Part38.

CriminalTax

Chapter3.CriminalTaxPolicyandExhibits

Section1.MiscellaneousMatters

38.3.1MiscellaneousMatters

38.3.1.1ResubmissionsFollowingDeclinationsbytheDepartmentofJustice
38.3.1.2AssignmentsRequiringAssociateChiefCounsel(CriminalTax)Approvaland/orConcurrence
38.3.1.3ProsecutionStandards
38.3.1.4DualandSuccessiveProsecution
38.3.1.5Health,Age,andMentalCondition
38.3.1.6SolicitationofReturns
38.3.1.7FugitiveandAbsenteeTaxpayers
38.3.1.8BalancingCriminalandCivilAspects
38.3.1.9Exhibits
Exhibit38.3.11SearchWarrantCheckSheet
Exhibit38.3.12CompulsionOrder
Exhibit38.3.13ActofProductionCompulsionOrder
Exhibit38.3.14MemorandumofLawandFacttotheSACRe:AdministrativeTitle18Forfeitures
Exhibit38.3.15MemorandumofLawandFacttotheSACRe:AdministrativeTitle26Forfeitures
Exhibit38.3.16LettertoAttorneyOfferingConference
Exhibit38.3.17LettertoTaxpayerOfferingConference
Exhibit38.3.18SampleConferenceOutline
Exhibit38.3.19SampleConferenceMemorandum
Exhibit38.3.110SampleCriminalEvaluationMemorandum

38.3.1.1(08112004)
ResubmissionsFollowingDeclinationsbytheDepartmentofJustice

1.WheretheDepartmentofJustice(DOJ)ortheUSAttorneyhasdeclinedtoauthorizecriminalproceedings,theletterdecliningprosecutionwillbereviewedbytheSpecial
AgentinCharge(SAC)officethatinitiatedtheprosecutionrecommendationtodeterminewhetherthedeclinationshouldbeprotestedandthecaseresubmittedtoDOJ.To
beeffective,resubmissionstoDOJshouldnormallybebasedonadditionalevidenceand/orlegalargumentsoverlookedbyDOJ.Wherethereisadisagreementin
judgment,theresubmittedcaseshouldbeparticularlystrongfromanevidentiarystandpointorbeofsignificantimporttothetaxenforcementprogram.

2.Inaddition,thefactthatDOJnotifiesthetaxpayerthatthematterhasbeenreturnedtoCriminalInvestigationatthetimeofthedeclinationwillnotprecludearesubmission
ofthematter,orthesubsequentprosecutionofthecaseifprosecutioniswarranted.TaxpayerswhocontacteitherCriminalInvestigationortheCriminalTaxattorney
followingthereceiptofsuchnotificationshouldbeadvisedthatthematterisstillunderconsiderationforprosecutionifaresubmissioniscontemplated,orthatthecasehas
been(orwillbe)returnedtotheServiceforcivildispositionasappropriate.

3.WhentheSACdeterminesresubmissionisappropriate,thecasewillbereturnedtotheCriminalTaxattorneyforreviewandevaluationregardingapossibleresubmission.
TheCriminalTaxattorneywillnotifytheAreaCounsel(CT)thathe/sheisinreceiptofaresubmission.TheAreaCounsel(CT)willnotifytheAssociateChiefCounsel(CT)
oftheresubmission.

4.Ifafterreviewingthecase,theCriminalTaxattorneyconcurswiththeSACsdecisiontoresubmitthecase,thecompletecasefilewillbetransmittedtotheAssociateChief
Counsel(CT)forreviewandevaluation.IftheCriminalTaxattorneydisagreeswiththeprosecutionrecommendation,he/shewillprepareacriminalevaluation
memorandumandreturnthecasetotheSAC.

5.TheAssociateChiefCounsel(CT)willreviewandevaluatethecaseandprepareacriminalevaluationmemorandum.Thecriminalevaluationmemorandumandtheentire
casefilewillbetransmittedtotheDirectorofFieldOperationsforcoordinationwiththeSAC.

38.3.1.2(10032007)
AssignmentsRequiringAssociateChiefCounsel(CriminalTax)Approvaland/orConcurrence

1.ThefollowingassignmentsrequireAssociateChiefCounsel(CT)approvaland/orconcurrence:

A.Criminalreferenceletterswheretherecommendedviolationis18U.S.C.1621,1622,or1623,involvingperjury,subornationofperjury,orafalsedeclaration
occurringduringtheTaxCourtproceedingsrequirethesignatureoftheAssociateChiefCounsel(CT)

B.CasespreviouslyreferredforprosecutionanddeclinedbytheTaxDivisionorUSAttorneyshouldbesubmittedtotheAssociateChiefCounsel(CT)for
considerationandevaluationofCriminalInvestigationsdecisiontoresubmitthecasetoDOJ

C.GrandJuryInvestigationRequestsorExpansionsinvolvingpoliticallysensitiveindividualsasdefinedinCCDM38.2.2.2.3(http://publish.no.irs.gov/getpdf.cgi?
catnum=39138)

D.AdministrativeCasesinvolvingpoliticallysensitiveindividualsasdefinedinCCDM38.2.1.3.3(http://publish.no.irs.gov/getpdf.cgi?catnum=39136)

E.SearchWarrantsdirectedatthepremisesowned,controlledorunderthedominionofasubjectortargetofaninvestigationdescribedinCCDM38.1.1.3.1(5)(
http://publish.no.irs.gov/getpdf.cgi?catnum=39133)

F.TheauthoritytoauthorizeforfeitureproceedingswithrespecttononwageringIRC7302forfeituresthatdonotsolelyrelatetoviolationsregardingthefilingof
Forms8300concerningthereceiptofmorethan$10,000.00cashbyatradeorbusinesspursuanttoIRC6050I

G.Finalrecommendationsregardingpetitionsforremissionormitigationofforfeitures

38.3.1.3(08112004)
ProsecutionStandards
 1.InordertoconcurwithCriminalInvestigationscriminalprosecutionrecommendation,theevidencemustbesufficienttoestablishguiltbeyondareasonabledoubtanda
reasonableprobabilityofconvictionmustexist.

2.Allthefactsandcircumstancesmustbeconsideredwhenreviewingacriminaltaxcase.Considerationmustbegiventovariousfactors,includingbutnotlimitedtowhether
avoluntarydisclosurewasmade,whetherdualorsuccessiveprosecutionexists,thehealth,ageandmentalconditionofthetaxpayerandwhethersolicitationofreturns
hasoccurred.Thepresenceofanyoftheforegoingmayimpactonwillfulnessandsignificantlyimpairoreliminatetheprobabilityofconviction.Thesefactorsshouldbe
consideredasearlyaspossibleineachcase(e.g.,prereferral,inventoryreview)toavoidunnecessaryutilizationofresources.Ifanyoftheabovefactorsispresentina
criminalcase,itmustbediscussedthoroughlyinthecriminalevaluationmemorandum.

38.3.1.3.1(08112004)
VoluntaryDisclosurePractice

1.ItiscurrentlythepracticeoftheIRSthatavoluntarydisclosurewillbeconsideredalongwithallotherfactorsintheinvestigationindeterminingwhethercriminal
prosecutionwillberecommended.Thisvoluntarydisclosurepracticecreatesnosubstantiveorproceduralrightsfortaxpayers,butratherisamatterofinternalIRSpractice,
providedsolelyforguidancetoIRSpersonnel.Taxpayerscannotrelyonthefactthatothersimilarlysituatedtaxpayersmaynothavebeenrecommendedforcriminal
prosecution.

2.Avoluntarydisclosurewillnotautomaticallyguaranteeimmunityfromprosecutionhowever,avoluntarydisclosuremayresultinprosecutionnotbeingrecommended.This
practicedoesnotapplytotaxpayerswithillegalsourceincome.

3.Avoluntarydisclosureoccurswhenthecommunicationistruthful,timely,andcomplete,andwhen:

A.Thetaxpayershowsawillingnesstocooperate(anddoesinfactcooperate)withtheIRSindetermininghisorhercorrecttaxliabilityand

B.ThetaxpayermakesgoodfaitharrangementswiththeIRStopayinfullthetax,interest,andanypenaltiesdeterminedbytheIRStobeapplicable

4.Adisclosureistimelyifitisreceivedbefore:

A.TheIRShasinitiatedacivilexaminationorcriminalinvestigationofthetaxpayer,orhasnotifiedthetaxpayerthatitintendstocommencesuchanexaminationor
investigation

B.TheIRShasreceivedinformationfromathirdparty(e.g.,informant,othergovernmentalagency,orthemedia)alertingtheIRStothespecifictaxpayers
noncompliance

C.TheIRShasinitiatedacivilexaminationorcriminalinvestigationthatisdirectlyrelatedtothespecificliabilityofthetaxpayer

D.TheIRShasacquiredinformationdirectlyrelatedtothespecificliabilityofthetaxpayerfromacriminalenforcementaction(e.g.,searchwarrant,grandjury
subpoena)

5.AnytaxpayerwhocontactstheIRSinpersonorthrougharepresentativeregardingvoluntarydisclosurewillbedirectedtoCriminalInvestigationforevaluationofthe
disclosure.SpecialagentsareencouragedtoconsultAreaCounselonvoluntarydisclosureissues.

6.Examplesofvoluntarydisclosuresinclude:

a.Aletterfromanattorneythatenclosesamendedreturnsfromaclientwhicharecompleteandaccurate(reportinglegalsourceincomeomittedfromtheoriginalreturns),
whichofferstopaythetax,interest,andanypenaltiesdeterminedbytheIRStobeapplicableinfullandwhichmeetsthetimelinessstandardsetforthabove.Thisisa
voluntarydisclosurebecauseallelementsof(3)abovearemet.
b.AdisclosuremadebyataxpayerofomittedincomefacilitatedthroughabarterexchangeaftertheIRShasannouncedthatithasbegunacivilcomplianceproject
targetingbarterexchangeshowevertheIRShasnotyetcommencedanexaminationorinvestigationofthetaxpayerornotifiedthetaxpayerofitsintentiontodoso.In
addition,thetaxpayerfilescompleteandaccurateamendedreturnsandmakesarrangementswiththeIRStopayinfull,thetax,interest,andanypenaltiesdeterminedby
theIRStobeapplicable.Thisisavoluntarydisclosurebecausethecivilcomplianceprojectinvolvingbarterexchangesdoesnotyetdirectlyrelatetothespecificliabilityof
thetaxpayerandbecauseallotherelementsof(3)abovearemet.
c.AdisclosuremadebyataxpayerofomittedincomefacilitatedthroughawidelypromotedschemewhichtheIRShasbegunacivilcomplianceprojectandalready
obtainedinformationthatmightleadtoanexaminationofthetaxpayerhowever,theIRShasnotyetcommencedanexaminationorinvestigationofthetaxpayeror
notifiedthetaxpayerofitsintenttodoso.Inaddition,thetaxpayerfilescompleteandaccuratereturnsandmakesarrangementswiththeIRStopayinfull,thetax,interest,
andanypenaltiesdeterminedbytheIRStobeapplicable.Thisisavoluntarydisclosurebecausethecivilcomplianceprojectinvolvingtheschemedoesnotyetdirectly
relatetothespecificliabilityofthetaxpayerandbecauseallotherelementsof(3)abovearemet.
d.AdisclosuremadebyanindividualwhohasnotfiledtaxreturnsaftertheindividualhasreceivedanoticestatingthattheIRShasnorecordofreceivingareturnfora
particularyearandinquiringintowhetherthetaxpayerfiledareturnforthatyear.TheindividualfilescompleteandaccuratereturnsandmakesarrangementswiththeIRS
topaythetax,interest,andanypenaltiesdeterminedbytheIRStobeapplicableinfull.ThisisavoluntarydisclosurebecausetheIRShasnotyetcommencedan
examinationorinvestigationofthetaxpayerornotifiedthetaxpayerofitsintenttodosoandbecauseallotherelementsof(3)abovearemet.

7.Examplesofwhatarenotvoluntarydisclosuresinclude:

a.Aletterfromanattorneystatinghisorherclient,whowishestoremainanonymous,wantstoresolvehisorhertaxliability.Thisisnotavoluntarydisclosureuntilthe
identityofthetaxpayerisdisclosedandallotherelementsof(3)abovehavebeenmet.
b.Adisclosuremadebyataxpayerwhoisundergrandjuryinvestigation.Thisisnotavoluntarydisclosurebecausethetaxpayerisalreadyundercriminalinvestigation.
Theconclusionwouldbethesamewhetherornotthetaxpayerknewofthegrandjuryinvestigation.
c.Adisclosuremadebyataxpayer,whoisnotcurrentlyunderexaminationorinvestigation,ofomittedgrossreceiptsfromapartnership,butwhosepartnerisalready
underinvestigationforomittedincomeskimmedfromthepartnership.ThisisnotavoluntarydisclosurebecausetheIRShasalreadyinitiatedaninvestigationthatis
directlyrelatedtothespecificliabilityofthistaxpayer.Theconclusionwouldbethesamewhetherornotthetaxpayerknewoftheongoinginvestigation.
d.Adisclosuremadebyataxpayer,whoisnotcurrentlyunderexaminationorinvestigation,ofomittedconstructivedividendsreceivedfromacorporationthatiscurrently
underexamination.ThisisnotavoluntarydisclosurebecausetheIRShasalreadyinitiatedanexaminationthatisdirectlyrelatedtothespecificliabilityofthistaxpayer.
Theconclusionwouldbethesamewhetherornotthetaxpayerknewoftheongoingexamination.
e.AdisclosuremadebyataxpayerafteranemployeehascontactedtheIRSregardingthetaxpayersdoublesetofbooks.Thisisnotavoluntarydisclosureevenifno
examinationorinvestigationhasyetcommencedbecausetheIRShasalreadybeeninformedbythethirdpartyofthespecifictaxpayersnoncompliance.Theconclusion
wouldbethesamewhetherornotthetaxpayerknewoftheinformantscontactwiththeIRS.

38.3.1.4(08112004)
DualandSuccessiveProsecution

1.DOJsDualProsecutionPolicy.Thedualprosecutionpolicyprecludestheinitiationorcontinuationofafederalprosecutionfollowingastateprosecutionbased
substantiallyonthesameactoractsunlessthereisacompellingfederalinterestsupportingthedualprosecution.USAttorneysManual(USAM),Sec.92.031.

2.DOJsSuccessiveProsecutionPolicy.Thesuccessiveprosecutionpolicyapplieswhentherehasbeenapriorfederalprosecutionbasedsubstantiallyonthesameactor
actsunlessthereisacompellingfederalinterestsupportingthesuccessiveprosecution.USAM,92.031.

38.3.1.4.1(08112004)
ApplicationoftheDualandSuccessiveProsecutionPolicies

1.Ifeitherpolicyisapplicable,prosecutionwillnotbeinitiatedwithoutpriorapprovaloftheAssistantAttorneyGeneral,TaxDivision.
 2.Thepolicies:

1.Applywhenevertheunderlyingactsortransactionshavebeenthesubjectofapriorcriminalproceedingtowhichjeopardyattached

2.Arenotterminateduponthefilingofanindictmentorcriminalinformationand

3.Arenotinfluencedbythefactthatreversaloftheearlierconvictionisapossibility.

3.WhenevertheSolicitorGeneralconcludesthateitherthedualorsuccessiveprosecutionpolicieshasbeenviolated,amotionwillbefiledrequestingthatthejudgmentof
convictionbevacated.

4.Theforegoingreflects:

A.DOJ,underitsdualorsuccessiveprosecutionprocedures,evaluatesallIRSrecommendationsforprosecutioninlightofanystateandfederalconvictionsofthe
taxpayeroccurringbeforethecriminaltaxtrialiscommencedorguiltypleaacceptedconcerningconductthatmayalsoconstitutethecriminaltaxoffense

B.DOJwillprobablydeclineacriminaltaxprosecutionifthetaxpayerisalreadyservingalongjailsentenceonanymatter

C.Absentcompellingreasons,DOJwillnotinstituteprosecutionwherethetaxpayerhaspreviouslybeenconvictedforthesametransaction(i.e.,wheretheunreported
incomeintheproposedcriminaltaxcasewasderivedfrombribery,forwhichthetaxpayerhasbeenconvicted)

5.Inapplyingitsdualorsuccessiveprosecutionpolicy,theTaxDivisionhasassertedthatitconsiderssuchmattersasthesimilarityinthetransaction(s)intheearlier
convictionandthecriminaltaxcasetheappropriatenessofthepunishmentinconnectionwiththepriorconvictionitsdeterrenteffectand,whereappropriate,the
appellatestatusofthepriorconviction.

38.3.1.4.2(08112004)
ExceptionstotheDualandSuccessiveProsecutionPolicies

1.ProsecutionofacasehavingdualorsuccessiveprosecutionimplicationsisnotnecessarilyprohibitediftheAssistantAttorneyGeneral,TaxDivision,concludesthatthe
priorproceedingleftsubstantialfederalinterestsdemonstrablyunvindicated.

38.3.1.4.3(08112004)
ReviewofDualandSuccessiveProsecutionduringInvestigativeStage

1.TheproceduresoutlinedbelowarenotmeanttoprecludetheuseofinformalprereferralconsultationbetweenCriminalInvestigationandtheCriminalTaxattorney.

2.WhenCriminalInvestigationidentifiestheexistenceorpotentialexistenceofdualand/orsuccessiveprosecutionissues,CriminalInvestigationmayasktheCriminalTax
attorneyforprereferrallegalassistance.SufficientfactsshouldbeprovidedtoenabletheCriminalTaxattorneytodeterminewhetherdualorsuccessiveprosecutionpolicy
considerationsapplyandiftheydoapply,whetherthereare,nevertheless,compellingreasonstoprosecutethecriminaltaxoffense.

3.CriminalTaxAttorneyProceduresduringtheInvestigatoryStage.Uponreceipt,theCriminalTaxattorneywillreviewtherequestanddeterminewhetherthedualor
successiveprosecutionpolicyconsiderationsapplyandsoadvisetheSACinwriting.TheCriminalTaxattorneyisencouragedtoworkwithCriminalInvestigationinthe
earlydetectionandresolutionofdualorsuccessiveprosecutionissues.

4.DOJsDualand/orSuccessiveProsecutionPrereferralOpinions.Wherecompellingreasonsexistwarrantingprosecution,notwithstandingtheexistenceofdualand/or
successiveprosecutionissues,opinionspertainingtothespecificcasemaybeobtainedfromtheTaxDivision.TheCriminalTaxattorneypreparesawrittenrequestwith
relevantdocumentationattached,fortheSACssignature,totheappropriateChief,[Region]CriminalEnforcementSection,TaxDivision,foritsopinionontheapplicationof
thepolicy.ExtremecarewillbeexercisedsothatonlymaterialmeetingthetestssetforthinIRC6103(h)(2)isforwardedtotheTaxDivision.TheTaxDivisionhasagreed
tothisprocedureandwillgiveexpeditiousconsiderationtorequestsforopinions.

38.3.1.4.4(08112004)
ReviewingCaseswithDualorSuccessiveProsecutionConsiderations

1.Whenpresentinacase,theCriminalTaxattorneywilldiscussthedualorsuccessiveprosecutionconsiderationsinthecriminalevaluationmemorandum.Thediscussion
willaddresswhetherornotcompellingreasonsexistwarrantingprosecution.

38.3.1.5(08112004)
Health,Age,andMentalCondition

1.Thetaxpayershealth,ageandmentalcondition(notrisingtothelevelofinsanity),bothatthetimeoftheallegedoffenseandatthetimeofthereferralforprosecution,are
amongthefactorstobeconsideredwhenreviewingaprosecutionrecommendation.

2.Thecriminalevaluationmemorandummustanalyzeanddiscussthesefactorstotheextenttheyaffectwillfulnessandtheprobabilityofconviction.

38.3.1.6(08112004)
SolicitationofReturns

1.Solicitationgenerallyconsistsofanoralorwrittenrequestforthefilingofspecificreturnsbyarevenueagentand/orofficer,orasummonsforinformationbywhichareturn
canbepreparedifthetaxpayerunderstandsthatareturncouldbefiledinlieuofspecificcompliancewiththesummons.

2.DOJconsiderstheactivesolicitationofareturnasdetrimentaltoacriminalcaseinthatthedefensecanbeexpectedtoarguethattheprosecutionwasinstitutedbecause
oftheunsuccessfulattempttodisposeofthemattercivillyandasasubstituteforunsuccessfulcollection.Solicitationofareturnwherenoreturnissubsequentlyfiledisnot
consideredtodetractfromprosecution.Whensolicitationispresentinacriminalcase,theCriminalTaxattorneymustdiscussitspossibleimpactonthesuccessful
prosecutionofthecaseinthecriminalevaluationmemorandum.

38.3.1.7(08112004)
FugitiveandAbsenteeTaxpayers

1.ThereareanumberofproblemsinreferringacasewherethetaxpayeriseitheroutsidetheUnitedStatesorafugitive.DOJemploysthefollowingpresumptionsin
determiningwhethersuchacasemeritsindictment:

A.IfthepartyisaUnitedStatescitizen,DOJwillassumehe/shehassometieswiththeUnitedStatesthatwillinducehim/hertoreturn.

B.Ifthepartyisanalien,thepresumptionwillbeagainsthis/herreturningtotheUnitedStates.

2.Whenreviewingprosecutionrecommendationsinvolvingafugitivetaxpayer,theCriminalTaxattorneywilllookintoallthefactsandcircumstances,includingthe
taxpayersbusinessinterestsandfamilytiesintheUnitedStates,andevidencesupportingand/orrebuttingeitherofthepresumptionsshouldbediscussedinthecriminal
evaluationmemorandum.

38.3.1.8(10032007)
BalancingCriminalandCivilAspects
 1.Thecriminalandcivilaspectsofacasedonotpresentaneither/orproposition.Rather,thecriminalandcivilaspectsofacaseshouldbebalancedtotheextentpossible
withoutprejudicingthecriminalprosecution.

2.Whileacaseisundercriminalinvestigation,anduntilthecriminalaspectsofthecaseareclosed,allproposedcivilactionsmustbecoordinatedwiththeCriminalTax
attorney/manager.RegardlessofwhichOperatingDivisiongeneratestherequest,theCriminalTaxattorney/managerwillconsultwithallnecessarycivil
attorneys/managers,aswellasCriminalInvestigationand/orDOJ.Ifagreementisreachedbetweentheparties,theCriminalTaxattorney/managerwillprovidetothe
requestingclienttheCounselpositionregardingwhetherandtowhatextentanycivilactionmaytakeplacepriortothetimethecriminalaspectsofthecaseareclosed.If
agreementisnotreached,thenthematterwillbereconciledusingnormalreconciliationprocedures.SeeCCDM31.1.4.4(http://publish.no.irs.gov/getpdf.cgi?
catnum=29650).

3.ExamplesofproposedcivilactionsthatrequirecoordinationwiththeCriminalTaxattorneyincludewithoutlimitation:

contactwiththecriminaltarget

solicitationofconsentstoextendthecivilstatuteoflimitations

assessments,includingjeopardyandterminationassessments

issuanceofnoticesofdeficiency

filingnoticesoffederaltaxlien

issuanceofsummonses

solicitationofcollectionwaivers

anycollectionaction

eliminatingorpartiallyconcedingthefraudpenalty

investigationofoffersincompromise

4.Oncethecriminalaspectsofacasehavebeenconcluded,proposedcivilactionsshouldbediscussedwiththeAreaCounsel(CT).Allcivilactions,includingreductionof
deficiencyfiguresbelowthecriminalfigures,willbedeterminedbytheappropriatecivilAssociateAreaCounsel.

38.3.1.9(08112004)
Exhibits

1.TheexhibitsforPart38havebeenconsolidatedforeaseofuse.

Exhibit38.3.11(08112004)
SearchWarrantCheckSheet

1.TARGET(s)
2.VIOLATION(s)
3.PREMISESTOBESEARCHED
a. Identified(addressandlocationdescription)
i. Businessorcorporateoffice(s)
ii. Residence
iii. Other(specify/describe)
b. Areownedorcontrolledby
i. Accountant
ii. Lawyer
iii. Physician
iv. Publicofficial(federal,state,local,orforeign)orpoliticalcandidate
v. Memberoftheclergy
vi. Newsmediaofficial(electronicorprinted)
vii. Laborunionofficial
viii. OfficialofanorganizationdeemedtobeexemptunderI.R.C.501(c)or(d)
ix. Disinterestedthirdparties
4.AFFIDAVITIDENTIFIESINNONCONCLUSORYTERMSKEYFACTSESTABLISHINGPROBABLECAUSETOBELIEVE:
a. Specifiedcrime(s)hasbeen(orisbeing)committed
i. Allelementsoftheoffenseestablished
ii. Ifconspiracy(18U.S.C.371)alleged,twoormorepersonsarepartytotheagreementtocommittheoffenseordefraudtheU.S.
b. Thereisevidenceofthecrime,e.g.,records
i. Recordssought
1. havenexustocrimeallegedand
2. aredescribedwithrequisiteparticularity(NolaundrylistsnogeneralsubpoenatypelistsAppropriateaccountingterminologyusedwhendescribingbooksandrecords)
ii. Clearlydefinedtemporallimitations
1. Taxyears/periodsand/orcalendaryearsatissue
2. Tailoredtostatuteoflimitations
iii. Recordsclearlylimitedtotargetsandrelatedentitiesspecificallymentionedinaffidavit
iv. Computers
1. Computerexpertjustificationforseizure
2. Computerexpertproceduretobefollowed
3. Computersystem/componentsidentifiedw/particularity
c. Evidencesoughtispresentlyonthepremisestobesearched
i. ObservationsofInformant/Witness/AgentorAdmissions
1. Reliability
2. Specificity
3. Notover6monthsold
ii. Accuratedescription/depictionofwheretheevidenceislocatedandhowmaintained
iii. Staleness
1. Historyofownerspossessionofevidence/recordssought
2. Relevantretentionperiod(s)forevidence/recordssought
3. Likelihoodevidence/recordssoughtarestillonpremisestobesearched
5.INFORMANTSANDWITNESSES
 a. BasisofKnowledge/Credibility/Reliability
i. Extentofpersonal,actualknowledgeofrelevantinformation
ii. Criminal/informanthistory
iii. Informantrewardclaim
b. Independent,substantialcorroboration
6.REASONSWHYLESSINTRUSIVEMEANS(E.G.,SUMMONS,SUBPOENA)ARENOTBEINGUSEDAREADEQUATELYDISCUSSED
7.POTENTIALPROBLEMSANDPROPOSEDRESOLUTIONS
a. Privilegesandprivilegeteam
b. Useofpermeatedwithfraudtheory
c. Other(specify/describe)
8.MEMOTOFILE
a. IhavereviewedthissearchwarrantapplicationforlegalsufficiencyandcompliancewithIRSpolicyandprocedureandconclude:
i. Therearesufficientfactstoestablishprobablecausetobelieve:
1. Thetarget(s)hascommitted(oriscommitting)theallegedviolations(specify)
2. Therecordssoughtarelikelytocontainevidenceofsuchcrimes.
3. Therecordssoughtarepresentlylocatedonthepremisestobesearched.
ii. Thereissufficientexplanationastowhyotherlessintrusivemeanstoobtainthisevidence/recordsarenotbeingutilized.

Exhibit38.3.12(08112004)
CompulsionOrder

CompulsionOrder
18U.S.C.6002,6004
InternalRevenueServiceProceeding
InvestigatingtheTaxLiabilityof:
Nameofsubjectofinvestigation
Address
AttherequestoftheSpecialAgentinCharge,[City],andtheDirectorofFieldOperations[Area],submittedwithsupportingdocumentationsufficienttoshowtomysatisfaction:
1.That[Nameofwitness]hasbeensummonsedtotestifyorprovideotherinformationtotheInternalRevenueServicepursuantto26U.S.C.7602and
2.That[Nameofwitness]hasrefusedtotestifyorprovideotherinformationonthebasisofhis/herprivilegeagainstselfincriminationand
3.That,inthejudgmentoftheChief,CriminalInvestigation,thetestimonyorotherinformationfrom[Nameofwitness]maybenecessarytothepublicinterestand
4.ThattheaforesaidrequesthasbeenapprovedbytheAssistantAttorneyGeneraloftheTaxDivisionoftheDepartmentofJustice,pursuanttotheauthorityvestedinhim/herby
18U.S.C.6004and28C.F.R.0.175.
NOW,THEREFORE,ITISORDERED,pursuantto18U.S.C.6002that[Nameofwitness]givestestimonyorprovideotherinformationthathe/sherefusestogiveorprovideon
thebasisofhis/herprivilegeagainstselfincriminationastoallmattersaboutwhichhe/shemaybeinterrogatedduringthecourseoftheInternalRevenueServiceproceedings.
Thisordershallbecomeeffectiveonlyifafterthedateofthisorder[Nameofwitness]refusestotestifyorprovideotherinformationonthebasisofhis/herprivilegeagainstself
incrimination.
Thatpursuantto18U.S.C.6004,[Nameofwitness]begranteduseimmunityinanycriminalcase,exceptaprosecutionforgivingafalsestatementorotherwisefailingtocomply
withthisorder.
ThisorderisissuedwiththeapprovaloftheAssistantAttorneyGeneral,TaxDivision,DepartmentofJusticebytheChief,CriminalInvestigation,InternalRevenueService,
pursuanttotheauthoritydelegatedtohim/herby18U.S.C.6004,TreasuryDepartmentOrderNo.15088,datedNovember24,1977andDelegationOrder169(asrevised).
UNDERSCORE
[Name]

Chief,CriminalInvestigation
InternalRevenueService
UNDERSCORE

Date

Exhibit38.3.13(08112004)
ActofProductionCompulsionOrder

CompulsionOrder
18U.S.C.6002,6004
InternalRevenueServiceProceeding
InvestigatingtheTaxLiabilityof:
Nameofsubjectofinvestigation
Address
AttherequestoftheSpecialAgentinCharge[City],andtheDirectorofFieldOperations[Area],submittedwithsupportingdocumentationsufficienttoshowtomysatisfaction:
1.That[Name]hasbeensummonsedtoproducethebooksandrecordsof[Name],totheInternalRevenueServicepursuantto26U.S.C.7602and
2.That[Name]hasrefusedtoproducethesebooksandrecordsonthebasisofhis/herprivilegeagainstselfincriminationand
3.That,inthejudgmentoftheChief,CriminalInvestigation,theproductionofthesebooksandrecordsfrom[Name]maybenecessarytothepublicinterestand
4.ThattheaforesaidrequesthasbeenapprovedbytheAssistantAttorneyGeneraloftheTaxDivisionoftheDepartmentofJustice,pursuanttotheauthorityvestedinhim/herby
18U.S.C.6004and28C.F.R.0.175.
NOW,THEREFORE,ITISORDERED,pursuantto18U.S.C.6002that[Name]producethebooksandrecordsof[Name]whichhe/sherefusestogiveorprovideonthebasisof
his/herprivilegeagainstselfincriminationduringthecourseoftheInternalRevenueServiceproceeding.
Thisordershallbecomeeffectiveonlyifafterthedateofthisorder[Name]refusestoproducethebooksandrecordsonthebasisofhis/herprivilegeagainstselfincrimination.
Thatpursuantto18U.S.C.6004,[Name]begranteduseimmunityrelativetotheactofproductionofbooksandrecordsof[Name],inanycriminalcase,exceptaprosecutionfor
perjury,givingafalsestatementorotherwisefailingtocomplywiththisorder.
ThisorderisissuedwiththeapprovaloftheAssistantAttorneyGeneral,TaxDivision,DepartmentofJusticebytheChief,CriminalInvestigation,InternalRevenueService,
pursuanttotheauthoritydelegatedtohim/herby18U.S.C.6004,TreasuryDepartmentOrderNo.15088,datedNovember24,1977andDelegationOrder169(asrevised).
UNDERSCORE
[Name]

Chief,CriminalInvestigation
InternalRevenueService
UNDERSCORE

Date

Exhibit38.3.14(08112004)
MemorandumofLawandFacttotheSACRe:AdministrativeTitle18Forfeitures

[Date]
[CASENo.]

[Name]

MEMORANDUMFORSPECIALAGENTINCHARGE,[City]FIELDOFFICE
Attn:SupervisorySpecialAgent[Name]
SpecialAgent[Name]
[Name]
FROM:
Attorney[City]
ProposedAdministrativeForfeitureof___seizedat
[PlaceofSeizure]
SUBJECT:
PropertyOwner:___
AFTRAKNo.____
On[date],youforwardedtousaForm4008,SeizedPropertyReport,indicatingthattheabovedescribedpropertyhadbeenseizedon[date],pursuanttoaseizurewarrantissued
bytheUnitedStatesinthedistrictof___forforfeitureunder18U.S.C.981(a)(1)(A)aspropertytraceabletopropertyinvolvedinfinancialandmonetarytransactionsinviolation
of18U.S.C.1956/1957.
Basedonourreviewofthismatter,weconcludethereisabasisforcivilforfeitureofthispropertyandadviseyoutosendnoticeofintenttoadministrativelyforfeitthatpropertyto
allpartieshavinganinterestthereinnolaterthan[datethatis60daysfromdateofseizure].
FACTS
[Setforthallrelevantinformation/factsontheunderlyingscheme,howCriminalInvestigationbecameawareofthescheme,andtherelationshipoftheseizedpropertytothe
scheme,i.e.,thebasisofseizure.]
[Setforthrelevantfactsspecifictoallegedviolation,forexample:
Forviolationsof31U.S.C.5324(a),setoutfactsconcerningpatternofdepositsorwithdrawals,suchasseveraldepositsonsamedaytodifferentaccounts,orsameaccountat
differentbranchesordifferenttellers,knowledgeofBankSecrecyActrequirements,howthepropertywasinvolvedinortraceabletostructuringactivity.
Forviolationsof18U.S.C.1956/1957,setoutinformationregardingunderlyingcriminalactivity.Howthepropertyconstitutesproceedsofthatactivity,andinformation
regardingthefinancialormonetarytransaction.]
[CASENo.]
LAWANDANALYSIS
[Setout18U.S.C.981(a)(1)(A),(or31U.S.C.5317(c))andlanguageofpredicatestatute.
[Ifaviolationof31U.S.C.5324(a),discusshowpatternoftransactionsconstitutesstructuring.Howisthispropertyinvolvedinthestructuringviolation,ortraceabletoproperty
involvedinsuchactivity?Iftherehasbeendepositandwithdrawalactivityintheaccount,does18U.S.C.984applyandallowforfeiture.]
[Iftheoryisthatpropertyisforfeitableasinvolvedinortraceabletoaviolationof1956,discusswhatevidenceindicates:
Thepropertyconstitutestheproceedsofspecifiedunlawfulactivity(SUA),andwhatistheSUA?Howdoesthispropertyconstitutetheproceedsofit?Whatisthefinancial

transactionorattemptedtransaction?Whatistheintent,specifiedin1956(a)(1),withwhichthetransactionwasconducted?]
[Iftheoryisthatpropertyisforfeitableasinvolvedinortraceabletoaviolationof1957,discusswhatevidenceindicates:
Whatisthemonetarytransaction?Howisthepropertycriminallyderived?Isthevalueofthepropertygreaterthat$10,000?Whatisthefinancialinstitution?]
[Howisthepropertyinvolvedinatransactionorattemptedtransactionthatviolates1956or1957,orhowisittraceabletopropertysoinvolved?]
[DiscussGovernmentsburdenofproof(preponderanceoftheevidence),analyzeavailableevidenceinlightofthisburden,andtheelementsofproofforforfeiture.]
[Discussapplicabledefenses,potentialConstitutionalbasesforchallenge,andimpactofmitigationguidelinesifapplicable,e.g.,innocentownersdefensesandthe
proportionalityofcivilforfeiture(i.e.,excessivefinesdetermination).Ifappropriate,discusselapsedtimesinceseizureincontextofstatutoryrequirementsunder18U.S.C.983.]
[IftheServicelacksalegalorfactualbasistoforfeitpropertyseized,setforthreasonswhytheseizedpropertycannotbeforfeitedanddiscusscaselawthatbearsontheissue.For
example:theGovernmentcannotproveatransactionoccurredwiththeSUAproceeds.Ifanalternativeforfeituretheorycouldworkwithadditionalinvestigation,giveguidance
andofferassistance.]
CONCLUSION
[Setoutthestepstoperfectforfeiture,includingrequirementtopublishanadvertisementadvisingoftheseizureandpendingforfeiture,thetimeperiodsforfilingaclaimorpetition
forremissionormitigationofforfeitureandstepstotakeshouldonebefiled.AdvisethatCriminalInvestigationshouldcontactCounselifaClaim,aPetitionofRemissionor
Mitigation,oranofferincompromiseisreceived.]
[CaseNo.]
[Ifmemorandumrecommendsreturnoftheproperty,concludewithrecommendationondeficiencyofproposedforfeitureandneedtoreturnseizedproperty.]
Asindicatedabove,wefindthereissufficientevidencetosustainforfeitureofthesubjectpropertybyapreponderanceoftheevidence.Accordingly,thisofficerecommendsyou
actunderDelegationOrderNo.158toperfectadministrativeforfeiturebytakingthestepsrequiredforsuchperfection.
Ifyouhaveanyquestionsorconcernsaboutthismatter,pleasecontacttheundersignedat(123)4567890.
[Name]
AreaCounsel[City]
CriminalTax

_________
[AttorneyName]
CriminalTax,[City]

1cc:DivisionCounsel/AssociateChiefCounsel(CriminalTax),Washington,D.C.
2cc:SupervisorySpecialAgent
1cc:SpecialAgent

Exhibit38.3.15(08112004)
MemorandumofLawandFacttotheSACRe:AdministrativeTitle26Forfeitures

[Date]
[CASENo.]

[Name]
MEMORANDUMFORSPECIALAGENTINCHARGE,[City]FIELDOFFICE
Attn:SupervisorySpecialAgent[Name]
SpecialAgent[Name]
[Name]
FROM:
Attorney[City]
ProposedAdministrativeForfeitureof[Property]seizedat
[PlaceofSeizure]
SUBJECT:
PropertyOwner:___
AFTRAKNo.___
On[date],youforwardedtousaForm4008,SeizedPropertyReport,indicatingthattheabovedescribedpropertyhadbeenseizedon[date],pursuanttoaseizurewarrantissued
bytheUnitedStatesinthedistrictof___forforfeitureunderI.R.C.7301/7302aspropertyusedorintendedtobeusedinviolationoftheinternalrevenuelaws.
Basedonourreviewofthismatter,weconcludethereisabasisforcivilforfeitureofthispropertyandadviseyoutosendnoticeofintenttoadministrativelyforfeitthatpropertyto
allpartieshavinganinterestthereinnolaterthan[datethatis60daysfromdateofseizure].
FACTS
[Setforthallrelevantinformation/factsontheunderlyingscheme,howCriminalInvestigationbecameawareofthescheme,andtheroleoftheseizedpropertyinthescheme,i.e.,
thebasisofseizure.]
LAWANDANALYSIS
[SetoutlanguageofI.R.C.7301or7302,asapplicable,andcasecitesunderlyingprinciplethatpropertyusedorintendedforusetoviolateaninternalrevenuelaworregulation
isforfeitable.Setforththeoryof"activeaid,"citingUnitedStatesv.One1954RollsRoyceSilverDawn,777F.3d1358(9thCir.1985).Howdoeseachparticularseizeditemserve
asan"activeaid"inaviolationofaninternalrevenuelaworregulation.]
[DiscussGovernmentsburdenofproof(preponderanceoftheevidence),analyzeavailableevidenceinlightofthisburden,andtheelementsofproofforforfeiture.Howdoes
eachparticularseizeditemserveasan"activeaid"inaviolationofaninternalrevenuelaworregulation?Ifappropriate,discusselapsedtimesinceseizureincontextofpossible
dueprocessimpactfourfactortestfromUnitedStatesv.$8,850,461U.S.555(1983).]
[CaseNo.]
[IftheServicelacksalegalorfactualbasistoforfeitpropertyseized,setforthreasonswhytheseizedpropertycannotbeforfeitedanddiscusscaselawthatbearsontheissue.For
example:thepropertycannotbeconsideredan"activeaid"inviolationoftheinternalrevenuelaworregulation.Ifanalternativeforfeituretheorycouldworkwithadditional
investigation,giveguidanceandofferassistance.]
CONCLUSION
[Setoutthestepstoperfectforfeiture,includingrequirementtopublishanadvertisementadvisingoftheseizureandpendingforfeiture,thetimeperiodsforfilingaclaimandcost
bondorpetitionforremissionormitigationofforfeitureandstepstotakeshouldonebefiled.AdvisethatCriminalInvestigationshouldcontactCounselifaClaimandCostBond,a
PetitionofRemissionorMitigation,oranofferincompromiseisreceived.]
[Ifmemorandumrecommendsreturnoftheproperty,concludewithrecommendationondeficiencyofproposedforfeitureandneedtoreturnseizedproperty.]
Asindicatedabove,wefindthereissufficientevidencetosustainforfeitureofthesubjectpropertybyapreponderanceoftheevidence.Accordingly,thisofficerecommendsyou
actunderDelegationOrderNo.157toperfectadministrativeforfeiturebytakingthestepsrequiredforsuchperfection.Ifyouhaveanyquestionsorconcernsaboutthismatter,
pleasecontacttheundersignedat(123)4567890.

________
AreaCounsel[(City]
CriminalTax

________
[AttorneyName]
CriminalTax,[City]

1cc:DivisionCounsel/AssociateChiefCounsel(CriminalTax),Washington,D.C.
2cc:SupervisorySpecialAgent
1cc:SpecialAgent

Exhibit38.3.16(08112004)
LettertoAttorneyOfferingConference

[Symbols]
Ms.[Name]
AttorneyatLaw
[Address]
[NameofTaxpayer]
Inre:
[City]
DearMs.[Name]:
Thisofficehasunderconsiderationarecommendationthatcriminalproceedingsbeinstitutedagainst[NameofTaxpayer]for[criminalviolation/statute]fortheyears___through
___,inviolationof[citestatute].Basedontheinformationcurrentlyavailable,theadditionalincomeandtaxforcriminalpurposesis______[listtheamounts].The______method
ofproofwasusedtodeterminethetaxliabilities.Pleasenotethattherecommendedcharges,additionalincomeandtaxamounts,andmethodofproofaresubjecttochange.
Ifyoudesireaconferenceinthismatter,itwillbeheldon[date]at[time],inmyofficewhichislocatedat[address].Pleasecontactthisofficebefore[date]indicatingwhetherornot
youplantoattendtheconference.Ifyouwishtocontactmebytelephone,mytelephonenumberis[telephonenumber].Ifyouprefer,youmaysubmitinwritinganydefensesor
otherinformationwhichyouwantthisofficetoconsiderinlieuofafacetofacemeeting.Pleaseforwardanysuchinformationbeforetheaboveconferencedate.Pleasenoteour
reviewofthismatterwillnotbedelayedbeyondtheaboveconferencedate.
Pleasebeadvisedthattheconferenceisnotanopportunityfordiscovery.Moreover,pleabargaining,civilsettlement,negotiationsand/orcompromiseofthetaxliabilitiesinvolved
willnotbeconsideredordiscussedatthisconference.
Sincerely,

______
[Name]
SpecialAgentinCharge

Exhibit38.3.17(08112004)
LettertoTaxpayerOfferingConference

[Symbols]
[TaxpayerName]

[Address]
Dear[TaxpayerName]:
Thisofficehasunderconsiderationarecommendationthatcriminalproceedingsbeinstitutedagainstyoufor[criminalviolation/statute]fortheyears___through___,inviolation
of[citestatute].Basedontheinformationcurrentlyavailable,theadditionalincomeandtaxforcriminalpurposesis______[listtheamounts].The______methodofproofwas
usedtodeterminethetaxliabilities.Pleasenotethattherecommendedcharges,additionalincomeandtaxamounts,andmethodofproofaresubjecttochange.
Ifyoudesireanopportunitytodiscussthesemattersandpresentanyinformationyouthinkweshouldhavewhenconsideringyourcase,aconferencehasbeenscheduledfor
[date]at[time]at[location].Shouldyoudecide,youmaybeaccompaniedbycounselattheconference,orifyouprefer,toberepresentedbycounselwithoutappearinginperson.
Pleasenotethatthegovernmentwillnotprovidecounseltorepresentyouatthisconference.
Pleasecontactthisofficebefore[date]indicatingwhetherornotyouplantoattendtheconference.Ifwedonothearfromyoubythen,wewillassumethatyoudonotwishto
attendaconference.Ifyouwishtocontactmebytelephone,mynumberis[telephonenumber].Ifyouprefer,youmaysubmit,inwriting,anydefensesorotherinformationwhich
youmaywantthisofficetoconsiderinlieuofafacetofacemeeting.Pleaseforwardanysuchinformationbeforetheaboveconferencedate.Pleasenoteourreviewprocesscan
notbedelayedbeyondtheaboveconferencedate.
Ifyouaretoberepresentedbycounsel,theTreasuryDepartmentsRulesofPracticerequiresuchrepresentativetofileaproperpowerofattorneycoveringtheyears___through
___,togetherwithastatementconcerninghis/herqualificationstopractice.(TreasuryDepartmentForm2848,PowerofAttorney,issuggestedforthispurpose).
Pleasebeadvisedthattheconferenceisnotanopportunityfordiscovery.Moreover,pleabargaining,civilsettlement,negotiationsand/orcompromiseofyourtaxliabilitywillnot
beconsideredordiscussedatthisconference.
Sincerely,

______
[Name]
SpecialAgentinCharge

Exhibit38.3.18(08112004)
SampleConferenceOutline

[SpecialAgentsName]
[RevenueAgentsName]
 CONFERENCEOUTLINE
FOR
TaxpayersName
andAddress
I.DescriptionofCase:
AninvestigationconductedbyCriminalInvestigationhasdeterminedthat[Taxpayer]willfullyfiledfalseincometaxreturnsforeachoftheyears1985,1986and1987.
II.RecommendedCharges:
TheSpecialAgenthasrecommendedthat[Taxpayer]bechargedwiththreecountsofviolatingI.R.C.7206(1).Section7206(1)provides:"Anypersonwhowillfullymakesand
subscribesanyreturn,statement,orotherdocument,whichcontainsorisverifiedbyawrittendeclarationofperjury,andwhichhedoesnotbelievetobetrueandcorrectasto
everymaterialmattershallbeguiltyofafelonyanduponconvictionthereof,shallbefinednotmorethan$250,000($500,000inthecaseofacorporation),orimprisonednotmore
than3years,orboth,togetherwithcostsofprosecution."
III.MethodofProof:
Thespecificitemsmethodofproofwasused.Thismeansthattheagentsdocumentedspecificitemsofincomeandexpenses.
IV.ConstitutionalWarningsandAdvice:
Thisconferenceisvoluntaryonyourpart,andonthepartofyourrepresentative(s).Therefore,youoryourrepresentative(s)mayterminateitatanytime.
You,oryourrepresentative(s),mayrefusetoansweranyquestionsormakeanystatementswhichmayincriminateyou,asprovidedbytheFifthAmendmentoftheUnitedStates
Constitution.However,anystatementsmadebyyouoronyourbehalfbyyourrepresentative(s)maybeusedagainstyouinanysubsequentproceedingsinstitutedbythe
Government.Doyouunderstandtheserights?
Pleasebeadvisedthatpleabargaining,civilsettlement,negotiationsand/orcompromiseofthetaxliabilitiesinvolvedwillnotbeconsideredordiscussedatthisconference.
V.ProcessingProcedures:
ThepurposeofthisconferenceistoaidtheGovernmentindeterminingwhetherprosecutionwillberecommendedtoDOJ.Therefore,itisanopportunityforyoutopresentany
evidenceorinformationyouhavewhichyoubelievewillinfluencetheGovernmentinitsdetermination.However,evenifprosecutionisrecommended,DOJwillmakeitsownde
novoreviewofthecase.DOJmayalsoacceptthecaseassubmitted,ifprosecutionisrecommended,inwhichinstancethecasewillthenbeforwardedtotheappropriateUS
Attorneyforprosecution.
Asaresultofthisconferencetoday,prosecutionmayalsobedeclinedbythisoffice,inwhichinstancethecasewillnotbesenttotheDOJ,butratherwillbereturnedtotheIRSfor
civilprocessing.
Regardlessofwhetherprosecutionisrecommendedordeclinedbythisoffice,youand/oryourrepresentativeswillbenotifiedbythisofficeofourdecision.
VI.CivilFigures:
Year AdditionalTax FraudPenalty TotalAdditionalTax&Penalties
1985 $16,156.17 $8,078.09 $24,234.26
1986 $25,927.71 $12,963.86 $38,891.57
1987 $36,476.22 $18,238.11 $54,714.33
$76,560.10 $39,280.06 $117,840.16
Thesefiguresareonlyrecommendationsoftheciviltaxliabilitiesfortheyearsinquestion.Theyarenotnecessarilythesameasthecriminaltaxfiguresand,sincethey
areonlyrecommendations,aresubjecttochange.
VII.CriminalPenalties
Intheeventthatprosecutionisrecommended,thepotentialcriminalpenaltiestowhichyouwouldbesubjectiftherecommendedchargesaresustainedare:
1.Imprisonment:Uptothree(3)yearsforeachcount,i.e.,uptoamaximumofnine(9)years
AND/OR
2.Fine:Upto$250,000[$500,000ifcorporation]foreachcount,i.e.,uptoamaximumof$750,000[$1,500,000ifcorporation].
VIII.GeneralConsiderations:
Youshouldalsoknowthatalthoughthisconferencetodaywillbedirectedtothespecificchargesrecommendedwhichhavealreadybeendiscussed,thisofficeisinnoway
limitedtosuchcharges,andmay,inappropriatecases,recommendotherchargesaswell.Therefore,bearingthisfactinmind,aswellasyourConstitutionalrighttoremainsilent,
wemayproceedwithadiscussionofthecaseasrecommended.Iwillbemakingnotesofthisdiscussion,andyouoryourrepresentativemayalsomakenotesifyouwish.

Exhibit38.3.19(08112004)
SampleConferenceMemorandum

(Symbols)
CONFERENCEMEMORANDUM
JohnDoe
Inre: (Date)
LosAngeles,California
APPEARANCES:
[Name]
ForTaxpayer:
Attorney
JohnDoe

Taxpayer
[Name]
ForGovernment:
SpecialAgentinCharge
[Name]

CriminalTaxAttorney
Aconferencewasheldintheabovecaptionedcaseon[Date]at[Time].Thiswasthefirstconferenceheldinthisofficeinthismatter.Apowerofattorneyanddeclarationof
authoritytopracticehaspreviouslybeenfiledwiththeServiceauthorizing[Attorneyrepresentingtaxpayer]torepresentJohnDoebeforetheService.
[Attorneyrepresentingtaxpayer]informed[SAC]thathisclienthadbeeninformedofhisMirandawarningsandknewhisrights.[SAC]theninformed[Attorneyrepresenting
taxpayer]oftheproposedcharges,years,methodofproof,andcivilfigures.
Thetaxpayerwasremindedthatpleabargaining,civilsettlement,negotiationsand/orcompromiseofthetaxliabilitiesinvolvedwouldnotbeconsideredordiscussedatthis
conference.Inaddition,thetaxpayerwasinformedoftherecommendedcriminalcharges,yearsandmethodofproofbeingconsidered,andthatiftheSACdeterminesthose
charges,orothers,areappropriate,aprosecutionrecommendationwillbeforwardedtoDOJforitsconsideration.IfDOJconcludesthatcriminalprosecutioniswarranted,the
matterwillthenbeforwardedtotheUSAttorneysofficeforindictment.Thetaxpayerwasalsoinformedofhis/herconferenceopportunitywithDOJinWashington,D.C.Finally,the
taxpayerwastoldthatiftheSACconcludesprosecutionisnotwarranted,he/shewillbenotified,inwriting,thathis/hercaseisbeingreturnedtoIRSforcivilconsideration.
[Discusswhosaidwhat.]
Theconferencewasterminatedat[Time].
______
[Name]
SpecialAgentinCharge
______
[Name]
CriminalTaxAttorney

NOTED:______
Datedictated
______
[Name]
AreaCounsel
Exhibit38.3.110(10032007)
SampleCriminalEvaluationMemorandum

[CAUTION:CONTAINSGRANDJURYINFORMATION]or
ThisheadingshouldappeariftheCEMcontainsgrandjuryinformation.
[NOTE:COUNSELHASCLASSIFIEDTHISCASEASNONCOMPLEXCASE]
Thisheadingshouldappeariftheadministrativecaseisdesignatednoncomplex.
CC:CT:XXX:03 Date
MEMORANDUMFORSPECIALAGENTINCHARGE,XXFIELDOFFICE
FROM: [CriminalTaxAttorney/SeniorCounsel],XXPOD
SUBJECT: EvaluationofSARandExhibits[AdministrativeorGrandJury]TaxCase
CRIMINALSUBJECTS(S)
Name
Address
SSN
RelatedCase(s)Ifrelatedcases(s),providethenames(s)ofthecriminalsubject(s).
COUNSEL'SRECOMMENDATION
Charge(s) Year(s) Count(s)
IfCounselbelievesprosecutioniswarranted,oneofthesesentencesshouldfollow:
ThisrecommendationconcurswiththeSpecialAgent'srecommendation.
ThisrecommendationdiffersfromtheSpecialAgent'srecommendationandwillbeexplainedbelow.
IfCounselbelievesprosecutionisnotwarranted,thenthissentenceshouldfollow"COUNSEL'SRECOMMENDATION",andthereisnoneedfor"Charge(s),Year(s),Count(s)":
Inouropinion,prosecutionisnotwarrantedinthismatter.
StatuteofLimitations
Venue
BoldtheStatuteofLimitationsdateifimminent.
EXECUTIVESUMMARY
Inanutshell,eitherinashortparagraphorusingbullets,summarizethesubject'sactionsthatgiverisetothecriminalprosecutionrecommendationaswellasrelevant
informationimportanttothereaderofthisdocument.Forinstance,includeornote:theamountoftaxdollars(includingrelevantconduct)harmtothegovernmenttheindirect
methodofproofanexpiringstatuteoflimitationsinvestigativetechniquesandthetechnicaltaxissues(s).Forexample:
QuestionableReturnPreparer
UndercoverInvestigation

Twentyfivefalsereturns
$250,000oftaxharmincludingrelevantconduct
CRIMINALVIOLATIONS(S)ANDDISCUSSIONOFTHELAW
Elementsoftheoffense
Discusstheprincipalevidenceavailabletoestablishtheelementsofthecriminaloffense(s).PleaseciteSupremeCounseland/oryourspecificCircuitCourtlaw,whenapplicable.
Element#1
Usesubheadingsforeachelementoftheproposedoffense.Setforthitemsofevidencewithbulletstoseparateandgivethereaderandideaofhowmanyexhibits/howmuch
evidencethereisonagivenelement.
EVIDENCE
Element#2
EVIDENCE
Element#3
EVIDENCE
Discussanylegal,procedural,and/orpolicyissuesregarding:(1)venue(2)statuteoflimitations(3)howtheinvestigationoriginated(whenandbywhomthetaxpayerwasfirst
contacted)(4)investigativetechniques(5)aspectsofpersonalhistoryofsignificancetothecaseage,maritalstatusduringtheyearsatissue(especiallyincommunityproperty
states),health(ifamajorproblemisknown),educationandcriminalrecord.
TAXLOSS,COMPUTATIONS,METHODOFPROOFANDTECHNICALTAXISSUES
EverycasemaynothaveaTechnicalTaxIssue,sothisheadingwillonlybeutilizedwhenapplicable.Notethetaxloss,computationsandmethodofproof.Whenanindirect
methodofproofisutilized,additionaldiscussiononthemethodofproofiswarranted.Whenwarranted,provideafurtherdiscussion.Discussanytaxortaxrelatedissuesorany
technicaltaxissues,e.g.,atrustfraudcasewouldincludeadiscussionoftheissueofwhetheratrustwasashamfortaxpurposesacaseinvolvingataxshelterpromotionwould
discussthemeritsofunderlyingshelteretc.Othertechnicaltaxissuesinclude:providingtheactuallineitemofthereturnwhichisfalseGreenbergprobleminbothspecificitems
andindirectmethodofproofcasesearningsandprofitsincorporatediversioncasesfailuretofileinvolvingonemarriedtaxpayer(jointorseparatetaxrates/communityproperty).
AlsodiscusscoordinationwithotherCounselfunctions.
CURRENTLIFESTYLE
Bringthecaseuptodate.Updateinformationrelativetoeachsubject'scurrentlifestylejobhistory(isthesubjectworkingonthesamejob)filinghistory(therecommended
offensemaybefailuretofile,butthesubjecthassincebeencurrentinfilingtaxreturns)audithistory(i.e.,wasthesubjectcooperativeorobstructiveduringpriorcontactwiththe
Service)etc.Note,ifthisinformationisrelevanttothecaseanditisnotreadilyavailabletotheagent,thendiscussthisintheOTHERISSUESANDSUGGESTIONSsection.
DEFENSES
Discussdefensecontentionsorreasonablyprobabledefensesandavailablerebuttalevidence.Whennodefensesareforeseeable,sonote.
OTHERISSUESANDSUGGESTIONS
Thisheadingisoptionalandshouldbeutilizedwhenapplicable.
Discussproblems/issues/concernswiththecase.Forexample,akeywitnessmayhavedied.Discusssuggestionswherethecasecanbeimproved.Forexample,thereisan
additionalwitnessthatshouldbeinterviewedtheaccountant/returnpreparerstestimonymayneedtobetieddowninthegrandjuryadditionalexpensesmayneedtobe
investigated.
SENTENCING
Ineitherashortparagraphorbyusingbullets,summarizesentencing,includingthebaseoffenselevel,specificoffensecharacteristics,andproposedadjustmentsforaggravating
ormitigatingoffenserelatedconduct.Forexample:
TAXLOSS$250,000(includesrelevantconduct)
BASEOFFENSELEVEL18(2001Book)
NOTEPOSSIBLEENHANCEMENTSand/orREDUCTIONS
CONCLUSION
Aftercarefulconsideration,weare[convinced/notconvinced]thattheevidencereliedupontosupporttherecommendedprosecutionissufficienttoindicateguiltbeyonda
reasonabledoubtandthatthere[is/isnot]areasonableprobabilityofconviction.
Weareclosingourfileinthiscaseasofthedateofthismemorandum.Pleasebeadvisedthatthe"referral"ofthismatterwillremainineffectuntilterminatedwithinthemeaningof
I.R.C.7602(d)(2)(B).
Shouldyouhaveanyquestionsaboutthismemorandum,pleasecontacttheundersignedatxxxxxxxxxx.

XXXXXXXXXXXX

AreaCounsel(XXX),CriminalTax
_________
By: NAME
CriminalTaxAttorney

MoreInternalRevenueManual