rnustnounder any circurnsl neebe mace vail abletopersonsJtsidehsrvice MRMORTIMERCAPLIN INTERNAL REVElJE SERV1Cr: 1 IleU IUUVVI\IVI"fJeCIClIAgentSpage 9781-1 (4-15--82) Tableof Contents 100 Introduction PurposeandScope110 Distribution1 20 200 StatutoryProvisions Introduction.210 CriminalPenaltiesApplicabletoFraudand MiscellaneousInvestigations220 InternalRevenueCodeof1954221 EffectiveDateandAppl ication221.1 IRC7201 .AttempttoEvadeorDefeatTax 221 .2 IRC7202.WillfulFailuretoCollect orPayOver Tax221.3 IRC7203.WillfulFailuretoFileReturn,Suppl y Information, orPayTax221.4 IRC7204 . FraudulentStatementorFailureto MakeStatementtoEmployees.221.5 IRC7205.FraudulentWithholdingExemption CertificateorFailuretoSupplyInformation 221 .6 IRC7206.FraudandFalseStatements.221.7 IRC7207.FraudulentReturns, Statements,or OtherDocuments221 .8 IRC7210. FailuretoObeySummons221.9 IRC7212.AttemptstoInterlereWith Administrat ionofInternalRevenueLaws .221 .(10) Other CriminalPenalties.221 .(11) IRC7215. OffensesWithRespecttoCollected Taxes.221 .(12) IRC7512.SeparateAccountingforCertain CollecledTaxes,Etc .221 .(13) Title18,UnitedStatesCodR222 Introduction.222.1 Section2.Principals.222.2 Section3. AccessoryAftertheFact222.3 Section4.MisprisonofFelony.222.4 Section111.Assaulting,Resisting,or Impeding CertainOfficersorEmployees.222.5 Section201OffertoOfficerorOtherPerson 222.6 (Reserved)222.7 Section285 . Takingor UsingPapersRelatingto Claims.222.8 Section286. ConspiracytoDefraudthe GovernmentWithRespecttoClaims.222.9 Section287. False,FictitousOrFraudulentClaims 222.( 10) Section371.ConspiracytoCommitOffenseorto DefraudUnitedStates.222.(11) Section372.ConspiracytoImpedeor Injure Officer.222.(12) Section494. Contractors'Bonds,Bids,andPublic Records.222.(13) Section495. Contracts, Deeds,andPowersof Attorney.222.(14) Section1001 . StatementsorEntriesGenerally 222.(15) Section1002.PossessionofFalsePapersto DefraudUnitedStates.222.(16) (Reserved)222 .(17) Section1114.ProtectionofOfficersand Employees oftheUni tedStates.222.(18) Section1501 .AssaultonProcessServer 222(19) Section1503.InfluencingorInjuringOfficer , Juror or WitnessGenerally'222(20) Section1510.ObstructionofCriminal Investigations222.(21) Section1621 . PerjuryGenerally.222.(22) Section1622. SubornationofPerjury.222.(23) Section1623. FalseDeclarationsBeforeGrand JuryorCourt.222. (24) (Reserved)222.(25) (Reserved)222 (26) Section1955.ProhibitionofIllegalGambling Businesses. 222.(27) Section1962. ProhibitedActi vitiesofRacketeer InfluencedandCorruptOrganizations.222.(28) Section1963. CriminalPenaltiesforRacketeer InfluencedandCorruptOrganizations.222.(29) Sechon2071 .Concealment,Removalor Mutil ationGenerally.222.(30) Section223 1.AssaultorResistance.222.(31) Section2232DestructionorRemovalofProperty toPreventSei zure222.(32) Section2233.RescueofSeizedProperty 222(33) Section641 .PublicMoney, PrOper1'1orRecords 222.(34) (Reserved)230 PeriodsofLimitationonCriminalProsecution240 IRC653 1. PeriodsofLimitation.241 IRC6513. TimeReturnDeemedFiledandTax ConsideredPaid242 Title18UnitedStatesCode-GeneralStatuteof 3282.OffensesNotCapital 243 Titie18,UnitedStatesCode-FugitivesFrom Justice244 Section3290. FugitivesFromJustice.244 .1 Section1073.Fl ighttoAvoidProsecutionor GivingTestimony.244.2 CivilPenaltiesAppl icabletoFraudandMiscellaneous Investigations250 Introduction.251 InternalRevenueCodeof1954,AsAmendedBy TaxReformActof1969252 tRC6651.FailuretoFileTaxReturnortoPay Tax.252.1 IRC6652.FailuretoFileCertainInformation Returns.252. 2 IRC6653.FailuretoPayTax.252.3 IRC6211.DefinitionofaDeficiency.252.4 OtherCivilPenalties.252.5 300 GeneralInvestigative Procedure CriminalInvestigationPrograms.310 General311 MT9781-32TableofContents IRManual HandbookforSpecialAgents r - ~ ' ">J......I- &, (4-15-82) TableofContents Definitions(IRM9390)312 Planning(Generally)313 KnowledgeofLawandEvidence320 References321 Law.322 DefinitionsofLaw322 .1 DefinitionsofCrimes322.2 PartiestoCriminalOffenses.322.3 Evidence(GeneralRules)323 DefinitionofEvidence323.1 ClassificationsofEvidence323.2 Relevancy.andCompetency.323.3 JudicialNotice323.4 Presumptions.323.5 BurdenofProof.323 .6 Hearsay(FederalRulesofEvidenceArticleVIII) 323.7 SourcesofInformation330 Introduction331 ConfidentialSourcesofInformation332 ManualReferences332.1 In formants.332.2 DefinitionofInformants.332.21 DevelopmentofInformants.332 .22 ProtectionofInformants332.23 TechniquesWilhInformants332.24 PaymentstoInformants.332.25 InformationFromGovernmentOfficesIn Washington.D.C .333 General.333 .1 SocialSecurityAdministrationRecords333.2 DepartmentofLaborRecords.333 .3 StateDepartmentRecords.333.4 SecuritiesandExchangeCommissionRecords 333.5 In terstateCommerceCommissionRecords 333.6 ComptrollerofCurrency(BankExaminers' Reports)333.7 GovernmentRecords334 InternalRevenueService.334.1 NationalComputerCenter.334 .11 TheBusinessMasterFile.334 .111 TheIndividualMasterFile334.112 ResiduafMasterFile(RMF)334 .113 RetentionRegister.334.114 TranscriptsofAccount.334 .115 Definitions334 .11 51 RequestingTranscriptsofAccount.334.116 ServiceCenterRecords.334.12 DisbursingOffices oftheU.S.Government Records.334.2 TreasureroftheUnitedStatesRecords.334 .3 Introduction.334 .31 RefundChecks.334 .32 U.S. TreasuryChecksIssuedforU.S. GovernmentAgencies.334 .33 TableofContentsMT9781-32 ObtainingOriginalU.S. TreasuryChecks 334.34 BureauofthePublicDebtRecords334.4 BureauofGovernmentFinancialOperations 334 .5 CustomsService.334.6 CustomsRecords.334 .61 VerificationofAwardPaymentstoCustoms ServiceInformants.334.62 SecretServiceRecords.334.7 BureauofAlcohof,TobaccoandFirearms Records.334.8 FederalBureauofInvestigationRecords.334 .9 DrugEnforcementAgencyRecords.334.(10) ImmigrationandNaturalizationServiceRecords 334 .(11) U.S. PostalServiceRecords .334 .(12) AddressesofPostOfficeBoxHolders 334.(12)1 ForwardingAddressesofTaxpayersandThird Parties.334.(12)2 PhotostatsofPostalMoneyOrders.334 .(12)3 MailCovers.334.(12)4 FederalAviationAdministration(FAA)Records .334 .(13) DepartmentofDefenseRecords.334.( 14) GovernmentSurplusPropertySales.334.(15) DefensefnyestigativeService(DfS)334.(16) FederalHousingAdministrationRecords 334.(17) UnitedStatesCoastGuardRecords.334.(18) Veterans'AdministrationRecords.334 .( 19) FederalCourtsRecords.334.(20) FederalRecordsCenter.334 .(21) FederalReserveBankRecords.334.(22) RailroadRetirementBoardRecords.334 .(23) EIPasoIntelligenceCenter(EPIC)Records. 334(24) Import-ExportBankRecords.334.(25) SecuritiesInformationCenterRecords.334.(26) DepartmentofHealthEducationandWelfare (HEW)Records334.(27) TreasuryEnforcementCommunicationsSystem (TECS)335 General335.1 InformationAvailablefromTECS335.2 General335.21 ReportofInternationalTransportationof CurrencyOrMonetaryInstruments(CMfR) , CustomsForm4790335.22 ReportofForeignBankandFinancialAccounts (FBA),TreasuryForm90-22.1335.23 RecordsAccessibleThroughTECS335.3 TypesofTECSQuenes335.4 RequestingTECSQueries335.5 FugitiveEntries335.6 OtherTECSFunctions335.7 NewApplications/Uses.335.8 State,County,andMunicipalGovernmentRecords 336 RecordsandInformationfromU.S. Possessionsand FromForeignCountries337 OfficeOfInternationalOperations337.1 IAManual (Next page is9781-2.t ) HandbookforSpecialAgentspage 9781-2.1 (4-15-82)Tableof Contents InformationFromPuertoRicoandtheVirgin Islands337 .2 InformationfromForeignCountries-General 337 .3 InformationfromCanada.337.4 SummonsforRecordsOutsidetheUnitedStates 337 .5 SpecificDatatobeIncludedinRequestfor InformationfromForeignCountriesSeeIRM 9265.3 .337.6 Interpol337 .7 ForeignIntel1igenceActivit iesUnderExecutive Order12036,Section2337.6 U,S" SwissTreatyonMutualAssistancein CriminalManers.337.9 BusinessRecords336 Banks336.1 FunctionandOrganization336.11 BankRecords336.12 SignatureCards336.13 BankDepositTickets336.14 Customer'sAccountRecords336.15 CertifiedCheckRegister336.16 BankExchangeRecords336.17 BankTel1er'sProofSheets.336.16 ClearingHouseSettlementSheets336.19 CashTransitLeners336.1 (I 0) SecuritiesBuyandSel1Records.336.1(II) CollectionRecords.336.1 (12) SafeDepositBoxRecords338.1 (13) ChecksCashed.338.1(14) Deposits.338.1 (15) Microfilm.338.1 (16) ChaseManhananBank.336.1 (17) CurrencyTransactionReports.Form4769 336.2 General338.21 ProceduresforObtainingPhotocopiesof CurrencyTransactionReports(CTR's) 336.22 Securities.336.3 Stocks.336.31 General.336.311 StockRights336.312 StockWarrants336.313 StockSplits336.314 Dividends336.315 Bonds336.32 StockExchanges338.33 General.338.331 ListedSecurities338.332 TheOverthe-CounterMarket336.34 TransferAgent338.35 DividendDisbursingAgent.336.36 Broker.336.37 Commodities336.4 Abstractandntle CompanyRecords336.5 AgricultureRecords.336.6 AutomobileManufacturerandAgencyRecords 336.7 BondingCompanyRecords336.8 CreditAgencyRecords338.9 DepartmentStoreRecords.336.(10) DetectiveAgencyRecords.336.(11) DistributorsRecordS.336.(12) DrugStoreRecords.336.(13) Fraternal,Veterans,Labor,Social , Political OrganizationRecords.336.(14) HospitalRecords.336.(15) HotelRecords.338.(16) LaundryandDryCleaningRecord.336.(17) InsuranceCompanyRecords.336.(16) General. 338.(18)1 TheEquitableLifeAssuranceSocietyofthe UnitedStates.336.(16)2 PrudentialLifeInsuranceCompany.336.(16)3 TravelersInsuranceCompany.336.(16)4 UnionCentralLifeInsuranceCompany 336.( 16)5 MetropolitanLifeInsuranceCompany 338.( 16)6 PanAmericanLifeInsuranceCompany 336.( 18)7. CNAInsuranceCompanies.338.{ 16)8 AetnaLifeandCasualty.336.(16)9 NewspaperRecords.336.(19) OilCompanyRecordS.338.(20) PhotographRecords.338.(21) PrivateBusinessRecords.336.(22) PublicationRecords336. (23) PublicUtilityCompanyRecords336.(24) RealEstateAgencyorSavingsandLoan AssociationRecords.336.(25) TelephoneCompanyRecords.336.(26) TransportationCompanyRecords.336.(27) ConsumerLoanExchangeorLendersExchange 338.(26) MarshallFieldandCompany.336.(29) WesternUnionTelegraphCompany.336.(30) InvestorsDiversifiedServices,Inc .336.(31) NationalCreditCardAgencies.336.(32) General.336.(32)1 AmericanExpress.336.(32)2 DinersClub338. (32)3 CarteBlanche338. (32)4 OtherBusinessRecords.336.(33) ReportingThreatsAgainstthePresidentand PossibleViolationsofOtherLaws339 NotificationtoU.S.SecretService(IRM9376) 339.1 InformationPertainingtoThreatsAgainstthe President.339.11 CasesInvolvingPossibleForgeryofU.S. Check 339.12 OtherInformationofInteresttotheSecret Service339.13 InformationConcerningPossibleViolationsof Federal,StateandLocalCriminalLaws.339.2 WitnessesandProspectiveDefendants340 RightsandObligationsofWitnessesand ProspectiveDelendants341 General341 .1 MT9781-32 TableofContents IRManual t" ... .".VI - ..... HanatlOOKtorAgents (4-15-82) TableofContents ConstitutionalLaw.341.2 LegalityandUseofCertainEvidenceand Equipment341 .3 AdmissibilityofEvidence341.31 UseofInvestigativeEquipment341 .32 El ectronicListeningDevicesandOther MonitoringDevices341.33 General. 341 .331 ConsensualMonitoring.341 .332 ConsensualMoni toringofTelephone Conversations.341 .333 ConsensualMonitoringofNon-Telephone Conversations.341.334 NonconsensualMonitoring.341 .335 RestrictionsonOtherUsesofInvestigative TechniquesandEquipment.341.336 RecordingtheProceedingsofPublic Meetings341 .337 RighttoRecordInterview34 1.4 ProspectiveDefendants342 Indivi dualasaProspecliveDefendant342.1 StatementsofAnIrdividual342.11 BooksandRecordsofAnIndividual.342.12 Duty10InformIndividualofHisConsti tut ional Rights.342.13 General.342.131 Non-custodialInterviews.342.132 CustodialInterrogations.342.133 Volunta ryDisclosure.342. 14 WaiverofConstitutionalRights.342.15 RighttoCounsel342.1 6 PowersofAttorney.342.17 RepresentationbyEnrolledPersons, Attorneys andCertifiedPublicAccountantsandOthers 342 .18 DealingwithRepresentatives342.19 PartnershipandOtherUnincorporatedAssociation BooksandRecords342.2 Corporations.342.3 CorporationBooksandRecords342.31 RightsofCorporatior. Officers342.32 DistrictCriminalInvesti gationConference.342.4 ThirdPartyWitnesses343 CornpelledTestimonyorProductionofRecordSof ThirdPartyWitness343.1 RightsofThirdPartyWitnessAgainstSelfIncrimination343.2 RighttoCounselofThirdPartyWitnesses 343.3 RightofThirdPartyWitnesstoRefuse Unreasonabl eRequest.343.4 WitnessesAndRecordsFromForeignCountries 343.5 DualRepresentation.343.6 Privil egedCornmunications344 ConditionsforPrivilegedComrnunications344.1 AttorneyandClientPrivilege.344.2 AccountantandClientPri vi lege.344.3 HusbandandWifePrivilege344.4 ClergymanandPenit entPrivilege344.5 PhysicianandPatientPrivilege344 .6 TableofContentsMT9781-32 IRManual Psycholherapist-PatientPrivil ege.344.7 InformantandGovernmentPrivilege.344.8 ClaimandWaiverofPrivilege.344.9 AdmissionsandConfessions.345 Admissions.345.1 DefinitionofAdmissions.345.11 JudicialAdmissions345. 12 Extra-JudicialAdmissions345.13 ImpliedAdmisSions345.1d CorroborationofAdmissions.345.15 CorroborationofAdmissionsBeforeOffense .345.151 CorroborationofAdmissionsAfterOffense .345.152 Post -IndictmentAdmissions.345.16 Confessions345.2 DefinitionofConfessions.345.21 JudicialandExira-JudicialConfessions 345.22 Admissibi li tyofConfessions345.23 CorroborationofConfessions345.24 TechniquesofInterviewing.346 DefinitionandPurposeofInterviewing346.1 AuthorrtyforInterviewing346.2 PreparationandPlanningforInterviewing.346.3 Preparation346.31 Planning346.32 ConduciofInterview346.4 RecordofInterview346.5 Introduction.346.51 Affidavi t346.52 Statement.346.53 ,QuestionandAnswerStatement.346.54 Elements346.541 Off-RecordDiscussions346.542 MemorandumofInterview.346.55 InformalNotesorDiaryEntri esofInterview 346.56 Procedure346. 6 Appli cation346.7 CircularFormLetter347 General. 347.1 Procedure347.2 Di sclosure.348 General.348 .1 Definitions.348.2 DisclosuresforInvestigativePurposes.348.3 Discl osurestoOther TreasuryEmpl oyees 348.4 DisclosurestoTheDepartment ofJusticeforTax AdministrationPurposes348.5 DisclosurestoaTaxpayer'sRepresentative 348.6 DisclosureofTaxInformationforNontaxCriminal AdministrationPurposes(FederalOnly)348.7 DisclosureofNontaxCrimi nalViolations.348.8 DisclosureofSpecialAgents 'Reportsand InformationContai nedinTaxpayerDelinquent AccountFilestoProbationOfficers348.9 DocumentaryEvidence350 DefinitionofDocumentaryEvidence351 Handbook forSpecialAgentspage 9781-2.3 (4-1 5--82) TableofContents BestEvidenceRule352 DefinitionofBestEVidenceRule352.1 ApplicationofBestEvidenceRule.352.2 SecondaryEvidence352.3 Admissibili tyofSpecificFormsofDocumentary Evidence353 StatutoryProvisions353.1 BusinessRecords353.2 FederalShopBookRule.353.21 Photographs, Photostats,andMicrofilmed Copies353.22 Transcripts353.23 Charts,SummariesandSchedules353.24 Notes,Diaries, Workpapers, andMemorandums 353.25 ProvingSpecificTransactions.353.26 OHicialRecords 353.3 StatutoryProvisionsRegardingOfficialRecords 353.31 AuthenticationofOHicialRacords353.32 ProofofLackofRecord353.33 StateandTerrilorlalStatutesandProcedures 353.34 ReceiptforRecordsandDocuments354 " ChainofCustody "355 LegalRequirementsfor"ChainofCustody" 355.1 IdentificationofSeizedDocumentaryEvidence 355.2 Documents356 UseandApplicationofQuestionedDocuments 356. 1 DefinillonofQuestionedDocument356.2 SlandardsforComparisonWithQuestioned Documents.356.3 HandwritingExemplars356.4 TypewritingExemplars.356.5 OtherExemplars356.6 IdenlifyingExemplarsandQueslionedDocuments 356.7 RecordRetentionRequirements357 General.357.1 RecordRequirementGuidelinestorADPSystems 357.2 InadequateRecords357.3 CriminalPenalties357.4 Summons360 ProviSionsofLaw361 AuthOrityToIssueaSummons362 ConsiderationsRegardingIssuanceofSummons 363 PreparationofSummons(Form2039)364 ServiceofSummons365 TimeandPlaceofExamination366 ExaminationofBooksandWitnesses.367 PersonsWhoMay8eSummoned.367.1 PurposeofExamination.367.2 LimitationsonAuthorityofSummons.367. 3 MaterialityandRelevancy.367.31 Examinat;onsBarredbyStatuteofLimitations 367.32 StatutoryRestrictiononSummons367.33 ConstitutionalRightsofPersonsSummoned 367.34 PrivilegedCommunicationsandSummons 367.35 DestructionofRecordsSummoned367.36 Taxpayer-Records andTestimony.367.4 Generaf367.41 Taxpayer'sRecordsinPossessionofOthers 367.42 Taxpayer'sRecordsVoluntarilyTurnedOver toOthers.367.421 Taxpayer'sRecordsInvoluntarilyTurned OvertoOthers.367.422 SummonsonThi rdParties-Recordsand Testimony.367.5 General.367.51 SummonsonBanks.367.52 General.367.521 SummonsonForeignBranchBanks 367.522 SummonsOnDomesticBranchesofForeign Banks.367.523 SummonsforRecordsofForeignCompanies 367.53 OtherThirdParties367.54 UseofSummons-SpecialApplications 367.55 UseofSummonstoOblainInformation ConcerningtheFinancesofaPolitical Organization.367551 SummonsforInformationPursuanttoTax Treaties.367.552 RestrictionsonExaminalionofChurches 367.553 SummonsforRecordsOulsidetheUnited States.367.554 InformationfromFederalOfficialsand Empfoyees367.555 CriminalCasesPendingwithJustice 3:'. 55b SpeCialProceduresforThird-Party RecordkeeperSummons.367.56 StatutoryRequi rements.367.561 DefiMions367.562 ExceptionstoNoticeRequir.ement367.563 GsneralProceduresforNotice,Staying ComplianceandIntervention.367.57 PeriodinWhiChServiceIsRequiredToGive Notice.367.571 RighttoStayCompliance.367.572 InterventioninSummonsEnforcement PrOceej ings,367.573 Notice'lndInstructions10Noticee367.574 Wai verofRighttoNotice, Stayof ComplianceandIntervention367.575 CoordinationofSummonsIssuanceand EnforcementActions.367.58 "JohnDoe"Summons367.59 IssuanceProcedures.367.591 ServiceofJ0hnDoeSummons.367.592 RestrictionsonDisclosureofInformationObtained byaSummons367.6 FeesandCostsforWitnesses368 MT9781-32 TableofContents fRManual r-o- _._.Handbook forSpecialAgents (4-15-82) Tableof Contents Authority368.t WitnessFeesandTravelExpenses.368.2 PaymentsforCost s inComplyingwithSummons 369 General369.1 Definitions369.2 DelegationofAuthority.369.3 BasisforPayment.369.4 PaymentProcedures.369.5 SafeguardingofDocuments369.6 EnforcementofSummons.36(10) Appearance, ComplianceorNoncompliancewith aSummons.36(10).1 General.36(10) .2 CivilEnforcementofSummons. 36(10) .3 General.36(10) .31 CivilandCriminalContemptRegarding Summons.36(10) .32 UseofDeclarationsinSummonsProceedings 36(10).33 CriminalEnforcementofSummons.36(10).4 AutomaticDataProcessing(A.D'p.),SCientificAids AndOtherSpecialEquipment.370 A.D.P . 371 Application371 .1 TELAN371 .2 ScientificAids372 Laboratories372.1 Chemicals.372.2 Anthracene.372.21 Phenolphthalein372.22 SpecialEquipment373 ProperUseandLi mitationsonSpecialEquipment 373.1 Definitions.373.2 DocumentEqui pment373.3 MicrofilmEquipmentandPhotocopying 373.31 InvestigativeEquipment373.4 Radios373.41 BinocularsandTelescopes.373.42 CameraEquipment.373.43 Handcuffs373.44 SpecializedInvestigativeEquipment373.45 Sirens. Warni ngLights.andSpecialAutomot ive Equipment.373.46 SecurityofInvestigative/ DocumentEquipment andOtherProperty.373.47 FirearmsandAmmunition.373.48 AuthoritytoCarry373.481 IssuanceofFirearmstoSpecialAgents 373.482 FirearmsStandards.373.483 AmmunitionStandards.373.484 UseofFirearmsbySpecialAgents 373.485 CarryingFirearmsandArmedEscortson CommercialAirplanes373.486 SecurityofFirearmsandAmmunition 373.487 TableofContents MT9781-32 IAManual ChemicalWeapons. 373.488 SecurityofChemicalWeapons373.489 SensitiveEquipment.373.5 ElectronicSurveillanceEquipment373.6 TapeRecordingEquipment.373.7 Surveillance.SearchesandSeizures.Raidsand Forfeitures380 Surveillance381 UndercoverWork382 SearchesandSeizures383 Introduction.383.1 AuthorityandProcedure.383.2 ConstitutionalAuthority.383.21 StatutoryAuthority383.22 UnreasonableSearchesandSeizures.383 .3 ApprovalforSearchWarrants383.4 Probabl eCauseandPreparationofSearch Warrant.383.5 PreparationfortheSearch383.6 TheApproachandSearch383.7 SeizuresUnderWarrant383.8 GamingDeviceSeizuresUnderWarrant 383.81 InventoryofSeizedPropertyUnderWarrant 383.82 ReturnofSearchWarrant383.83 SearchesandSeizuresWithoutWarrant.383.9 SearchesIncidenttoArrest.383.91 SearchesMadeWithConsent.383.92 SearchesofVehiclesandVessels.383.93 SearchesandSeizuresofAbandonedProperty 383.94 SeizuresofRecords.383.(10) SeizureofContraband.383.(11) DutiesofSpecialAgentAfterArrest.Search. and Seizure.383.(12) SeizuresByOtherAgencies.383.(13) ForieitureProcedures384 Introduction384.1 AuthoritytoSeizePropertyforForieiture3842 MethodsofForieiture384.3 EssentialElementtoEffectForieiture384.4 BurdenofProofinForteitures384.41 EvidencetoSupportForieitures384.42 DutiesofSpecialAgent inSeizureandForteiture Cases. 384.5 UseofRaidKits.384.51 CustodyandStorageofSeizedPropllrty 384.52 PreparationofSeizureForms384.53 SeizureReport384.54 SupplementalInvestigationsandReports 384.55 Arrests390 Definition ofArrest391 El ementsofArrest392 AuthoritytoArrest392.1 StatutoryAuthority392.11 Non-StatutoryAuthority392.t2 ArrestsWithoutWarrants.392.2 Officer'sIntenttoArrest392.3 page 9781-2.5HandbookforSpecialAgents (4-15-82) TableofContents OffenderMustKnowHe/SheIsBeingArrested 392.4 OffenderMustSubmit392.5 ForceinConductingtheArrest393 ProceedingsBeforetheMagistrate394 Fingerprints395 Juveniles396 Publicity397 General397 .1 Raids397 .2 PretrialActions397.3 Fugitives398 FraudInvestigationAssignments.3(10)0 NatureofViolations3( 10) 1 TypesofAssignments3( 10)2 OriginofAssignments .3(10)3 General3( 10)3.1 InformationItemsandOtherInformation 3(10)3 .2 Definition.3( 10)3 .21 ProcessingofInformationItems.3( 10)3 .22 EvaluationofItemsHavingCriminalPotential 3( 10)323 PotentialCriminalCasesInitiatedinAudit, Collection,andEP/ EO3(10)3.3 IndicationsofFraudReportedtoCriminal InvestigationFunction.3(10)3.31 ActionbyCriminalInvestigationFunction 3(10)3.32 Investigations.3(10)4 JointInvestigations3( 10)5 CircumstancesDeterminingJointInvestigations 3(10)5.1. ResponsibilitiesofParticipantsina Joint Investigation3( 10)5.2 RequestingReturnsandTranscriptsofAccounts 3(10)6 ReturnsandRelatedTaxInformation.3(10)6.1 TranscriptsofAccounts.3(10)6.2 CommencingFraudInvestigations.3(10)7 Investigations3(10)8 PlanningandConductingofInvestigations 3(10)8 .1 ControlofADPOperations3( 10)8.2 Procedure.3(10)8.21 TransactionCodes.3(10)8 .22 InitialInquiriesInanInvestigation.3(10)83 General. 3(10)8.31 InterviewwithTaxpayerorInspectionofHis/ HerBooks.3(10)8.32 InformationfromReferringAgent/Officer 3(10)8.33 Withdrawals.3(10)9 General3( 10)9.1 WrittenNotificationtoTaxpayersWhenCriminal InvestigationDivisionDiscontinuesanInvestigation 3(10)9.2 AdditionalIndications ofFraud.3(10)9.3 NonprosecutionCases.3(10)(10) Calendar3( 11)0 Map.3(12)0 400 TaxCases(EvidenceandProcedure) LawandElementsofOffenses410 CivilandCriminalSanctionsDistinguished411 AvoidanceDistinguishedFromEvasion412 AttemptedEvasionofTax orPaymentThereof(IRC 7201)413 StatutoryProvisions.413 .1 ElementsoftheOffenses.413.2 FailuretoCollect,AccountFor , andPayOverTax 414 WillfulFailuretoCollect,AccountFor,andPay OverTax(IRC7202)41>1.1 StatutoryProvisions.414.11 ElementsofOffense.414 .12 FailuretoCollectandAccountForCertain CollectedTaxes(NonwillfulViolation)(IRC7215) 414 .2 StatutoryProvisions.414 ,21 ElementsofOffense414,22 WillfulFailuretoFileReturns,SupplyInformation, or PayTax(IRC7203)415 StatutoryProvisions415.1 ElementsoftheOffenses415.2 WillfulFailuretoMakea Return415,21 WillfulFai luretoPayTax.415.22 WillfulFailuretoSupplyInformation415.23 WillfulFailuretoKeepRecords415.24 VenueandStatuteofLimitations.415,3 FraudulentStatementorFailuretoMakeStatement toEmployees(IRC7204)416 StatutoryProvisions416.1 ElementsofOffense416,2 FraudulentWithholdingExemptionCertificateor FailuretoSupplyInformation(IRC7205)417 StatutoryProvisions.417,1 ElementsofOffense.417,2 FalseandFraudulentStatements418 FalseorFraudulentReturn,Statement,orOther DocumentMadeUnderPenallyofPerjury(IRC 7206(1))418,1 StatutoryProvisions.418 .11 ElementsofOffense.418 ,12 AidorAssistanceinPreparationorPresentation ofFalseorFraudulentReturn,Affidavit,Claimor OtherDocument(IRC7206(2))418,2 StatutoryProvisions.418 ,21 ElementsofOffense.418.22 FraudulentReturns,Statements,orOther Documents(IRC7207)418,3 FalseStatementsofEntriesGenerally(Section 1001,Title18)418.4 StatutoryProvisions.418.41 ElementsofOffense.418.42 False,Fictitious, orFraudulentClaims(Section 287,Title18)418 ,5 StatutoryProvisions.418,51 ElementsofOffense.418 ,52 Removalor ConcealmentwithIntenttoDefraud (IRC7206(4))418 ,6 StatutoryProvisions.418 ,61 MT9781-32TableofContents IAManual 1-'::.0 HandbookforSpecialAgents (4-15-82) TableofContents ElementsofOffense4 I 6.62 StatuteofLimitations4 I 9 Introduction4 I 9. I StatuteofLimitationsStatutoryProvisions 419.2 StatuteofLimitations onCriminalViolations 419.21 StatuteofLimitationsonCivilAssessments 419.22 Consents.419.23 ConstructionofStatuteofLimitationsProvisions 419.3 TollingoftheStatuteofLimitations419.4 Conspiracy(Section371 , Title16)41 (1 0) StatutoryProvisions.41(10) .1 ElementsofOffenseofConspiracy41 (1 0) .2 ApplicationofConspiracyStatute41 (10) .3 ConstructionofConspiracyProvisions.41 (10).4 Definition.41 (1 0) .4 I PartiesinConspiracy.41(10) .42 NatureofConspiracyAgreement.41(10).43 OvertActin Conspiracy.41 (1 0).44 DefraudinConspiracy.41 (1 0).45 DurationofConspiracy.41 (1 0).46 Willfulness41 (11 ) DefinitionofWillfulness41(11 ).1 ProofofWillfulness.41 (11 ).2 Defenses8earinguponWillfulness41 (11 ).3 DefensesofWillfulness.41(11) .31 Entrapment.41 (11 ).32 EmbezzledFundsandOtherIllegallyObtained Income41 (11 ).33 MethodsofProvingIncome420 Introduction421 DistinguishingBetweenAccountingSystems, AccountingMethods, andMethodsofPrOving Income.422 SpecificItemMethodofProvingIncome423 General423.1 UnreportedIncomefromCertificatesofDeposit 423.2 NetWorthMethodofProvingIncome424 Introduction.424 .1 AuthorityforNetWorthMethod.424 .2 WhenandHowNetWorthMethodUsed.424.3 EstablishingtheStartingPoint.424.4 TaxableSourceofIncome.424.5 CorroborationofExtra-JudicialAdmissions 424.6 InvestigationofLeads.424 .7 SummariesPreparedbyGovernmentAgents 424 .6 CommonDefensesinNetWorthCases.424 .9 ExpendituresMethodofProvingIncome425 Introduction425.1 AuthorityforUsingExpendituresMethod425.2 WhenandHowExpendituresMethodUsed 425.3 EstablishingtheStartingPoint425.4 TableofContentsMT9781-32 IRManual TaxableSourceofIncome-Corroborationof Extra-JudicialAdmissions-InvestigationofLeads 425.5 ExpendituresSummariesPreparedby GovernmentAgents425.6 DefensesinExpendituresMethodCases425.7 BankDepOsitsMethodofProvingIncome426 FormulaForBankDepositsMethod426.1 Introduction426.1 I TotalDeposits.426.12 PaymentsMadeinCash426.13 NonincomeDepositsandItems426. I 4 BusinessExpensesandCosts426. 15 DeductionsandExemptions426. I 6 UseofBankDepositsMethod426.2 AuthorityForBankDepositsMethod426.3 ProofofTaxableIncomeinBankDepositsCase 426.4 DefensesinRankDepositsCase426.5 SchedulesandSummariesinBankDeposits Case.426.6 OtherMethods427 PercentageMethod.427. I UseofPercentageMethod.427.11 ApplicationofPercentageMethod.427.12 LimitationsonPercentageMethod427.13 ExamplesofPercentageMethod427.14 UnitandVolumeMethods.427.2 RefundCases430 Introduction431 InvestigationofMultipleClaimsForRefund432 InvestigationofMultipleFraudulentReturns PreparedbyUnscrupulousReturnPreparers433 EmployeePlans/ExemptOrganizations(EP/EO) Cases.440 Introduction441 ScopeofTheLaw442 CriminalProvisions443 FraudulentSchemesandDevices444 TaxProtest-TypeCases445 Introduction445.1 Background445.2 CriminalInvestigationDivisi onProceduresInTax Protester-TypeCases445.3 ExciseTaxes.450 DefinitionandPurposes45 1 ExciseandIncomeTaxesDistinguished. 452 Base.452.1 TaxPeriod.452.2 AdditionalTaxesandPenalties452.3 CourtAPpeals.452.4 ExciseTaxReductionBillof1965453 StatutoryProvisions.453 .1 ExciseTaxesRemaininginEffect.453.2 OccupationsSubjecttoTax.453.3 (Reserved)454 CivilPenaltiesandJeopardyAssessments455 CivilPenalties455.1 DelinquencyPenalty(IRC6651 (a455.11 Handbook forSpecialAgents page 9781-2.7 (4-15-82)Tableof Contents FraudPenaltyApplicabletoReturns(IRC 6653(b))455, t 2 FraudPenaltyApplicabletoDocumentary Stamps(IRC6653(e))455, I 3 OneHundredPercentPenalty(IRC6672) 455 .14 OtherCivilPenalties455, I 5 JeopardyAssessmentinExciseTaxCases 4 ~ 5 , 2CriminalPenaltiesforExciseTaxViolations.456 ExciseTax Investigations.457 OriginofExciseTaxCases.457.1 TechniquesofExciseandIncomeTax InvestigationsCompared.457.2 WageringTax460 LawRelatingtoWageringTax.461 ExciseTaxonWagering.461 ,1 StatutoryProvisions. 461 ,11 DefinitionsofWageringTerms.461 .12 Wager.461 .121 Lottery461.122 AmountofWager.461,13 PersonsLiableforWageringExciseTax .461.14 ExclusionsFromWageringExciseTax 461 .15 TerritorialExtentofWageringExciseTax 461 ,16 WageringOccupationalTax.461 ,2 StatutoryPrqvisions461 .21 Registration461.22 RecordRequirements.461 ,3 PaymentofSpecialTaxBeforeEngagingin WageringBusiness461.4 WageringExciseTaxReturns.461 ,5 CriminalViolat ionsforWageringTaxes.461.6 ElementsofWageringTax Violations.462 General462.1 WageringTax Enforcement.462.2 InvestigativeTechniques.463 VenueinWageringInvestigations464 StatuteofLimitationsonWageringTaxes.465 Civi lPenaltiesonWageringTaxes.466 500 Procedures and Techniques inOther ,Investigations Interterence.ForcibleRescueofSeizedProperty 510 InterterenceCases 511 CorruptorForcibleInterterence(IRC7212(a)) 511 .1 Assault.Resi stingorImpeding CertainOfficersor Employees(18USC111)511.2 InvestigativeResponsibility511.3 InvestigationofInterterenceCases.511.4 AssaultorResistancetoSearchorServiceof Process(18USC1501;18USC2231).511 .5 ObstructionofCriminalInvestigations(t8USC 1510)511 ,6 ForcibleRescueofSeizedProperty.512 ElementsofForcibleRescueCases512,1 ForcibleRescue(IRC7212(b))512,11 RescueofSeizedProperty(18USC2233) 512,12 InvestigationofForcibleRescueCases512,2 OfferofBribe(18USC201)520 Reference.521 ElemenlsofOfferofBribe522 JurisdictioninOfferofBribe523 InvestigationofOfferofBribe524 Perjury530 Reference531 ElementsofPerjury532 EstablishingElementsofPerjury533 FalseDeclarationsBeforeGrandJuryorCourt 534 CriminalEnforcement01InternationalBoycott ProvisionsoftheInternalRevenueCode(I RC999) , 540 SpecialInvestigation550 OffersinCompromise.551 Ref erence551,1 CriminalInvesti gationDivisionResponsibi lity 551.2 All egedFraudulentOffers.551 ,3 OffersinClosedCases551.4 OffersinPendingCriminalProceedingsCases 551 .5 Investigationof OffersinCompromise.551 ,6 AllegedFraudulentOffers551 .7 InvestigatingOffersinClosedCases551 ,8 OffersinCriminalProceedingsCases.551,9 JeopardyAssessments552 References552,1 CriminalInvestigationDivisionResponsibility 552.2 JeopardySituations552 .3 InvestigationofJeopardyAssessmentCases 552.4 TerminationAssessments.553 References553.1 Introduction553,2 Requirements553.3 CrimesUnderTitle31.UnitedStatesCode.560 600 Reports PurposeandImportance ofReports.610 PlanningandWritingReports620 Essentialsofa GoodReport.621 Introduction.621.1 Fairness.621 ,2 Accuracy621 .3 Completeness621.4 Uniformity. 621 .5 Conciseness621.6 LogicalPresentation621 .7 PlanningtheReport622 MT9781-32TableofContents IRManual HandbookforSpecialAgents(4-15-82) Tableof Contents ReportsonRelatedCases623 FormatofReports624 Address624.1 Subject624.2 CaseNumberandDesignation.624 .3 SampleSubjectsandDesignations624.4 ApprovalStamps.624 .5 AssemblyofaReport624.6 IdentificationofPrincipals,Witnesses,Etc. 624.7 AppendicesandExhibits625 General625.1 Exhibits-SupplementalReports625.2 DocumentsSubmittedwithCollateralReports 625.3 ListofWitnesses626 TableofContents.627 TypesofFinalReports.630 Introduction631 OutlineforFinalReportsonProSecutionCases 632 TaxFraudCases(Prosecution) 633 Introduction633.1 SummaryofCooperatingOfficer' sFindings 633.2 HistoryofTaxpayer.633.3 Evidence633.4 EvidenceinSupportofCivilPenalties633.41 EvidenceforUseinCriminalProceedings 633.42. ExplanationandDefense633.5 FactsRelatingtoIntent.633 .6 ConclusionsandRecommendations.633.7 SampleReports,TaxFraudCases.633 .8 FinalReportsonProsecutionCases(Optional Format)634 Introduction634 .1 FormatForFinalReportsinProsecutionCases (OptionalFormat)634.2 Introduction.634 .3 HistoryofTaxpayer.634.4 EvidenceofIncome634.5 CorroborativeProof634.6 EvidenceofIntent.634 .7 ExplanationandDefenseofTaxpayer634.8 ConclusionsandRecommendations634.9 Witness-ExhibitFiles.634 .(10) ReportsonWageringTaxandCoin-operated GamingDevice(COGD)andSeizureCases635 Introduction635.1 ReportsinWageringCases635.2 SeizureReport,Form4008635.3 ReportofInvestigationRelatingtoPetitionfor RemissionorMitigationofForfeiture635.4 MiscellaneousCriminalLawViolations636 ReportsonNonprosecutionCases637 ReportsonDiscontinuedInvestigation638 CollateralReports639 Chronological Worksheet640 TableofContentsMT9781-32 IRManual LegalActionReports650 General651 Procedures652 NoTrueBillCases653 CasesinWhicha ConvictionisNotObtained654 CasesContainingUniqueorImportantMattersof Law.655 ReportingArrests656 ClaimforRewardReports660 SupplementalReports670 GrandJuryInvestigationReports680 ReportingDerogatoryInformationRelatingtoEnrolled Persons,Attorneys,andCertifiedPublicAccountants 690 General691 ProcedureforReportingDerogatoryInformation ConcerningUnenrolledPreparersofTaxReturns 692 700 FederalCourtProcedures andRelated Matters LawGoverningFederalCourts710 FederalRulesofCriminalProcedure(Pre-Trial)720 Complaint(Rule3)721 Warrant orSummonsUponComplaint(Rule4) 722 PreliminaryExamination(Rule5)723 TheGrandJury(Rule6)724 IndictmentandInformation725 DefinitionsofIndictmentandInformation725.1 IndictmentandInformationDistinguished(Rules 7aand7b)725.2 BillofParticulars(Rule7f)725.3 JoinderofOffensesandDefendants(Rule8) 725.4 ArraignmentandPreparationforTrial726 Arraignment(Rule10)726.1 Pleas(Rule11)726.2 MotionsRaisingDefensesandObjections(Rule (2)726.3 Depositions(Rule(5)726.4 DiscoverandInspectionandSubpoenasfor ProductionofDocumentaryEvidence(Rules16 and17(c726.5 MotionstoSuppressEvidenceandforReturnof Property(Rule41 (e))726.6 OtherMattersBeforeTrial726.7 Venue.727 TrialsandRelatedFederalRulesofCriminal Procedure730 TrialbyJuryorbyCourt731 ProvisionsoftheConstitution.731 .1 ProvisionsofFederalRules(Rule23)731 .2 TrialbyUnitedStatesMagistrates'731 .3 TrialJurors(Rule24)732 DisabilityofJudge(Rule25)733 Evidence(Rule26)734 OpeningStatements735 PresentationofCase736 Witnesses737 HandbookforSpecialAgentspage 9781-2.9 (4-1S-a2)TableofContents Definition.737.1 Competence.737 .2 Credibility.737.3 Impeachment737 .4 ImpeachmentofOpposingWitness.737.41 Impeachment byaPartyofHisOwnWitness 737.42 Recall737 .5 RefreshingMemoryorRecollection737.6 Introduction737 .61 PastRecollectionRecorded.737.62 PresentRecollectionRevived737 .63 Specific Witnesses.737.7 ExpertWitness(Rule28)737.71 SpecialAgent.737 .72 RevenueAgent.737.73 Cross-Examination.737.8 GeneralRules.737.81 DemandsforProductionofStatementsand ReportsofWitness.737.82 RedirectExamination.737' .9 Stipulations738 MotionforJudgmentofAcquittal(Rule29)739 Rebuttal73( 10) InstructionstotheJury(Rule30)73(1 1) Verdict(Rule31)73(12) Judgment(Rules32Through35)73(13) Definition.73(13) . I PresentenceInvestigation.73(13) .2 WithdrawalofPleaofGuilty.73(13) .3 Sentence.73(13) .4 Probation.73(13) .5 Right ofAppeal(Rule37)73(14) CompromiseofCriminalTaxCases.740 AssistingtheUnitedStatesAttorney750 PlanningforPresentationtoGrandJuryandfor Trial.751 Trial. 752 ResponsibilityandConductofSpecialAgentat Trial.752. I SeparationofWitnesses752.2 CaseSettlement760 InternalRevenueService(JointInvestigations) 761 UnitedStatesTaxCourt.762 CitationofCases770 EXHIBITS Exhibit200-1 OtherCriminalPenalties Exhibit200-2 OtherCivilPenalties 300-1 FORM1180 Exhibit 300-2 TheNumericalSystemoftheAmericanBankers AssociationIndextoPrefixNumbersHandbook Reference:Text338.14 Exhibit300-3 RoutingSymbolsofBanksthatareMembersofthe FederalReserveSystemHandbookReference:text 334.4:(1 ) Exhibit300-4 U.S.ServiceOfficesandResidentAgencies HandbookReference334 .3:(4)(b) Exhibi t300-5 Form5228 HandbookReference:Text342.133:(4) ExhibitSuggestedOutlineforQuestioningPersonWho PreparedReturns.IfOtllerThanTaxpayer HandbookReference:text346.32 Exhibit300-7 Form2311 HandbookReference:Text346.52 Exhibit300-8 SuggestedFormatforStatement HandbookReference:text346.53 Exhibit300-9 SuggestedFormatforQuestionandAnswerStatement HandbookReference:text346.541 Exhibit300-10 ExampleofMemorandumofInterview HandbookRef erence:text346.55 Exhibit300-11 ExampleofInformalNotes HandbookReference:text346.56 Exhibit300-12 Form2725 HandbookReference:fext342. t2:(9) Exhibit300-13 FormM-2060 Exhibit300-14 Form2039 Exhibit300-15 PatternDeclaration Exhibit300-16 PattemLetterP-549 Exhibit300-1 7 Calendar's-1800to2050 HandbookReference:text3( 11)0 Exhibit300-18 WaiverofPrivilegeandAuthorizationforReleaseof MedicalInformationHandbookReference:text344.7:(2) Exhibit300-19 MapofIR SandJudicialDistrictBoundaries MT9781-32TableofContents IRManual page 9781-2.10Handbook forSpecialAgents (4-15-82) TableofContents Exhibit300-20 MemorandumFormatforRequestofInformationFrom SocialSecurityAdministration Exhibit300-21 ListofPaymentCentersoftheSocialSecurity AdministrationHandbookReference:text333.2:(2)(h) Exhibit300-22 (Reserved) Exhibit300-23 (Reserved) Exhibit300-24 Form2275 Exhibit 300-25 Form4338 Exhibit300-26 Form4303 Exhibit300-27 Form4340 Exhibit 300-28 Form4135 Exhibit300-29 PatternLetterP-543 Exhibit300-30 TreasuryDepar1mentOrderNo.246(Revision1) Exhibit300-31 UnitedStatesForeignIntelligenceActivities Exhibit400-1 NetWor1hStatement Exhibit400-2 ExpendituresStatement Exhibit400-3 SCheduleA Exhibit400-4 ScheduleB Exhibit400-5 Summary-AnalysisofChecksandCurrency Disbursements Exhibit400-6 AnalysisofDepositstoCheckingAccount Exhibit400-7 ListofFirstThreeDigitsofSocialSecurityNumbers (SSN)andtheirAssignedAreasofIssuance Exhibit600-1 SampleTabulationsofCooperatingOfficer'sFindings Exhibit600-2 SampleRepor1-SpecificitemCase Exhibit600-3 ComparisonofNarrativeandOptionalFormatRepor1s Exhibit600-4 OptionalFormat Exhibit600-5 SampleRepor1-NetWOr1hCase Exhibit 600-6 SampleRepor1-BankDepositsCase Exhibit600-7 Form1327A Exhibit 600-6 AffidavitforSearchWarrant Exhibit600-9 Form4008(SeizedProper1yReport) Exhibit600-10 ReportofInvestigationRelatingtoPetitionfor RemissionorMitigationofForfeiture Exhibit600-11 SampleReportofanInterferenceCase Exhibit600-12 SampleReport-DiscontinuedInvestigation Exhibit600-13 SampleReport-CollateralRequest Exhibit600-14 SampleReport-CollateralReply Exhibit600-15 Form4365HandbookReference:540 Exhibit600-16 Form1327 Exhibit700-1 Complaint Exhibit700-2 Indictment Exhibit700-3 Information Exhibit700-4 TableofCases TableofContentsMT9781-32 IRManual(Next page is 9781-3) page 9781-9Chapter200 (12-7-81) StatutoryProvisions 210(1-18-80)9781 Introduction Thischaptercontainsthecompletetextof thesectionsofTitle18,UnitedStatesCode, that may be involved incriminal investigations; the more frequently used penal and civil penalties of the Internal Revenue Code of 1954 (Title 26,UnitedStatesCode);andthesectionsof Title 18 and the Internal Revenue Code of 1954 relatingtolimitationsoncriminalprosecution. The less frequently used penalties of the internal revenue codes and the sections concerning periods of limitation for assessment and collectionoftax areset forthinoutlineform. 220(1-18--80)978 I CriminalPenaltiesApplicableto FraudandMiscellaneous Investigations 221(1-18-80)9781 InternalRevenueCodeof1954 221.1(1-18--80)9781 EffectiveDateandApplication Chapter 75of theInternalRevenue Code of 1954, entitled Crimes, Other Offenses, and Forfeitures,is effective for offenses committed after August16,1954.Thefollowingpenalsections of chapter 75 apply to all taxes imposed by Title 26, United States Code (InternalRevenue Codeof 1954) unless theparticular section statesthatitappliestoaspecifictax. 221.2(1-18-80)978 I IRC7201.AttempttoEvadeor DefeatTax "Anypersonwhowillfullyattemptsinany manner to evade or defeat any tax imposed by this title or the payment thereof shall, in addition to other penalties provided by law, be guilty of a felonyand,uponconvictionthereof,shallbe fined not more than $10,000, or imprisoned not morethan5years,orboth,togetherwiththe costsofprosecution."Seetext413andIRM 9212. 221.3(1-18--80)9781 IRC7202.WillfulFailuretoCollect orPayOver Tax "Any personrequiredunderthistitletocollect, account for, and pay over any tax imposed by this title who willfullyfailsto collect or truthfully account for and pay over such tax shall, in addition to other penaltiesprovided by law,be guilty of a felony and, upon conviction thereof, shall be fined not more than $10,000, or imprisonednot more than 5years,or both,together with the costs of prosecution."See text 414 and IRM9212. 221.4(1-18-80)9781 IRC7203.WillfulFailuretoFile Return,SupplyInformation, or PayTax "Any personrequiredunderthistitletopay any estimated tax or tax, or required by this title or byregulations made under authority thereof tomake areturn(otherthanareturnrequired under authority of section 6015), keep any records,orsupplyanyinformation,whowillfully failstopaysuchestimatedtaxortax,make such return, keep such records, or supply such information, shall, in addition to other penalties provide by law, be guilty of a misdemeanor and, upon conviction thereof, shall be fined not more than$10,000,orimprisonednotmorethan1 year,or both,together withthe costs of prosecution." See text 415andIRM9212. 221.5(1-18-80)9781 IRC7204.FraudulentStatement orFailuretoMake Statementto Employees [Applies to withholding statements required of employers.) " In lieu of any other penalty provided by law (exceptthepenalty provided bysection6674) anypersonrequiredundertheprovisionsof section 6051to furnish a statement who willfully furnishes a false or fraudulent statement or who willfully failstofurnishastatement inthemanner,atthetime,andshowingtheinformation required under section 6051 , or regulations prescribedthereunder,shall,for eachsuchoffense,uponconvictionthereof,befinednot more than $1,000, or imprisoned not more than 1year,orboth."Seetext416andIRM9212. 221.6(12- 7-81)9781 IRC7205.FraudulentWithholding ExemptionCertificateorFailure toSupplyInformation "Any individual required to supply information to his employer under section 3402 who willfully supplies false or fraudulent information, or who willfullyfailstosupplyinformationthereunder which would require an increase in the tax to be withheld under section 3402, shall , in lieu of any other penalty provided by law (except the penalty provided by section 6682), upon conviction thereof, be fined not more than $500, or imprisonednotmore than1year, or both." Seetex1 417 and IRM 9212. The Economic Recovery Act of 1981raisedthefinefrom$500 to $1 ,000 for actsandfailuresto act afterDecember 31, 1981. MT9781-28221.6 IRManual page 9781-10 HandbookforSpecialAgents ( 1 2 - 7 ~ 1 ) 221.7(5-9--80)9781 IRC7206.FraudandFalse Statements " Anypersonwho-" (1)DeclarationUnder Penalties of Perjury.-Willfully makes and subscribes any return, statement,or other document,whichcontains orisverifiedbyawrit1endeclarationthatitis made under the penalties of perjury, and which he does not believe to be true and correct as to everymaterialmat1er;or "(2)Aid or Assistance.-Willfully aids or assistsin,or procures.counsels,or advisesthe preparationorpresentationunder,orinconnection with any mat1er arising under, the internal revenue laws, of a return, affidavit. claim, or other document. whichisfraudulent or is false astoany materialmat1er,whether or not such falsity or fraud is with the knowledge or consent of the person authorized or required to present suchreturn,affidavit.claim.ordocument;or "(3)FraudulentBonds,Permits,and Entries.-Simulates or falsely or fraudulently executes or signs any bond, permit,entry. or other document required by theprovisions of theinternal revenue laws, or by any regulation made inpursuancethereof,or procures thesame to be falsely or fraudulently executed, or advises, aids in,or connives at such executionthereof; or "(4)Removal or Concealment With Intent to Defraud.-Removes, deposits, or conceals, or isconcernedinremoving,depositing.orconcealing,anygoodsorcommoditiesfororin respect whereof any tax is or shall be imposed, or any property upon which levy is authorized by section 6331, with intent to evade or defeat the assessment or collection of any tax imposed by thistitie; or "(5)CompromisesandClosingAgreements.-In connectionwithanycompromise undersection7122.orofferofsuchcompromise,or in connection withany closingagreement under section7121,or offer to enter into anysuchagreement,williully"(A)Concealment of Property.-Conceals from any oHicer or employee of the United States any property belonging to the estate of a taxpayer or other person liable in respect of the tax,or "(8)Withholding,Falsifying,and DestroyingRecords.-Receives,withholds,destroys, mutilates,orfalsifiesanybook,documentor record,or makes any falsestatement,relating totheestateorfinancialconditionof thetaxpayerorotherpersonliableinrespectofthe 221.7MT9781-28 IAManual tax; shall be guilty of a felony and, upon convictionthereof,shallbefinednot morethan $5,000. or imprisoned not more than 3 years. or both.togetherwiththecosts of prosecution." Seetext 418.1 and418.2andIRM9212. 221.8(5-9--80)9781 IRC7207.FraudulentReturns, Statements,orOther Documents "Any person who willfully delivers or disclosestotheSecretaryorhisdelegateanylist, return, account, statement, or other document. known by him to be fraudulent or to be false as to any materialmatter,shall be finednot more than$1 ,000,orimprisonednotmorethan1 year,orboth."Seetext418.3andIRM9212. 221.9(5-9--80)9781 IRC7210.FailuretoObey Summons "Any personwho,beingdulysummonedto appeartotestify,ortoappearandproduce books, accounts, records,memoranda, or otherpapers,asrequiredundersections7602, 7603,and7604(b),neglectstoappearorto produce such books, accounts, records, memoranda, or other papers, shall, upon conviction thereof.befinednot morethan$1,000,or imprisoned not more than 1 year, or both, together withcostsofprosecution."Seetext36(10).4 andIRM9212. 221.(10)(5-9--80)9781 IRC7212.AttemptstoInterfere WithAdministrationofInternal RevenueLaws "(a)Corrupt or Forcible Interference.-Whoevercorruptlyorbyforceorthreatsofforce (including any threatening let1er or communication)endeavorstointimidateorimpedeany officer or employee of the United States acting inan officialcapacityunder thistitle,or inany otherwaycorruptlyorbyforceorthreatsof force(includinganythreateninglet1eror communication)obstructsorimpedes,or endeavors to obstruct or impede,thedue administration of this title,shall,upon convictionthereof, befinednotmore than$5,000, or imprisoned not more than 3 years, or both, except that if the offenseiscommit1edonlybythreatsofforce, the person convicted thereof shall be fined not more than $3,000, or imprisoned not more than 1 year,orboth. The term "threats of force,"as used in this subsection, means threats of bodily harmtothe officer oremployeeoftheUnited States or to a member of his family. See text 511 andIRM9212. page 9781-11HandbookforSpecialAgents (5-9--80) "(b)ForcibleRescueof SeizedProperty.Anypersonwhoforciblyrescuesor causes to be rescued any property atter it shall have been seizedunderthistitie,orshallattemptorendeavor so to do, shall , excepting in cases otherwiseprovidedfor,foreverysuchoffense,be finednotmorethan$500,ornotmorethan doublethevalueofthepropertysorescued, whichever isthe greater,or be imprisonednot morethan2years. "See text512. 221_(11)(1-18--80) 9781 Other CriminalPenalties See Exhibit 200-1for a listingof other criminalpenalties. 221_(12)(5-9--80)9781 IRC7215.OffensesWithRespect to CollectedTaxes "(a)Penalty.-Any person who fails to comply with any provision of section 7512(b) shall, in addition to any other penalties provided by law, be guilty of a misdemeanor, and,upon convictionthereof ,shallbefinednotmorethan $5,000, or imprisoned not more thanone year; or both, together with the costs of prosecution. " (b)Exceptions.-This section shallnot apply" (1)toanyperson,ifsuchpersonshows thattherewasreasonabledoubt asto(A) whether the law required collection of fax, or (8) who wasrequiredbylawtocollecttax, and "(2)toanyperson, ifsuchpersonshows that the failure to comply withthe provisions of section7512(b)was due to circumstancesbeyondhis control. " Forpurposesofparagraph(2),alackof funds existing immediately atter the payment of wages (whether or not created by the payment ofsuchwages)shallnot beconsideredtobe circumstances beyond the control of a person." Seetext414.2andIRM9212. 221.(13)(7-18--80)9781 IRC7512.SeparateAccounting forCertainCollected Taxes,Etc. "(a)GeneralRule.-Wheneveranyperson who is required to collect , account for,and pay over any tax imposed by subtitle C or by chapter 33"(1)atthetimeandinthemannerprescribed by law or regulations (A)fails to collect, truthfullyaccountfor,orpay over suchtax,or (8) fails to make deposits, payments, or returns ofsuchtax, and "(2)is notified, by notice delivered inhand to such person of any such failure,"then all the requirementsofsubsection(b)shallbecomplied with. In the case of a corporation, partnership,ortrustnoticedeliveredinhandtoan officer, partner, or trustee, shall, for the purposes of this section, be deemed to be notice deliveredinhandtosuchcorporation,partnership, ortrusttoallofficers,partners,trustees,and employeesthereof. "(b)Requirements.-Anyperson who isrequired to collect, account for,and pay over any taximposedbysubtitleCorbychapter33,if noticehasbeendeliveredtosuchpersonin accordancewithsubsection(a),shallcollect thetaxesimposedbysubtitleCorchapter33 which become collectible after delivery of such notice,shall(not later thantheend of the second banking day after any amount of such taxes is collected) deposit such amount in a separate accountinabank(asdefinedinsection581), and shall keep the amount of such taxes in such accountuntilpaymentovertotheUnited States. Anysuchaccount shallbedesignated asa special fund in trust for the United States, payable to the United States by such person as trustee. "(c)ReliefFromFurtherComplianceWith Subsection(b).-WhenevertheSecretaryor hisdelegateissatisfied,withrespecttoany notification made under subsection (a).that all requirementsoflawandregulationswithrespecttothetaxesimposedbysubtitleCor chapter 33, as the case may be, will henceforth be complied with, he may cancel such notification. Such cancellation shall take effect at such time asisspecifiedinthenoticeofsuch cancellation. " 222( 1-18--80)9781 Title18,UnitedStatesCode 222.1(7-18--80)9781 Introduction The following penal sections of Title 18 apply toviolationsthatmaybe encounteredinconnection withCriminalInvestigationDivision investigations. 222.2( 1-18--80)9781 Section2.Principals " (a)Whoevercommitsanoffenseagainst theUnitedStates,or aids,abets,counsels, commands,inducesorprocuresitscommission, ispunishableasaprincipal. "(b)Whoeverwillfullycausesanacttobe done, which if directly performed by him or anotherwouldbeanoffenseagainsttheUnited States, ispunishable as a principal."SeeIRM 9213. MT9781-4222.2 IRManual page 9781-12 HandbookforSpecialAgents (5-9--80) 222.3(1-18-80)9781 Section 3.Accessory After the Fact "Whoever, knowingthatanoffense against theUnitedStates hasbeen committed ,reo ceives, relieves, comforts or assists the offend erinordertohinderorpreventhisapprehen sion.trialor punishment,isanaccessory after thefact. "Except as otherwiseexpressly providedby any Act of Congress, an accessory after the fact shall be imprisoned not more than one-half the maximumtermofimprisonmentorfinednot morethanone halfthemaximumfineprescribedforthepunishmentoftheprincipal,or both;or iftheprincipalis punishablebydeath, theaccessoryshallbeimprisonednotmore thantenyears."SeeIRM9213. 222.4(1 - 18-80)978 1 Section4..Misprisonof Felony "Whoever,havingknowledgeoftheactual commission of a felony cognizable by a court of theUnitedStates,concealsanddoesnotas soonaspossiblemakeknownthesameto somejudgeorotherpersonincivilor mil itary authority under the United States, shall be fined notmorethan$500orimprisonednotmore thanthree years,orboth."SeeIRM9213. 222.5(1 - 18-80)978 1 Section111.Assaulting,ReSisting, or Impeding CertainOfficers or Employees [The provisions of IRC 7212 relating to Attempts to interfere with Administration of Internal Revenue Laws are set forth in 221.(10) .] "Whoever forcibly assaults, resists, opposes, impedes, intimidates, or interferes with any person designated insection 1114 of this title while engaged in or on account of the performance of hisofficialduties,shallbefinednotmore than $5 ,00 0orimprisonednotmorethanthree years,orboth. " Whoever,inthecommissionofanysuch acts uses a deadly or dangerous weapon, shall be finednotmorethan$10,000orimprisoned notmorethantenyears,orboth. "Seetext 411.2andIRM9213. 222.6(1-18-80)9781 Section201.Offer to Officer or Other Person "Whoever promi ses,offers,or gives any moneyor thingofvalue,ormakesortenders any check, order, contract, undertaking, obligation,gratuity,orsecurityforthepaymentof moneyorforthedeliveryorconveyanceof 222.3MT9781-4 IRManual anything of value, to any officer or employee or personactingfororonbehalfoftheUnited States, or any department or agency thereof, in any official function, under or by authority of any such department or agency or to any officer or person acting for or on behalf of either House of Congress, or of any committee of either House, or both Houses thereof, with intent to infiuence his decision or actiononany question,matter, cause,or proceeding which may at any time be pending, or which may by law be brought before him inhis official capacity, or in his place of trust or profit, or withintent to iniluence himto commit or aid in committing, orto collude in, or allow, any fraud, or make opportunity for the commissionofanyfraud,ontheUnitedStates,orto induce himto do or omit todo any act inviolationofhislawfulduty, shallbefinednotmore thanthree times the amount of suchmoney or value of such thing or imprisoned not more than three years,or both. " "Thissectionshallnot apply to violations of section 212 of this title. "(Section 212 relates to an offer or threat to acustoms officer or employ ee.)Seetext420andIRM9213. 222,7(5-9-80) (Reserved) 9781 222.8(1 -18-80) Section285.Takingor Using 9781 Papers Relatingto Claims " Whoever,withoutauthority,takesandcarriesawayfromtheplacewhereitwasfiled, deposited,orkeptbyauthorityoftheUnited States,anycertificate,affidavit,depOSition, siatement offacts,powerof attorney,receipt, voucher, assignment,or other document,record, file, or paper prepared, fitted, or intended to be used or presented to procure the payment of moneyfromorbytheUnitedStatesorany officer,employee,oragentthereof,ortheallowance or payment of the whole or any part of any claim, account, or demand against the UnitedStates,whetherthesamehasorhasnot already been so used or presented, and whether suchclaim,account , or demand,or any part thereof has or has not already been allowed or paid; or "Whoever presents, uses, or attempts to use anysuchdocument ,record,file,orpaperso taken and carried away, to procure the payment of any money fromor bytheUnitedStates,or any officer,employee,or agent thereof,or the allowance or payment of the whole or any part ofanyclaim,account,ordemandagainstthe UnitedStates"Shallbefinednot more than$5,000or imprisoned not mere than five years, or both." See IRM9213. page 9781-13HandbookforSpecialAgents (5-9--80) 222.9(1-18-80)9781 Section286.Conspiracyto DefraudtheGovernmentWith RespecttoClaims " Whoever enters into any agreement, combination,or conspiracyto defraudtheUnited States, or any department or agency thereof. by obtainingoraidingtoobtainthepaymentor allowanceofanyfalse,fictitiousorfraudulent claim,shallbefinednot more than$10,000or imprisonednotmore thanten years,or both. " SeeIRM9213 222.(10)(1-18-80)9701 Section287.False,Fictitousor FraudulentClaims "Whoever makes or presents toanyperson or officer inthe civil, military, or naval service of theUnitedStates,ortoany departmentor agencythereof,anyclaimuponor againstthe UnitedStates,oranydepartmentoragency thereof ,knowingsuchclaimtobefalse,fictitous, or fraudulent , shall be fined not more than $10,000 or imprisoned not more than five years. orboth." See Text318.5andIRM9213. 222.(11)( 1-18-80)9781 Section371 . Conspiracy to CommitOffenseor toDefraud UnitedStates "Iftwoormorepersonsconspireeitherto commit any offense against theUnited States, or todefraudthe United States,or any agency thereof inanymanner or foranypurpose, and oneormoreofsuchpersonsdoanyactto effecttheobject oftheconspiracy,each shall be linednot more than$10,000or imprisoned not morethanfiveyears,or both. " If,however,the offense, the commission of which is the object of the conspiracy, is a misdemeanor only, the punishment for such conspiracyshallnotexceedthemaximumpunishment providedforsuchmisdemeanor." See Text 31(10)andIRM9213. 222.(12)( 1- 18-80)9781 Section372.Conspiracy to ImpedeorInjureOfficer "If two or more persons inany State. Territory,Possession,or District conspiretoprevent, by force, intimidation, or threat, any person from accepting or holding any office, trust, or place of confidenceundertheUnitedStates.orfrom dischargingany duties thereof,or to induce by likemeansanyofficer oftheUnitedStates to leavetheplace,wherehis duties asanofficer are required to be performed, or to injure him in his person or property on account of his lawful dischargeofthedutiesofhisoffice,orwhile engagedinthelawfuldischarge thereof,orto injurehispropertysoastomolest,interrupt, hinder,orimpedehiminthedischargeofhis officialduties,eachofsuchpersonsshallbe finednotmorethan$5,000orimprisonednot morethansixyears,orboth."SeeIRM9213. 222.(13)( 1-18-80)9781 Section494.Contractors'Bonds, Bids,andPubliCRecords "Whoeverfalselymakes,alters.forges,or counterfeitsanybond,bid,proposal,contract, guarantee, security, official bond, public record. affidavit,or other writingfor the purpose of defraudingtheUnited States;or " Whoever utters or publishes as true or possesses with intent to utter or publish as true, any suchfalse,forged,altered,or counterfeited writing.knowingthesameto befalse,forged, altered,or counterfeited;or " Whoevertransmitsto.orpresentsatany office or to any officer of the United States, any such false, forged, altered or counterfeited writing,knowingthesametobefalse,forged,altered,or counterfeited"Shallbefinednot morethan$1,000or imprisoned not more than ten years, or both." See IRM9213. 222.(14)(1- 18-80)9781 Section495.Contracts,Deeds, andPowersofAttorney "Whoeverfalselymakes,alters,forges,or counterfeits any deed, power of attorney, order, certificate, receipt, contract, or other writing, for the purpose of obtainingor receiving,or of enablingany other person,either directlyor indirectly,toobtainor receivefromtheUnited Statesoranyofficersoragentsthereof,any sumof money;or "Whoeverutters'Jrpublishesastrueany suchfalse,forged,altered,or counterfeited writing, with intent to defraud the United States, knowingthe same tobefalse,altered,forged, or counterfeited;or " Whoevertransmitsto,orpresentsatany officeor officer oftheUnited States,any such writinginsupportof,orinrelationto,anyaccount or claim, with intent to defraud the United MT9781-4222.(14) IRManual page 9781-14 HandbookforSpecialAgents (5-9--80) States,knowing the sametobe false,altered, forged, or counterfeited"Shallbefinednotmore than$1,000or imprisoned not more than ten years, or both."See IRM9213. 222.(15)(7-18-80)9781 Section1001.Statementsor EntriesGenerally "Whoever,inanymatter withinthejurisdiction of any department or agency of the United Statesknowingly andwillfullyfalsifies,concealsorcoversupbyanytrick,scheme,or device a material fact, or makes any false, fictitiousorfraudulentstatementsorrepresentations,ormakesorusesanyfalsewritingor documentknowingthesametocontainany false, fictitious or fraudulent statement or entry, shall be finednot more than $10,000 or imprisonednotmorethanfiveyears,orboth."See Text 318.4andIRM9213. 222.(16)(1-18-80)9781 Section1002.PossessionofFalse PaperstoDefraudUnitedStates "Whoever,knowinglyandwithintent todefraud the United States, or any agency thereof, possessesanyfalse,altered,forged,or counterfeited writing or document for the purpose of enablinganothertoobtainfromtheUnited States,orfromanyagency,officeroragent thereof,anysumof money,shallbefinednot more than $10,000 or imprisoned not more than fiveyears,or both."See IRM 9213. 222.(17)(5-9-80)9781 (Reserved) 222.(18)(1-18-80)9781 Section1114.Protectionof OfficersandEmployeesofthe UnitedStates [Sections1111and1112providethepenalties for murder andmanslaughter.] "Whoeverkills. .. anyofficer,employeeor agent of theCustomsor oftheInternalRevenue or any person assisting him in the execution of his duties .. . while engagedinthe performance of his official duties,or onaccount of the performance of his official duties, shallbe punished as provided under sections 1111and 1112 ofthistitle."SeeIRM9213. 222.(14)MT 9781-4 IRManual 222,(19)(1-18-80)9781 Section1501,AssaultonProcess Server "Whoever knowinglyandwillfullyobstructs, resists,oropposesanyofficeroftheUnited States, or other person duly authorized, in serving, or attempting to serve or execute, any legal orjudicialwritorprocessofanycourtofthe UnitedStates, orUnitedStatesmagistrate;or " Whoeverassaults,beats,orwoundsany officer or other person duly authorized, knowing him tobe suchofficer,or other personso duly authorized,inservingorexecutinganysuch writ, rule, order, process, warrant, or other legal or judicialwritorprocess"Shallexcept asotherwise providedbylaw, be finednot more than $300 or imprisoned not morethanoneyear,or both."See Tex1411 .5 andIRM9213. 222.(20)(1-18-80).9781 Section1503.Influencingor InjuringOfficer,Juror orWitness Generally "Whoever corruptly, or bythreats of force, or by any threatening letter or communication, endeavors to influence, intimidate, or impede any witness,inanycourtoftheUnitedStatesor beforeanyUnitedStatesmagistrateorother committingmagistrate,oranygrandorpetit juror,or officer inor of any court of theUnited States,orofficerwhomaybeservingatany examinationorotherproceedingbeforeany UnitedStatesmagistrateorothercommitting magistrate,inthedischargeofhisduty,orinjures any party or witness in his person or propertyonaccountofhisattendingorhavingattendedsuch court or examination before such officer,magistrate,or other committingmagistrate,oronaccount ofhistestifying orhaving testifiedtoanymat1erpendingtherein,orinjures any such grand or petit juror inhis person or property onaccount of any verdict or indictment assentedtobyhim,or onaccount of his being or having beensuch juror,or injures any suchofficer,magistrate,orothercommit1ing magistrate in his person or property on account of the performance of his official duties, or corruptly or by threats or force, or by any threateningletter or communication,influences,obstructs, or impedes, or endeavors to influence, obstruct,or impede,thedueadministrationof justice, shallnot be finedmore than$5,000or imprisoned not more thanfive years,or both." page 9781-15HandbookforSpecialAgents ( 5 - ~ 0 ) 222.(21)(1-78-80)9781 Section1510.Obstructionof CriminalInvestigations " (a)Whoever willfullyendeavorsbymeans ofbribery,misrepresentation,intimidation,or forceorthreatsthereoftoobstruct , delay,or preventthecommunicationofinformationrelating toa violationof anypersontoa criminal investigator;or " Whoever injures any person in his person or property on account of giving by such person or by any other person of any such information to any criminalinvestigator"Shall befinednot morethan$5,000 or imprisonednot morethanfiveyears, or both. "(b)Asusedinthissection,the term'crimi nalinvestigator'meansany individualduly authorizedbyadepartment,agency,orarmed force of the United States to conduct or engage ininvestigationsoforprosecutionsforviolations of the criminal laws of the United States." SeeText411 .6. 222.(22)( 1-18-80)9781 Section1621.PerjuryGenerally "Whoever,havingtakenanoathbeforea competenttribunal ,officer,orperson,inany case in which a law of the United States authorizesanoathtobeadministered,thathewill testify,declare, depose,or certifytruly, or that any writtentestimony,declaration,deposition, or certificate by him subscribed, is true, willfully and contrary to such oath states or subscribes any materialmatter whichhe does not believe tobe true, isguilty of perjury,andshall, except asotherwise expressly providedby law,be finednotmorethan$2,000orimprisonednot more thanfive years, or both." SeeIRM9213. 222.(23)(1 - 18-80)9781 Section1622.Subornationof Perjury " Whoeverprocuresanothertocommitany perjuryisguiltyofsubornationofperjury,and shallbefinednot more than$2,000or imprisonednotmorethanfiveyears,orboth. "See IRM9213. 222.(24)( 1-18-80)9781 Section1623.FalseDeclarations BeforeGrandJuryor Court " (a)Whoever under oath inany proceeding before or ancillary toany court or grand jury of theUnitedStatesknowinglymakesanyfalse material declaration or makes or uses any other information,includinganybook,paper,document,record,recording, orothermaterial, knowing the same to contain any false material declaration,shallbefinednot morethan $10,000 or imprisoned not more than five years, or both. "(b)Thissectionisapplicablewhetherthe conductoccurredwithinor withouttheUnited States. " (c)Anindictmentorinformationforviolation of this section alleging that, in any proceedings before or ancillary to any court or grand jury of the United States, the defendant under oath has knowingly made two or more declarations, which are inconsistent to the degree that one of themisnecessarily false,neednotspecify whichdeclarationisfalseif"(1)eachdeclarationwasmaterialtothe pointinquestion, and "(2)each declaration was made within the periodofthestatuteoflimitationsfortheoffensechargedunder thissection. " In any prosecution under this section, the falsity of a declaration set forth inthe indictment or informationshallbeestablishedsufficientfor convictionbyproofthatthedefendantwhile underoathmadeirreconcilablycontradictory declarations material to the point in question in any proceeding before or ancillary to any court or grand jury. It shall bea defense to anindictment or information made pursuant tothe first sentence of this subsection that the defendant at the timehemade each declaration believed thedeclarationwastrue. " (d)Where, inthe same continuous court or grand jury proceeding in whicha declaration is made,thepersonmakingthedeclarationadmitssuchdeclarationtobe false,suchadmission shallbar prosecution under this section if, at the time the admission is made, the declaration has not substantially affected the proceeding,orithasnotbecomemanifestthatsuch falsityhas beenorwillbe exposed. " (e)Proof beyond a reasonable doubt under thissectionissufficient forconviction.Itshall not benecessarythatsuchproof bemadeby any particular number of witnesses or by documentaryor othertypeofevidence."SeeIRM 9213. 222.(25)(5-9-80) (Reserved) MT9781-4222.(25) lRManual 9781 page 9781-16 HandbookforSpecialAgents (5-9--80) 222.(26)(5-iH30)9781 (Reserved) 222.(27)(1-18--80)9781 Section1955.Prohibitionof Illegal GamblingBusinesses "(a)Whoever conducts, finances, manages, supervises,directs,orownsallorpartofan illegal gamblingbusiness shallbefinednot more than $20,000 or imprisoned not more than fiveyears,orboth. "(b)Asusedinthissection"(1)'illegalgamblingbusiness'meansa gamblingbusiness which" (i)is a violation of the law of a State or politicalsubdivisioninwhichitisconducted; '~( i i )involvesfiveormorepersonswho conduct, finance, manage, supervise, direct, or own allor part ofsuchbusiness;and "(iii)has been or remains in substantially continuousoperationfor aperiodinexcess of thirty days or has a gross revenue of $2,000 in anySingleday. "(2)'gambling'includesbutisnotlimited topoolselling,bookmaking,maintainingslot machines,roulettewheelsor dicetables, and conductinglotteries,policy,bolita ornumbers games, or selling chances therein. "(3)'State' means any State of the United States,theDistrict of Columbia, the Common wealth of Puerto Rico, and any territory or pos sessionoftheUnited States. "(c)If five or more persons conduct, finance, manage, supervise, direct, or own all or part of a gambling business and such business operates fortwoormore successive days,then,forthe purpose of obtaining warrants for arrests, inter ceptions, and other searches and seizures, probablecausethatthebusiness receives gross revenue in excess of $2,000 in any single dayshallbedeemedtohavebeen established ... 222.(28)(1-18--80)9781 Section1962.ProhibitedActivities ofRacketeerInfluenced and Corrupt Organizations " (a)It shall be unlawfulforany person who hasreceivedanyincomederived,directlyor indirectly, from a pattern of racketeering activity orthroughcollectionofanunlawfuldebtin which such person has participated as a princi palwithinthemeaningofsection2,title18, 222.(26)MT9781-4 IRManual United States Code, to use or invest, directly or indirectly,anypart of such income,or thepro ceedsofsuchincome,inacquisitionofany interest in, or the establishment or operation of. any enterprise which is engaged in, or the activi ties of whichaffect, interstateo ~foreigncom merce.Apurchaseofsecuritiesontheopen market for purposes of investment, and without the intention of controlling or participating in the control of theissuer, or of assistinganother to do so,shallnot be unlawful under this subsec tionifthesecuritiesoftheissuerheldbythe purchaser, the members of his immediate fami Iy, and his or their accomplices in any pattern or racketeering activity or the collection of an un lawful debt after such purchase do not amount in the aggregate to one percent of the outstandingsecuritiesofanyoneclass,anddonot confer, either in law or in fact, the power to elect one or moredirectors of theissuer. "(b)Itshallbeunlawfulforanyperson throughapatternofracketeeringactivityor throughcollectionofanunlawfuldebttoacquire or maintain, directly or indirectly, any inter est inor controlof any enterprise which is engaged in, or the activities of which affect, interstate orforeigncommerce. " (c)Itshallbeunlawfulforanypersonemployedbyorassociatedwithanyenterprise engagedin,ortheactivitiesofwhichaffect, interstateorforeigncommerce,to conduct or participate, directly or indirectly, in the conduct of such enterprise's affairs through a pattern of racketeeringactivityorcollectionofunlawful debt. " (d)Itshallbeunlawfulforanypersonto conspire to violate any of the provisions 01subsections(a),(b),or (c)01thissection. 222.(29)(1-18--80) Section1963.CriminalPenalties forRacketeer Influencedand CorruptOrganizations " (a)Whoeverviolates anyprovisionof section 1962 01this chapter shall be lined not more than$25,000or imprisonednot morethan twentyyears,orboth,andshalllorfeittothe United States (1) any interest he has acquired or maintained in violation 01section 1962, and (2) anyinterestin,securityof,claimagainst,or property or contractual right of any kind affordingasourceof influenceover,anyenterprise which he has established, operated, controlled, conducted, or participated in theconduct 01,in violationof section 1962. 9781 9781 page 9781-17HandbookforSpecialAgents (5-9-80) "(b)Inanyaction brought bytheUnited States under thissection,the district courtsof the United States shall have jurisdicticn to enter suchrestrainingordersorprohibitions,orto lake such other actions, including, but not limitedto, theacceptance of satisfactoryperformance bonds, inconnection with any property or otherinterestsubjecttoforfeitureunderthis section,asitshalldeemproper. " (c)Upon conviction of apersonunder this section, thecourtshallauthorizetheAttorney Generaltoseizeallpropertyorotherinterest declared forfeited under this section upon such termsandconditionsasthecourtshalldeem proper. If a property right or other interest isnot exercisable or transferableforvaluebythe UnitedStates,itshallexpire,andshallnot reverttotheconvictedperson. Allprovisionsof law relating to the disposition of property, or the proceedsfromthesalethereof,ortheremissionormitigationofforfeituresforviolationof thecustomslaws,andcompromiseofclaims and the award of compensation to informers in respect of such forfeitures shall apply to forfeitures incurred, or alleged to have been incurred, under theprovisionsofthissectioninsofaras applicable andnot inconsistent withtheprovisions thereof. Such duties as are imposed upon thecollectorofcustomsoranyotherperson with respect to the disposition of property under the customs laws shall be performed under this chapterbytheAttorneyGeneral.TheUnited Statesshalldisposeofallsuchpropertyas soon as commercially feasible, making due provisionfortherightsofinnocent persons." 222.(30)( 1-18-80) Section2071.Concealment, RemovalorMutilationGenerally "(a)Whoever willfully and unlawfully conceals,removes,mutilates,obliterates,ordestroys, or attempts to do so, or, with intent to do so takes and carries away any record, proceeding,map,book,paper,document,or other thing,filed or deposited with any clerk or officer of any court of the United States, or in any public off ice, or with any judicial or public officer of the UnitedStates,shallbelinednotmorethan $2,000orimprisonednotmorethanthree years,or both. "(b)Whoever , havingthecustody of any suchrecord,proceeding,map,book,document, paper, or other thing,willfully and unlawfullyconceals, removes,mutilates, obliterates, falsifies,ordestroysthesame,shallbefined notmorethan$2,000or imprisonednotmore thanthreeyears,orboth;andshallforfeithis office andbedisqualifiedfromholdinganyofficeundertheUnitedStates."SeeIRM9213. 222.(31)( 1-18-80)978 1 Section2231.Assaultor Resistance "(a)Whoeverforciblyassaults,resists,opposes, prevents, impedes, intimidates, or interfereswithanypersonauthorizedtoserveor executesearch warrantsortomakesearches and seizur8s while engaged in the performance of his duties with regard hereto or on account of theperformanceof suchduti es,shallbefined not morethan$5,000orimprisonednot more thanthreeyears,orboth;and-MT9781-4222.(31) IRManual(Nexlpage is 9781-19) page9781-19HandbookforSpecialAgents (1-18-80) "(b)Whoever,in committing any act in violation of this section, uses any deadly or dangerousweapon,shallbefinednotmorethan $10,000 or imprisoned not more than ten years, or both."SeeIRM9213. 222.(32)(1-18-80) 9781 Section2232.Destructionor Removalof PropertytoPrevent Seizure "Whoever,before,during, or after seizure of any property by any person authorized to make searches andseizures, inordertopreventthe seizureorsecuringofanygoods,wares,or merchandisebysuchperson,staves,breaks, throwsoverboard,destroys,orremovesthe same,shallbefinednot morethan$2,000or imprisonednotmorethanone year,orboth." SeeIRM9213, 222.( 33) 9781 Section2233.RescueofSeized Property " Whoever forcibly rescues, dispossesses, or attempts to rescue or dispossess any property, articles,orobjectsafterthesameshallhave been taken, detained, or seized by any officer or other person under the authority of any revenue lawof the UnitedStates,or by anypersonauthorizedtomake searchesandseizures,shall befinednotmorethan$2,000orimprisoned notmorethantwoyears,orboth."SeeText 412.12andIRM9213. 222.(34)9781 Section641.PublicMoney, Propertyor Records " Wh oever embezzles,steals, purloins, or knowinglyconvertstohisuseortheuseof another,or without authority. sells,conveys or disposesofanyrecord,voucher,money,or thingofvalueoftheUnitedStatesorofany department or agency thereof, or any property madeorbeingmadeundercontractforthe UnitedStatesoranydepartmentoragency thereof;or " Whoeverreceives,conceals, or retainsthe same with intent to convert it to his use or gain, knowingittohavebeenembezzled,stolen, purloinedorconverted"Shallbefinednotmorethan$10,000or imprisoned not more than ten years, or both; but ifthevalueofsuchpropertydoesnotexceed the sum of $100, he shall be fined not morethan $1,000 or imprisoned not more than one year, or both. " 230(1-18-80)9781 (Reserved) 240(1-18-80)9781 PeriodsofLimitationonCriminal Prosecution 241 9781 IRC6531.PeriodsofLimitation " No person shall be prosecuted, tried, or punishedforanyofthevariOUS offensesarising undertheinternalrevenuelawsunlessthein-' dictmentisfoundortheinformationinstituted within 3 years next after the commission of the offense,exceptthattheperiodof limitation shallbe6years"(1)foroffenses involvingthedefrauding orattemptingtodefraudtheUnitedStatesor anyagency thereof , whether by conspiracy or not,andinanymanner; "(2)fortheoffense ofwillfullyattempting in any manner to evade or defeat any tax or the paymentthereof; "(3)fort heoffenseofwillfullyaidingor assisting in,or procuring,counseling,or advising, the preparation or presentation under or in connectionwithanymatterarisingunder,the internalrevenuelaws,ofafalseorfraudulent return, affidavit, claim, or document (whether or not such falsity or fraud is with the knowledge or consent of the person authorized or required to presentsuchreturn,affidavit,claim,or document); "(4)for the offense of willfully failing to pay any tax, or make any return (other than a return required under authority of part III subchapter A of chapter 61)atthetime or times requiredby laworregulations; " (5)foroffenses describedinsections 7206(1)and7207 (relatingtofalsestatements andfraudulentdocuments) ; "(6)fortheoffensedescribedinsection 7212(a)(relatingtointimidation of officersand employees oftheUnitedStates); "(7)foroffenses describedinsection 7214(a)committedbyofficersandemployees oftheUnitedStates;and "(8)for offenses arising under section 371 of Title 18 of theUnited State Code, wherethe objectoftheconspiracyistoattemptinany MT9781-1241 IAManual "all'" :7'0 I-":U HandbookforSpecialAgents(1-18-80) manner to evade or defeat anytaxor the payment thereof. "The timeduringwhichthepersoncommittinganyofthevariousoffensesarisingunder the internal revenue laws is outside the United Statesorisafugitivefromjusticewithinthe meaning of section 3290 of Title 18 of the UnitedStates Code,shall not be taken as any part ofthetimelimitedbylawforthecommencement of such proceedings. (The preceding sentence shallalsobe deemed anamendment to section 3748(a)oftheInternal Revenue Code of 1939, and shall apply in lieu of the sentence in section 3748(a) which relates to the time during which a person committing an offense is absent from the district wherein the same is committed, except that such amendment shall apply only if theperiodoflimitationsundersection3748 would,without theapplication of such amendment, expire more than 3 years after the date of enactmentofthistitle,andexceptthatsuch periodshallnot,withtheapplicationofthis amendment, expire prior to the date which is3 years after the date of enactment ofthistitle.) Where a complaint is instituted before a magistrateoftheUnited Stateswithinthe period above limited,thetimeshallbeextended until the date which is 9 months after the date of the making of the complaint before the magistrate of the United States.For the purpose of determining the periods of limitation on criminal prosecutions,therulesofsection6513shallbe applicable. " 242(1-18--80)9781 IRC 6513.TimeReturnDeemed FiledandTaxConsideredPaid "(a)EarlyReturnorAdvancePaymentof Tax.-For purposes of section 6511,any return filed before the last day prescribed for the filing thereof shall be considered as filed on such last day. For purposes of section 6511(b)(2)and (c) and section 6512, payment of any portion of the tax made before the last day prescribed for the payment of the tax shall be considered made on such last day.For purposes of this subsection, thelastdayprescribedforfilingthereturnor payingthetaxshallbedetermined withoutregardtoanyextensionof time grantedthe taxpayer and without regard to any election topay thetaxininstallments. "(b)Prepaid IncomeTax.-For purposes of section 6511or 6512, any tax actually deducted and withheld at the source during any calendar 241MT 9781-1 IAManual yearunder chapter24shall,inrespectofthe recipientoftheincome,bedeemedtohave been paidby himonthe15th day of thefourth monthfollowingthecloseofhistaxableyear with respect to which such tax is allowable as a credit under section 31. For purposes of section 6511and6512, anyamount paidasestimated incometaxforanytaxableyearshallbe deemedtohavebeenpaidonthelastday prescribedforfilingthereturnundersection 6012 for such taxable year (determined without regardtoanyextensionoftimeforfilingsuch return). "(c)Returnand Payment of SocialSecurity Taxes and Income Tax Withholding.-Notwithstanding subsection (a), for purposes of section 6511with respect to any tax imposed by chapter 21or 24"(1)If a return for any period ending with or within a calendar year is filed before April 15 of the succeeding calendar year, such return shall be considered filed on April15 of such succeedingcalendar year;and "(2)Ifataxwithrespect toremuneration paidduringanyperiodending withorwithina calendaryearispaidbeforeApril15ofthe succeedingcalendaryear,suchtaxshallbe considered paid on April 15 of such succeeding calendar year. "(d)Overpayment of Income Tax Credited to Estimated Tax.-If any overpayment of income taxis,in accordancewithsection6402(b), claimed as a credit against estimated tax for the succeeding taxable year, such amount shall be considered as a payment of the income tax for thesucceedingtaxableyear(whetherornot claimed as a credit in the return of estimated tax for such succeeding taxable year) , and no claim or refund of such overpayment shall be allowed forthe taxableyear inwhich theoverpayment arises." 243(1-18--80) Title18,UnitedStates Code-GeneralStatuteofLimitationsSection3282.OffensesNot Capital "Except as otherwise expressly providedby law,nopersonshallbeprosecuted,tried,or punished for any offense, not capital, unless the indictment is found or the information is instituted within five years next after such offense shall have been committed. (June 25,1948, ch. 645, Sec. 1,62 Stat. 828 and September 1,1954, ch. 1214,2d.session,68Stat.1142.)" 9781 9781 page 9781-21HandbookforSpecialAgents (1-18-80) 244(1-18-80)9781 Title 18,UnitedStates CodeFugitivesFromJustice 244.1(1-18-80)9781 Section3290.FugitivesFrom Justice " No statute of limitations shall extend to any personfleeingfromjustice." 244.2(1-18-80)9781 Section1073.Flightto Avoid ProsecutionorGivingTestimony "Whoevermovesortravelsininterstateor foreigncommerce with intent either (1 )to avoid prosecution,orcustodyorconfinementafter conviction,underthelawsoftheplacefrom whichheflees,foracrime,oranattemptto commit a crime, punishable by death or which is a felony under the laws of the place from which thefugitiveflees,or which,inthe caseof New Jersey, is a high misdemeanor under the laws of saidStates,or(2)toavoidgivingtestimonyin any criminal proceedings in such place in which thecommissionofanoffensepunishableby death or which is a felony under the laws of such place, or which inthe case of New Jersey, is a high misdemeanor under the laws of said State, is charged, shall be fined not more than $5,000 or imprisoned not more than five years, or both. "Violations of this section may be prosecuted only inthe Federaljudicial district inwhich the originalcrimewas allegedtohave been committed, or in which the person was held in custodyorconfinementandonlyuponformalapprovalinwritingby the Attorney General or an AssistantAttorneyGeneraloftheUnited States,whichfunctionofapprovingprosecutionsmay not be delegated." 250( 1-18-80)9781 CivilPenaltiesApplicabletoFraud andMiscellaneousInvestigations 251(1-18-80)9781 Introduction Thecompletetextsof thecivilpenaltysections relating to income and miscellaneous taxesareset forthherein. 252(1-18-80)9781 InternalRevenueCodeof1954, AsAmendedByTaxReformAct 011969 252.1(1-18-80) IRC 6651.Failure toFileTax Returnor toPayTax "(a)Addition to the Tax.-In case of failure"(1)tofileanyreturnrequiredunderauthority of subchapter A of chapter 61(other than partIIIthereof),subchapterAofchapter51 (relating to distilled spirits, wines, and beer), or of subchapter A of chapter 52 (relating to tobacco, cigars, cigarettes, and cigarette papers and tubes),or of subchapter A of chapter 53(relating to machine guns and certain other firearms) , onthedateprescribedtherefor(determined withregardto any extension of timeforfiling), unlessitisshownthatsuchfailureisdueto reasonable cause and not due to willful neglect, there shall be added to the amount required to be shown as tax on such return 5 percent of the amount of such tax if the failure is for not more than1 month,withanadditional5percentfor each additional month or fraction thereof during which such failure continues, not exceeding 25 percentintheaggregate; "(2)topaytheamountshownastaxon anyreturnspecifiedinparagraph(1)on or before the date prescribed for payment of such tax (determinedwithregardtoanyextensionof time for payment),unless it is shown that such failure is due to reasonable cause andnot due towillfulneglect, thereshallbeaddedtothe amount shownastaxon suchreturn0.5percent of the amount of such tax if the failure is not formorethan1 month,withanadditional0.5 percentforeachadditionalmonthorfraction thereof during which such failure continues, not exceeding25percent intheaggregate;or "(3)topayanyamountinrespectof any tax required to be shown on a return speCified in paragraph (1)which isnot so shown (including anassessmentmadepursuant tosection 6213(b)) within 10 days of the date of the notice anddemandtherefor,unlessitisshownthat such failure is due to reasonable cause and not duetowilifulneglect,thereshal:beaddedto theamountoftaxstatedinsuchnoticeand demand 0.5 percent of the amount of such tax if the failure is for not more than 1 month, with an additional0.5percentforeachadditional monthorfractionthereofduringwhichsuch failurecontinues,not exceeding25percent in the aggregate. "(b)Penalty Imposed on Net Amount Due.For purposes of-MT9781-1252.1 IRManual page 9781-22 HandbookforSpecialAgents(1-18-80) "(1)subsection(a)(1),theamountoftax requiredtobeshownonthereturnshallbe reducedbytheamountofanypartofthetax whichispaidonorbefore the date prescribed for payment of the tax and by the amount of any credit against the tax which may be claimed on thereturn, "(2)subsection(a)(2) ,theamountoftax shown on the return shall, for purposes of computingthe additionfor anymonth,bereduced bytheamount of anypartofthetaxwhichis paid on or before the beginning of such month and by the amount of any credit against the tax whichmaybe claimedonthereturn,and "(3)subsection(a)(3),theamountoftax statedinthenoticeand demandshall,forthe purposeof computingtheadditionforany month, be reduced by the amount of any part of thetaxwhichispaidbeforethebeginningof suchmonth. "(c)Limitations and Special Rule."(1)Additions under morethanone paragraph."(A)Withrespecttoanyreturn,the amount of theadditionunder paragraph(1)of subsection (a)shall be reduced by the amount of the additionunder paragraph(2)of subsection (a) for any month to which an addition to tax applies under both paragraphs(1)and(2). "(8)With respect to any return, the maximumamount oftheadditionpermittedunder paragraph(3)ofsubsection(a)shallbereduced by the amount of the addition under paragraph (1)of subsection (a)which is attributable tothetaxforwhichthe notice anddemandis madeandwhichisnotpaidwithin10days of notice anddemand. "(2)Amount of taxshownmorethan amount requiredtobe shown.-If theamount requiredto beshown as tax ona return isless than the amountshownastax onsuchreturn, subsections (a)(2) and (b)(2) shall be applied by substitutingsuchlower amount. "(0)Exception for Declarations of Estimated Tax.-This section shall not apply to any failure to file a declaration of estimated tax required by section6015ortopayanyestimatedtaxrequiredtobepaidby section6153or 6154." 252.2(1-18-80)9781 IRC6652.Failureto FileCertain InformationReturns "(a)Additional Amount.-In case of each failure to file a statement of a payment to anoth252.1MT9781-1 IRManual erperson,requiredunder authorityofsection 6041(relating to information at source), section 6042(relatingtopaymentsofcorporatedividends), section 6044 (relating to patronage dividends), section 6045 (relating to returns of brokers), or section 6051 (d) (relating to information returnswithrespecttoincometaxwithheld), unlessitisshownthatsuchfailureisdueto reasonablecauseandnottowillfulneglect, there shallbepaid by thepersonfailingtofile the statement. upon notice and demand by the Secretary or his delegate and in the same manner as tax, $1for each such statement not filed, but the total amount imposed on the delinquent person for all such failures during any calendar year shallnot exceed$1,000." 252.3(1-18-80) IRC6653.FailuretoPayTax "(a)NegligenceorIntentionalDisregardof Rules and Regula tions With Respect to Income or Gift Taxes.-If any part of any underpayment (asdefinedinsubsection(c)(1)of anytaximposed by subtitle A or by chapter 12 of subtitle 8 (relating to income taxes and gift taxes) isdue tonegligence or intentionaldisregardofrules and regulations (but without intent to defraud), there shall be added to the tax an amount equal to5percent of the underpayment. "(b)Fraud.-If any part of any underpayment(asdefinedinsubsection(coftaxrequired to be shown on areturn is due to fraud, there shall be added to the tax an amount equal to 50 percent of the underpayment. In the case of income taxes and gift taxes, this amount shall be in lieu of any amount determined under subsection(a). "(c)DefinitionofUnderpayment.-Forpurposes of this section, the term'underpayment' means"(1)Income,Estate,Giftand Chapter42 Taxes.-Inthecase of ataxto whichSection 6211(relating to income, estate, gift and chapter42taxes)isapplicable,adeficiency as definedinthatsection(exceptthat,forthispurpose,thetaxshown onareturnreferredto in section6211 (a)(1 )(A)shallbetakenintoaccount only if suchreturn was filed on or before thelastdayprescribedforthefilingofsuch return, determined with regard to any ex1enslon 01timeforsuchfiling),and 9781 page 9781-23HandbookforSpecialAgents (1-18-80) " (2)Other Taxes.-In the case of any othertax,theamountbywhichsuchtaximposed bythistitleexceedstheexcess of" (A)Thesumof"(i)Theamountshownasthetaxby thetaxpayerupon hisreturn(de