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Title 26 — Internal Revenue CodeRelease 119-73not60

§7624 Reimbursement to State and Local Law Enforcement Agencies

Title 26 › Subtitle Subtitle F— Procedure and Administration › Chapter 78— DISCOVERY OF LIABILITY AND ENFORCEMENT OF TITLE › Subchapter B— General Powers and Duties › § 7624

Last updated Apr 5, 2026|Official source

Summary

State or local agencies may be paid by the IRS for costs when their information helps recover federal taxes from illegal drug activity or related money‑laundering. Payment cannot exceed 10% of the amount recovered and may cover investigation costs (expenses, per diem, salary, overtime). The IRS will record the tip, notify the agency, ask for a cost statement, and fairly divide the 10% if several agencies helped. Agencies already paid under federal or state forfeiture programs or state tax laws cannot be paid again.

Full Legal Text

Title 26, §7624

Internal Revenue Code — Source: USLM XML via OLRC

(a)Whenever a State or local law enforcement agency provides information to the Internal Revenue Service that substantially contributes to the recovery of Federal taxes imposed with respect to illegal drug-related activities (or money laundering in connection with such activities), such agency may be reimbursed by the Internal Revenue Service for costs incurred in the investigation (including but not limited to reasonable expenses, per diem, salary, and overtime) not to exceed 10 percent of the sum recovered.
(b)The Internal Revenue Service shall maintain records of the receipt of information from a contributing agency and shall notify the agency when monies have been recovered as the result of such information. Following such notification, the agency shall submit a statement detailing the investigative costs it incurred. Where more than 1 State or local agency has given information that substantially contributes to the recovery of Federal taxes, the Internal Revenue Service shall equitably allocate investigative costs among such agencies not to exceed an aggregate amount of 10 percent of the taxes recovered.
(c)No State or local agency may receive reimbursement under this section if reimbursement has been received by such agency under a Federal or State forfeiture program or under State revenue laws.

Legislative History

Notes & Related Subsidiaries

Statutory Notes and Related Subsidiaries

Effective Date

Section applicable to information first provided more than 90 days after Nov. 18, 1988, see section 7602(e) of Pub. L. 100–690, set out as an

Effective Date

of 1988 Amendment note under section 6103 of this title.

Regulations

Pub. L. 100–690, title VII, § 7602(g), Nov. 18, 1988, 102 Stat. 4508, provided that: “The Secretary of the Treasury shall, not later than 90 days after the date of enactment of this Act [Nov. 18, 1988], prescribe such

Rules and Regulations

as shall be necessary and proper to carry out the provisions of this section [enacting section 7624 of this title, amending section 6103 and 7809 of this title, and enacting provisions set out as notes under section 6103 and 7809 of this title], including

Regulations

relating to the definition of information which substantially contributes to the recovery of Federal taxes and the substantiation of expenses required in order to receive a reimbursement.”

Reference

Citations & Metadata

Citation

26 U.S.C. § 7624

Title 26 — Internal Revenue Code

Last Updated

Apr 5, 2026

Release point: 119-73not60