7 August 2001

See contents of full IRS Handbook of Criminal Investigation: http://cryptome.org/irs-ci/irs-ci.htm

## Handbook 9.13 INTERNATIONAL INVESTIGATIONS Chapter 1 INFORMATION FROM FOREIGN COUNTRIES
### Contents [9.13] 1.1 OVERVIEW [9.13] 1.2 GENERAL PROCEDURES [9.13] 1.3 DOCUMENT 6743, SOURCES OF INFORMATION FROM ABROAD [9.13] 1.4 INFORMATION FROM CANADA [9.13] 1.5 DATA TO BE INCLUDED IN REQUESTS FOR INFORMATION FROM FOREIGN COUNTRIES [9.13] 1.6 WITNESSES IN FOREIGN COUNTRIES
### [9.13] 1.1 (10-19-1998) OVERVIEW
This chapter contains procedures for obtaining information from foreign countries and specifically addresses the following: General Procedures for obtaining information. Document 6743, Sources of information from Abroad. Information from Canada. Data to be included in requests for information from foreign countries. Witnesses in foreign countries. Procedures for foreign travel and obtaining official passports are found in Handbook 9.11 Chapter 2 entitled Travel.
### [9.13] 1.2 (10-19-1998) GENERAL PROCEDURES
Two significant events occurred between 1995 and 1996 within Criminal Investigation (CI) concerning international matters: The Commissioner approved the Criminal Investigation International Strategy on February 2, 1995. The international group of special agents which reported to the Assistant Commissioner (International) was transferred to the control of the Chief, CI, Delaware-Maryland District, effective October 1, 1996. The International Strategy established the framework within which CI will work to accomplish its law enforcement objectives in the international arena. A key component of the strategy is the placement of special agents/attaches in strategic foreign posts. The attaches have regional responsibilities and are capable of providing assistance where possible throughout the world. NOTE: Field personnel are strongly encouraged to contact the Country Attaches for assistance prior to submitting any formal requests for information. Tax and related information pursuant to tax treaty requests may be obtained by the Assistant Commissioner (International) from sources within foreign countries, embassies or consulates of foreign countries and United States possessions through: Collateral or other investigations conducted by personnel of the Assistant Commissioner (International) permanently stationed or temporarily detailed abroad, or special agents assigned as Country Attaches to foreign posts. Special investigations conducted for CI field offices by other CI personnel temporarily detailed abroad either under the supervision of the Chief, Delaware/Maryland District or the Section Chief, Office of Money Laundering and International (CP:CI:O:N:M). Collateral or special investigations made for the Service by other government agencies such as the Customs Service, the Department of State, or military services. Requests directed through prescribed channels to the tax authorities of certain foreign governments, pursuant to provisions of tax treaties. Generally collateral requests for information from foreign countries, where practical, are assigned to special agents posted abroad. Requests which relate to tax treaty information (Title 26) are made via collateral request to the Director, Office of International Programs, OP:IN:I, at the Assistant Commissioner (International) through the Section Chief, Money Laundering and International, National Office. As previously mentioned, field personnel are encouraged to contact the Country Attaches for assistance prior to drafting any formal request for information. Requests for information to be obtained from consulates of foreign governments in the United States outside the Washington DC area; and requests to interview officials located outside the Washington DC area who appear to have diplomatic status will be submitted to the Chief, CI, Delaware-Maryland District for appropriate coordination. Also, the notification of diplomatic or consular representatives of the country from which a foreign national who has been detained or arrested in the United States will be coordinated through the Chief, Delaware-Maryland District. See the text regarding arrest procedures in IRM Handbook 9.4, Chapter 12 for specific procedures. Requests for information from embassies of foreign governments in the Washington DC area, and requests to interview officials in the Washington DC area who have or appear to have diplomatic status will be submitted to the Chief, Delaware/Maryland District for appropriate coordination. Documents and reports received from foreign countries, or from embassies or consulates of foreign countries, and made available to Criminal Investigation personnel will not be furnished to another government agency, except as allowed by regulations. When a foreign government makes direct inquiry of Criminal Investigation personnel or when it is learned that a foreign government is interested in a case, such information should be immediately referred by the Chief, CI to the Section Chief, Money Laundering and International for coordination purposes.
### [9.13] 1.3 (10-19-1998) DOCUMENT 6743, SOURCES OF INFORMATION FROM ABROAD
This document contains information on the types of records maintained by foreign countries and the availability of these records. The document may be helpful in determining if the desired records exist before time is expended preparing a collateral request. This document is available via established distribution procedures.
### [9.13] 1.4 (10-19-1998) INFORMATION FROM CANADA
Generally, the guidelines that apply to foreign travel and obtaining information from foreign countries apply to travel to Canada and requests for information from Canada. Travel performed in Canada by field employees of districts or regions contiguous to that country for the sole purpose of obtaining information of a routine nature from United States taxpayers from areas in the immediate vicinity of and lying adjacent to the United States border is authorized via a blanket travel authorization. This authorization allows travel for up to a 1 year period without additional national office approval. Prior to travel pursuant to a criminal tax investigation, special agents are to notify the Special Investigations Unit of Revenue Canada (Taxation) in the jurisdiction into which they are traveling. (See General Travel Order No. 1 and text of Travel Handbook.) This exception includes instances when a U.S. taxpayer's records are maintained in Canada and the taxpayer requests the special agent to inspect such books and records in Canada and be interviewed there. For travel other than pursuant to criminal tax investigations, special agents are required to notify the Royal Canadian Mounted Police (RCMP) in the jurisdiction into which they are traveling. Personnel in some border districts have developed a close, informal relationship with Canadian tax officials stationed on or in the immediate proximity of the border, and frequently obtain, informally through such tax officials, collateral information from individuals, financial institutions, government officials, and business establishments. It is intended that this type of informal cooperation be continued. However, personnel are not to make direct requests of the authorities in Ottawa; or make direct requests of a Canadian citizen or other Canadian entity in Canada on a third-party basis; or make requests for information outside the adjacent border area except via prescribed exchange procedures. Under normal circumstances in tax evasion cases, information can be obtained more readily by Canadian agents, particularly from such institutions as banks, trust companies and large corporations, than by a United States agent. Therefore, all requests for special agents to travel to Canada will be carefully screened. This does not preclude travel for meetings to exchange information at appropriate times or where the information required is so voluminous or complex that the special agent's presence is desirable. When it is necessary for a special agent to travel to Canada to obtain information from a Canadian citizen or business entity, a request will be prepared and submitted in accordance with instructions provided for foreign travel. It is also essential that the request: Provide adequate background to support a Canadian tax interest, because Canadian tax authorities are authorized to furnish only that information which they can obtain under the revenue laws of Canada. Demonstrate sufficient United States tax interest to justify the request. Not be repetitious of prior request. Contain an action appropriate in the circumstances. Upon approval by the Assistant Commissioner (International), the Director, Office of International Planning and Support (OP:IN:P:B) will obtain the necessary clearances and furnish the originating office with the procedure to be followed and where appropriate, the name and location of the Canadian tax official who is to be contacted by the special agent. A Canadian agent will usually accompany the special agent when third party contacts are made. Requests for information from Canada will be prepared, and routed, in the same manner prescribed in IRM 9.13.1.5 which details procedures for obtaining information from foreign countries. The request will contain the information specified in (2)(a) through (2)(d) below. Except under special circumstances respective procedures should be observed in limiting a request for information to a period not to exceed ten years immediately preceding the request. Where informal arrangements for inquiries exist in some border districts, such districts should identify in their formal requests those with whom they have been transacting official matters to avoid duplication of effort. In some cases, where the essential information sought is complex, involved and voluminous, it may be desirable to have preliminary discussions with Canadian authorities. The request to hold preliminary discussions in such cases will be prepared and routed through the Section Chief, Money Laundering and International. Exchange of information resulting from the preliminary discussions will be formalized as early as possible and before any documents are exchanged. District offices should not refuse to obtain information for Canada if it is requested under the competent authority. However, in situations where it appears that the request from Canada is unreasonable, extremely extensive, or circumstances do not warrant going back beyond ten years, a memorandum reflecting the opinion of the district office will be submitted to the Director, Office of International Programs (OP:IN:I) thru: the Section Chief, Money Laundering and International. If the Director, Office of International Programs, concludes the circumstances justify the opinion expressed by the district office, he/she will forward the memorandum to the Country Attache for discussion and explanation with the appropriate Canadian official. If information received from Canada through regular channels requires further correspondence, the Chief or his designee, (delegated no lower than group manager level), may communicate directly with the Canadian district office which furnished the original information. However, copies of any such communication will be forwarded, one each, to the Section Chief, Money Laundering and International and to the Director, Office of International Programs (OP:IN:I.) Such direct communication applies only in instances where information has been received through regular channels and follow-up communication is necessary. The original communication and any new areas of inquiry must be routed as prescribed in (4) above. Similarly, any Criminal Investigation district office which has provided information to Canadian officials through the usual channels may subsequently communicate directly with those officials with respect to the information provided. However, copies of any such communication will be forwarded, one each, to the Assistant Commissioner (Criminal Investigation), attention Section Chief, Money Laundering and International. In accordance with an agreement between United States and Canadian tax officials, where the tax affairs of an individual, partnership or corporation are being investigated by the United States and the same type of investigation is also being currently conducted by Canada, and one country desires to be kept informed of significant developments such as proposal to close case, etc., the authorities of that country will advise the other of this interest so that the desired information may be timely furnished.
### [9.13] 1.5 (10-19-1998) DATA TO BE INCLUDED IN REQUESTS FOR INFORMATION FROM FOREIGN COUNTRIES
Before forwarding any request for foreign inquiries field personnel are to ensure that the information sought is vital to the successful completion of the case involved and the request includes, or is accompanied by, all pertinent information and documents needed by the International function in processing the request, making travel arrangements, and conducting the inquiries. The request shall include or transmit the following: the taxpayer's name and address, and if an individual, social security number, place and date of birth, and whether the taxpayer is a citizen of the United States; the names and address of pertinent entities affiliated with the taxpayer and the nature of such affiliations; a brief resume of the case involved with particular reference to the tax issues (the prospects of obtaining information from a foreign country are enhanced if it can be shown that the foreign government may have a related tax interest); a detailed statement of the information sought and why it is needed; a statement of the efforts made to secure the desired information prior to the request and why the efforts were not successful (including comment on any relevant data supplied by the taxpayer and the reasons for considering such data inadequate); if the records of a foreign affiliate of the taxpayer are to be examined, the name and address of the custodian of the records and a document authorizing the custodian to permit that examination or an explanation as to why the authorization was not obtained; information on an individual who is to be interviewed; name, address, date of birth, nationality, profession, relationship with the taxpayer and with any foreign corporation controlled by the taxpayer, or as much of the foregoing data as may be available, together with any other information that may be helpful in identifying the individual; all pertinent names, addresses, leads, and other information that may be helpful in complying with the request; and if a request requires bank records, please identify the specific branch. The following data will also be included to the extent known at the time of request: date upon which a response is required in order to comply with instructions concerning timely submission of cases involving the Statute of Limitations for prosecution and any other facts indicating the urgency attached to the need for the information; information concerning the importance of the case to the district's enforcement effort and any other facts which make the case unusual and worthy of preferential treatment; a brief statement as to the degree that the desired information, if obtainable, will affect the success of the civil and criminal aspects of the case; and the taxable years and approximate tax liability or additional income involved. If information is sought from more than one country, the general information may be included in a single memorandum. However, any information specific to any one country, including the information sought, should be on a separate attachment. In all requests to the International function, it is especially important to include the name and commercial telephone numbers of the requestor. The Director, Office of International Programs (OP:IN:I) often turns over the entire background file, and all information contained in the collateral request, to the foreign government in order to obtain the information most efficiently. The requestor should specify any information which is provided for background information but should not be released to representatives of the foreign government or source. Identify all grand jury information contained in the collateral request so it may be properly protected. The request will be submitted in the manner described in this Chapter, section 1.2, General Procedures, paragraphs (2) and (3). All requests will ask whether any witness in a foreign country who furnishes information would be willing to voluntarily appear in a United States Court if needed. Any inquiries should be directed to the Section Chief, Money Laundering and International, who will update the status of collaterals on a quarterly basis.
### [9.13] 1.6 (10-19-1998) WITNESSES IN FOREIGN COUNTRIES
Non-resident aliens physically present in a foreign country cannot be compelled to appear as witnesses in a United States District Court since the Constitution requires confrontation of adverse witnesses in criminal prosecutions. Therefore the testimony of such aliens may not be admissible until the witness appears at trial. However, certain testimony for the admissibility of documents may be obtained under 18 U.S.C. 3491 et seq. without a "personnel" appearance in the United States. Additionally, 28 U.S.C. 1783 et seq. provides limited powers to induce the appearance of United States citizens physically present in a foreign country. Expenditures necessary for witness fees and travel costs to secure witnesses from outside the United States for Grand Jury and district court purposes, whether American citizens or foreigners, are made from Department of Justice funds, and are authorized only by the Attorney General upon application of United States Attorneys. All matters involving service of subpoenas abroad are also handled by the Attorney General. Special agents will identify in their report those witnesses from a foreign country who may be expected to voluntarily appear so that the United States Attorney may make whatever arrangements are necessary for their appearance. No commitment should be made by Criminal Investigation personnel concerning witness arrangements involving travel from outside the United States (other than for Internal Revenue Service personnel) without the full advance approval of the United States Attorney handling the case. Such arrangements should be made sufficiently in advance so that the Unites States Attorney can inform the Attorney General thereof.
### Internal Revenue Manual | ### Hndbk. 9.13 Chap. 1 INFORMATION FROM FOREIGN COUNTRIES | ### (10-19-1998)

###### 05/02/2001 14:30:39 EST