7 August 2001

See contents of full IRS Handbook of Criminal Investigation: http://cryptome.org/irs-ci/irs-ci.htm

Handbook 9.4
INVESTIGATIVE TECHNIQUES


Chapter 2
SOURCES OF INFORMATION

Contents

[9.4] 2.1  (04-26-1999)
OVERVIEW

  1. Compliance with the laws which the Service is authorized and directed to enforce cannot be determined solely by reference to the information on returns and documents filed with the Service. Therefore, the Service must obtain information from outside sources for the effective administration of the tax laws. (See Policies of the Internal Revenue Service Handbook, Policy Statement P-1-1.)
  2. The term "relevant investigative information" means documents, statements, facts, testimony and other data which reasonably may be expected either singularly or cumulatively to indicate a potential violation of Federal law. Documents, statements, facts, testimony or other data which relate to personal habits of a person may be gathered if it is "directly relevant investigative information" .
    NOTE:
    Information relating to any expenditure of money, or for which an expenditure of money would normally be expected, is almost always directly related to any income tax investigation. If the information is not "directly relevant investigative information" , but is commingled with other information, in the same document, it may be retained.
  3. Under no other conditions will information on personal habits of a person be gathered, developed or retained.
  4. Depending upon the nature of the investigation, nearly every governmental agency, business organization, financial organization, school, customer, client, supplier, utility company, neighbor, friend, relative, classmate, or associate of any kind is a potential source of information.
  5. This chapter relates to the different sources available to gather information during the course of an investigation. Some of the sources of information are:
    1. Governmental records.
    2. Business, financial, professional, and educational records.
    3. Investigative databases.
    4. Informants.
  6. This chapter will briefly discuss the first three sources with a more detailed discussion of informants. The subsections discussing informants in this chapter are as follows:
    • Informant information-generally
    • Definition & Classification of an Informant
    • Authorization for Use of a Confidential Informant
    • Evaluation of a Confidential Informant
    • Control of a Confidential Informant
    • Protection of the Informant's Identity
    • Access to Name of an Approved Confidential Informant
    • Procedures for Obtaining and Processing Information from an Informant
    • Documents of a Confidential Nature
    • Informant Accompanying Special Agents
    • Temporary Custody and use of Prisoners as Informants and Witnesses
    • Information Provided from a Foreign Country by an Informant
    • Illegal Acts or Violation of Rights by an Informant
    • Violations of Law by a Confidential Informant in Gathering Information
    • Violations of Law by an Informant in Gathering Information
    • Violations of Law Involving Serious Crimes by an Informant Not Connected with a Service Assignment
    • Payments to an Informant
  7. It is important to balance the likelihood of obtaining directly relevant investigative information with the potential for wasting valuable time and effort in selecting which sources will be contacted.
  8. The special agent must also be mindful of the disclosure provisions of 26 U.S.C. 6103 in determining how best to obtain necessary information.

[9.4] 2.2  (04-26-1999)
GOVERNMENTAL SOURCES OF INFORMATION

  1. Federal, state, county and local governments maintain an abundance of official files that may be relevant to a criminal investigation.

[9.4] 2.2.1  (04-26-1999)
Federal Sources of Information

  1. Every Federal agency maintains official files on individuals and organizations with which they do business. Depending upon the nature of the investigation, it may be important to contact various Federal agencies to obtain valuable information.
  2. Many Federal agencies also compile and maintain statistical databases which may provide useful leads.

[9.4] 2.2.2  (04-26-1999)
State, County, and Local Government Agencies as Sources of Information

  1. The following information may be obtained from various official records:
    1. Sale and transfer of property
    2. Mortgages and releases
    3. Judgments, garnishments, chattel mortgages and other liens
    4. Conditional sales contracts
    5. Births, deaths, marriages, and divorces
    6. Change of name
    7. Auto licenses, transfers, and sales of vehicles
    8. Drivers' licenses
    9. Hunting and fishing licenses
    10. Occupancy and business privilege licenses
    11. Building and other permits
    12. Police and sheriff records of arrests and commitments
    13. Court records of civil and criminal cases
    14. Registration of corporate entities and annual reports
    15. Parole officers' and probation departments' files
    16. Registration of noncorporate business entities
    17. Fictitious names index
    18. School and voter registrations
    19. Professional registrations
    20. State income tax returns
    21. Personal property tax returns
    22. Real estate tax payments
    23. Inheritance and gift tax returns
    24. Wills
    25. Letters of administration
    26. Inventories of estates
    27. Welfare agency records
    28. Workmen's compensation files
    29. Bids, purchase orders, contracts and warrants for payment
    30. Civil Service applications
    31. Minutes of board and agency proceedings
    32. Health departments' records
    33. State Unemployment Compensation records

[9.4] 2.3  (04-26-1999)
BUSINESS, FINANCIAL, PROFESSIONAL AND EDUCATIONAL RECORDS

  1. Nearly every business or organization maintains records concerning its dealings with individuals. These records often include financial transactions, personal identification information, degree or licensing information, and an infinite variety of other information, impossible to list, of value to criminal financial investigations.
  2. IRM 9.4.4 contains a list of a number of organizations which may be of special interest in some investigations.

[9.4] 2.4  (04-26-1999)
INVESTIGATIVE DATABASES

  1. A nearly infinite number of computer databases are available on the internet to special agents searching for information concerning their investigations. Netscape's Net Directory, and similar search engines on most internet service providers, provide nationwide name search capability. Databases of alumni associations, professional licenses, society memberships, club memberships, business customers, subscribers to various services, and a vast number of other organizations maintain current lists which allow the general public to contact people with similar interests, or who are in search of a business or professional relationship. Use of these databases provides a fast, inexpensive means of obtaining a wide variety of useful leads.
    NOTE:
    For information available through TECS, please refer to CI Handbook 9.10 Chapter 2.
  2. Some districts have access to Lexis/Nexis, a comprehensive legal reporting service which, for a fee, provides complete and up to the minute information on all published legal decisions in the nation. Furthermore, it contains most of the resources of a law library, with instantaneous access. Other features of Lexis/Nexis potentially useful to criminal investigation are the news service, the locator service, and the property ownership records.

[9.4] 2.5  (04-26-1999)
INFORMANTS

  1. Some criminal cases investigated by special agents cannot be successfully completed except through the use of an informant and the direct purchase of information to aid in the acquisition of essential evidence related to violations of federal statutes arising from the administration and enforcement of the Internal Revenue laws and related offenses.
  2. In addition to purchasing specific information from an informant, special agents occasionally encounter situations where an expenditure of funds is required to lay the groundwork for the procurement of information for undercover operations, and for other activities involving the expenditures of funds to obtain testimony and evidence essential to a case of such a nature that their disclosure might jeopardize the investigating officer.

[9.4] 2.5.1  (04-26-1999)
Informant Information--Generally

  1. Payment, without the filing of a claim for reward, may be made for information related to violations of federal statutes arising from the administration and enforcement of the Internal Revenue laws and related offenses only in highly restricted circumstances where it is necessary to the case or project and when it is impracticable to obtain such information through any other means.
  2. When practical, such payments should be made only after the information has been obtained, evaluated, and determined worthy of compensation.
  3. Limitations as to the dollar amounts which may be approved by authorized management officials for the purchase of such information will be imposed by the Commissioner, Internal Revenue Service.
  4. The District Chief is authorized to approve special agents' claims for reimbursement for authorized confidential expenditures through the imprest fund. The Director of Investigations and the Director, National Operations Division are the approving officials for the regions and headquarters, respectively.

[9.4] 2.5.2  (04-26-1999)
Definition And Classification Of An Informant

  1. An informant is an individual who furnishes information to the Internal Revenue Service (IRS). Such information may be furnished on the informant's own initiative or as a result of being directed to obtain certain information and evidence by special agents. The informant may be paid or unpaid. Informants are classified as:
    • Anonymous informants.
    • Confidential sources of information.
    • Confidential informants.
  2. Federal, state, and local law enforcement officials and other governmental officials, acting within the scope of their authority, who provide the Service information are not to be considered informants. However, if such officials provide information with regard to corruption within their own agency, such as the acceptance of bribes by police officers, then such officials would be considered informants.

[9.4] 2.5.2.1  (04-26-1999)
Anonymous Informant

  1. An anonymous informant is an individual who either refuses to identify himself or herself or uses a fictitious or code name, and whose true identity is unknown to the Service. An anonymous informant cannot be paid nor work at the direction of the Service.

[9.4] 2.5.2.2  (04-26-1999)
Confidential Source of Information

  1. A confidential source of information is an individual who:
    1. provides information without seeking payment (other than a claim for reward); and
    2. does not gather information at the direction of the Service.

[9.4] 2.5.2.3  (04-26-1999)
Confidential Informant

  1. Confidential informant, is an individual who:
    1. is paid for the information provided; and/or
    2. gathers information and evidence at the direction of the Service.
    NOTE:
    A cooperating defendant who proactively gathers information and evidence at the direction of the Service is classified as a confidential informant. A consenting party in a consensually monitored conversation is also classified as a confidential informant.
  2. ]In order to determine if an individual should become a confidential informant, the Chief, CI may authorize one substantive consensual monitored telephonic conversation without the individual being required to be numbered as a confidential informant. The monitored telephone conversation is solely to corroborate the statements of the individual.

[9.4] 2.5.3  (04-26-1999)
Authorization For Use Of Confidential Informants

  1. When special agents believe informants are in a position to obtain relevant information and are willing to obtain and furnish such information under the direction of the Service, prior to directing the informants to obtain specific information, the special agents must first obtain authorization for use of the informants.

[9.4] 2.5.3.1  (04-26-1999)
Who Must Authorize

  1. The District Director must authorize the use and payment of all confidential informants at the District level. The District Director may delegate authority to the Chief, to authorize the use of a confidential informant except where sensitive suitability factors (n), (o), (p), or (q) listed in text 2.5.4 of this chapter apply.
  2. The Director of Investigations must authorize the use and payment of all confidential informants at the Region level.
  3. The Director, National Operations Division must authorize the use and payment of all confidential informants at the Headquarters level.

[9.4] 2.5.3.2  (04-26-1999)
When is Approval by the Department of Justice, Office of Enforcement Operation Required

  1. The use of protected witnesses, prisoners, probationers, or parolees requires special approval.
  2. Consistent with Department of Justice (DOJ) requirements, approval by the Office of Enforcement Operation (OEO) is required for the following:
    1. Use of federal prisoners as informants. (See text 2.5.11 of this chapter.)
    2. Use of current or former participants in the Federal Witness Security Program as informants. (See text 2.5.11 of this chapter.)
    3. Use of informants to engage in warrantless interception of certain sensitive categories of verbal communications as specified by the Attorney General. (See text CI Handbook 9.4 Chapter 7.)

[9.4] 2.5.3.3  (04-26-1999)
Before Using Federal or State Probationers, Parolees, or Supervised Releasees

  1. Prior to utilizing federal or state probationers, parolees, or supervised releasees as informants, the Chief shall make a determination if the use of such people in this capacity would violate the terms and conditions of their probation, parole, or supervised release.
  2. This determination shall be documented in the informants' control file.
  3. If it is determined that there would be a violation of probation, parole, or supervised release prior to using them as informants, the Chief must obtain the permission of the relevant probation, parole, or supervised release official which shall also be documented in the control file.
  4. The Service shall comply with any applicable state or local laws, rules, and regulations pertaining to the use of state or local prisoners as informants.

[9.4] 2.5.4  (04-26-1999)
Evaluation Of A Confidential Informant

  1. When evaluating the potential use of a confidential informant, the District Director should consider, at least, the following suitability factors as they may apply to determine whether or not to authorize the use of the informant and, if so, whether certain precautions must be taken. Form 9836 (see Exhibit 9.4.2-6) will be used to evaluate the informant's suitability:
    1. The informant's age.
    2. Criminal history.
    3. Tax filing and payment history, particularly any delinquencies (problems in this area do not necessarily preclude use of the informant, however, steps should be taken to correct any problems prior to the informant's working with the Service).
    4. Reliability and truthfulness, including the person's motivation. People provide information for various reasons. In evaluating informants' reliability and credibility, their motives need to be considered. Possible motives may include monetary gain, revenge, altruism, self-aggrandizement, law enforcement buff, or eccentric thrill seeker.
    5. Source and means of securing information.
    6. The extent to which the information provided is relevant to a present or potential investigation and can be corroborated.
    7. Whether the informant is presently serving as a cooperating individual or a confidential informant for another agency.
    8. Any record of past performance as an informant with the Service or any other law enforcement agency.
    9. When there is reason to believe that the informant has previously served as a cooperating individual or confidential informant for another law enforcement agency, it should be determined whether that law enforcement agency terminated that relationship for cause.
    10. The nature and importance of the information to a present or future investigation.
    11. Alien status, if applicable.
    12. Whether the informant is a substance abuser or has a history of substance abuse.
    13. Whether informant is related to an employee of any law enforcement agency.
    14. The risk of physical harm that may occur to the informant and the informant's immediate family or close associates as a result of assisting the Service.
    15. The risk that the informant's activities may adversely affect another investigation or potential prosecution.
    16. Whether the informant is a public official, law enforcement officer, member of the military services, a representative of the news media, or a party to privileged communications (e.g., a member of the clergy, a physician, or a lawyer).
    17. Whether it is believed that the informant is the subject or target of a pending criminal investigation, poses a danger to the public or other criminal threat, or poses a risk of flight.
    18. Whether the informant is a tax professional, including an attorney, accountant, return preparer, or enrolled agent. If so, District Council must be contacted for their advice on using this person as an informant. Other information that must be obtained in order to thoroughly evaluate the informant is whether the tax professional has a Power of Attorney for the potential target, whether the tax professional currently has an agreement to work as an attorney for the potential target, whether the tax professional is owed money by the potential target, whether the potential target is aware that he/she is being investigated, and if the target is aware, whether he/she has taken the Fifth Amendment relative to the IRS investigation.

[9.4] 2.5.5  (04-26-1999)
Control Of A Confidential Informant

  1. In order to protect the integrity of the relationship with the informant and for security purposes, two special agents will be assigned to control the informant.

[9.4] 2.5.5.1  (04-26-1999)
Instructions to the Informant

  1. After the District Director grants approval, a registration file (described in 2.5.6.4.1 of this chapter) must be established for each confidential informant.
  2. After the confidential informant has been registered, the contact agents will review with the informant written instructions regarding his or her responsibilities and relationship with the Service. This review will be documented using Form 9831, Approved Confidential Informant Advice, (see Exhibit 9.4.2-1) and placed in the informant's registration file. At a minimum, the instructions shall include that:
    1. The informant must not engage in unlawful acts, except as specifically authorized by the contact agents, and is subject to prosecution for any unauthorized, unlawful act.
    2. The informant must provide truthful information at all times.
    3. The informant must abide by the instructions of the contact agents and must not seek to take any independent action on behalf of the United States Government.
    4. The informant is not an employee of the United States government and may not represent himself or herself as such.
    5. The informant must not engage in witness tampering, witness intimidation, or fabrication, alteration, or destruction of evidence.
    6. The informant is liable for any taxes on any moneys paid to him or her for information or services.
    7. The Service cannot guarantee any rewards, payments, or other compensation to the informant, nor can the tax liability of the informant be abated or compromised.
    8. When an informant is cooperating with the Service in exchange for consideration by a prosecuting office(s), and upon request of the informant, the Service will advise the prosecuting office(s) of the nature and extent of the informant's assistance to the Service, but cannot make any recommendations regarding prosecution or sentencing.
    9. In cases involving foreign nationals, no promises or representations can be made regarding alien status or their right to enter or remain in the United States.
    10. The Service will strive to protect informant's identity, but cannot guarantee that it will not be divulged.
    11. The informant may not enter into any contracts or incur any obligations on behalf of the United States Government, except as specifically instructed by the Service.

[9.4] 2.5.5.2  (04-26-1999)
Responsibility of Special Agents and Contact Agents When Dealing With an Informant

  1. Special agents need to be fair and truthful with an informant, and make no promises which cannot be fulfilled.
  2. Special agents should never let an informant determine the procedure to be used in the investigation or otherwise control the investigation.
  3. Special agents must not condone any violation of law in order for informants to obtain information. If defendants can show that the informants were acting under some arrangement with federal agents, they will have a viable defense. Whenever there appears to be a possibility of entrapment or some other unlawful act by informants, they should be guided in a manner that will prevent the occurrence of such acts.
  4. Special agents must maintain a professional relationship with an informant based upon mutual respect. Special agents should guard against the relationship becoming personal instead of professional. A special agent's ability to be objective is jeopardized when a personal relationship develops with the informant.
  5. The contact agents will not make any commitments for payment or protection to an informant without proper authorization from the approving official as set forth in text CI Handbook 9.11 Chapter 1. Agreements made without authorization may become the personal responsibility of the maker.
  6. Special agents will not intervene on behalf of an informant with the Service or with any other federal, state or local agencies. Special agents shall not offer to have the tax liability of an informant compromised in exchange for information about another taxpayer. This prohibition includes, but is not limited to, agreeing to a reduction or elimination of the tax liability of an attorney, accountant, enrolled agent, or other return preparer in exchange for information about the client or such person. Questions in this area should be addressed to District Counsel.
    NOTE:
    Taxpayers may bring civil suit for damages against the government where determination or collection of tax is intentionally compromised by a federal officer or employee.
  7. As long as the confidential informant is active, a log (Form 9834, Approved Confidential Informant -- Monthly Log, see Exhibit 9.4.2-4) will be prepared and filed each month with the Chief's office. Any substantive contact with the informant will require an entry in the log and a backup document (either a Memorandum of Contact, Form 9833, see Exhibit 9.4.2-3 or a Receipt of Cash, Form 9832, see Exhibit 9.4.2-2) will also be prepared. If no contacts occurred during the month, a Form 9834 will be prepared reflecting no contacts and forwarded to the Chief's office. A copy of this log will be maintained in a registration file by the Chief.
  8. When an informant is no longer providing information or assistance to the Service, the informant should be deactivated. The Service may also terminate the relationship for cause if the informant engages in conduct which violates the informant's agreement with the Service. In either case, appropriate notification documented in writing and witnessed by two agents shall be made if the informant can reasonably be located. If the informant cannot be located, efforts to locate the informant shall be documented.

[9.4] 2.5.5.3  (04-26-1999)
Debriefing Informant

  1. After registration of the informant and documentation of instructions have occurred, the contact agents will fully debrief the informant concerning his or her knowledge of criminal or unlawful activities.
  2. Special agents should always make every effort to get all facts known by the informant at the initial contact. Informants frequently supply only the information they think is important, rather than relating all of the facts.
  3. The contact agents will advise the informant that any information submitted by him or her concerning violations not under the Service's jurisdiction will be furnished to the appropriate enforcement agency in accordance with Service procedures. (See the Disclosure of Official Information Handbook.)
  4. If the informant appears knowledgeable concerning potential narcotics violations, the contact agents will encourage the informant to meet directly with Drug Enforcement Agency (DEA) or Federal Bureau of Investigation (FBI) personnel. If the informant declines, the contact agents will debrief the informant of the information relating to potential narcotics violations and will transmit such information either directly to DEA, FBI, or to the Assistant Attorney General, Criminal Division, Department of Justice, in accordance with the disclosure laws and regulations.
  5. In the event that the informant provides information that is subject to a legal claim of privilege, the contact agents should contact the appropriate District Counsel or Assistant United States Attorney.

[9.4] 2.5.6  (04-26-1999)
Protection Of The Informant's Identity

  1. Special agents should never disclose the identity of a informant.

[9.4] 2.5.6.1  (04-26-1999)
General Information

  1. During an investigation, communications of an informant are based on the informant's trust that his or her identity will not be disclosed and that he or she will not be harmed physically, economically, or otherwise because of his or her action in furnishing information to the government.
  2. The protection of an informant, is absolutely essential in enforcement activities.
  3. Special agents will not divulge either the identity of the informant or the existence of an informant in the investigation to anyone other than authorized persons.
  4. To provide maximum security regarding his or her identity and existence, an informant will not be used as a witness, placed in a position where he or she might become a witness, or unnecessarily identified in court without his or her consent.
  5. In order to avoid the conflict between preservation of an informant's anonymity and the possible disclosure of an informant's identity during the investigation and prosecution, special agents should make a decision early in the investigation about the feasibility of development of other evidence to take the place of the informant as a witness. If this is not feasible, the investigation should be closed.
  6. Communications of a confidential informant should not be attached to income tax returns, associated with workpapers, or included in the exhibits submitted with a report.

[9.4] 2.5.6.2  (04-26-1999)
In the Courts

  1. It is the duty of every citizen to communicate to his or her government any information which he or she has relative to an offense against its laws. To encourage him or her in performing his or her duty, the courts have held such information to be confidential within the discretion of the government.
  2. The courts, on the basis of public policy, will not compel or allow disclosure of an informant's identity without the consent of the government unless such information is useful evidence to vindicate the accused or lessen the risk of false testimony, or is essential to the proper disposition of the case.
  3. Mere speculation as to the usefulness of the informant's testimony to the defendant is insufficient to justify disclosure of his or her identity and the defendant must indicate some concrete circumstances that might justify overcoming both public interest in encouraging the flow of information and the informant's private interest in his or her own safety.
  4. Since the privilege exists in behalf of the government and not the informant, the government may waive it, and it is deemed to be waived if the informant is put on the witness stand.
  5. Moreover, the Supreme Court has held that the government is not entitled to a presumption that all sources supplying information to the government in the course of a criminal investigation are confidential sources within the meaning of Exemption 7(D) of the Freedom of Information Act, 5 U.S.C. 552 (FOIA).
  6. Instead, the Supreme Court held that a source should be deemed "confidential" if the source furnished information with the understanding that the government would not divulge the communication except to the extent it thought necessary for law enforcement purposes.

[9.4] 2.5.6.3  (04-26-1999)
On the Witness Stand

  1. If a special agent, who has promised an informant that he or she would keep his or her identity confidential, is asked to disclose such identity on the witness stand and no objection to the question is made or sustained, he or she should not refuse to answer, but should state that he or she cannot disclose the information on the ground that it was a privileged communication to an officer of the government, and that he or she is bound by instructions not to disclose such information.
  2. He or she should maintain this position pending instructions from his or her superiors and advice from the United States Attorney.
  3. The special agent's failure to disclose this information may have several results:
    1. The court may, if it thinks that no harm is done to the defendant, uphold the special agent.
    2. The court may dismiss the action.
    3. The special agent's superiors may release him or her from his or her obligation.
    4. If the special agent persists in his or her refusal to answer, the court may find him or her in contempt.

[9.4] 2.5.6.4  (04-26-1999)
Precautions Taken by the Chief, Criminal Investigation, to Protect the Identity of the Informant

  1. The Chief will take all necessary precautions to protect the identities of all informants.
  2. The Service will not require special agents to divulge the identity of a confidential informant unless there is an integrity investigation being conducted by Treasury Inspector General Tax Administration (TIGTA). (See text 2.5.7 of this chapter.)
  3. In those instances where the informant has agreed to testify, he or she should be listed as a witness. Special agents should not mention anywhere in the report that this individual is an informant. In such situations, the Chief will include in the transmittal memorandum he or she prepares to the District Counsel in accordance with text in CI Handbook 9.5 Chapter 8 a statement which identifies the witness as an informant and that he or she has agreed to testify.
  4. In order to protect the identity of the confidential informant, the Chief will assign a designation number prefixed by the District symbol, such as 54001, for each approved confidential informant.
  5. The Chief will establish a sealed registration file, an index file and a control file for each approved confidential informant.
  6. The Chief will ensure that all informant communications and identities are protected in accordance with the Physical Security Handbook. The informant's registration file and index file shall have a protection point value of 7.

[9.4] 2.5.6.4.1  (04-26-1999)
Registration File

  1. The registration file will contain all identification information relating to the informant. The file will also include:
    1. The informant's designation number.
    2. Identifying documentation used to establish and verify the identity and background of the informant; e.g., filing record, drivers license record, criminal history.
    3. Form 9835, Approved Confidential Informant --Identity Record, see Exhibit 9.4.2-5.
    4. A photograph of the informant; this may be obtained from drivers license records, criminal records, or other sources. .

[9.4] 2.5.6.4.2  (04-26-1999)
Index File

  1. An index file listing the informant's name, designation number, special agent contacts, and current status of the informant, active or inactive.

[9.4] 2.5.6.4.3  (04-26-1999)
Control File

  1. The control file contains information which documents the activity and payments to the informant. The informant's control file will identify the informant by number designation only and will contain the following:
    1. Document approving use of informant.
    2. Written instructions to the informant regarding his or her responsibilities and relationship with the Service.
    3. A copy of the contact log prepared by the contact agents.
    4. Documentation of payments to the informant.
    5. Deactivation documentation.

[9.4] 2.5.6.5  (04-26-1999)
Semi-Annual Review of the Informant Files

  1. The Chief will semi-annually conduct a continuing suitability review of all open informant files, taking care to consider each of the relevant factors listed section 2.5.4 of this chapter.
  2. If the Chief decides to continue to use the informant, it must be documented in the control file.
  3. If a determination is made to deactivate the informant, notification must be made in accordance with section 2.5.5.2(8) of this chapter.
  4. These reviews should be conducted in February and August of each year.

[9.4] 2.5.6.5.1  (04-26-1999)
February Review

  1. A report of informant activity for the previous calendar year should be prepared during February of each year and should include:
    1. A summary of payments to all informants.
    2. A certification that all paid informants were advised that payments for information are taxable and should be reported on his or her tax return. (See text CI Handbook 9.11 Chapter 1).
    3. The number of primary and subject investigations opened as a result of informant information, status of these cases, and any other pertinent information.
    4. The number of information items for which an informant was the source, which were referred to the Examination or Collection Divisions.
  2. Headquarters Section Chiefs who have utilized paid informants shall submit the same type of report.
  3. This report should be submitted through normal channels to the National Operations Division, ATTN: Office of Special Investigative Techniques no later than March 15.

[9.4] 2.5.6.5.2  (04-26-1999)
December Review

  1. The Chief must prepare a report certifying that a check was conducted to verify that the informant filed a tax return and reported all payments received from the Service.
  2. The report will contain the informant's control number, dollar amounts paid to the informant, and the date the checks were conducted.
  3. If the informant did not report all of the payments received from the Service, the Chief should attempt to contact the informant and advise the informant again that the money he or she received is taxable.
  4. If the informant still fails to report the payments, an information item should be prepared and evaluated for civil or criminal action. The informant must not be used again.
  5. Headquarters' Section Chiefs, who have utilized paid informants, shall submit the same type of report.
  6. This report should be submitted through normal channels to the National Operations Division, ATTN: Office of Special Investigative Techniques no later than December 31st.

[9.4] 2.5.6.6  (04-26-1999)
Management Review

  1. Each fiscal year, Directors of Investigations or their designee will review each District's informant activity to ensure compliance with Service policy and current guidelines. By September 15th of each year, copies of the report, generated as a result of this annual review, should be forwarded to the Director, National Operations Division, ATTN: Office of Special Investigative Techniques.
  2. Management review procedures by Directors of Investigations or their designee will not relieve District Directors of their responsibility to ensure that these guidelines are followed.

[9.4] 2.5.7  (04-26-1999)
Access To Name Of An Approved Confidential Informant

  1. When TIGTA, Office of Audit conducts an audit on the investigative imprest funds, they may need the true identity of approved confidential informants.

[9.4] 2.5.7.1  (04-26-1999)
Certification of the Imprest Fund

  1. TIGTA, Office of Audit reports on investigative imprest funds are required to contain a certification that the fund was properly utilized. To issue such a certification, TIGTA, Office of Audit must conduct audit tests such as verifying that a paid informant exists, determining the informant's information was evaluated prior to payment, and that the quality of the information was commensurate with the amount of the payment.
  2. To conduct such tests, TIGTA, Office of Audit must be given the true identity of a paid informant. Generally, such tests will be made only on random samples of informants.
  3. In rare instances, the Chief will divulge the names of other confidential informants to TIGTA, Office of Audit when deemed necessary.
  4. The name of a confidential informant is restricted to the TIGTA, Office of Audit supervisor conducting the audit and is not accessible to any other member of the TIGTA, Office of Audit staff. The name will not be contained in the TIGTA, Office of Audit report or working papers.

[9.4] 2.5.7.2  (04-26-1999)
Contacting the Confidential Informant

  1. A confidential informant will not be contacted by personnel from TIGTA, Office of Audit. If a confidential informant has to be contacted, personnel from the TIGTA, Office of Investigations will make the contact. However, such contact will be made only after the TIGTA Regional Inspector determines it is essential to meet either auditing or investigative objectives.
  2. Prior to any contact by TIGTA, whether in the interest of TIGTA, Office of Audit or TIGTA, Office of Investigations, the TIGTA Regional Inspector will notify the IRS-CI, Director of Investigations of the intention to contact a confidential informant unless such notification would adversely affect the investigation by TIGTA.
  3. In those instances when the TIGTA Regional Inspector deems it inappropriate to notify the IRS-CI, Director of Investigations, the TIGTA Regional Inspector will notify the Treasury Inspector General, Tax Administration of this decision. The Treasury Inspector General, Tax Administration will advise the Deputy Commissioner of IRS of TIGTA's intention to contact the confidential informant without notification to the IRS Regional Commissioner.

[9.4] 2.5.8  (04-26-1999)
Procedures For Obtaining And Processing Information From An Informant

  1. During the initial contact with the informant, special agents should develop, to the greatest extent possible, all information received from the informant which indicates a possible violation of the tax laws or other violations under the Service's jurisdiction. Special agents may recontact the informant to seek clarification of the information initially obtained at the first contact.
  2. After these initial contacts with an informant, additional information may be solicited from the informant, and Criminal Investigation employees may engage in information gathering activities pertaining to the particular taxpayer(s) reported by the informant, only after the employee receives an assignment:
    1. To engage in authorized information gathering on a General Investigation (see text in CI Handbook 9.4 Chapter 4 and CI Handbook 9.9);
    2. To evaluate an information item as a Primary Investigation (see text in CI Handbook 9.4 chapter 4 and CI Handbook 9.9); or
    3. To conduct a Subject Investigation.
  3. The following procedures apply when information is received from an informant by telephone or personal interview:
    1. If the information does not allege a violation of the law, the informant should be so advised. No written record is required to be made.
    2. If the information alleges a violation of a law not administered by the Service, the informant should be encouraged to provide the information directly to the appropriate agency. No written record is required to be made. However, if the informant insists on providing the Service with the information, a written record should be made of the information and processed in accordance with text in CI Handbook 9.3 Chapter 1. The informant should be advised that we will provide the information to the appropriate agency, along with the informant's name, in the event the agency wishes to contact the informant for additional information.
    3. If the information is tax-related and pertains to a General, Primary, or Subject Investigation, a written record should be made of the information and forwarded to the special agent assigned to the investigation.
    4. If the information alleges a violation of the Internal Revenue laws and does not pertain to one of the investigations in (c) above, a written record should be made of the information and sent to the appropriate function in the IRS that deals with the issues of the alleged violation.

[9.4] 2.5.9  (04-26-1999)
Documents Of A Confidential Nature

  1. Tax returns and other documents shown to a taxpayer or a witness in the course of an investigation, or returns or similar documents to be produced in court, must be reviewed by special agents prior to such disclosure to ensure that nothing is attached (such as an informant's communication) that might reveal the existence or identity of a confidential source of information.

[9.4] 2.5.10  (04-26-1999)
Informant Accompanying Special Agents

  1. There are circumstances when special agents may find it necessary or desirable to have an informant accompany them on an investigative contact or activity. For example, the informant might prove of value in identifying a witness or taxpayer, pinpointing a location, introducing a special agent to a witness or potential informant, or in exceptional circumstances, attending a witness interview.
  2. In using an informant for these and similar purposes, special agents must exercise extreme care to protect the informant's identity, provide for the informant's physical safety, and prevent unauthorized Internal Revenue Code (IRC), Section, 6103, disclosure of returns or return information.
  3. As a general rule, an informant should not be present while special agents are conducting a witness interview. There are, however, exceptional circumstances when special agents may find it necessary or desirable to have an informant accompany them on a witness interview (for example, when the informant's presence during the interview will make a reluctant witness feel more at ease). In this regard:
    1. An informant's presence is permitted only when the witness requests the informant's presence, or the witness expressly consents to the informant's presence. This request or consent must be documented by the special agents in the memorandum of interview or other interview record.
    2. Under no circumstances should an informant be introduced as a federal agent, nor should anything be said or done that would lead the witness to mistakenly believe that the informant is a federal agent, a Service employee, or other government representative. Thus, it is very important that the special agents, and not the informant, question the witness and otherwise control the interview. If the informant's assistance is needed during the interview, the informant should write out the questions and give them to the special agents.

[9.4] 2.5.11  (04-26-1999)
Use Of Title V Relocated Witnesses In Investigations

  1. The DOJ maintains a continuing and residual relationship with a person who was enrolled in the Witness Security Program after he or she has been relocated. Because of this relationship, DOJ requires that investigative agencies and attorneys observe certain restraints in dealing with these people insofar as new investigations are concerned.
  2. Once an individual has been accepted into the Witness Security Program, neither the witness nor any individual relocated because of the witness' cooperation may be used as a confidential informant, unless the Service can justify to the (OEO) that the use of the individual as a confidential informant is essential to the investigation.
  3. Similarly, neither the witness nor any individual relocated because of the witness' cooperation may be used as a witness in an investigation other than the one for which the witness was placed in the Program without the consent of the OEO.
  4. Requests for production of a protected witness must be made through the sponsoring attorney or the Assistant Commissioner, CI, Attention: Witness Security Coordinator. The request should be made at least 10 working days in advance of the requested date. This request should be prepared for the Chief's signature and submitted through the Director of Investigations to the Assistant Commissioner, CI. The request must include:
    1. Purpose of request.
    2. Date needed.
    3. Duration of appearance.
    4. Names of persons to be present.
    5. Name and telephone number of person to be contacted in the district.

[9.4] 2.5.11.1  (04-26-1999)
After the Request is Approved

  1. The OEO will forward approved requests to the Witness Security Division, U.S. Marshals Service, or to the Inmate Monitoring Section, Bureau of Prisons (whichever is appropriate).
  2. All communications to OEO must be made through the Headquarter's Witness Security Coordinator (WSC) and should be addressed to the Senior Associate Director, Office of Enforcement Operation, P.O. Box 7600, Benjamin Franklin Station, Washington, DC 20044-7600. In case of emergency, OEO may be contacted telephonically at (202)
    633-3684. However, in all but extreme circumstances, emergency requests should be avoided.
  3. Prosecutors and investigators are requested to conduct interviews in neutral sites which will substantially reduce the danger to the witness and assist with the economical deployment of U.S. Marshals Service personnel.
  4. If a witness must be brought into the danger area, it is the responsibility of the prosecutor and the investigative agents to ensure that maximum use is made of the witness' time, and every effort should be made to keep such productions cost-effective. In the interest of security and economy, the witness must be returned to the relocation area or place of incarceration as soon as possible.
  5. Once it is learned or suspected that a witness was a Title V protected witness, the Chief, with the approval of the District Director, will, through normal channels, request the Assistant Commissioner, CI, to contact OEO and determine whether the person was actually a protected witness under their Program and, if he or she was, obtain approval from the OEO to use this person in the IRS investigation. In those instances where it is learned or suspected that an informant was a Title V protected witness, the above procedure should be followed provided that the Chief wishes to continue to encourage the use of the informant.
  6. The Chief should include in the memorandum a brief explanation as to the importance of this person to the investigation, whether it is anticipated that he or she will be called to testify before a grand jury or at a trial and any other information that the Chief feels should be brought to the attention of the Director, OEO.
  7. Until approval is obtained from the OEO, the Service will suspend its use of this person as either an informant or witness. The use of a relocated witness by the Service without the approval of the Director, OEO, could result in the witness(es) becoming the financial and physical responsibility of the Service.

[9.4] 2.5.11.2  (04-26-1999)
Contacting Protected Witnesses in a Federal Prison

  1. Prior to contacting a protected witness who is a prisoner at a Federal Correctional Institution, under the jurisdiction of the Bureau of Prisons, it is necessary that approval be obtained from the Director, OEO. The procedures detailed in text 2.5.12 of this chapter should be followed in requesting this approval.
  2. If it is learned that an incarcerated, protected witness may be in jeopardy, the Assistant Commissioner, CI, should be notified, so that he or she can refer the matter the OEO, which has the responsibility to coordinate these matter with the Bureau of Prisons. Arrangements may then be made to move the prisoner to another facility to assure
    protection.

[9.4] 2.5.11.3  (04-26-1999)
Contacts by Witnesses With Internal Revenue Service Employees

  1. Occasionally, witnesses who have been provided protection by the DOJ are faced with a situation where they believe their new identity may be in jeopardy because of the need to provide a Service employee with information relating to a witness' old identity.
  2. In such situations, the witnesses have instructions to notify their contact point in the U.S. Marshals Service who will notify the Director, OEO. The Director, OEO, will notify the Service's contact point, the Witness Security Coordinator (WSC), who will be responsible for any coordination with the WSC's of the Examination and Collection Divisions, as may be necessary, in order to resolve the matter in a manner which will protect the informant's identity as well as the Service's interest.
  3. In addition, the above Service procedures will be followed if, during the processing of a witness to be put in Justice's Witness Security Program, the Director, OEO, determines that the witness has a Service matter which should be resolved before the witness is relocated.

[9.4] 2.5.11.4  (04-26-1999)
Reports Required By Justice When Using Title V Witnesses In Investigations

  1. The DOJ has requested CI to provide them with a report of significant events and results in CI investigations involving participation by a witness or informant who has been accepted into Justice's Witness Security Program.
  2. A similar report is required on CI investigations involving participation by a Service protected witness or informant.
  3. Reportable events include, but are not limited to, the following actions resulting from participation or testimony by the protected witness or informant:
    1. Obtaining a search warrant.
    2. Obtaining an electronic surveillance authorization.
    3. Arrest.
    4. Grand Jury indictment.
    5. Complaint.
  4. Reportable results include:
    1. Guilty pleas.
    2. Acquittals.
    3. Convictions.
    4. Sentencings.
    5. Appeals.
  5. If a Form 1327-A, Arrest Report, or a Form 4930, Criminal Investigation Division General/Primary/Subject Investigation Report, is prepared for any of the above events, a copy of the form will suffice for this reporting requirement, provided the form is accompanied by a statement regarding the significance of the witness' or informant's participation in the event or result being reported.
  6. The above report will be prepared for the signature of the Chief and submitted through the Director of Investigations to the Assistant Commissioner, CI, Attention: Witness Security Coordinator. The report is due to the WSC within ten work days after the last significant event.
  7. Reports involving witnesses or informants under Justice's Witness Security Program will be coordinated by the WSC.

[9.4] 2.5.12  (04-26-1999)
Temporary Custody And Use Of Prisoners As Informants And Witnesses

  1. Occasionally, during an investigation, it is necessary to interview a witness or informant who is incarcerated or in a local halfway house. Interrogation or debriefing of such prisoners should normally be done at the penitentiary or other custodial facility where the prisoner is confined. However, in unique situations, where the circumstances warrant making the investigative interview away from the place of imprisonment, the Chief may, with the concurrence of the District Director or a designee, request temporary custody of a prisoner for this purpose.
  2. When requesting the use of federal prisoners in investigations when consensual monitoring devices, furloughs, or extraordinary transfers are necessary, the Chief will prepare a written request, 30 days in advance, which includes:
    1. Location of the prisoner.
    2. Identifying data on the prisoner including Bureau of Prisons register number, date of birth, social security number, sex, etc.
    3. Charges for which prisoner is incarcerated, including date and sentence.
    4. Copy of prisoner's arrest record or summary of the same must be attached.
    5. Necessity of utilizing the prisoner in the investigation. What other techniques have been tried, why have they failed.
    6. Name(s) of target(s) of the investigation and their role in the crime or organization under investigation.
    7. What is the prisoner's relationship or association with the targets under investigation?
    8. Are the targets aware of the prisoner's incarceration status? If so, what is the prisoner's cover story to avoid jeopardizing his or her safety or the investigation?
    9. Explain in detail the nature of the activity requested.
    10. Security measures to be taken to ensure the prisoner's safety if necessary, alleviate risk to the public, and prevent the prisoner's escape.
    11. Length of time the prisoner will be needed in the activity.
    12. Whether it will be necessary to move the prisoner to another prison upon completion of the activity.
    13. Whether the prisoner will remain in the custody of the investigative agency, be housed in jails or similar facilities at certain times, or whether he or she will be unguarded except for his or her own protection.
    14. Names of special agents assigned to the security detail and their local telephone numbers.
    15. Has the request been endorsed by the appropriate federal or state prosecutor? If not, explain why. Provide the name, phone number, and location of the Assistant United States Attorney endorsing the request.
    16. If a continuance is necessary, an interim progress report should be submitted. A detailed progress report should be submitted at the conclusion of the activity.
    17. If the prisoner is on writ status, sealed court order(s) must be obtained after the request has been approved.
    18. Whether the prisoner is represented by counsel or has waived representation.
  3. This request will be forwarded through the Director of Investigations to the Assistant Commissioner, CI, Attn: Witness Security Coordinator.
  4. The Assistant Commissioner, CI, will transmit the request to the OEO, Criminal Division, DOJ, which will coordinate the request with the Bureau of Prisons. The Bureau of Prisons will advise the Assistant Commissioner, CI, of its decision which, in turn, will be communicated to the requesting district.
  5. Within 45 days of the conclusion of the activity, the Chief will forward a report detailing the results of the activity through the Director of Investigations to the Assistant Commissioner, CI, Attn: Witness Security Coordinator. Reports involving the use of federal prisoners will be coordinated by the WSC.
  6. If the witness or informant is a non-federal prisoner, the advice of District Counsel should be sought as to the process for securing custody under governing state law.

[9.4] 2.5.12.1  (04-26-1999)
United States Marshals Service Assistance

  1. The United States Marshals Service will be requested to provide assistance in the instance of federal prisoners due to their responsibility for the safekeeping of federal prisoners. If such assistance is not provided by the Marshals Service, enough special agents should be assigned to the custody responsibilities to provide the constant presence of at least two special agents.
  2. A security plan should be developed for the entire period of the temporary custody of the prisoner to ensure the safekeeping of the prisoner and the safety of all. This security plan should provide for:
    1. A personal search of each prisoner upon each occasion of taking custody.
    2. No visits by other persons while the prisoner is in the Service's custody, unless such visits facilitate the interrogation.
    3. Special agents should return the prisoner to a federally approved custodial facility or the prisoner's usual place of confinement at the end of each day.
    4. If (c) is not possible, enough special agents should be assigned for constant guarding of the prisoner .
    5. Special agents should use personal physical restraint (handcuffs and leg irons) whenever appropriate.
    6. Special agents should have frequent contacts with their Group Manager while the prisoner is in their custody. The Group Manager should provide periodic reports to the Chief.
  3. All personnel assisting with the custody and interrogation of a prisoner should be constantly aware that the prisoner's cooperation may be motivated by desire to escape from custody.
  4. If during the interview it becomes apparent that the prisoner may become the subject of a criminal investigation, the procedures in text 9.4.12.12 should be followed.
  5. Special agents should follow the procedures in text 2.5.11 of this chapter for contacting a prisoner protected under Justice's Witness Protection Program.

[9.4] 2.5.13  (04-26-1999)
Information Provided From A Foreign Country By An Informant

  1. In those situations where an approved confidential informant agrees to provide information from a foreign country at the direction of the Service, the Chief will transmit a memorandum to the Director of Investigations for concurrence and will include the following information:
    1. The informant's designation number or code name.
    2. The position currently held by informant, e.g., foreign government official or bank official.
    3. The pertinent background information such as criminal record, associates, and employment history.
    4. The reliability of informant.
    5. The information sought and why it is needed.
    6. The taxable years and approximate tax liability or additional income involved.
    7. A detailed statement explaining informant's source(s) and means of securing information.
    8. If travel is involved, include the country or countries to be visited, a complete itinerary, a description of circumstances of case or project requiring informant to travel overseas, and an estimate of travel expenses.
  2. Upon concurrence, the Director of Investigations will forward the request through the Chief, Money Laundering and International Section (OP:CI:O:N:M) to the Assistant Commissioner, CI, for concurrence. Upon concurrence, by the Assistant Commissioner, CI, the request will then be transmitted to the Assistant Commissioner (International) for
    concurrence.

[9.4] 2.5.14  (04-26-1999)
Illegal Acts Or Violation Of Rights By An Informant

  1. In accordance with text 2.5.5.1(2)a of this chapter, all confidential informants will be advised not to commit illegal acts.
  2. An informant cannot be used to or encouraged to commit acts, which the Service cannot otherwise authorize its undercover agents to commit.
    1. Violations of criminal statues and infringement upon the constitutional rights of any person by Service personnel or by confidential informants are prohibited.
    2. Under no circumstances can Service personnel or an informant employ such techniques as illegal threats or assaults against any person, breaking and entry into another's premises without a search warrant, the illegal seizure of paper or other property, or the illegal overhearing of conversations.
    3. However, special agents, in the performance of their official duties, may utilize investigative techniques which appear to but do not in fact violate a state or local criminal statute (e.g., holding oneself out as a drug trafficker or in a fencing operation, displaying jewelry as stolen).
    4. District Counsel should always be consulted when questions exist as to the proper application of the law (federal, state, or local) to a given situation.
  3. In receiving unsolicited information for the first time from an informant, the Service may accept the information and in accordance with its value, may pay for such information even if it may have been obtained illegally by the informant. If it appears that the informant engaged in illegal acts in obtaining the furnished information, follow the procedures in 2.5.15 of this chapter.

[9.4] 2.5.15  (04-26-1999)
Violations Of Law A By Confidential Informant In Gathering Information

  1. The Service will not condone unconstitutional or criminal acts by a confidential informant in gathering information for the Service. Such behavior may jeopardize the investigation.
  2. Whenever a Service employee learns that a Service confidential informant, in obtaining information for the Service, has employed illegal techniques such as breaking and entry into another's premises without a search warrant, the illegal seizure of papers or other property, or the illegal overhearing of conversations, the Service employee will immediately notify the Chief. The Chief will:
    1. Determine the advisability of notifying appropriate law enforcement authority using the criteria set forth in text 2.5.17(4) a through d of this chapter. Notification, if deemed to be appropriate, will be in accordance with the Disclosure of Official Information Handbook.
    2. Terminate the use of the informant and not use the information obtained by the informant or leads derived from the information until authorized to do so by the Chief Compliance Officer pursuant to the procedures in 2.5.15.1 and 2.5.15.2 below.

[9.4] 2.5.15.1  (04-26-1999)
Notify the Assistant Commissioner, Criminal Investigation, of the Alleged Violation

  1. The Chief will immediately notify, by telephone, the Director or Assistant Director, National Operations Division, of the facts relating to the alleged violation. He or she will also notify the District Director and the Director of Investigations who, in turn, will notify the Regional Commissioner. As soon as practicable thereafter, the Chief will submit a detailed written report, through the Director of Investigations, to the Assistant Commissioner, CI. Intervening reviewing officials may add their comments, by separate memorandum, if they so desire. The report will contain the following information:
    1. The facts and circumstances concerning the investigation with which the confidential informant was connected.
    2. The facts and circumstances concerning the illegal act(s) of the confidential informant.
    3. The action taken by the Service to disclose the illegal act(s) to the appropriate law enforcement authority; or any circumstances that caused the Chief to not notify the appropriate law enforcement authority.
    4. A description of the information obtained through the informant's illegal act(s).
    5. An assessment of the criminal potential of the investigation if the information obtained by the informant is not used; and the Chief's opinion on whether the investigation should be closed or continued.
    6. Any circumstances that, in the Chief's opinion, would justify continued use of the informant or the information obtained by the informant.

[9.4] 2.5.15.2  (04-26-1999)
Notify the Chief Compliance Officer

  1. The Assistant Commissioner, CI, will, through channels, advise the Chief Compliance Officer of the facts relating to the confidential informant's activity.
  2. The Assistant Commissioner, CI, will also decide whether he or she agrees or disagrees with each of the following items contained in the Chief's report:
    1. The Chief's determination to not notify the appropriate law enforcement authority.
    2. The Chief's proposal to continue the investigation.
    3. The Chief's proposal to continue use of the informant.
    4. The Chief's proposal to use the information obtained by the informant.
  3. If the Assistant Commissioner, CI, does not concur with any of the above items, he or she will so advise the Chief through channels and the Chief will take the necessary action to comply with the Assistant Commissioner's decision.
  4. If the Assistant Commissioner, CI, concurs with any of the above items, his or her recommendations will be forwarded to the Chief Compliance Officer for final decision.

[9.4] 2.5.16  (04-26-1999)
Violations Of Law By An Informant In Gathering Information

  1. Evidence illegally obtained may be utilized by the Service if the unlawful taking was by an informant without the participation or collusion of Service employees.
  2. Service employees must never indicate or imply to an informant that techniques such as:
    1. breaking and entry into another's premises without a search warrant;
    2. the illegal seizure of papers or other property; or
    3. the illegal overhearing of conversations is condoned by the Service or would be beneficial to a Service investigation.
  3. If an informant presents illegally obtained information and it can be ascertained that the informant has had previous contact with the Service either in connection with the matter at hand or other matters, the Chief will review the facts and circumstances surrounding the incident.
  4. The Chief will review this information in an attempt to determine if a Service employee, during a prior contact with the informant, indicated or implied to the informant that illegal techniques would be condoned by the Service or would be beneficial to the Service investigation.
  5. The Chief will also seek a legal opinion from District Counsel regarding the likelihood of the information being suppressed, should an investigation, based on the information, go to trial.
  6. In all instances where illegally obtained information is presented to the Service by an informant, the informant will be advised that the Service will not accept any further information from him or her obtained in this manner. The special agents dealing with the informant will prepare a memorandum indicating the informant was so advised.
  7. The Chief will make a determination of the advisability of notifying appropriate law enforcement authorities of the illegal act using the criteria set forth in text 2.5.17(4) a through d located in this chapter. Notification, if deemed appropriate, will be made in accordance with the Disclosure of Official Information Handbook.

[9.4] 2.5.17  (04-26-1999)
Violations Of Law Involving Serious Crimes By An Informant Not Connected With A Service Assignment

  1. For the purpose of these Handbook procedures, the phrase "serious crime" means any crime which is a felony under federal or state law.
  2. Whenever the Service has knowledge of the actual commission of a serious crime not connected with a Service assignment by an informant, the Chief shall make a determination of the advisability of notifying appropriate law enforcement authorities in accordance with the Disclosure of Official Information Handbook.
  3. When the Chief determines it is not advisable to notify another law enforcement agency, he or she will notify the District Director, by memorandum, of the facts and circumstances concerning the informant's law violation and also provide a recommendation on reporting the violation and on continued use of the informant.
  4. In determining the advisability of notifying appropriate law enforcement authorities of criminal activity by Service informants, the reviewing and/or approving officials, as appropriate, shall consider the following factors:
    1. The seriousness of the crime in terms of danger to life and property.
    2. The degree of certainty of the information regarding the criminal activity.
    3. Whether the appropriate authorities already know of the criminal activity and the informant's identity.
    4. The degree to which notification would endanger the life of the informant or another person.

[9.4] 2.5.18  (04-26-1999)
Payments To An Informant

  1. Payments to an informant who provides information to the Service can be made as a confidential expenditure from the Imprest Fund, from the Asset Sharing Fund, or by the informant filing a Claim for Reward (Form 211).
  2. Under no circumstances are Internal Revenue employees authorized to assure any person that a reward will be paid in any amount, nor should Internal Revenue personnel indicate to the informant in any manner the amount of the probable tax recovery or whether such recovery is based upon the information submitted by the informant.
  3. If an inquiry is made as to the amount which may be received, the inquirer should be furnished with a copy of Publication 733, Rewards for Information Given to the Internal Revenue Service, pertaining to rewards for information about violations of the Internal Revenue laws.

[9.4] 2.5.18.1  (04-26-1999)
Confidential Expenditures

  1. Instructions concerning confidential expenditures and courtesy expenditures which involve payments to or on behalf of an informant are contained in text CI Handbook 9.11 Chapter 1.

[9.4] 2.5.18.2  (04-26-1999)
Asset Sharing

  1. Instructions concerning asset sharing which involve payments to or on behalf of an informant are contained in CI Handbook 9.7.

[9.4] 2.5.18.3  (04-26-1999)
Claim for Reward (Form 211)

  1. Instructions concerning rewards for information submitted to the IRS are contained in Handbook 104, Information and Informant Rewards.

Exhibit [9.4] 2-1  (04/26/99)
Approved Confidential Informant Advice

Exhibit [9.4] 2-2  (04/26/99)
Receipt for Cash

Exhibit [9.4] 2-3  (04/26/99)
Approved Confidential Informant -- Memorandum of Contact [Optional]

Exhibit [9.4] 2-4  (04/26/99)
Approved Confidential Informant -- Monthly Log [Optional]

Exhibit [9.4] 2-5  (04/26/99)
Approved Confidential Informant -- Identity Record

Exhibit [9.4] 2-6  (04/26/99)
Request For Approval To Use Confidential Informant

Exhibit [9.4] 2-6 (Cont.)  (04/26/99)
Request For Approval To Use Confidential Informant

Internal Revenue Manual  

Hndbk. 9.4 Chap. 2 SOURCES OF INFORMATION

  (04-26-1999)


05/02/2001 14:28:44 EST