§7624 Reimbursement to State and Local Law Enforcement Agencies

Summary

When a state or local law enforcement agency gives the IRS information that substantially helps recover federal taxes tied to illegal drug activity or related money laundering, the IRS may reimburse the agency for its investigation costs — including expenses, per diem, salary, and overtime — up to 10 percent of the amount recovered. The IRS must track the information it receives and notify the agency when money is recovered; the agency then submits a statement of its costs. If several agencies helped, the IRS splits the reimbursement fairly, still capped at 10 percent in total. An agency cannot be paid under this rule if it already received reimbursement through a forfeiture program or state revenue laws.