Criminal Investigation Enforced Structuring Laws Primarily Against Legal Source Funds and Compromised the Rights of Some Individuals and Businesses

The Chief, CI, should establish controls to ensure that CI personnel working on Suspicious Activity Report Review Teams or Financial Crime Task Forces are selecting cases and conducting investigations consistently in such a manner as to best meet organizational goals and policies as well as foster confidence in the tax system.

The Chief, CI, should, in structuring forfeiture cases that were resolved administratively, return all funds forfeited from legal sources for which there was no illegal activity (other than the alleged structuring) or tax evasion to the property owners. In structuring forfeiture cases that were resolved judicially, recommend to the Department of Justice that all funds forfeited from legal sources for which there was no illegal activity (other than the alleged structuring) or tax evasion be returned to the property owners.

The Chief, CI, should consider revising the Internal Revenue Manual (IRM) to require a clear explanation for the purpose of interviews at the outset and the reading of noncustodial advice of rights to all subjects under investigation during interviews.

The Chief, CI, should ensure that relevant CI procedures are communicated and emphasized to all CI agents and task force partners regarding the requirement to fully investigate all reasonable explanations provided in interviews conducted during investigations.

The Chief, Criminal Investigation (CI), should develop guidance or training for special agents stating that it is not appropriate to bargain nonprosecution as a means of encouraging settlement of a civil forfeiture case.