9.4.13  FINANCIAL INVESTIGATIVE TASK FORCE

9.4.13.1  (07-16-2002)
OVERVIEW

  1. The purpose of this section is to describe a Financial Investigative Task Force. The following will be discussed in this section:

    • General Information

    • Benefits

    • Deputation of state/local law enforcement officer

    • Conducting the investigation

    • CIMIS

9.4.13.2  (07-16-2002)
GENERAL INFORMATION

  1. The Internal Revenue Service (IRS) defines the Financial Investigative Task Force (FITF) as a grand jury investigative probe wherein Criminal Investigation (CI) provides financial expertise in specified areas to determine the existence of criminal conduct and potential violators.

  2. Criminal Investigation personnel assigned to FITFs usually focus all investigative efforts on FITF matters and are not involved in administrative tax investigations.

  3. The FITF personnel may serve subpoenas authorized by the U.S. Attorney's Office.

  4. The FITFs usually involve a combination of Federal, state and local law enforcement personnel.

  5. Each Special Agent in Charge (SAC) will determine CI's FITF participation, if at all, along with how CI personnel will function within a FITF.

  6. Many FITFs are initiated and managed by the IRS while others are "led" by other federal agencies.

  7. A Memorandum of Understanding (MOU) to address administrative issues shall be developed by the IRS and participating state/local agencies to require abidance with all IRS rules and regulations when:

    1. IRS is the lead agency in a FITF, or

    2. Substantive IRS equipment (e.g., a government vehicle) or space will be utilized by state/local personnel in a FITF even though IRS is not the lead agency in the FITF.

9.4.13.3  (07-29-1998)
BENEFITS

  1. The benefits to CI of a FITF can be:

    1. Development of investigations involving money laundering, currency crimes, and other federal crimes of mutual interest.

    2. Liaison with the United States Attorney's Office.

    3. Increased cooperation among the agencies assigned to the FITF.

    4. Ancillary FITF benefits include asset sharing on seized and forfeited assets, along with reimbursement through the Treasury Asset Forfeiture Fund to state/local agencies for travel and overtime expenses.

9.4.13.4  (07-16-2002)
DEPUTATION OF STATE/LOCAL LAW ENFORCEMENT OFFICERS

  1. Criminal Investigation may request the authorization (deputation) of state/local law enforcement officers to participate in a FITF and thereby assist in conducting investigations of Title 18 money laundering and Title 31 currency crimes.

9.4.13.4.1  (03-04-2003)
How to Request

  1. A memorandum of request for deputation must be directed from the SAC to:

    Special Deputation Specialist
    Office of Inspection
    U.S. Marshals Service
    600 Army Navy Drive, Suite 1290
    Arlington, Virginia 22201–5224
    (202)307–5224

  2. Each request should provide all necessary information to address the following questions:

    1. What is the assignment for which the deputation is requested?

    2. Why does the assignment require special deputation?

    3. Is this the first request for deputation for this assignment, or have other individuals previously been deputized for the purpose? If this is not the first, is this request for renewals or additional
      deputations?

    4. Is the request for deputation primarily for investigation of drug offenses?

    5. What is the name and telephone number of the contact person for additional information that may be required?

    6. What is the name and telephone number of the contact person for scheduling the swearing in?

    7. What Federal agency is sponsoring this deputation and will provide supervision for the deputized individual(s)?

    Note:

    All special deputation applicants must have qualified with their weapon within the past 12 months. Each applicant also must be a Federal officer or a state or local sworn law enforcement officer.

    Note:

    All applications must now include a written certification that the individuals for whom you are applying for special deputation commissions " have not previously been convicted of a misdemeanor crime of domestic violence within the meaning of 18 USC §922(g)(9)."

  3. Attach a Candidate Information sheet to your memorandum. See Exhibit 9.4.13–1.

  4. The SAC must determine that each proposed officer is not under internal affairs investigation and that a criminal history check is negative in finding.

  5. The formal deputation includes an administration of oath by the district U.S. Marshal or Chief Deputy and the issuance of "Special Deputy U.S. Marshal" credentials which limit the deputation " only to official duties assigned by the IRS" (see 28 USC §563). Deputation must be renewed and reviewed annually by the Marshals Service.

9.4.13.5  (07-29-1998)
CONDUCTING THE INVESTIGATION

  1. Most FITF matters having criminal potential will result in a specific federal grand jury investigation. All FITF personnel, including deputized officers, must then be placed on a grand jury disclosure list and be formally admonished of USCS Fed Rule Crim Proc R 6(e), grand jury secrecy provisions.

  2. In investigative matters that lead to tax implications, a related statute call must be made by the SAC for Service personnel to access returns and return information used to evaluate FITF received information (see IRM 9.3.1.4.3.1.1.2 for a discussion of the related statute call). Returns and return information may not otherwise be disclosed to Treasury (including IRS) and Justice Department employees, except through the ex parte court order provisions of IRC §6103(i)(1) or the request provisions of IRC §6103(i)(2). Additionally:

    1. If indications of Title 26 violations are discovered during a FITF grand jury investigative probe, the Service procedures for grand jury expansion requests shall be followed.

    2. Special Deputy U.S. Marshals are considered Department of Justice employees. A related statute memorandum alone is not sufficient for deputized officers to have access to returns and return information. In addition to the related statute call, a referral must be made from IRS to the Department of Justice (i.e., an IRS grand jury request) in order to grant the Special Deputies access to returns and return information in tax-related FITF grand jury investigations (see IRM 9.3.1 and Exhibit 9.3.1–1 for a discussion regarding disclosure of tax information to state and local personnel deputized as federal employees).

    3. State/Local law enforcement personnel deputized by the FBI and DEA under Title 21, and by U.S. Customs under Title 19, are not considered federal employees for disclosure law purposes and may not have access to returns and return information.

    4. If returns or return information have been disclosed to the Department of Justice for purposes of the FITF grand jury investigation, other Federal law enforcement personnel can be given access to such returns and return information if those personnel are subject to the direction and control of the U.S. Attorney in the investigation and are subject to the restrictions in IRC 6103 on use of the
      information.

  3. Organized Crime Drug Enforcement Task Force (OCDETF) and FITF deputation are different in that OCDETF deputation is "case specific" , whereas the FITF mission is to develop investigations, i.e., FITF deputation is focused on the entire FITF operation as a whole.

  4. Each field office which contemplates allowing FITF deputized personnel access to IRS office space must review office security and access and be able to track any after-hours entry by non-Service personnel so as to avoid unauthorized or illegal disclosure.

  5. Deputized individuals who utilize federal government equipment assume the same labor identity as that of any other CI employee. Hence, the Service's risk of liability is identical to that of all other Service employees. CI management must ensure that all FITF deputized personnel are fully aware of IRS rules and regulations concerning the use of federal government equipment. The provisions of the Federal Tort Claims Act, 28 USC §1346(b), 2671–2680, also apply to deputized individuals (see IRM 9.2.3.9). The SAC should consult with Regional General Legal Services for advice on such matters.

9.4.13.6  (07-16-2002)
Criminal Investigation Management Information System

  1. For Criminal Investigation Management Information System (CIMIS) purposes, a FITF is a general investigation. No primary or subject investigations will be related to a FITF general investigation. However, Form 4930, CI General/Primary/Subject Investigation Report, must include an affirmative entry ( " Y" ) in Block 43 if information to initiate an investigation was developed from a FITF.

Exhibit 9.4.13-1  (07-29-1998)
Candidate Information

CANDIDATE INFORMATION
 
Name:  _____________ SSN:  _____ DOB:  ___
Firearms Qualification Date:  __________ Civilian Sworn Law
Enforcement Officer (Y/N)?  _______ Previous deputation for this
purpose (Y/N)?  __ Employing Agency:  ____________
Location (city & state):  ____________________
Employing Agency have a Deadly Force Policy (Y/N)?  ________
____________________________
Name:  _____________ SSN:  _____ DOB:  ___
Firearms Qualification Date:  __________ Civilian Sworn Law
Enforcement Officer (Y/N)?  _______ Previous deputation for this
purpose (Y/N)?  __ Employing Agency:  ____________
Location (city & state):  ____________________
Employing Agency have a Deadly Force Policy (Y/N)?  ________
____________________________
Name:  _____________ SSN:  _____ DOB:  ___
Firearms Qualification Date:  __________ Civilian Sworn Law
Enforcement Officer (Y/N)?  _______ Previous deputation for this
purpose (Y/N)?  __ Employing Agency:  ____________
Location (city & state):  ____________________
Employing Agency have a Deadly Force Policy (Y/N)?  ________
____________________________
Name:  _____________ SSN:  _____ DOB:  ___
Firearms Qualification Date:  __________ Civilian Sworn Law
Enforcement Officer (Y/N)?  _______ Previous deputation for this
purpose (Y/N)?  __ Employing Agency:  ____________
Location (city & state):  ____________________
Employing Agency have a Deadly Force Policy (Y/N)?  ________
____________________________
Name:  _____________ SSN:  _____ DOB:  ___
Firearms Qualification Date:  __________ Civilian Sworn Law
Enforcement Officer (Y/N)?  _______ Previous deputation for this
purpose (Y/N)?  __ Employing Agency:  ____________
Location (city & state):  ____________________
Employing Agency have a Deadly Force Policy (Y/N)?  ________
____________________________
Name:  _____________ SSN:  _____ DOB:  ___
Firearms Qualification Date:  __________ Civilian Sworn Law
Enforcement Officer (Y/N)?  _______ Previous deputation for this
purpose (Y/N)?  __ Employing Agency:  ____________
Location (city & state):  ____________________
Employing Agency have a Deadly Force Policy (Y/N)?  ________
____________________________
 
Add additional sheets if necessary to list all names.

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