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C.I. at a glance
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Narcotic
Investigations
 
9.5.7
NARCOTIC INVESTIGATIONS
9.5.7.1
(09-02-1999)
OVERVIEW
- The Criminal Investigation
(CI) Narcotics Program involves Organized Crime Drug
Enforcement Task Force (OCDETF) and High Intensity Drug Area
(HIDTA) investigations of members of high-level drug
trafficking organizations. Additionally, the Narcotics
Program includes Non-OCDETF/Non-HIDTA and localized need
investigations that involve the financial activities of
individuals who transport, distribute, or finance illegal
drugs or launder significant illegal drug proceeds.
9.5.7.2
(08-01-2003)
ORGANIZED CRIME DRUG ENFORCEMENT TASK FORCE PROGRAM
- The OCDETF program was
established to identify, investigate, and prosecute members
of high-level drug trafficking enterprises and to dismantle
the operations of those organizations. The program is
designed to achieve this goal by adding Federal resources to
investigate and prosecute organized crime connected with
drug trafficking, other major drug trafficking
organizations, and to improve interagency coordination and
cooperation in the investigation and prosecution of major
drug organizations.
- The Department of Justice
(DOJ) Guidelines for the Drug Enforcement Task Forces
established regional task forces based on US judicial
district boundaries. Each regional task force maintains its
own organizational identity and is coordinated by a Regional
Advisory Council. The DOJ Guidelines contain the goals,
policies, and standards of the program, national and field
organizational structures, national and field
responsibilities, and task force procedures which apply to
anyone working on a task force investigation, regardless of
whether there has been an official designation of a task
force attorney, agent, or support person.
- Disclosure of any tax
information must be consistent with 26 USC §6103,
Confidentiality and Disclosure of Returns and Return
Information. Internal Revenue Manual (IRM) 11.3, Disclosure
of Official Information provides guidance on this subject.
The local Disclosure Officer is also a reliable avenue for
assistance.
9.5.7.2.1 (08-01-2003)
Organization and Responsibilities
- The Commissioner of the
Internal Revenue; Chief, CI; Director, Operations Policy
& Support; Directors, Field Operations; and Special
Agents in Charge (SAC) are responsible for administering
and providing general guidelines for IRS objectives and
responsibilities under the program.
- Primary liaison between
IRS and DOJ will be maintained at the CI Headquarters
level of IRS and the Associate Attorney General level of
DOJ.
- The Chief, CI, is
designated the Senior Coordinating Official responsible
for implementing IRS objectives and responsibilities
under the program and for monitoring its progress.
- The Director, Narcotics
and Counterterrorism Section (CI:OPS:NC), will monitor
all aspects of the program to ensure that IRS objectives
under the program are achieved.
- Coordinators for the
OCDETF regions work at the direction of the Director,
Narcotics and Counterterrorism, CI:OPS:NC, and represent
Headquarters in the overall administration of the
IRS-OCDETF effort. The duties and responsibilities of
the OCDETF Coordinators include:
- monitoring
activities and programs of all OCDETF cases
within the region
- conducting
on-site OCDETF case reviews
- evaluating and
approving all investigation initiation proposals
submitted to the OCDETF Regional Coordination
Group
- overseeing the
State and Local Overtime and Reimbursement
Program
- serving as
liaison with the local HIDTA
- working
full-time as the IRS representative on the
Regional Coordination Group
- advising the
Director, Field Operations, in the overall
administration of the program
- assisting the
Director, Field Operations, in resolving
conflicts and disagreements between and among
IRS offices and between IRS and US Attorney's
Offices involved in the task force operation
- working with
the SAC to ensure that full and effective IRS
participation in the program is achieved
- monitoring,
with other agency representatives, the patterns
of money laundering and drug trafficking in area
and field offices
- preparing all
necessary agency OCDETF reports
- not disclosing
to the task force any return information whose
disclosure is not consistent with 26 USC §6103
- performing
other related duties
- The SAC will monitor
all aspects of the program to ensure IRS objectives
under the program are achieved. Further, as re-delegated
by the Commissioner under Delegation Order No. 263 (as
revised), the Chief, CI, is authorized to review,
approve, and refer task force investigations directly to
the Criminal Section, Tax Division, Department of
Justice, for grand jury investigation without first
submitting those investigations to Area Counsel for
legal review. However, the legal resources of Counsel's
office will continue to be utilized when requested by
DOJ or IRS officials. This authority was re-delegated by
the Chief, CI, to the SAC, see Delegation Order No. 3,
Criminal Referral Authority.
- The SAC, in both core
city and non-core city task forces will provide for the
selection and supervision of all field office personnel
assigned to a task force and will serve on any District
Drug Enforcement Coordination Group(s) within the field
office's jurisdiction.
9.5.7.2.2 (08-01-2003)
Task Force Regions and Core Cities
- The task force regions
and core cities, established according to US judicial
jurisdictions, are found on the CI Web.
9.5.7.2.3 (08-01-2003)
Investigation Selection and Review Procedures
- The investigation
selection criteria are:
- major drug
trafficking organizations that warrant
involvement of more than one investigative
agency
- major drug
trafficking organizations that demand
significant attorney resources during the
investigative stage
- significant and
complex financial transactions warranting CI
resource commitment
- Examples of such
investigations would be matters involving electronic
surveillance, extensive use of the grand jury, the
presence of substantial property or cash that is likely
to be subject to forfeiture, the likelihood of income
tax violations, and the corruption of public officials.
- Major drug trafficking
organizations generally involve a sizable number of
individuals or large actual or potential profits gained
from the trafficking. Major drug trafficking
organizations may include:
- Criminal groups
formed for the purpose of importing or
distributing large amounts of controlled
substances or financing such operations.
- Criminal groups
formed for money laundering operations to
transfer or legitimize narcotics-related monies
of the foregoing. These organizations may be
established or emerging groups.
- Task Force resources
and efforts are to concentrate on the following:
- Investigations
that focus on criminal activities in order to
achieve high-level prosecutions within an
organization concentrating on the financial
aspects of the case, including tax violations.
- Investigations
that focus on prosecutions at the highest
possible level of an organization seeking to
maximize the amount of illegal assets forfeited
and seeking to recover the cost of prosecution
wherever authorized.
- Investigations
and prosecutions that are expected to result in
the conviction of persons engaged in the
well-organized activities related to the
importation, manufacture, distribution, crop
cultivation, diversion, sales, financial
backing, and money laundering associated with
the illicit trafficking of any illegal drug or
narcotic substance, including pharmaceuticals
trafficking and the purchase and use of
precursor chemicals.
- Investigations
which have the potential of disrupting the
organization through the substantial seizure and
forfeiture of money, conveyances, real estate,
or other non-drug assets.
- The preceding are
general standards for the types of investigations that
may be accepted as Task Force investigations. In July
2002, the Executive Office for OCDETF issued revised
standards for OCDETF cases. Questions concerning the
current OCDETF Program guidelines should be directed to
the OCDETF Executive Office; the IRS Regional OCDETF
Coordinator; or Headquarters Office, Narcotics and
Counterterorrism Section, CI:OPS:NC.
- The SAC is authorized
to approve requests for income tax grand jury
investigations under the program.
- All investigations will
be conducted using the grand jury process.
9.5.7.2.4 (08-01-2003)
Tracking Procedures for Organized Crime Drug
Enforcement Task Force Program Investigations
- The CI Program (CIP)
Codes 201 and 204 have been assigned to track OCDETF
activity under the Criminal Investigation Management
Information System (CIMIS). The CIP Code 201, OCDETF
(NAROC), tracks activity solely related to OCDETF
investigations. The CIP Code 204, HIDTA/OCDETF (HIDOC),
tracks activity on investigations that are related to
both the HIDTA and OCDETF task forces.
- As a result of its
participation in the OCDETF program, the IRS is
reimbursed for certain incurred expenditures. The
reimbursement procedures require all qualifying OCDETF
investigative time be reported on the Criminal
Investigation Monthly Activity Report (Form 5043). The
qualifying reimbursable time is limited to qualifying
task force investigative time for all resources expended
on an approved Criminal Investigation OCDETF
investigation or prosecution and qualifying task force
investigative time which includes:
- Assisting
opened OCDETF investigations or prosecutions
when CI does not have an open investigation.
- Evaluation and
information gathering time relating to an open
OCDETF investigation being considered to be
opened as a CI investigation.
- All Task Force
Coordinators' time.
9.5.7.2.5 (08-01-2003)
Reimbursement to State and Local Law Enforcement
- Money from the Treasury
Forfeiture Fund may be used to pay reimbursable costs
incurred by local, county, and state police law
enforcement agencies when their members participate in
joint operations with Treasury law enforcement agencies.
9.5.7.2.5.1 (08-01-2003)
Internal Revenue Procedures
- Treasury and IRS,
CI Headquarters procedures are summarized as
follows:
- The costs
to be funded must be costs of local, county
or state Law Enforcement Officers (LEO). The
authority does not include the cost of
Federal personnel, private individuals,
administrative personnel, or other local,
county, or state officials who are not
classified as "law enforcement officers" .
Costs incurred by local or state prosecutors
are reimbursable.
- The local,
county, or state LEO must be involved in a
joint law enforcement operation. All costs
to be funded must be directly related to a
joint law enforcement operation. A joint
operation is defined as an operation,
including OCDETF cases, where the Treasury
law enforcement agency is the lead or sole
Federal agency.
- Monies
funded for a particular joint law
enforcement operation may only be used for
that operation. These funds are not a grant
to the local, county, state agency.
- Payments
may be made to the extent they are included
in the Treasury law enforcement agency's
Fiscal Year Plan and the monies are
available within the fund to satisfy the
request. If a joint law enforcement
operation extends into the next fiscal year,
a new authorization must be made. Unused
funds remaining at the end of an operation
or at the end of the fiscal year must be
de-obligated. Authorizations/funds cannot be
carried over from one fiscal year to the
next.
- It is the
responsibility of the Treasury law
enforcement agency to ensure that the local,
county, or state costs are permissible costs
under the statute and are costs directly
related to the joint law enforcement
operation.
- The following
expenses may be reimbursed:
- overtime
travel and training for law enforcement
personnel, surveillance equipment, cellular
telephone costs, payments to confidential
informants, and purchase of stolen property
as evidence
- remote
body-worn transceivers for undercover work,
and lease of unmarked vehicles
- rental of
off-site locations for electronic
monitoring, command post, or other
office/storage space needs
- leasing of
copying, translation, transcription, or
facsimile machines as well as the costs of
translation and evidentiary tapes
- Reimbursement may
not be made for salaries or benefits, nor for public
education, violent crime and rape assistance
programs, and similar outreach efforts.
- Each SAC, must
consult with their OCDETF Coordinator, or with the
Narcotics and Counterterrorism Section, CI:OPS:NC,
regarding TFF funds availability prior to entering
into any agreement. A new agreement must be approved
each fiscal year.
9.5.7.2.5.2 (08-01-2003)
Agreement Forms and Procedures
- Agreements will be
processed in the order received based upon available
funds. Overtime requests will receive priority over
other expenses. Early approval of existing
agreements should be sought to avoid disruption in
the payment process when transitioning to a new
fiscal year. The forms necessary to initiate
agreements are:
- Form 9975,
Agreement Between Treasury Enforcement
Agencies and Local, County and State Law
Enforcement Agencies For The Reimbursement
Of Expenses
- Form 9973,
Reimbursement Request for Overtime Costs and
Authorized Expenses (Attachment to
Agreement).
- Form 9974,
Request to Establish Reimbursement for
Local, County or State Law Enforcement
Agencies Participating in Joint Law
Enforcement Operations with Treasury Law
Enforcement Agencies
- Form 9972,
Request for Reimbursement of Joint
Operations Expenses
- Form
L-2963, Amended State and Local Overtime
Agreements
- Field offices must
judiciously estimate overtime and other expenses for
each agreement. The Executive Office for Asset
Forfeiture Directive Number 18 (located on the CI
Web), should be reviewed to determine reimbursable
joint operation expenses. A request to establish and
monitor an agreement and the related reimbursable
procedures will be prepared and forwarded for
approval as follows:
-
Form 9975,
Agreement Between Treasury Enforcement
Agencies and Local, County and State Law
Enforcement Agencies For The Reimbursement
Of Expenses
— This form is the actual overtime
reimbursement contract that is entered into
between the local, county, or state agency
and the Special Agent in Charge (SAC) of the
field office. A separate contract is
required for each agency or police
department that has officers working on the
joint Treasury operation. These contracts
are effective for the duration of the
operation or throughout the end of the
fiscal year, whichever comes first. A new
agreement must be approved, if the
investigation continues beyond the end of
the fiscal year.
-
Form 9975, Part
IV, Projected Dates of Remaining Operation —
The projected dates should begin with the
date that the officers are expected to begin
to assist in the joint operation. The period
should end on the projected ending date of
the investigation or the end of the fiscal
year, whichever comes first.
-
Form 9975, Part
V, B-4 —
The name and address listed at the bottom of
the form as the primary IRS contact should
be the Supervisory Special Agent (SSA) or in
some cases, the OCDETF Regional Coordinator.
-
Form 9975, Part
V, B-6 —
The amount of the contract should be
estimated. This can be done by using the
following formula:
(number of officers × average overtime
reimbursement rate × estimated total number
of overtime hours each officer is expected
to work per week × the number of weeks
remaining until the projected end of the
operation provided in Part IV).
Treasury regulations limit the total amount
of overtime any one officer can be
reimbursed for during any one year to a
maximum of $13,000. Once the total estimated
cost is computed, the field office should
contact its OCDETF Regional Coordinator to
discuss available funding. Each year,
Treasury Executive Office of Asset
Forfeiture (TEOAF) grants IRS an amount for
the reimbursement of overtime and other
expenses. As the year progresses these
monies are obligated and paid.
Note:
Travel
and related expenses under certain
circumstances can also be reimbursed.
The field office should consider
discussing anticipated travel and
related expenses with its OCDETF
Regional Coordinator, if such expenses
are anticipated.
- Once Form
9975 has been completed and reviewed by
field office management, it must be
presented to the local/state agency for
signature. A signature is required from a
high ranking police official who has the
authority to sign contracts for the
department or the municipality that the
police department serves. It is important
that the local, county, or state officials
understand that the reimbursement of
overtime and other expenses is contingent
upon the approval of both the SAC, the
Director, Narcotics and Counterterrorism,
CI:OPS:NC, and ultimately by the funding
source. Until all necessary approvals are
obtained and a TEOAF or reimbursement number
(REIM) is assigned, there is no obligation
on the part of the IRS/Treasury to reimburse
overtime or other expenses. The
authorization forms must be
contemporaneously completed with the start
of the joint operation or as soon as it is
determined that overtime is required.
Note:
It is
important that each local, county, or
state official enter the date they
signed the form.
-
Form 9973,
DEPARTMENT OF THE TREASURY LOCAL, COUNTY,
AND STATE LAW ENFORCEMENT AGENCY
Reimbursement Request for Overtime Costs and
Authorized Expenses (Attachment to
Agreement)
— This form identifies the officers from a
specific local/state agency participating in
a joint law enforcement operation and for
whom overtime will be reimbursed. If an
officer is not listed on this form, overtime
cannot be submitted for reimbursement. The
top portion of the form must be completed
with identifying information from the police
department or state agency including its tax
identification number (formerly known as the
employer identification number or EIN). Each
officer's badge number, rank, SSN, DOB, and
date of last firearms qualification must be
provided. Make sure the information is
current throughout the life of the
operation. A new/revised form must be
submitted when an officer is added to an
operation at a later time. Please note that
officers must have passed firearms
qualifications within the last year and
generally, approval will not be given for
officers whose annual qualification
anniversary will expire within two months of
the date the Form 9975 is submitted.
-
Form 9974,
Request to Establish Reimbursement for
Local, County or State Law Enforcement
Agencies Participating in Joint Law
Enforcement Operations with Treasury Law
Enforcement Agencies
— This form is used to transmit the contract
package (Forms 9975 and 9973) to
Headquarters. It requires the signature of
the SAC inside the box titled "TREASURY
AGENCY FIELD OFFICE APPROVAL" . "TOTAL
ESTIMATED COSTS" must appear on the same
page as the signature(s).
Note:
Form
9974 must not be longer than one page.
-
Form 9972,
Request for Reimbursement of Joint
Operations Expenses
— This form can be completed by a case
agent, SSA, or an official from the
local/state agency. However, the form does
require the signature of an official from
the local/state agency before being
submitted. On the upper right hand corner in
the box titled "TFF Tracking Number" the
REIM number assigned to the agreement must
be inserted. Each officer should be
individually listed in the "Overtime
Expenses" section of the form with the dates
worked, total number of hours worked,
overtime payment rate, and the total
overtime requested. The cost per hour is
limited to the actual amount paid to the
officer (actual hourly overtime rate) and
should not include benefits. The middle of
the form requires the "total number of
regular hours worked during this billing
period on cases for which overtime was
requested by the officers listed above" .
Generally, this number will be 40 hours per
week per officer. An individual Form 9972
should be completed and submitted to the
OCDETF Regional Coordinator for each
calendar month. Forms 9972 should not
include more than one calendar month. The
OCDETF Coordinator will forward completed
Forms 9972 each month to the Director,
Narcotics and Counterterrorism, CI:OPS:NC.
Note:
If an
operation incurs no expenses over three
consecutive months, the field office
will be contacted by the OCDETF
Coordinator to discuss the de-obligation
of outstanding funds.
- The
local/state agency must provide
documentation for the overtime hours worked
by each officer. The documentation should be
attached to the Form 9972 and a local/state
official and the SAC must sign the form.
Acceptable documentation for overtime costs
includes copies of time cards or overtime
approval forms or the records used by the
local/state agency to account for or control
overtime. At a minimum the documentation
should identify the officer and the task
force or joint Treasury law enforcement
operation for which the overtime was
incurred and list the hours worked.
-
Documentation for travel and other related
expenses must be attached to Form 9972.
Acceptable documentation for travel and
related expenses include receipts for
travel, lodging, meals, cell phone expenses,
space/vehicle rental, etc. If the
local/state agency has a per diem policy for
meals and incidental expenses, an official
statement on local/state letterhead
indicating what the officers were paid by
the agency should be included.
- Once the
Form 9972 is completed and signed by a
local/state official, with required
documentation attached, either the SSA or
case agent should review the form and
certify that the request is reasonable and
reflects actual hours worked on the joint
Treasury investigation by initialing the
front page and forwarding to the SAC for
signature. The completed Form 9972 is sent
to the Director, Narcotics and
Counterterrorism, CI:OPS:NC, through the
OCDETF Regional Coordinator for review,
signature, and forwarding to TEOAF.
-
Form L–2963,
Amended State and Local Overtime Agreements
— This form is used to request additional
funds or de-obligate remaining funds. If
additional funds are needed, the Form
L-2963, must be submitted through the OCDETF
Coordinator. Headquarters will prepare Form
9974 for signature of the Director,
Narcotics and Counterterrorism, CI:OPS:NC,
before forwarding the form along with Letter
2963 signed by the SAC to TEOAF.
- At the end
of an operation, the end of the fiscal year,
or as soon as it is determined that
requested funds will not be used, Letter
2963 (L-2963) should be submitted to
de-obligate any remaining funds. If funds
are to be de-obligated at the end of the
fiscal year, the letter should be submitted
immediately after all reimbursement requests
for expenses incurred during the fiscal year
have been submitted and approved.
- After Form 9975 is
signed and dated by the local officials, it should
be forwarded along with Form 9974 and Form 9973 to
the SAC for signature and date.
Note:
The signature of
the SAC and the date signed must appear on Form
9975. As a general rule, the contractual
obligation to reimburse local, county, and state
overtime will begin no earlier than the first
day of the month that the SAC signs Form 9975.
- Completed, signed,
and dated forms are forwarded to the OCDETF Regional
Coordinator for review. After reviewing the package,
the OCDETF Coordinator retains a copy and will
forward the forms to the Director, Narcotics and
Counterterrorism, CI:OPS:NC, for review, signature,
and forwarding to TEOAF for approval and funding.
The TEOAF will assign a REIM number to the contract.
Copies of the approved forms will be returned to the
field office with a copy going to the OCDETF
Coordinator.
- Once the REIM
number is assigned, the local, county, or state
agency must begin to file monthly reimbursement
requests for overtime and other expenses related to
the joint Treasury operation. Reimbursement requests
should be submitted via Form 9972 to the OCDETF
Regional Coordinator.
9.5.7.2.6 (08-01-2003)
Physical and Personnel Security
- Each OCDETF office,
under the jurisdiction of DOJ, will be equipped with
physical security measures wherein OCDETF members may
review and discuss information up to and including
National Security Information at the Top Secret Level.
- Technical IRS personnel
assigned to work without escort within an OCDETF office
shall be clearable to the Top Secret security level and,
when deemed necessary, will be certified for Top Secret
clearance and available to attend meetings in which Top
Secret data is discussed and examined. Each such
employee must have been the subject of a recently
(within 5 years) completed full field background
investigation favorably adjudicated.
- Any CI employee
requiring a security clearance or a clearance elevated
to Top Secret will follow the procedures on initiating
or obtaining a security clearance found on the CI Web.
- Routine involvement and
assignment to OCDETF will not necessitate the issuance
of a Top Secret Security Clearance. Top Secret Clearance
requests should be initiated only for those technical
personnel who are required to access or disseminate
sensitive data which has been classified " Top Secret" .
Clearances may also be granted for individuals required
to attend briefings regarding OCDETF matters, if it is a
requirement of the facility wherein the meeting is
conducted. For these individuals, a memorandum
requesting Top Secret Clearance must also accompany the
investigation documents. These submissions should be
forwarded as expeditiously as possible through the
Background Investigation Coordinator, St. Louis
Personnel office, see Obtaining a Security Clearance on
the CI Web.
9.5.7.3
(08-01-2003)
NON-OCDETF NARCOTICS INVESTIGATIONS INCLUDING NARCOTICS
OTHER AND HIGH INTENSITY DRUG TRAFFICKING AREA
INVESTIGATIONS
- The Commissioner of the
Internal Revenue Service, through the Chief, CI; Director,
Operations Policy and Support; Directors, Field Operations;
and the SAC are responsible for administering and providing
general guidelines for IRS aspects of narcotics related
investigations.
- Primary liaison between IRS
and Drug Enforcement Administration (DEA) will be maintained
at the Headquarters level of IRS, and at the Headquarters
level of DEA.
- Regional OCDETF
coordinators will closely monitor all aspects of non-OCEDTF
activities to ensure that Narcotics Program objectives are
achieved.
- The SAC is the responsible
official for implementing an effective liaison program with
all DEA offices located within the IRS field office.
9.5.7.3.1 (08-01-2003)
Selection of Investigations
- Investigations will be
evaluated and conducted with an emphasis on quality,
impact, and in-depth investigations involving
significant financial analysis. These investigations
should target organizations that meet the high standards
for designation as OCDETF investigations, or which, in
rare
and
unique
instances, serve a specified localized law enforcement
need.
- Criminal Investigation
will aggressively investigate money-laundering activity
within the established HIDTAs. Except for the unusual "
local need" investigations, narcotics-related income tax
and money laundering investigations must, in addition to
meeting OCDETF standards, meet the Law Enforcement
Manual (LEM) Part 9 criteria. In selecting
narcotics-related investigations, field office
management should refer to the OCDETF Program
Guidelines. Questions regarding the current OCDETF
Program including case selection criteria should be
directed to the OCDETF Executive Office; the IRS
Regional OCDETF Coordinator; or Headquarters Office,
Narcotics and Counterterrorism, CI:OPS:NC.
- Field offices are
encouraged to establish Financial Investigative Task
Forces (FITFs) or other investigative initiatives, such
as the HIDTAs and OCDETFs and High-Risk Money Laundering
and Related Financial Crimes Areas (HIFCAs) that
incorporate the concepts of multi-agency,
multi-jurisdictional collaboration in coordination with
the US Attorney's Office to identify significant
organizations involved in financial crimes.
- Narcotic-related
primary and subject investigations not related to either
the HIDTA or OCDETF program will be tracked under CI
Program Code 202, Narcotics-Other (NAROT). The
HIDTA-related investigations will be tracked under CI
Program Codes 203 and 204. The CIP Code 203, HIDTA
(HIDTA), tracks activity solely related to HIDTA
investigations. CIP Code 204, HIDTA/OCDETF (HIDOC),
tracks activity on investigations that are related to
both the HIDTA and OCDETF task forces.
- The SAC and territory
managers in the other operating divisions, respectively,
shall make the final determinations as to which cases
shall be subject to either a criminal investigation or
an audit examination, using established IRS standards.
- All HIDTA and
Narcotics-Other investigations that are developed and
meet OCDETF investigative standards will be proposed for
inclusion in the OCDETF program.
9.5.7.3.2 (08-01-2003)
Interagency Priorities in Narcotics Investigations
- The investigation and
prosecution of controlled substance violations by DEA
will generally take precedence over the investigation
and prosecution of tax violations.
- In those instances
where the tax investigation has either been completed or
substantially completed, the DEA and IRS will cooperate
in attempting to secure simultaneous indictments in
accordance with the disclosure laws and regulations.
- In order to avoid
compromising DEA investigations and endangering DEA
personnel and cooperating individuals, IRS will
ordinarily honor DEA requests to temporarily suspend or
limit specific IRS non-narcotics-related investigations.
For example, IRS will ordinarily honor a DEA request to
temporarily suspend any IRS activity that would expose
or hinder the activities of DEA undercover personnel;
however, other IRS investigation and examination
activities related to the investigation would proceed.
- All such requests from
DEA Special Agents in Charge (SAC) or Resident Agents in
Charge (RAC) should be in writing and will state the
specific activities to be temporarily limited and the
period of time for which suspension is requested. The
written request will be made part of the investigation
file.
- Such requests shall be
submitted to the SAC of the IRS field office conducting
the inquiries. If the request involves activities being
conducted independently by another operating division,
the request will be immediately referred to the
territory manager of that division with the SAC
providing advice to the division as necessary to
properly resolve the issue.
- If the territory
manager determines that IRS activities should be limited
as requested, the DEA official making the request and
the affected or involved IRS personnel will be so
advised.
- If the territory
manager determines that, because of extraordinary
circumstances such as imperilment of a substantial civil
liability, IRS activities should not be temporarily
limited, the matter will be discussed with the
requesting DEA official. If agreement cannot be reached,
the matter will be referred immediately to the area
manager of the other operating division and CI Director,
Field Operations.
- If the area manager
determines that the investigative inquiries should be
temporarily limited, he/she will so advise the territory
manager; Director, Field Operations; and the SAC. If the
area manager determines otherwise, the matter will be
immediately referred to the Commissioner of the
operating division for coordination with the Chief, CI
and the DEA Headquarters coordinating official. If a
determination cannot be reached at the Commissioner of
the operating division and Chief, CI level, the final
decision will be made by the Deputy Commissioner, IRS.
- Until the matter is
resolved, no IRS action will be taken that would
endanger DEA personnel and cooperating individuals.
- Disclosure of
information to DEA in connection with the above matters
will be made in accordance with disclosure law and
regulations (see subsection 9.5.7.3.6, Disclosure and
Exchange of Information in Narcotics Investigations).
9.5.7.3.3 (08-01-2003)
Field Office Processing of Drug Enforcement
Administration Information
- The DEA information
will be reviewed by the SAC. If a name or other
information provided by DEA is selected for further
evaluation, it will become an information item and will
be handled in accordance with IRS procedure.
- To assist in the
evaluation of the information item, the SAC may
supplement the information furnished by DEA by
contacting the local DEA office and by developing
additional tax-related information. Case file
information will be obtained from the DEA Division
Office level with the approval of the SAIC, or RAIC.
- If sufficient
information is still not available to evaluate the
information item, a primary investigation on the
individuals identified by DEA may be authorized by the
SAC, in accordance with IRS information gathering
procedures. Similarly, the SAC may authorize information
gathering on individual(s) identified, during the
investigative process or by sources other than DEA, as
high-level drug leaders or financiers in order to
determine whether the individual warrants investigation
or examination and whether the individual should be
included in this category. To avoid interference with an
ongoing DEA investigation when conducting a primary or
subject investigation, the first investigative contact
outside the IRS must be with DEA. This mandatory field
contact with DEA should be made on any subject provided
to CI through DEA Headquarters.
9.5.7.3.4 (08-01-2003)
Processing Narcotics Investigations
- Investigative Reports
will be processed in accordance with standard
procedures. See IRM 9.5.12, Formal Conferences and
Processing Completed Criminal Investigation Reports.
9.5.7.3.5 (08-01-2003)
Use of Civil Enforcement Measures in Narcotics
Investigations
- Predicated on the
forfeiture provision under the Controlled Substances
Act, 21 USC §881(a)(6), DEA will seize and forfeit funds
identifiable with and traceable to drug violations. Any
such funds and assets are generally subject to
forfeiture to the United States in their entirety and,
thus, would not be an available source for satisfaction
of any tax liability. However, the local IRS office will
be contacted so that a tax levy on seized funds can be
instituted on the chance that the forfeiture proves to
be unsuccessful.
- Jeopardy and
termination assessments of taxable years will be made
only in accordance with the provisions of the Internal
Revenue Code and with IRS policy and procedure.
- Jeopardy and
termination assessments of taxable years will be used
sparingly and only to protect the revenue when
collection is in doubt. Either type of assessment must
receive the approval of the Director, International
District Operations. Before authorizing the use of IRC
6851 or 6861, establish that the taxpayer intends to
perform one of the acts that will prejudice collection
of the tax unless collection action is begun without
delay. Care must be taken to avoid excessive and
unreasonable assessments. See Policy Statements P–4–88
and P–4–89 and IRM 4.3.9, Jeopardy/Termination
Assessments for more specific instructions.
9.5.7.3.6 (08-01-2003)
Disclosure and Exchange of Information in Narcotics
Investigations
- Disclosures of tax
returns and return information are governed by 26 USC
§6103, as amended. Refer to CI procedures relating to
information concerning possible violations of Federal,
state, and local criminal laws.
- Facts or information
relating to the commission and/or violation of non-tax
Federal, state, or local criminal acts not directly or
indirectly related to a tax return or a tax
investigation may be disclosed in accordance with IRM
11.3, Disclosure of Official Information.
- The IRS will furnish
information involving substantive narcotics violations
either directly to DEA, the Federal Bureau of
Investigation (FBI), or to the Assistant Attorney
General, Criminal Division, DOJ, in accordance with the
disclosure laws and regulations. Pursuant to 26 USC
§6103(i)(1), designated officials of the DOJ may obtain
for DEA or the FBI any information that the IRS has
collected or obtained from a taxpayer or from someone
acting on behalf of such taxpayer for Federal non-tax
criminal purposes by making application to a Federal
District Court for an ex parte court order. Under 26 USC
§6103(i)(2), designated officials of the DOJ may obtain
for Federal non-tax criminal purposes, upon written
request, tax information that the IRS did not obtain
from a taxpayer or from someone acting on behalf of such
taxpayer. The IRS may disclose in writing return
information, other than taxpayer return information
which may constitute evidence of a violation of Federal
criminal laws to the extent necessary to apprise the
head of the appropriate Federal agency charged with the
responsibility for enforcing such laws. In instances
where the information alleging the subject's possible
violation of a Federal non-tax crime was furnished to
the IRS by a Federal law enforcement agency, it is not
necessary to channel that information back to the same
agency, unless additional information is developed and
is disclosable under 26 USC §6103(i)(3).
9.5.7.3.7 (08-01-2003)
Raids, Searches, and Seizures in Narcotics
Investigations
- Internal Revenue
Service personnel may actively participate in the
execution of a Federal non-IRS search or arrest warrant
related to the IRS mission (e.g., in joint IRS/DEA grand
jury investigations where a Title 26 or an IRS Title 18
or 31 investigation is not involved in the particular
search or arrest) upon the prior approval of the SAC.
- Tax-related books,
records, and other documents seized by DEA personnel as
a result of the execution of search and arrest warrants
may be examined by IRS personnel to determine whether
the individuals involved had complied with the Internal
Revenue laws. However, as provided in IRM 9.4.9, Search
Warrants, when IRS personnel accept the fruits of an
executed non-IRS search and before they expend staff
power to conduct an investigation, they should consult
with Criminal Tax as to the legality of the warrant, the
methods used in the search, and any other legal problem
that may arise if the evidence were to be subsequently
used in a criminal or civil tax investigation.
9.5.7.3.8 (08-01-2003)
Relationships With Informants
- Criminal Investigation
personnel will not discourage potential sources of
information from furnishing information to DEA or the
FBI and will not compete with DEA or FBI personnel for
informants or information. The cooperation with DEA or
the FBI should be made known to potential sources of
information in order to discourage informants from
"agency shopping" .
- When it appears that an
IRS informant is knowledgeable concerning potential
narcotics violations, CI personnel will encourage the
informant to meet directly with DEA or FBI personnel. If
the informant declines, CI personnel will debrief the
informant of the information relating to potential
narcotics violations and will transmit such information
either directly to DEA, the FBI, or to the Assistant
Attorney General, Criminal Division, Department of
Justice, in accordance with the disclosure laws and
regulations.
- The IRS will be
responsible for evaluating and, where appropriate,
making payment for financial information concerning
potential tax, currency, and money laundering
violations. The DEA or the FBI will be responsible for
evaluating and, where appropriate, making payment for
information relating to potential narcotics violations.
The IRS and DEA or the FBI will coordinate at the local
level to the extent necessary to prevent duplicate or
excessive payments for the same information.
9.5.7.3.9 (09-02-1999)
Security in Transmitting Narcotics-Related
Investigative Documents
- Double-sealed mailing
envelopes will be used whenever project reports,
memoranda, correspondence, or other written data are
transmitted.
9.5.7.3.10 (08-01-2003)
Strategic Narcotics Information
- The DEA will furnish
the IRS Headquarters with strategic information and
studies relating to the domestic and international flow
of funds used in narcotics trafficking. The CI
Headquarters Program Coordinator shall review and
disseminate such information, as appropriate, to the
OCDETF Coordinators for further distribution, to the
SAC, as appropriate. To the extent this strategic
information, unrelated to tax matters, is further
developed by CI, the additional information will be
routed through channels to the CI Headquarters Program
Coordinator and will be furnished to the DEA. In the
event the study data incorporates tax information, DEA
will be furnished the information only in accordance
with applicable disclosure laws and regulations.
- The DEA and IRS Senior
Coordinating Officials may authorize joint studies which
would benefit both agencies.
9.5.7.3.11 (08-01-2003)
Narcotics-Related Investigative Record Keeping and
Reporting Requirements
- The CI Program Code 201
has been assigned to OCDETF (NAROC) investigations. (See
IRM 9.9, CIMIS.) The CI Program Code 201 relates to
investigations that involve members of high-level
narcotics trafficking and/or narcotics/money laundering
organizations and are authorized by Regional OCDETF
coordination committee.
- The CI Program Code 202
has been assigned to NARCOTICS-OTHER (NAROT)
investigations. (See IRM 9.9, CIMIS.) The CI Program
Code 202 relates to investigations that involve
financial activities or significant individuals or
entities who transport, distribute, or finance illegal
drugs and/or launders illegal drug proceeds.
- The CI Program Code 203
has been assigned to HIDTA investigations. (See IRM 9.9,
CIMIS.) The CI Program Code 203 relates to
investigations that involve organizations and/or
individuals who participate in narcotics trafficking
and/or narcotics money laundering worked through the
HIDTA program, overseen by Office of National Drug
Control Policy (ONDCP).
- The CI Program Code 204
has been assigned to HIDTA/OCDETF (HIDOC)
investigations. (See IRM 9.9, CIMIS.) The CI Program
Code 204 relates to investigations that involve
organizations and/or individuals who participate in
narcotics trafficking and/or narcotics money laundering
worked jointly through the OCDETF and HIDTA programs.
9.5.7.3.12 (08-01-2003)
High Intensity Drug Trafficking Area
- The High Intensity Drug
Trafficking Area (HIDTA) Program was established to
provide assistance to Federal, state and local law
enforcement agencies operating in areas most adversely
affected by drug trafficking. The Director, Office of
National Drug Control Policy (ONDCP), has oversight of
the HIDTA's.
- The HIDTA Program takes
a strategic approach to drug trafficking in those areas
of the country most impacted by drugs through:
- focusing on the
major drug trafficking organizations
- facilitating
coordination of drug control efforts of Federal,
state and local law enforcement agencies
- facilitating
the flow of intelligence among Federal, state
and local law enforcement agencies
- by measurably
reducing drug trafficking to lessen the impact
of illicit drug trafficking in other areas of
the United States
- The HIDTA program
requires the collocation of participating agencies in a
joint task force setting which concentrates on the most
significant international, national-level, or
regional-level drug trafficking and drug money
laundering organizations.
- Investigations
initiated as part of IRS-CI's participation in the HIDTA
are considered non-OCDETF. High Intensity Drug
Trafficking Area cases that meet the required guidelines
established by the Executive Office of OCDETF for
submission as an OCDETF approved investigation must be
submitted to the regional coordination committee for
OCDETF approval.
- The current designated
HIDTA locations are found on the CI Web.
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