TECS is a computerized information system designed to identify individuals and businesses suspected of, or involved in, violation of Federal law. TECS is also a communications system permitting message transmittal between Treasury law enforcement offices and other Federal, national, state, and local law enforcement agencies. The TECS provides access to the FBI’s National Crime Information Center (NCIC) and National Law Enforcement Telecommunication Systems (NLETS) with the capability of communicating directly with state and local enforcement agencies. The NLETS provides direct access to state motor vehicle departments.

The responsibility for TECS lies both in HQ and the field offices. The following subsections provide a brief description of these responsibilities.

Individual records available from the TECS database come from the Immigration and Customs Enforcement(ICE), ATF, Treasury Inspector General for Tax Administration (TIGTA), and IRS-CI.

The CMIR file contains a record of every individual who has filed a FinCEN Form 105 (formerly Customs Form 4790), Report of International Transportation of CMIR. This form is required to be filed by each person who physically transports, mails, ships, receives, or causes to be physically transported, mailed, shipped, or received currency or other monetary instruments in an aggregate amount exceeding $10,000 on any one occasion from the United States to any place outside the United States, or into the United States from any place outside the United States. A transfer of funds through normal banking procedures, which does not involve the physical transportation of currency or monetary instruments, is not required to be reported.

If a TECS query results in a positive response, information contained on the CMIR will be received. If it becomes necessary to obtain a copy or certified copy of the CMIR, a request which includes the Report Control Number (RCN), should be directed to the Director of FinCEN at the Financial Crimes Enforcement Network, Post Office Box 39, Vienna, Virginia 22183. The request should include all available identifying data including:

For a certified copy of the CMIR, the request must also include the scheduled court date.

The FBAR, Form 90-22.1, is a Treasury form used by individuals, partnerships, trusts, or corporations having a financial interest in or authority, signatory or otherwise, over one or more bank accounts, securities accounts, or other financial accounts in a foreign country, when such account(s) have an aggregate value in excess of $10,000. This form is required to be filed at the Memphis RFIS or at any local IRS office. The Memphis RFIS presently processes all Forms 90-22.1 for input to TECS.

The TECS foreign bank account files contain a record of entities who have submitted FBARs. If a TECS query results in a positive response, the name, address, SSN or EIN of the subject, and a microfiche number will be received.

If it becomes necessary to obtain a copy or certified copy of a Treasury Form 90-22.1, a request should be directed to the Currency and Banking Reports Division, Criminal Investigation Program Coordinator, Detroit Computing Center, 985 Michigan Ave., Room 1043, Detroit, MI 48226. The request should include the microfiche number of all forms requested.

Requests for special computer runs summarizing FBAR data should be made to the IRS Detroit Computing Center, Attn: CI Representative, 985 Michigan Ave., Room 1043, Detroit MI 48226. Requests should be signed by the SAC, and should include:

Other records accessible through TECS include the NCIC and the NLETS.

The TECS queries can be useful to CI when evaluating information or in an investigation.

A CI is any individual who:

If deemed necessary, an SA or supervisor may classify an individual as a confidential informant for any other reason not listed that would require confidentiality.

The identity of the confidential informant is legally protected under the FOIA. Exemption (b)(7)(D) of the FOIA provides for the protection of records or information that can disclose the identity of a confidential source. The Supreme Court has ruled that confidentiality should not be applied automatically by law enforcement, but on a case by case basis. Consideration may include the understanding by the informant that the communications are confidential, threats of retaliation, prior retaliatory acts, or dangers faced by prison informants.

Confidentiality is not an assurance of complete anonymity or secrecy, but an assurance that the IRS will not disclose the cooperation of the CI, the information they provide, or their identity unless absolutely necessary.

To prevent the CI from testifying, the SA will put forth every effort to secure other evidence and witnesses in place of the CI.

The CIs will be handled in accordance with the following subsections.

A CW is any individual who:

Unlike a CI, there is no expectation of confidentiality with a cooperating witness. A CW is expected to testify so they must understand that their identity may eventually be disclosed pursuant to judicial or administrative proceedings.

All CWs will be handled in accordance with the following subsections.

Sources of Information can be categorized into two types.

If an individual will be directed by the IRS to secure evidence (e.g., recording a monitored conversation) or provide assistance, the individual will be treated as a CI or CW.

An SOI may also be an individual who:

A subject of a criminal investigation or the defendant in a criminal proceeding who provides information to an SA will either be classified as a CI, CW, or SOI; whichever is more appropriate.

An SA should consult a Federal prosecutor and/or a criminal tax attorney prior to utilizing a subject of an investigation as a CI, CW, or SOI.

Prior to seeking authorization to utilize a CI, an SA will obtain a control number from SE:CI:GO:SIT. A Form 9830 will be prepared and submitted to SIT via e-mail to *CI-HQ-GO-SIT Filing. In exigent circumstances an individual may be utilized as a CI prior to registration, however, verbal authorization is required, followed by the submission of Form 9830 no later than seven (7) calendar days after verbal authorization is granted.

SIT will conduct a search to determine if the CI has been or is being utilized currently by Criminal Investigation. If a conflict is identified, SIT will review the CI’s history and report their findings to the requesting SA.

SIT will provide the requesting agent a control number for the CI and at that point, the CI will be referenced by his/her control number. It is the responsibility of the SA to obtain the required authorization to utilize the CI, comply with the reporting requirements, and deactivate the CI, when appropriate, pursuant to the following subsections.

It is essential to evaluate the reliability and credibility of every CI/CW. Form 9831, Approval to Utilize a CI or CW, will be used to evaluate the individual’s suitability to serve as a CI/CW. The SA will complete Form 9831 and forward it through management to the proper approving official. The approving official should consider, at a minimum, the following suitability factors to determine whether to authorize the use of the individual:

Although not required, the use of a polygraph to test the individual's credibility should be considered by the approving official.

Verbal approval to authorize the use of a CW/CI can be obtained in exigent circumstances, but must be followed up with the Form 9831 no more than seven (7) calendar days from the day of verbal authorization.

The approved Form 9831 will be placed in the control file for CIs (see subsection 9.4.2.5.5 on control file) or the investigative file for CWs.

An index file maintained by the SAC in each field office to track CIs and CWs will be updated (see subsection 9.4.2.5.6 on index file).

The following subsections list the approval levels for CI/CWs.

The SAC may authorize the use of most CI/CWs except when any one of the following factors are present, in which case the Director, Field Operations is the approving official:

If any one of the following circumstances apply at the time of authorization; are identified at a later date; or subsequently develop, Director, Global Financial Crimes & Policy approval is required:

The SAC of the field office will submit a memorandum through the Director, Field Operations to the Director, Global Financial Crimes & Policy requesting approval to use the CI/CW. The memorandum should be forwarded to the appropriate Undercover Program Manager (UPM) for processing. The memorandum should address the following factors:

Verbal authorization may be obtained in exigent circumstances followed by the written authorization no more than seven (7) calendar days from the date verbal authorization is granted.

Consistent with DOJ requirements, approval by DOJ, Criminal Division, Office of Enforcement Operations (OEO) is required for:

The United States Parole Commission requires that Federal probationers, parolees, detainees and supervised releasees agree in writing not to act as informants or in other similar capacities for a law enforcement agency. However, exceptions may be granted on a case by case basis.

If an SA desires to utilize one of these types of individuals as a confidential informant or cooperating witness, the IRS must obtain the permission of a federal probation, parole, or supervised release official with the authority to grant such permission, and this permission shall be documented. If such per- mission is denied or it is inappropriate for operational reasons to contact the appropriate federal official, the IRS may seek to obtain authorization for the use of such individual from the court that is responsible for the individuals’ probation, parole, or supervised release provide that the IRS first consults with Criminal Tax and/or the Unites States Attorney’s Office.

In October of each year an annual suitability review will be performed for all open CIs. The controlling SA will complete Form 9832 to evaluate the suitability and justification to continue the use of the CI.

During this review, the SA will determine that the CI reported all taxable payments received in the previous tax year. In the event that the suitability review results in a determination that the CI did not report the payments as required, the IRS may utilize this information to discontinue the CI’s relationship with the government and, in so doing, may disclose the reason for discontinuing the relationship to other government agencies associated with the investigation, including the United States Attorney’s Office. In Non-Title 26 investigations where taxable payments were made to a CI who is required to file a tax return, the SA should ensure that “Consent to Disclosure of Tax Information” (Consent Form), which is attached to a Form 9835, was signed by the CI.

If the review of the CI’s tax account and/or tax return identifies issues of possible noncompliance the CI should be contacted. The controlling SA will attempt to resolve the matter and advise the CI of the proper income tax reporting treatment for the particular issue. This meeting and advisement will be documented and filed in the CI’s control file. Subsequent IDRS research will be conducted to ensure the CI has filed an amended or corrected return.

If the CI still fails to comply with their Federal income tax obligations, the CI will be deactivated for cause and must not be used again. An Information Report Referral, Form 3949, will be prepared and forwarded for civil or criminal action. The narrative section should simply state that the individual received a taxable payment, refer to the amount received from the IRS, and generally describe the area of noncompliance. While the CI’s name shall be reported, the narrative should not disclose the nature of the relationship or the services performed on behalf of Criminal Investigation.

If any other adverse findings are uncovered pursuant to this suitability review, they should be reviewed to determine whether deactivation is warranted. If it is recommended that the CI be deactivated for any cause, the deactivation procedures will be followed.

The Form 9832 will be forwarded to the SAC for approval to continue the use of or deactivate the CI.

The Form 9832 and signed consent (if prepared) will be placed in the CI’s control file.

After authorization to utilize the CI is granted, the controlling SA will prepare Form 9833, CI Identity Record, and obtain a photograph of the CI.

This form must be prepared manually as it contains the CI’s personal information. No electronic version will be prepared

SAs should also obtain fingerprints for identification purposes.

The Form 9833, photograph, and fingerprints will be filed in the control file.

SAs will fully debrief the CI/CW concerning his/her knowledge of criminal or unlawful activities. SAs should always make every effort to elicit all facts known by the CI/CW at the initial contact.

SAs must avoid conveying any confidential investigative information to a CI/CW (e.g., information relating to undercover activity, surveillance, search warrants, or the identity of other actual or potential informants), other than necessary for operational reasons.

The SAs will advise the CI/CW that any information submitted by him/her concerning violations not under the IRS’ jurisdiction will be furnished to the appropriate enforcement agency in accordance with IRS procedures, (See IRM 9.3.1, Disclosure, and Chapter 11.3, Disclosure of Official Information manuals).

Prior to utilizing a CI/CW, the controlling SA, in the presence of the backup agent or other law enforcement officer, will review the applicable information on Form 9834 with the CI/CW, which covers the following:

The content and meaning of each of the foregoing instructional points must be clearly conveyed to the CI/CW. Immediately after these instructions have been given, the agent shall require the CI/CW to acknowledge his/her receipt and understanding of the instructions by initialing each applicable instruction on the Form 9834. The agent and another law enforcement official shall document that the instructions were reviewed with the CI/CW and that the CI/CW acknowledged the instructions and his/her understanding of them by signing Form 9834.

If the CI/CW refuses to initial the Form 9834 or there is an operational reason preventing the CI/CW from initialing Form 9834, the agent and the other law enforcement official shall document that the instructions were read verbatim to the CI/CW and that the CI/CW orally acknowledged the instructions.

Form 9834 instructions and documentation procedures shall be repeated when it appears necessary or prudent to do so.

Form 9834 will be filed in the control file for a CI or the case file for a CW.

Form 9835, Receipt for Cash, will be completed when a payment is made to a CI/CW or any other individual receiving payment.

Form 9835 will be filed in the control file for CI and the investigative case file and index file for CWs.

When a CI no longer provides information or assistance to the IRS, the individual should be deactivated. The IRS may also terminate the relationship for cause if the CI engages in conduct that violates the individual’s agreement with the IRS. In either case, appropriate notification documented in writing and witnessed by two SAs shall be made if the CI can reasonably be located. If the CI cannot be located, efforts to locate the informant shall be documented.

When a CI is deactivated, SIT will be notified via an e-mail through the SAC. This e-mail needs to be forwarded to *CI-HQ-SIT-Confidential Informants. The e-mail must include the control number, date of deactivation, how the CI was notified, who advised the CI and the reason for deactivation.

Every January CIs/CWs must be advised of the total amount of taxable payments made to them in the previous tax year. The SACs will direct the imprest fund cashiers to summarize the payments made to each CI or CW (SOC 9101 expense) and advise the controlling SAs of these amounts. SAs will contact the CIs/CWs and advise them of the total taxable amount paid and document the contact in a memorandum of contact. This memorandum will be placed in the CI’s control file or field office’s CW index file and the investigative file in the case of a CW. A copy will be forwarded to *CI-HQ-SIT-Confidential Informants.

To protect the integrity of the relationship with the CI/CW and to enhance security, two SAs will be assigned to control the CI/CW. The controlling agents will always be fair and truthful with a CI/CW, and should make no promises that cannot be fulfilled.

While controlling a CI/CW, SAs will not:

Evidence illegally obtained may be utilized by the IRS if the unlawful taking was by a CI/CW without the participation or collusion of IRS employees. The CI/CW will be advised that the IRS will no longer accept any further information of this nature.

In receiving unsolicited information for the first time from an informant, the IRS 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 CI/CW. SAs should consult Criminal Tax for guidance. Once authorization is received to pay the informant, the IRM payment procedures must be followed.

If a CI/CW presents illegally obtained information and it can be ascertained that the CI/CW has had previous contact with the IRS, either in connection with the matter at hand or other matters, the SAC will review the facts and circumstances surrounding the incident.

The SAC will review this information in an attempt to determine if an IRS employee, during a prior contact with the CI/CW, indicated or implied to the individual that illegal activities would be condoned by the IRS or would be beneficial to an IRS investigation.

The SAC will also seek a legal opinion from CT Counsel and the Federal prosecutor, if assigned.

In all instances where illegally obtained information is presented to the IRS by a CI/CW, he/she will be advised that the IRS will not accept any further information obtained in this manner. The controlling SAs will prepare a memorandum documenting that the CI/CW was so advised.

The SAC will determine whether appropriate law enforcement authorities should be advised. Notification, if deemed appropriate, will be in accordance with IRM 9.3.1, Disclosure and Chapter 11.3, Disclosure of Official Information manuals.

Consider terminating the use of the CI/CW and not utilizing the information obtained by the CI or leads derived from the information until authorized to do so by the Director, Global Financial Crimes and Policy.

The SAC will notify the Director, Field Operations, of the facts relating to alleged violations by CI/CW. The Director, Field Operations will notify the Director/Deputy Director, Global Financial Crimes & Policy via a detailed written report and through SIT. The information contained in the report will include, but is not limited to the following:

For the purpose of this subsection, the term ″serious crime″ means any crime that is a felony under Federal or state law.

Whenever the IRS has knowledge that a CI/CW has acted outside the scope of his/her IRS assignment and committed a serious crime, the SAC shall make a determination whether to notify the appropriate law enforcement authorities in accordance with IRM 9.3.1, Disclosure and IRM 11.3, Disclosure of Official Information.

The SAC will notify the Director, Field Operations, by memorandum, of the facts and circumstances concerning the CI/CW's criminal violation, and provide a recommendation on reporting the violation and the continued use of the CI/CW.

In determining whether to notify appropriate law enforcement authorities of criminal activity by a CI/CW, the reviewing and/or approving officials, as appropriate, shall consider the following factors:

It is the duty of every citizen to communicate to his/her government any information which he/she has relative to an offense against its laws. To encourage him/her in performing his/her duty, the courts have held such information to be confidential within the discretion of the government.

The courts, on the basis of public policy, will not compel or allow disclosure of a CI's identity without the consent of the government unless such information is useful evidence to vindicate the accused, lessens the risk of false testimony, or is essential to the proper disposition of the case.

Mere speculation as to the usefulness of the CI's testimony to the defendant is insufficient to justify disclosure of his/her identity. Instead, the defendant must indicate some concrete circumstances that might justify overcoming both public interest in encouraging the flow of information and the CI's private interest in his/her own safety.

Since the privilege lies with the government rather than the CI, the government may waive it. Further, the privilege is deemed waived if the CI is put on the witness stand.

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 (b)(7)(D) of 5 USC 552, Freedom of Information Act (FOIA).

Instead, the Supreme Court held that a source should be deemed "confidential" only if the source furnished information with the understanding that the government would not divulge the communication except to the extent deemed necessary for law enforcement purposes.

If an SA, who has promised a CI that his/her identity would be kept confidential, is asked to disclose such identity on the witness stand and no objection to the question is made or sustained, he/she should not refuse to answer. Instead, the SA should state that he/she cannot disclose the information on the ground that it was a privileged communication to an officer of the government and that he/she is bound by instructions not to disclose such information.

He/she should maintain this position pending instructions from his/her supervisors and advice from the attorney for the government.

The SA's failure to disclose this information may have several results:

If the identity of a CI is needed by the TIGTA, Office of Audit, or Office of Investigations, the SAC will obtain approval through the Director, Field Operations from the Director, Global Financial Crimes & Policy prior to disclosing the information.

TIGTA, Office of Audit reports on investigative imprest funds requirement to contain a certification that the fund was properly utilized. To issue such a certification, TIGTA, Office of Audit must conduct audit tests to verify the existences of paid CIs/CWs; that the CI/CW information was evaluated prior to payment, and that the quality of the information was commensurate with the amount of the payment.

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.

In rare instances, the Chief, IRS-CI, will divulge the names of other confidential in- formants to TIGTA, Office of Audit when deemed necessary.

In the event TIGTA management determines it is essential to contact a CI/CW to meet an audit or investigation objective, TIGTA, Office of Investigations personnel will make that contact.

TIGTA management will notify the Director, Field Operations of the intention to contact the CI/CW. In those instances where it is deemed inappropriate to notify the Director, Field Operations, TIGTA management will notify the Inspector General or his/her designee of this decision who will advise the Chief, IRS-CI, of TIGTA’s intention to contact the CI/CW without notification to the Director, Field Operations.

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 SAs prior to such disclosure to ensure that nothing is attached (such as a CI/CW communication) that might reveal the existence or identity of a confidential source of information.

There are circumstances when SAs may find it necessary or desirable to have a CI/CW accompany them on an investigative contact or activity.

In using a CI/CW for these and similar purposes, SAs must exercise extreme care to protect the CI/CW's identity, provide for the CI/CW's physical safety, and prevent unauthorized 26 USC 6103 disclosure of returns or return information, (see 9.3.1, Disclosure). In instances where 26 USC 6103 issues are involved, advice of a field office CT Counsel must be sought.

As a general rule, a CI/CW should not be present while SAs are conducting a witness interview. There are, however, exceptional circumstances when SAs may find it necessary or desirable to have a CI/CW accompany them on a witness interview (e.g., when the CI/CW's presence during the interview will make a reluctant witness feel more at ease). In this regard:

Instructions concerning asset sharing that involve payments to or on behalf of a CI are contained in IRM Chapters 9.7, Asset Seizure and Forfeiture.

Instructions concerning awards for information submitted to the IRS are contained in IRM 25.2, Information and Whistleblower Awards.

A CI control number will be assigned to all individuals who provide information on or associated with a Form 211 Application for Original Information, pursuant to IRM 25.2.1.2, that result in any administrative or judicial actions related to a criminal investigation.

The controlling agent will indicate that the CI, filing a Form 211, Application for Award for Original Information, is a whistleblower when obtaining the control number from SIT.

The Witness Security Coordinator (WSC) for the IRS will forward the request approved by the Director, Global Financial Crimes & Policy, to the OEO. The OEO will forward approved requests to the Witness Security Division, US Marshals Service, or to the Inmate Monitoring Section, Bureau of Prisons, as appropriate and will forward an approved copy to the WSC for dissemination to the field. All communication to the OEO must be made through the Headquarters’ WSC.

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 US Marshals Service personnel.

If a witness must be brought into a dangerous area, it is the responsibility of the prosecutor and the investigative agents to ensure that maximum use is made of the witness’ time and that every effort has been 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.

Prior to contacting a protected witness who is an inmate at a Federal Correctional Institution under the jurisdiction of the Bureau of Prisons or under the custody of the US Marshals Service, it is necessary that approval be obtained from the OEO.

If it is learned that an incarcerated, protected witness may be in jeopardy, the Director, Global Financial Crimes & Policy, should be notified, so that he/she can refer the matter to the OEO whose responsibility it is to coordinate the matter with the Bureau of Prisons. Arrangements may then be made to move the prisoner to another facility to assure protection.

Occasionally, witnesses who have been provided protection by DOJ are faced with a situation where they believe their new identities may be in jeopardy because of the need to provide an IRS employee with information relating to their old identities.

In such situations, the witnesses have instructions to notify their contact point in the US Marshals Service who will notify the OEO. The OEO will notify IRS' contact point in CI, the WSC, who will be responsible for any coordination with the WSC's of the other operating divisions in order to resolve the matter in a manner that will protect the CI's identity as well as IRS's interest.

In addition, the above IRS procedures will be followed if, during the processing of a witness to be placed in Justice's Witness Security Program, the OEO determines that the witness has a IRS matter that should be resolved before the witness is relocated.

The DOJ requires that IRS-CI provide them with a report of significant events and results in criminal investigations involving participation by a witness or CI who has been accepted into Justice's Witness Security Program.

A similar report is required by DOJ on IRS-CI investigations that involve the participation of an IRS protected witness or CI.

Reportable events include, but are not limited to, the following actions that may result from the participation or testimony of a protected witness or CI:

Reportable results include:

If a Form 1327-A, Arrest Report is prepared or entries are made into the CIMIS for any of the above stated events, a copy of the Form 1327-A or an "Investigation Profile Report" from CIMIS will suffice for this reporting requirement, provided the form or the screen print is accompanied by a statement regarding the significance of the witness' or CI's participation in the event or result being reported.

The above report will be prepared for the signature of the SAC and submitted through the Director, Field Operations to the Chief, IRS-CI, Attention: Witness Security Coordinator. The report is due to the WSC within 10 work days after the last significant event.

Reports involving witnesses or CIs under Justice’s Witness Security Program will be coordinated by WSC.

The USMS will be requested to provide assistance when the release or transfer of a Federal prisoner is required as it is their responsibility for safekeeping and transporting in Federal prisoners.

The USMS will be requested to provide assistance in requests involving Federal prisoners due to their responsibility for the safekeeping of Federal prisoners.

If such assistance is not provided by the USMS, enough SAs should be assigned to the custody responsibilities to provide the constant presence of at least two SAs.

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:

All personnel assisting with the custody and interrogation of a prisoner should be constantly aware that the prisoner's cooperation may be motivated by the desire to escape from custody.

If during the interview it becomes apparent that the prisoner may become the subject of a criminal investigation, the procedures for interviewing a person in custody should be followed.

Prior to utilizing a state or local prisoner, probationer, parolee, or supervised releasee, the SAC shall determine if the utilization of that person in such capacity would violate the terms and conditions of the person’s incarceration, probation, parole, or supervised release. If the SAC has reason to believe that utilization of the individual would violate such terms and conditions, prior to using the person, the IRS must obtain permission of the state of local prison, probation, parole, or supervised release official with the authority to grant such permission.

If the witness or informant is a non-Federal prisoner, the advice of the local CT Counsel should be sought as to the process for securing custody under governing state law.

State prisoners will be handled in the same manner consistent with the procedures outlined when the USMS is not available.

A Field Office's SAC should only recommend investigations for the program that has the potential for substantial liability and that indicates the subject is committing violations in both countries.

The SAC will forward any investigations recommended for the program through the appropriate Director, Field Operations, to the Executive Director, SE:CI:S:GO:IO, (see Exhibit 9.4.2-1).

The Associate Director, SE:CI:S:GO:IO will review the proposed case. If it meets the criteria to be included in the SCIP, it will be forwarded by the Executive Director, SE:CI:S:GO:IO to the Deputy Commissioner, LB&I.

The Executive Director, SE:CI:S:GO:IO will inform the recommending field office, by memorandum, of the action taken and send an information copy to the Director, Field Operations.

If an investigation is not accepted for the program, it will be worked as a routine investigation. If additional facts are developed, the investigation may be submitted for reconsideration.

If an investigation is approved for the program, LB&I will transmit a letter to the Competent Authority requesting the foreign country's participation, (see Exhibit 9.4.2-1 Cont. (1)).

When the Competent Authority of the foreign country recommends an investigation for the program, the Executive Director, SE:CI:S:GO:IO will transmit a copy of the request to the appropriate SAC through the Director, Field Operations. The field office will evaluate the request within 60 calendar days and advise the Executive Director, SE:CI:S:GO:IO of its decision by memorandum routed through the Director, Field Operations.

If the field office decides to participate, LB&I will send a Competent Authority acceptance letter, (see Exhibit 9.4.2-1 Cont. (2)). If not, LB&I will notify the foreign country's Competent Authority.

Once competent authority letters have been exchanged and accepted, a Field Office's SAC will designate an SSA as the designated representative. The participating foreign country will also designate an investigation supervisor.

The appropriate IRS-CI country attache' will coordinate an initial meeting to plan the investigative activity. The meeting will be held in the country which originated the request unless a mutually agreeable alternative location is determined.

The Associate Director, SE:CI:S: GO:IO will provide a list to LB&I of individuals designated to participate in the initial and subsequent meetings. The list will identify the individuals by name, position, office, and security clearance. Names may be added or deleted as necessary. An LB&I employee, with Competent Authority will be present at all meetings with foreign officials.

Subsequent meetings will be arranged by the SSA and the designated investigation supervisor. The field office will notify the IRS-CI country attache' so the attache' may, at their option, participate.

Exchanges of information or documents must be made by the respective Competent Authorities. Information and documents to be exchanged will be transmitted by a brief letter describing the documents and prepared for LB&I's signature, (see Exhibit 9.4.2-1 Cont. (3)).

The IRS-CI designated representative will note each document exchanged and maintain it in the investigation file. Each such document will also note that the information contained therein was secured under the provision of an income tax treaty and that its use and disclosure must be governed by the provisions of the treaty.

Exchange of information is permissible in pre-indictment, as well as post-indictment investigations.

Information that may be exchanged includes:

Grand juries can be used in simultaneous investigations either at the request of the IRS or the attorney for the government, subject to DOJ approval.

Information from a US grand jury may be furnished to the respective Competent Authority for tax administration purposes by way of a court order pursuant to Fed. R. Crim. P. 6(e). The treaty partner will be required to meet the requirements of showing a particular need for the information and that the information is sought preliminary to or in connection with a judicial proceeding.

If a US multi-agency grand jury uses information received under the auspices of the tax treaty in an indictment and/or at trial, the indictment must include tax charges and must show a nexus between the tax charges and any other violations.

The tax conventions with the respective SCIP countries contain no provisions requiring foreign witnesses to appear at trial. The resulting potential for trial problems should be evaluated both in making a request for a simultaneous investigation and during the investigation itself.

If arrangements cannot be made for a witness to appear at trial, Rule 15 depositions or Letters Rogatory may be used, (see IRM 9.4.2.6.4, Letters Rogatory).

Jeopardy or termination assessments, that include information furnished through the program, can be handled in the normal fashion. The appropriate Competent Authority must be notified before any such action is taken.

Either country may withdraw from a simultaneous investigation at any time by advising the other country of its intent to do so, (see IRM 9.5.14, Closing Procedures).

Prosecution reports are processed in the normal fashion, subject to any additional requirements, (see IRM 9.5.12, Processing Completed Criminal Investigation Reports).

Simultaneous indictments and/or filing of charges is preferred if circumstances permit, making close coordination by the designated investigation supervisor imperative.

All travelers on SCIP investigations must initially complete a continuous travel Form 1321, Authorization for Official Travel. Thereafter, International Operations will coordinate the processing with the Office of the Director, International (LB&I:TAAS) for authority to travel on a trip-by-trip basis, (see IRM 9.11.2, Domestic and Foreign Travel).

The tax treaty contains a secrecy clause restricting disclosure of information exchanged pursuant to the treaty. Access to such information is governed by 26 USC 6103 and may be exempt from disclosure under 5 USC 552(b)(3) pursuant to (j)(2).

The competent authority should be alerted if any disclosure is contemplated.

While IRS-CI may disclose information obtained during a simultaneous investigation to other IRS personnel for tax administration purposes, they must inform the competent authority or the designated investigation supervisor of the intended use of the information.

Publicity in simultaneous or unilateral indictments should be handled in accordance with the procedures detailed in IRM 9.3.2, Publicity and Internal Communications.