Claims, state trial court and United States District Court
decisions and prepare recommendations to the Solicitor General about whether to file appeals.
When the United States is not a party in cases that may affect the interests of the
United States on tax-related issues, Appellate Section attorneys prepare amicus curiae (friend of the court) briefs setting forth the
Government's position on those issues.
The Tax Division has established an impressive record in the appellate courts.
During fiscal year 2006, the United States won, in whole or in part, 96% of the appeals filed by taxpayers, and 77% of the appeals filed by
the Government.
OFFICE OF REVIEW
The Office of Review evaluates settlement offers in light of litigating potential and policy considerations,
furnishes advice and assistance to the trial sections in complex cases, takes final action on settlements within its authority, and
advises the Assistant Attorney General on settlements that require final action at a higher level. The Office of Review also
assists in resolving disagreements between the litigating sections and the IRS, so that the positions of the Division and the
IRS remain consistent.
CRIMINAL ENFORCEMENT SECTIONS
The Tax Division is responsible for handling or supervising most federal criminal tax prosecutions.
Attorneys assigned to the Tax Division's three regional Criminal Enforcement Sections investigate and prosecute individuals and
corporations that attempt to evade taxes, willfully fail to file returns, submit false tax forms, and otherwise attempt to defraud taxpayers.
The Criminal Enforcement Sections are staffed with prosecutors who are particularly skilled at investigating, prosecuting and evaluating
complex financial crime cases. Prosecutors conduct criminal tax investigations with the assistance of the
IRS Criminal Investigation Division and the
Treasury Inspector General for Tax Administration.
The federal criminal tax enforcement program preserves the integrity of our self-assessment tax system
through the vigorous enforcement of the internal revenue laws. Vigorous enforcement punishes violators, deters future violations, and
reassures honest taxpayers that they will not bear an undue share of the federal tax burden.
Attorneys in the Northern, Southern and Western Criminal Enforcement Sections evaluate requests by
the Internal Revenue Service or United States Attorneys to initiate grand jury investigations or prosecutions of tax crimes.
Some criminal tax grand jury investigations and prosecutions are actively handled by Tax Division prosecutors. Many cases are
delegated to Assistant U.S. Attorneys for grand jury investigation and prosecution. Because of their unique resources and
specialized expertise, Tax Division attorneys frequently join with Assistant U.S. Attorneys in prosecuting tax cases. In other cases,
they provide legal advice.
Many tax prosecutions involve criminal violations of the internal revenue code by people who
earned income from legal sources but who committed crimes to evade payment of taxes. Other cases involve tax violations related to
other criminal activity, including corporate fraud, financial institution fraud, health care fraud, public corruption, organized crime and
narcotics trafficking.
Tax Division prosecutors pursue international crime, including the illegal use of offshore trusts and
foreign bank accounts to evade taxes. They also play an important role in the nationwide Organized Crime and
Drug Enforcement Task Force (OCDETF) program and the war on terrorism.
CRIMINAL APPEALS AND TAX ENFORCEMENT POLICY SECTION
The Criminal Appeals and Tax Enforcement Policy Section (CATEPS) plays an important role in
promoting the fair, correct and uniform enforcement of criminal tax laws. CATEPS attorneys handle appeals in criminal tax cases
tried by Criminal Enforcement Section attorneys, and supervise appeals in cases prosecuted by U.S. Attorneys' Offices.
CATEPS attorneys also review adverse decisions of United States District Courts and United States Courts of Appeals in all
criminal tax cases and prepare recommendations to the Solicitor General about
whether to appeal or seek other review.
In addition its criminal appellate responsibilities, CATEPS helps to formulate
criminal tax enforcement policy. Working with the IRS and the U.S. Attorneys' Offices, CATEPS attorneys develop policies
that govern the investigation and prosecution of tax crimes.
OFFICE OF LEGISLATION AND POLICY
The Office of Legislation and Policy works on legislative and policy initiatives to facilitate the
Division's litigation and promote efficient tax administration.
OFFICE OF MANAGEMENT AND ADMINISTRATION
The Tax Division's Office of Management and Administration (OMA) provides support in the areas
of general administration, fiscal/budgetary controls, human resource management, automated information systems, and
management and planning. OMA is led by an Executive Officer and is divided into four major components:
(1) The Office of Administration, which is responsible for accounting and budget services, budget formulation and execution,
procurement and contracting, facilities, property management and records management, physical security and telecommunications;
(2) The Human Resources Office, which administers, coordinates and oversees employee hiring, benefits, personnel security,
performance management, discipline, labor relations, awards, worker's compensation, leave programs, time and attendance and
employee separation; (3) The Office of Information Technology, which is responsible for office automation systems development
and programming, the network infrastructure and for user support and operations; and (4) The Office of Management and Planning,
which is responsible for strategic planning (providing statistical analysis, case management, and internal controls);
automated litigation support; web management; security program management; and special projects.
OFFICE OF TRAINING
The Tax Division conducts an extensive training program for its new attorneys. This program is
designed to provide training in practical courtroom skills as well as in relevant substantive areas of the law. Practicing attorneys and
academicians serve as instructors in this program. In addition, the Tax Division regularly presents sessions focusing on discovery
techniques, evidentiary problems, courtroom skills, the art of advocacy, effective cross-examination, substantive tax issues, and other
areas germane to the Division's work. These classes are held in the Tax Division's Wynette J. Hewett Training Center,
which is equipped with audiovisual and videotape facilities.
The Division also actively participates in the Attorney General's Advocacy Institute.
Tax Division attorneys and staffers benefit from televised, videotaped and computerized training provided by the
Justice Department's Office of Legal Education and attend live
training seminars at the Justice Department's National Advocacy Center
in Columbia, South Carolina.
HISTORY OF THE TAX DIVISION
On June 10, 1933, President Franklin D. Roosevelt issued an executive order consolidating within
the Department of Justice the control of all federal tax litigation. In October 1933, Attorney General Homer Cummings created the
Tax Division, effective as of January 1, 1934, and charged it with primary responsibility for supervising all
federal litigation involving internal revenue.
An earlier proposal to consolidate federal tax enforcement was made in 1829, when
President Andrew Jackson considered assigning the Attorney General to handle all "treasury litigation." Senator Daniel Webster
successfully opposed the plan and offered an alternative. Under the Webster Act, which controlled tax enforcement for more than
a century, several government agencies shared responsibility for tax litigation. As the complexity of the tax laws increased after
World War I, however, the system of divided responsibility for tax litigation grew increasingly inefficient.
Since 1934, the Tax Division has been charged with maintaining uniformity by handling most litigation
arising under the internal revenue laws. The Division's authority is codified at
28 C.F.R. ยง 0.70. This centralized control of tax litigation better enables the government to take consistent positions on
tax issues and thereby promote the fair and uniform enforcement of the tax laws.
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