§7608 — Title 26 Internal Revenue Code | U.S. Code

Summary

IRS investigators can carry guns. They can serve and execute search warrants, arrest warrants, subpoenas, and summonses. They can arrest people without a warrant if they see a crime or reasonably believe a felony has been being committed. They can also seize property that can be forfeited. Criminal investigators in the IRS Intelligence Division have the same powers when they are enforcing tax laws or other laws the Secretary gives the IRS to enforce. For undercover work needed to detect and prosecute tax and related crimes, IRS funds may be used to buy or lease property, set up and run cover businesses, and deposit and use proceeds in banks without following certain usual federal purchasing and cash rules. If a cover business with a net value over $50,000 is sold or closed, the IRS must report the situation to the Secretary ahead of time and deposit the money left after paying debts into the Treasury as miscellaneous receipts. When undercover proceeds are no longer needed, they must go to the Treasury as miscellaneous receipts. The IRS must do a detailed financial audit of each undercover operation closed in a fiscal year, give the audit to the Secretary, and report the audit to Congress within 180 days after the operation closes. The IRS must also send an annual report to Congress listing numbers of undercover operations by program and, for each operation pending or closed that year, the start and certification dates, total spending and use of proceeds, a description of the operation (including the possible violation and whether a grand jury was used), and the results including criminal outcomes. "Closed" means when the later of covert activities or all criminal proceedings (other than appeals) ends. "Employees" is as defined in 5 U.S.C. 2105. "Undercover investigative operation" means any IRS undercover operation, with a limited reporting exception for some exempt operations.

Title 26, §7608

Internal Revenue Code — Source: USLM XML via OLRC

(a)Any investigator, agent, or other internal revenue officer by whatever term designated, whom the Secretary charges with the duty of enforcing any of the criminal, seizure, or forfeiture provisions of subtitle E or of any other law of the United States pertaining to the commodities subject to tax under such subtitle for the enforcement of which the Secretary is responsible, may—

(1)carry firearms;

(2)execute and serve search warrants and arrest warrants, and serve subpoenas and summonses issued under authority of the United States;

(3)in respect to the performance of such duty, make arrests without warrant for any offense against the United States committed in his presence, or for any felony cognizable under the laws of the United States if he has reasonable grounds to believe that the person to be arrested has committed, or is committing, such felony; and

(4)in respect to the performance of such duty, make seizures of property subject to forfeiture to the United States.

(b)(1)Any criminal investigator of the Intelligence Division of the Internal Revenue Service whom the Secretary charges with the duty of enforcing any of the criminal provisions of the internal revenue laws, any other criminal provisions of law relating to internal revenue for the enforcement of which the Secretary is responsible, or any other law for which the Secretary has delegated investigatory authority to the Internal Revenue Service, is, in the performance of his duties, authorized to perform the functions described in paragraph (2).

(2)The functions authorized under this subsection to be performed by an officer referred to in paragraph (1) are—

(A)to execute and serve search warrants and arrest warrants, and serve subpoenas and summonses issued under authority of the United States;

(B)to make arrests without warrant for any offense against the United States relating to the internal revenue laws committed in his presence, or for any felony cognizable under such laws if he has reasonable grounds to believe that the person to be arrested has committed or is committing any such felony; and

(C)to make seizures of property subject to forfeiture under the internal revenue laws.

(c)(1)With respect to any undercover investigative operation of the Internal Revenue Service (hereinafter in this subsection referred to as the “Service”) which is necessary for the detection and prosecution of offenses under the internal revenue laws, any other criminal provisions of law relating to internal revenue, or any other law for which the Secretary has delegated investigatory authority to the Internal Revenue Service—

(A)sums authorized to be appropriated for the Service may be used—

(i)to purchase property, buildings, and other facilities, and to lease space, within the United States, the District of Columbia, and the territories and possessions of the United States without regard to—

(I)section 1341 and 3324 of title 31, United States Code,

(II)section 6301(a) and (b)(1)–(3) and 6306 of title 41, United States Code,

(III)chapter 45 of title 41, United States Code,

(IV)section 8141 of title 40, United States Code, and

(V)section 3901 of title 41, United States Code, and

(ii)to establish or to acquire proprietary corporations or business entities as part of the undercover operation, and to operate such corporations or business entities on a commercial basis, without regard to section 9102 and 9103 of title 31, United States Code;

(B)sums authorized to be appropriated for the Service and the proceeds from the undercover operations may be deposited in banks or other financial institutions without regard to the provisions of section 648 of title 18, United States Code, and section 3302 of title 31, United States Code, and

(C)the proceeds from the undercover operation may be used to offset necessary and reasonable expenses incurred in such operation without regard to the provisions of section 3302 of title 31, United States Code.

(2)If a corporation or business entity established or acquired as part of an undercover operation under subparagraph (B) of paragraph (1) with a net value over $50,000 is to be liquidated, sold, or otherwise disposed of, the Service, as much in advance as the Commissioner or his delegate determines is practicable, shall report the circumstances to the Secretary. The proceeds of the liquidation, sale, or other disposition, after obligations are met, shall be deposited in the Treasury of the United States as miscellaneous receipts.

(3)As soon as the proceeds from an undercover investigative operation with respect to which an action is authorized and carried out under subparagraphs (B) and (C) of paragraph (1) are no longer necessary for the conduct of such operation, such proceeds or the balance of such proceeds remaining at the time shall be deposited into the Treasury of the United States as miscellaneous receipts.

(4)(A)The Service shall conduct a detailed financial audit of each undercover investigative operation which is closed in each fiscal year; and

(i)submit the results of the audit in writing to the Secretary; and

(ii)not later than 180 days after such undercover operation is closed, submit a report to the Congress concerning such audit.

(B)The Service shall also submit a report annually to the Congress specifying as to its undercover investigative operations—

(i)the number, by programs, of undercover investigative operations pending as of the end of the 1-year period for which such report is submitted;

(ii)the number, by programs, of undercover investigative operations commenced in the 1-year period for which such report is submitted;

(iii)the number, by programs, of undercover investigative operations closed in the 1-year period for which such report is submitted, and

(iv)the following information with respect to each undercover investigative operation pending as of the end of the 1-year period for which such report is submitted or closed during such 1-year period—

(I)the date the operation began and the date of the certification referred to in the last sentence of paragraph (1),

(II)the total expenditures under the operation and the amount and use of the proceeds from the operation,

(III)a detailed description of the operation including the potential violation being investigated and whether the operation is being conducted under grand jury auspices, and

(IV)the results of the operation including the results of criminal proceedings.

(5)For purposes of paragraph (4)—

(A)The term “closed” means the date on which the later of the following occurs;

(i)all criminal proceedings (other than appeals) are concluded, or

(ii)covert activities are concluded, whichever occurs later.

(B)The term “employees” has the meaning given such term by section 2105 of title 5, United States Code.

(C)The term “undercover investigative operation” means any undercover investigative operation of the Service; except that, for purposes of subparagraphs (A) and (C) of paragraph (4), such term only includes an operation which is exempt from section 3302 or 9102 of title 31, United States Code.

Notes & Related Subsidiaries

Editorial Notes

Prior Provisions

A prior section 7608 was renumbered section 7613 of this title.

Amendments

2011—Subsec. (c)(1)(A)(i)(II). Pub. L. 111–350, § 5(f)(1), substituted “section 6301(a) and (b)(1)–(3) and 6306” for “section 11(a) and 22”. Subsec. (c)(1)(A)(i)(III). Pub. L. 111–350, § 5(f)(2), substituted “chapter 45” for “section 255”. Subsec. (c)(1)(A)(i)(V). Pub. L. 111–350, § 5(f)(3), substituted “section 3901” for “section 254(a) and (c)”. 2008—Subsec. (c)(6). Pub. L. 110–343 struck out par. (6). Text read as follows: “The provisions of this subsection— “(A) shall apply after

November 17, 1988, and before

January 1, 1990, and “(B) shall apply after the date of the enactment of this paragraph and before

January 1, 2008. All amounts expended pursuant to this subsection during the period described in subparagraph (B) shall be recovered to the extent possible, and deposited in the Treasury of the United States as miscellaneous receipts, before

January 1, 2008.” 2006—Subsec. (c)(6). Pub. L. 109–432 substituted “2008” for “2007” in subpar. (B) and concluding provisions. 2005—Subsec. (c)(6). Pub. L. 109–135 substituted “

January 1, 2007” for “

January 1, 2006” in subpar. (B) and concluding provisions. 2003—Subsec. (c)(1)(A)(i)(IV). Pub. L. 108–178 substituted “title 40, United States Code” for “title 40”. 2002—Subsec. (c)(1)(A)(i)(IV). Pub. L. 107–217 substituted “section 8141 of title 40” for “section 34 of title 40, United States Code”. 2000—Subsec. (c)(6). Pub. L. 106–554 substituted “

January 1, 2006” for “

January 1, 2001” in subpar. (B) and concluding provisions. 1998—Subsec. (b)(1). Pub. L. 105–206 struck out “or of the Internal Security Division” after “Intelligence Division”. 1996—Subsec. (c)(2). Pub. L. 104–316 struck out “and the Comptroller General of the United States” after “Secretary”. Subsec. (c)(4)(B)(ii). Pub. L. 104–168, § 1205(c)(1)(A), (B), struck out “preceding the period” after “in the 1-year period” and “and” at end. Subsec. (c)(4)(B)(iii), (iv). Pub. L. 104–168, § 1205(c)(1)(C), added cls. (iii) and (iv) and struck out former cl. (iii) which read as follows: “the number, by programs, of undercover investigative operations closed in the 1-year period preceding the period for which such report is submitted and, with respect to each such closed undercover operation, the results obtained and any civil claims made with respect thereto.” Subsec. (c)(5)(C). Pub. L. 104–168, § 1205(c)(2), reenacted heading without change and amended text generally. Prior to amendment, text read as follows: “The terms ‘undercover investigative operation’ and ‘undercover operation’ mean any undercover investigative operation of the Service— “(i) in which— “(I) the gross receipts (excluding interest earned) exceed $50,000; or “(II) expenditures, both recoverable and nonrecoverable (other than expenditures for salaries of employees), exceed $150,000; and “(ii) which is exempt from section 3302 or 9102 of title 31, United States Code. Clauses (i) and (ii) shall not apply with respect to the report required under subparagraph (B) of paragraph (4).” Subsec. (c)(6). Pub. L. 104–168, § 1205(b), added par. (6). 1990—Subsec. (c)(1)(B). Pub. L. 101–508, § 11704(a)(32), struck out comma after “operations”. Subsec. (c)(5)(C). Pub. L. 101–508, § 11704(a)(33), substituted “interest” for “interested” in cl. (i)(I) and “title 31” for “title 3” in cl. (ii). 1988—Subsec. (b)(1). Pub. L. 100–690, § 7601(c)(1), substituted comma for “or” before “any other” and inserted “, or any other law for which the Secretary has delegated investigatory authority to the Internal Revenue Service,” after “responsible”. Subsec. (c). Pub. L. 100–690, § 7601(c)(2), added subsec. (c). 1976—Pub. L. 94–455 struck out “or his delegate” after “Secretary” wherever appearing. 1962—Pub. L. 87–863 redesignated existing provisions as subsec. (a), added subsec. (a) heading, and added subsec. (b).

Statutory Notes and Related Subsidiaries

Effective Date

of 2008 Amendment Pub. L. 110–343, div. C, title IV, § 401(b), Oct. 3, 2008, 122 Stat. 3875, provided that: “The amendment made by this section [amending this section] shall apply to operations conducted after the date of the enactment of this Act [Oct. 3, 2008].”

Effective Date

of 2003 AmendmentAmendment by Pub. L. 108–178 effective Aug. 21, 2002, see section 5 of Pub. L. 108–178, set out as a note under section 5334 of Title 5, Government Organization and Employees.

Effective Date

of 1996 Amendment Pub. L. 104–168, title XII, § 1205(c)(3), July 30, 1996, 110 Stat. 1472, provided that: “The

Amendments

made by this subsection [amending this section] shall take effect on the date of the enactment of this Act [July 30, 1996].”

Effective Date

of 1988 Amendment Pub. L. 100–690, title VII, § 7601(c)(3), Nov. 18, 1988, 102 Stat. 4507, as amended by Pub. L. 101–647, title XXXIII, § 3301(a), Nov. 29, 1990, 104 Stat. 4917; Pub. L. 104–168, title XII, § 1205(a), July 30, 1996, 110 Stat. 1471, provided that: “The

Amendments

made by this subsection [amending this section] shall take effect on the date of the enactment of this Act [Nov. 18, 1988].”

Effective Date

of 1962 Amendment Pub. L. 87–863, § 6(b), Oct. 23, 1962, 76 Stat. 1143, provided that: “The

Amendments

made by subsection (a) [amending this section] shall take effect on the day after the date of enactment of this Act [Oct. 23, 1962].”

Effective Date

Section effective Sept. 3, 1958, see section 210(a)(1) of Pub. L. 85–859, set out as a note under section 5001 of this title.

§7608 Authority of internal revenue enforcement officers

Summary

Title 26, §7608

Notes & Related Subsidiaries

Editorial Notes

Prior Provisions

Amendments

Statutory Notes and Related Subsidiaries

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Amendments

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Citations & Metadata