Internal Revenue Manual
IRM 9.5.14 — Closing Procedures
Part 9. Criminal Investigation
Chapter 5. Investigative ProcessSection 14. Closing Procedures 9.5.14 Closing Procedures Manual Transmittal April 01, 2026 Purpose (1) This transmits revised IRM 9.5.14, Closing Procedures. Material Changes (1) Updated internal controls. (2) Created quick links for IRM, form, and website references throughout the IRM. (3) Subsection 9.5.14.16 related to Whistleblower Claims, updated the submission time of documents for forms to the Whistleblower Office from within 90 days for closing to 15 business days. (4) Removed subsection 9.5.14.15, Reserved. (5) Editorial changes made throughout the IRM that did not result in substantive changes but contributed to clarity of the subject matter. Effect on Other DocumentsThis IRM supersedes IRM 9.5.14 dated January 31, 2025. AudienceCriminal Investigation Effective Date(04-01-2026)Gary A, Shapley, JrDeputy Chief, Criminal InvestigationforGuy A. FiccoChief, Criminal Investigation
Program Scope and Objectives
9.5.14.1 (04-01-2026) Program Scope and Objectives Purpose: To provide actionable instructions to assist special agents, Supervisory Special Agents, Assistant Special Agents in Charge, and Special Agents in Charge in proper closing procedures for discontinued, declined, and fully adjudicated criminal investigations. When a criminal investigation has closed either by discontinuance, declination, or the case has reached final adjudication, Criminal Investigation must notify the civil functions/business operating divisions of the case closing. This notification is done by sending the Criminal Investigation Closing Package to the civil business operating divisions. The Small Business/Self-Employed, Taxpayer Service, and other business operating divisions rely heavily on the accuracy and timeliness of the closing package to perform their statutory duties. It is imperative that special agents take care when completing the documents required in the closing package because inaccuracies or incompleteness delay the assessment and/or collection of taxes due and owing. Audience: All Criminal Investigation employees. Policy Owner: Executive Director, Global Operations Policy & Support. Program Owner: Director, Financial Crimes within Global Operations Policy & Support. Primary Stakeholders: Advanced Analytics & Innovation. Contact Information: To make changes to this IRM email *CI-HQ-IRM.
Background
9.5.14.1.1 (01-31-2025) Background On July 12, 2000, criminal referral authority was transferred from the Office of Chief Counsel to CI. It is now Criminal Investigation's responsibility to ensure that criminal tax and/or tax-related investigations are properly closed in order to allow civil tax enforcement procedures to begin or resume. IRS operating divisions may not proceed civilly until the criminal tax and/or tax-related investigation is closed and any referral to the Department of Justice is terminated. Generally, termination of the referral is accomplished by a letter from the Department of Justice. However, the Department of Justice has delegated preparation of the letter terminating the referral from the IRS by way of the automatic closing procedures. The Department of Justice has agreed to immediate and automatic closing of the following tax and tax-related criminal investigations (both administrative and grand jury), without express written Department of Justice authorization: Acquittals, Dismissals, Investigations where sentencing occurred following conviction and no appeals or motions for a new trial are pending, Investigations where sentencing has occurred following the entry of a guilty plea, and Investigations where appeals are exhausted without any remands. Where investigations are closed pursuant to the automatic closing procedures, the Special Agent in Charge will notify the Department of Justice, Tax Division. In order to close a criminal tax or tax-related investigation that was referred to Department of Justice, Tax Division which fails to come within the automatic closing procedures, Criminal Investigation must receive formal notice from Department of Justice, Tax Division that the department's file is closed. The special agent or the Supervisory Special Agent will be responsible for requesting the closing letter from Department of Justice, Tax Division. The Criminal Investigation Management Information System closing procedures are also found in this section. This section covers procedures for the following types of investigations that fall within the automatic closing procedures: Fully adjudicated administrative investigations. Fully adjudicated tax and/or tax-related grand jury investigations. Fully adjudicated directly referred non-tax investigations. This section covers procedures for forwarding the tax information to the appropriate operating division for assessment or collection where the criminal aspects of an investigation are concluded. This section deals with post-closing civil and administrative activities. This section also covers closing procedures on discontinued administrative and grand jury investigations.
Authority
9.5.14.1.2 (04-01-2026) Authority See IRM 9.1.2, Servicewide Delegations of Authority, states guidance about the basic responsibilities related to taxpayer rights, employee contact information, oral and written communication, and the authority for conducting criminal investigations that special agents should understand and apply in the performance of their duties, for delegated authority relating to IRM 9.5.14, Closing Procedures.
Roles and Responsibilities
9.5.14.1.3 (04-01-2026) Roles and Responsibilities The Director, Financial Crimes is responsible for: Providing program oversight, Maintaining and overseeing updates to this IRM, Reviewing and approving any updates to this IRM before they are published. The Directors of Financial Crimes and Advanced Analytics & Innovation are responsible for: Reviewing this IRM annually, Updating this IRM when the content is no longer accurate, Ensuring internal control content is correct, Incorporating interim guidance into the next revision of this IRM prior to the expiration date, Updating references to forms, letters, publications, documents, notices, etc., Updating contact information, phone numbers, email addresses, web addresses, etc., Add or update new or amended legislation, regulations, programs, or processes, Removing outdated or duplicated content, Reorganizing or rewording content for clarity, and Providing other procedural, operational, and editorial changes. The Director, Advanced Analytics & Innovation is responsible for the delivery of policy and guidance that impacts Criminal Investigation Management Information System processes.
Program Management and Review
9.5.14.1.4 (04-01-2026) Program Management and Review The Directors of Financial Crimes and Advanced Analytics & Innovation will manage this IRM's content by: Ensuring consistent application of policy, procedures, and tax law while protecting taxpayers' rights, Ensuring this IRM provides reliable information for decision making and quality assurance, and Utilizing their business units efficiently and effectively to accomplish the strategies and mission of IRS and Criminal Investigation.
Program Controls
9.5.14.1.5 (04-01-2026) Program Controls The Director, Financial Crimes provides recommendations and best practices for the various field offices. The Special Agent in Charge of the field office determines which recommendations, and best practices, will be adopted for each particular field office. The Directors of Financial Crimes and Advanced Analytics & Innovation will: Review this IRM to ensure their programs goals and objectives are being accomplished efficiently and effectively. Review their program and ensure employee compliance with all applicable elements of this IRM. During quality review, evaluate whether employees researched, interpreted, and correctly applied IRM instructions while performing their duties.
Acronyms
9.5.14.1.6 (04-01-2026) Acronyms The table lists commonly used acronyms and their definitions: Acronym Definition AUSA Assistant United States Attorney BOP Bureau of Prisons CI Criminal Investigation CIMIS Criminal Investigation Management Information System COP Conditions of Probation CT Criminal Tax DOJ Department of Justice FC Financial Crimes J&C Judgement and Commitment Order LB&I Large Business and International OIC Offer in Compromise RA Revenue Agent Rule 6(e) Federal Rules of Criminal Procedure, Rule 6(e) SA Special Agent SAC Special Agent in Charge SB/SE Small Business/Self-Employed SCI Subject Criminal Investigation SCIP Simultaneous Criminal Investigation Program SSA Supervisory Special Agent TM Territory Manager USAO United States Attorney's Office
Related Resources
9.5.14.1.7 (04-01-2026) Related Resources IRM 5.8.4.23.1, Offers in Compromise Submitted that Include Restitution. IRM 5.8.7, Offer in Compromise, Return, Terminate, Withdraw, and Reject Processing. IRM 5.8.8, Offer in Compromise, Acceptance Processing. IRM 9.3.1, Disclosure. IRM 9.4.1.4.1.5, Direct Referrals - Prime Leads. IRM 9.4.2.6.3.1, SCIP - Investigation Selection. IRM 9.5.11, Other Investigations. IRM 9.5.13.5, Offers in Compromise. IRM 9.5.13.5.1, Offers in Pending Criminal Investigations. IRM 9.6.2, Plea Agreements and Sentencing Process - Criminal Investigation. IRM 9.9.4, Criminal Investigation Management Information System Data Fields. IRM 25.26.1, Restitution, Criminal Restitution and Restitution-Based Assessments.
Procedures for Closing Fully Adjudicated Administrative Investigations
9.5.14.2 (04-01-2026) Procedures for Closing Fully Adjudicated Administrative Investigations Fully adjudicated administrative investigations that resulted in final adjudication are closed under the automatic closing procedures. The procedures to accomplish this are outlined in the following paragraphs. The investigative files in these types of investigations should be stored in Total Inventory Management System (TIMS2) and can be made available to the other operating divisions for tax assessment or collection. The first step to closing an investigation is to ensure the case has been fully adjudicated. The date of final adjudication depends on one of the three circumstances below: For cases where there is a waiver of appeal (i.e., plea agreement), final adjudication occurs on the sentencing date. The case closing package may be completed at this time and forwarded to civil. For cases without a waiver of appeal (i.e., trial conviction), final adjudication occurs on the day after the period to file an appeal has expired. For example, after a sentencing, the defendant has 14 calendar days in which to file an appeal. If a defendant files an appeal for any reason, Criminal Investigation (CI) will not close its case or send any documents to the IRS civil functions until there is final adjudication by the court. For cases where an appeal is filed, final adjudication occurs on the day after all appeals have been exhausted. Only at this time may the case closing package be completed and forwarded to civil. Within 30 days of final adjudication, the Special Agent in Charge (SAC) will ensure that a closing letter is prepared and sent to the appropriate Department of Justice (DOJ), Tax Division, Chief of the Criminal Enforcement Section, and copies are forwarded to the Assistant United States Attorney (AUSA) and Criminal Tax (CT) Counsel. See Exhibit 9.5.14-1, Closing Administrative Investigation Letter - a template for the letter exists on the Financial Crimes SharePoint site. The closing letter must accurately summarize: The date and nature of the indictment or information. The date and result of the adjudication. The date and nature of the sentence imposed. Whether there was appellate action, and if so, the result. The closing letter must include the following language: "Pursuant to 26 USC 7602(d)(2)(B)(ii), this action constitutes a termination of the referral and, as such, we will seek appropriate civil action." The SAC is required to forward the Form 13308, Criminal Investigation Closing Report (Tax and Tax-Related Only) and other required attachments to Small Business/Self-Employed (SB/SE) Tech Services, the territory manager (TM) of technical services (exam function) and advisory technical services (collection function). Special agents (SA) will confirm receipt of the closing report by these civil functions. See IRM 9.5.14.5 for additional detail.
Procedures for Closing Fully Adjudicated Tax and Tax-Related Grand Jury Investigations
9.5.14.3 (01-31-2025) Procedures for Closing Fully Adjudicated Tax and Tax-Related Grand Jury Investigations Fully adjudicated tax and/or tax-related grand jury investigations are closed under the automatic closing procedures. Within 30 days of final adjudication, the SAC will ensure that a closing letter is prepared and sent to the appropriate DOJ, Tax Division, Chief of the Criminal Enforcement Section, and copies are forwarded to the AUSA and CT Counsel. Exhibit 9.5.14-2, Closing DOJ Tax Grand Jury Investigation Letter - a template for the letter exists on the Financial Crimes SharePoint site. The closing letter must accurately summarize: The date and nature of the indictment or information. The date and result of the adjudication. The date and nature of the sentence imposed. Whether there was appellate action, and if so, the result. The closing letter must include the following language: "Pursuant to 26 USC 7602(d)(2)(B)(ii), this action constitutes a termination of the referral and, as such, we will seek appropriate civil action." The letter will be prepared in accordance with the secrecy requirements of the Federal Rules of Criminal Procedure, Rule 6(e) (Rule 6(e)) in that grand jury information will not be disclosed in the letter. The SAC will forward the Form 13308, Criminal Investigation Closing Report (Tax and Tax-Related Only), and required attachments to SB/SE Tech Services, the TM of technical services (exam function) and advisory technical services (collection function). The information contained in the closing report will not include Rule 6(e) material. SAs will confirm receipt of the closing report by these civil functions. See IRM 9.5.14.5 for additional detail. Note: If the prosecution recommendation report does not recommend prosecution of all the subjects of the grand jury investigation or anyone who has been submitted as the subject of the investigation on the Form 9131, Request for Grand Jury Investigation, or a grand jury expansion request, the SA must notify the DOJ, Tax Division and CT Counsel that the investigation was concluded without a prosecution recommendation. Failure to do so leaves an open grand jury file for which CI is responsible. See IRM 9.5.14.12.2 for additional information.
Procedures for Closing Fully Adjudicated Non-Tax-Related Directly Referred Investigations
9.5.14.4 (04-08-2024) Procedures for Closing Fully Adjudicated Non-Tax-Related Directly Referred Investigations Within 30 days of final adjudication of a non-tax investigation, the SAC will ensure that a closing letter is prepared. See Exhibit 9.5.14-3, Closing Direct Referral Grand Jury Letter. Since these investigations do not involve tax and/or tax-related violations, no closing notification needs to be sent to DOJ, Tax Division unless a Title 26 grand jury was authorized during the investigation. If a Title 26 grand jury was authorized during the investigation and no tax and/or tax-related charges resulted, then the procedures outlined in IRM 9.5.14.3 will be followed. Since these investigations do not involve tax and/or tax-related violations, the SAC will decide whether notification to the other operating divisions is necessary. The decision should be based on whether civil activity would be in furtherance of tax administration and/or in the best interest of IRS, and if the court imposed a sentence that included any conditions of probation relative to tax matters.
Criminal Investigation Closing Report and Closing Package
9.5.14.5 (01-31-2025) Criminal Investigation Closing Report and Closing Package Every tax and tax-related subject investigation must be closed using the CI Closing Package within 30 days of final adjudication and Criminal Investigation Management Information System (CIMIS) should be noted in accordance with CIMIS guidelines. See IRM 9.5.14.17 for details relating to CIMIS entries. The CI Closing Package consists of: Form 13308, Criminal Investigation Closing Report (Tax and Tax-Related Only). Form 14104, Notification of Restitution, if applicable. See IRM 9.5.14.5.1 for more information. Form 4135, Criminal Investigation Control Notice. See IRM 9.5.14.5.1(4) for special instructions in criminal restitution cases. All relevant supporting information (see below paragraph (4)). Different forms are required depending on the type of investigation closing. The Form 13308 serves several purposes, including: Notice that the subject is no longer under criminal investigation and civil action can resume/proceed, Notice of when tax-related conditions are imposed by the court, To inform the appropriate civil functions of the outcome of the criminal case, Transmits documents to be used in the civil process, By requesting feedback, it serves as a tool to trace the case through the civil process and to facilitate monitoring for probation purposes when required. Note: See Form 13308 instructions for specific instructions. The following items make up the CI Closing package and will be attached to the Form 13308 when sending the closing package to the Civil Operating Divisions: (Mandatory) Judgment and Commitment Order, (Mandatory- If applicable) Form 14104 – Notification of Restitution. See IRM 9.5.14.5.1 for more information, (Optional) Copy of the Special Agent Report (Except for grand jury investigations), (Optional) Copy of the Revenue Agent's Report, (Optional) Copies of relevant public court records such as plea agreements, search warrant affidavits, information/indictment, statement of facts, pleadings, etc., (Optional) Additional information developed subsequent to the prosecution recommendation. See IRM 9.5.14.7.1.1.1 for more information, (Optional) A description and the location of all relevant public information developed during the grand jury investigation that can be used in civil settlement proceedings. The SAC (or designee) will forward the closing package and attachments to: TM, technical services (or designee/local mailbox), and Collection Advisory Probation Liaison (Advisory). Note: See Form 13308 instructions for additional detailed routing information. In cases where restitution is ordered payable to the IRS, Form 13308 and Form 14104 must also be sent to: SB/SE Technical Services Criminal Restitution Program Unit at *SB/SE TECH Svs Criminal Restitution, and Kansas City DOJ/Criminal Restitution team at *TS Criminal Restitution. In all Return Preparer Program (RPP) cases, a courtesy copy of the CI Closing Package must be sent to: Planning and Special Programs TM, and Return Preparer Office: Compliance & Enforcement office (RPO:C&E) at *Preparer. For cases involving Tax Exempt & Government Entities (TE/GE), Abusive Transactions & Technical Issues, Large Business & International (LB&I) and SB/SE Fraud Bank Secrecy Act (BSA), send the complete closing package to the appropriate IRS-Civil functions electronic email box for deconfliction purposes. CI should receive feedback from SB/SE Technical Services and Advisory Technical Services when a copy of the CI Closing Report is returned with Section 9a completed. If this does not occur, the SA should follow up to confirm the receipt of the documents by SB/SE Technical Services and Advisory Technical Services. Once the investigation is assigned to the civil field function, the RA (examination and/or collection) will contact the SA or conditions of probation coordinator to ensure the conditions of probation are understood. At sentencing when the court orders an individual convicted of a tax or tax-related crime to perform certain conditions of probation such as filing returns, cooperating with the IRS, and/or payment of taxes/restitution as a condition of probation or supervised release, the SA will make a note of all terms of incarceration, probation and criminal restitution ordered and notate CIMIS accordingly. Along with their SAC or designee, each field office Conditions of Probation Coordinator will establish a method to monitor probation cases, except Stolen Identity Refund Fraud cases, and ensure CIMIS entries are accurate and timely. See IRM 9.5.14.17 for details relating to CIMIS entries. If the investigation is discontinued by CI or declined by DOJ or the United States Attorney's Office (USAO) and is not a joint investigation, consideration should be given to referring the investigation for examination as a Prime Lead. Form 13308 is still prepared to inform SB/SE Technical Services and Advisory Technical Services that TC914 controls have been removed. Section 4e of the CI Closing Report is checked to show the item has been forwarded as a Prime Lead. See IRM 9.4.1.4.1.5, Direct Referrals - Prime Leads.
Special Agent's Responsibilities in Criminal Restitution Orders
9.5.14.5.1 (01-31-2025) Special Agent's Responsibilities in Criminal Restitution Orders The amount of restitution ordered by the court payable to the IRS creates two separate debts for the same liability. The first debt is the "restitution judgment" which the DOJ Financial Litigation Unit is responsible for collecting. The second debt is the "restitution-based assessment" which will be assessed and collected by the IRS in the same manner as if it was a tax. These two separate debts provide two different means for collection, but the liability cannot be collected twice. When the court orders an individual convicted of a tax or tax-related crime to perform certain conditions of probation at sentencing, such as payment of taxes/restitution, the SA should work with the AUSA to get the amounts of restitution ordered by tax year or tax period entered into the court record along with the total amount of criminal restitution. This is particularly important in grand jury tax investigations because the SA report and other documents created cannot be provided to our civil counterparts. Within thirty (30) days of final adjudication, for all cases involving an order of criminal restitution payable to the IRS, the SA will complete Form 14104 as an attachment to Form 13308 and send the package forward to the IRS's civil functions. It is the responsibility of the SA to notify the civil functions of the total amount of restitution attributable to each tax year or period. This is necessary for SB/SE Technical Services Criminal Restitution branch to properly create the restitution-based assessment and input the amounts into the tax module. See Form 14104 for additional detailed routing information. The total amount listed on the Form 14104 must equal the exact amount listed on the Judgement and Commitment Order (J&C) and the amounts must be broken down by tax period. SB/SE Tech Services cannot make these determinations on their own. In RPP cases, the client list must be attached to the Form 14104 with amounts broken down by tax year. In cases where criminal restitution has been ordered, the Form 4135, should be completed and forwarded to the centralized mailbox for controls, *CI-CONTROLS with the CI closing package. This should ensure the 91X controls are removed or the proper controls are in place prior to the civil function attempt to institute the restitution-based assessment. Note: See IRM 25.26.1, Restitution, Criminal Restitution and Restitution-Based Assessments, for additional information regarding Service-wide procedures for court ordered restitution. At the time of the case sentencing, CIMIS should be updated. Any months to serve, probation terms, fines, criminal restitution ordered to the IRS only, and conditions of probation expiration date should be entered. See IRM 9.5.14.17 for details relating to CIMIS entries.
Reporting Derogatory Information to the Office of Professional Responsibility
9.5.14.6 (01-31-2025) Reporting Derogatory Information to the Office of Professional Responsibility Criminal investigations involving an attorney, Certified Public Accountant (CPA), enrolled agent, or enrolled actuary, that uncover derogatory information should be forwarded to the Office of Professional Responsibility (OPR). See IRM 9.5.13.7, Reporting Derogatory Information Relating to Attorneys, Certified Public Accountants, and Enrolled Agents, and Exhibit 9.5.13-2, Memorandum for Office of Professional Responsibility, for more information.
Civil Penalties
9.5.14.7 (01-31-2025) Civil Penalties See IRM 9.5.13.2.2, Civil Penalties, for more information.
Information to be used in Civil Assessment
9.5.14.7.1 (09-28-2005) Information to be used in Civil Assessment The information available for use by the other operating divisions in the assessment or collection of tax following a criminal investigation depends upon whether an investigation was conducted administratively or through the grand jury process.
Information Available for Civil Assessment from an Administrative Investigation
9.5.14.7.1.1 (09-28-2005) Information Available for Civil Assessment from an Administrative Investigation Information developed in the course of an administrative investigation can be used by other operating divisions in the assessment and collection of a civil tax liability.
Information Developed After the Investigation is Submitted for Prosecution
9.5.14.7.1.1.1 (10-07-2021) Information Developed After the Investigation is Submitted for Prosecution Information developed after the investigation was submitted for prosecution may have a substantial effect on the civil settlement of an investigation. It is possible this information is developed while preparing for or during the trial for the criminal offense. Such information can have an important bearing on the determination of the civil liability and may consist of admissions of liability or relate to the existence of additional records or witnesses. The SA should make every effort to obtain copies of any exhibits introduced during the trial which may have a significant bearing on the civil liability. SAs will prepare a report summarizing such information as soon as it is received and attach copies of any supporting documents. This report should be included as an attachment in the Criminal Investigation Closing Package with any and all applicable information to include exhibits. If the investigation has not been forwarded for civil disposition when the report of additional information is prepared, the SA will hold the report and forward it with the Criminal Investigation Closing Package when the criminal aspects of the investigation are completed. IRM 9.5.14.5. If the investigation was forwarded for civil disposition, the report will be forwarded by memorandum from the SAC to their counterpart in the other operating division who has control of the file. For prosecuted investigations, the report will include a descriptive list of all exhibits introduced on behalf of the defendant.
Information Available for Civil Assessment from a Grand Jury Investigation
9.5.14.7.1.2 (04-08-2024) Information Available for Civil Assessment from a Grand Jury Investigation Grand jury information may not be used in civil purposes unless the IRS obtains the information independent of the grand jury or in accordance with Fed. R. Crim. P. R6(e). Any grand jury information included in an indictment/information or plea agreement filed with the court and any grand jury information presented during any court proceeding becomes public information, unless sealed by the court. This information can be used for civil purposes. When possible, SA's should make every effort to include relevant grand jury information in public documents and courtroom proceedings. Public documents such as plea agreements should include the amount of unreported income and outstanding tax liability for each tax period. For cases involving return preparers, every effort should be made to include client information, including outstanding tax liability for each tax period. This information is critical for the civil assessment. If courtroom proceedings are conducted, a transcript of the proceeding can be obtained for civil purposes. The SA must segregate grand jury information from non-grand jury information. See IRM 9.3.1, Disclosure. Note: In the case of Grand Jury investigations where restitution has been ordered, the SA should make every effort to ensure the proper breakdown for the tax periods and/or tax years is available in the public record to allow SB/SE Tech Services to create the restitution-based assessments.
Condition of Probation Relative to Civil Tax Matters
9.5.14.8 (01-31-2025) Condition of Probation Relative to Civil Tax Matters At sentencing, the court may order incarceration, home confinement, or suspend a sentence or reduce the incarceration time and place the defendant on probation or supervised release. The terms probation and supervised release are sometimes used interchangeably. As a condition of probation, the courts routinely order an individual convicted of tax crimes to comply with the tax laws either by filing returns, cooperating with IRS and/or paying restitution to IRS. CI, along with SB/SE Field Exam and Taxpayer Services (TS) Collection, share responsibility for ensuring compliance with court orders. Failure by the defendant to comply with the terms of probation may result in revocation of probation and a term of incarceration may be imposed. Note: The probation period does not begin until the subject is released from confinement. When the court orders an individual convicted of a tax or tax-related crime to perform certain conditions of probation such as filing returns, cooperating with the IRS, and/or payment of taxes/restitution as a condition of probation or supervised release, the SA will make a note of all these terms and update CIMIS accordingly. Along with their SAC or designee, each field office Conditions of Probation (COP) Coordinator will establish procedures to monitor probation cases and ensure CIMIS entries are accurate and timely. See IRM 9.5.14.17 for details relating to CIMIS entries. SA's should use the formula below to calculate the COP expiration date. This date is subject to change at any time, therefore, SA's and COP Coordinators may also use the Law Enforcement Notification System (LENS) and Bureau of Prisons (BOP) databases to periodically check the COP expiration. An example of calculating the COP expiration date is: Date of Imposition on J&C or Report Date:+ Months to Serve,+ Months' Probation or Supervised Release,- 1 day,= COP Expiration Date. Home confinement is not calculated into the COP expiration date. If individual is required to report to BOP by a certain date use the report date as the start date, versus date of imposition, to calculate the COP expiration date. The SA will follow procedures defined in IRM 9.5.14.5 and IRM 9.5.14.5.1 relating to the CI Closing Report and CI Closing Package. Even if payment of a civil liability is not part of a criminal sentence, the information concerning the civil tax liability should be made available for civil tax assessment after the final criminal actions on the investigation are completed. To assist the court in imposing a prison sentence or granting probation, the probation office may initiate a pre-sentence investigation and generate a report. See IRM 9.6.2, Plea Agreements and Sentencing Process - Criminal Investigation. Note: Information contained in the presentencing report cannot be forwarded to the other operating divisions. Failure to comply with the conditions of probation set forth by the court can result in revocation of probation. The SB/SE Tech Services Field Exam and TS Collection Advisory each have procedures in place to notify the SAC and/or designee by way of a 180-day compliance memo of any instance in which a defendant fails to comply with the conditions of probation in regard to civil tax matters. Upon notification of the failure to comply with the terms of probation, the SAC (or designee) will review the information and determine if a probation revocation investigation should be initiated. See IRM 9.5.11, Other Investigations.
Completion of Conditions of Probation
9.5.14.8.1 (04-01-2026) Completion of Conditions of Probation Upon the completion of the defendant's probation term two actions will be taken: A Form 4135, Criminal Investigation Control Notice, should be submitted for approval and forwarded to the centralized mailbox for controls *CI-CONTROLS to remove TC910 controls. See IRM 9.5.14.17 for details relating to CIMIS entries. The probation results should be entered into CIMIS, Sentencing Information. Options for the CIMIS entry are located in section IRM 9.5.14.17: Taxpayer has met, fulfilled, all the terms of their conditions of probation. Taxpayer has not met all the terms of their probation, and the probationary period has expired. CI or one of the IRS operating divisions did not act timely on probation. Taxpayer will not meet the terms of their conditions of probation beyond CI's control. The description for these results can be found in the CIMIS reference materials. Note: Justification for a CIMIS entry of "will not be met" will be maintained in the administrative case file. The TC910 controls can be removed prior to the end of the probation term but only if all IRS conditions of probation have been satisfied. For example, defendant A has a probation term of 24 months. The J&C orders restitution to be paid and amended returns filed. If the restitution is paid and the amended returns are filed prior to the end of the 24 months, the TC910 controls can be removed.
Offers in Compromise in Closed Criminal Investigations
9.5.14.9 (01-31-2025) Offers in Compromise in Closed Criminal Investigations Offers in Compromise (OIC) involving joint investigations where the criminal aspects of the investigation are completed, will be examined solely by the appropriate operating division. Except as noted in (2) below, the TM of the appropriate operating division will, after completion of the civil activity, refer the entire file to the SAC, for concurrence or comment when all of the following conditions exist: The merits of the fraud or negligence penalty are involved, The OIC involves an investigation in which the SA wrote the final report and recommended the assertion of such a penalty, The other operating division contemplates recommending acceptance of the offer. Note: Since restitution assessments may not be compromised by the IRS, Form 656, Offer in Compromise, must not include any restitution amounts due. See IRM 5.8.4.23.1, Offers in Compromise Submitted that Include Restitution. If the sole issue presented by the offer in compromise (OIC) is the ability to pay, referral to CI will not be made. If the SAC concurs in the recommended disposition of the OIC, the concurrence will be indicated by memorandum and the entire file should be returned to the other operating division for processing. If the SAC does not concur and no agreement can be reached with the other operating division as to the disposition of the OIC, the entire file will be forwarded to the area director and Director, Field Operations for resolving any differences. Guidelines concerning the disposition of the OIC are in IRM 5.8.7, Offer in Compromise, Return, Terminate, Withdraw, and Reject Processing, and IRM 5.8.8, Offers in Compromise, Acceptance Processing. See IRM 9.5.13.5, Offers in Compromise, and IRM 9.5.13.5.1, Offers in Pending Criminal Investigations, for more information.
Disputed Civil Assessments and Collections
9.5.14.10 (09-28-2005) Disputed Civil Assessments and Collections A taxpayer can file a petition in the U.S. Tax Court, U.S. District Court, or the Court of Federal Claims to dispute civil assessments and penalties, which may include information developed by a SA in the course of a criminal investigation. In those instances, counsel or other government attorneys may request the assistance of the SA. SAs are authorized to assist the Office of Chief Counsel and Appeals in any investigation involving the merits of a civil penalty recommended by CI. Further investigation will be made to obtain additional evidence to help sustain the penalty upon written request from counsel or the Appeals Office. Such information will be forwarded in a supplemental report upon request of the Appeals office; assistance may include participation in any conference with respect to the civil liability in any investigation. The extent of the SA's participation in any conference will be determined by the Appeals office.
United States Tax Court
9.5.14.10.1 (01-31-2025) United States Tax Court The Tax Reform Act of 1969 changed the name of the Tax Court of the United States to the U.S. Tax Court and established it as a court of record under Article I, Section 8, Clause 9, of the Constitution. It is now part of the Judicial Branch of government. In addition to the powers, it already possessed, the U.S. Tax Court has been given the power to punish contempt of its authority, and to enforce its decisions by issuing any writ, etc., which a U.S. District Court can issue. See 26 USC 7441-7479 for detailed information. In a U.S. Tax Court trial, evidence is admitted and excluded much as it would be in a civil non-jury trial in the U.S. District Court. In general, the Commissioner of the IRS' determination of deficiency is presumed to be correct unless the taxpayer produces credible evidence with respect to any factual issue relevant to ascertaining the correct tax liability, or any item of income reconstructed solely through the use of statistical information on unrelated taxpayers. In these investigations, the IRS has the burden of proof with respect to the issue(s) in question see 26 USC 7491(a) and (b). The IRS has the burden of proof where the IRS has asserted the civil penalty. The evidence in that respect must be clear and convincing, not beyond a reasonable doubt as in a criminal investigation, but more than a "mere preponderance." The failure of the IRS to prevail on the fraud issue does not relieve the taxpayer of the burden of overcoming the prima facie correctness of the determination of the deficiencies unless the exceptions noted above are present or the assessment was not made within the applicable statute of limitations. Record of the disposition of the criminal investigation against a taxpayer is admissible in the U.S. Tax Court on the issue of fraud. Despite an acquittal in a criminal investigation, the same evidence may be sufficient to prove fraud in the civil investigation. A conviction for attempted tax evasion in the U.S. District Court is conclusive in U.S. Tax Court proceedings as to the fraud issue, on the same facts and particularly on the same amounts. A plea of guilty can be used as an admission of the taxpayer in a civil matter concerning taxes and penalties against the taxpayer based on the same facts. A plea of nolo contendere subjects the defendant to the same punishment as a plea of guilty but does not mean the defendant admits the charges. It cannot be used against them as an admission in any civil suit for the same act. A guilty plea in a criminal investigation will be received by the U.S. Tax Court as an admission to be given weight according to the circumstances. A plea to tax evasion may be sufficient to establish civil fraud for the same facts and tax/tax years. However, such a plea in a failure-to-file investigation may constitute only a willful omission and passive neglect to perform a statutory duty and not render the taxpayer liable for the fraud penalty. The Commissioner is not barred from assessing the fraud penalty by the taxpayer's filing correct amended returns and paying additional taxes due after filing fraudulent returns; or the death of the taxpayer, since the penalty is for an offense against property rights and not personal rights. It is the SA's responsibility during a criminal investigation for the development of evidence to sustain the ad valorem additions to the tax, except those concerning tax estimations. Consequently, during a U.S. Tax Court trial where the fraud penalty is at issue, the SA is often a principal witness for the government. It is the duty of the SA in the preparation for trial and the presentation of the investigation in U.S. Tax Court to consult with and assist the Counsel attorney assigned to the matter.
Coordination of Answers in Investigations Docketed in the Court
9.5.14.10.2 (10-07-2021) Coordination of Answers in Investigations Docketed in the Court Counsel normally will request from the SAC, copies of any reports and supporting data in the investigation which were prepared by the SA, to be used solely in connection with the preparation of the matter before the U.S. Tax Court. Counsel will not use the information for the purpose of evaluating the merits of the criminal investigation. The SAC will identify issues and items in the Criminal Investigation Closing Package which need to be protected from disclosure to the extent possible under the requirements of the U.S. Tax Court. Requests relating to grand jury investigations will be referred to CT Counsel.
Reports for Civil Penalty Recommendations for Title 31
9.5.14.11 (10-07-2021) Reports for Civil Penalty Recommendations for Title 31 Reports for civil penalty recommendations for Title 31 investigations resulting in an indictment will consist of: A summary of the charges in the indictment and the charges on which convicted. The scope of the Title 31 crime to include the amount of money involved in the offense. The total dollar amount of unreported currency transactions in the indictment. The number of Currency Transaction Reports not properly filed. The number of improperly reported transactions named in the indictment. Copies of any public information such as a copy of the indictment, sentencing memorandum, affidavit for search warrants, arrest warrants, press releases, and news articles.
Procedures For Closing Discontinued Investigations
9.5.14.12 (09-28-2005) Procedures For Closing Discontinued Investigations When an investigation is discontinued, the formal closing and associated civil aspects of the investigation are handled differently for an administrative investigation than for a grand jury investigation.
Discontinued Administrative Investigation
9.5.14.12.1 (04-08-2024) Discontinued Administrative Investigation Information developed during the course of an administrative investigation can be used by the other operating divisions in the assessment and collection of a tax liability. The Supervisory Special Agent (SSA) will communicate the withdrawal to the cooperating and/or referring group manager of the other operating division. If a fraud referral prompted the investigation, the SSA will also communicate the withdrawal to the Fraud Referral Specialist, Group Manager. The SA will prepare a report of discontinued investigation. If the investigation was tax or tax-related, the appropriate Criminal Investigation Closing Package will be prepared. See IRM 9.5.14.5 for required documents. The discontinued investigation report will include: A summary of the evidence developed during the investigation that would support or negate a recommendation of the civil fraud penalty. If appropriate, the report should contain a statement summarizing anything that was discussed or occurred in the investigation which precludes the assertion of the civil fraud penalty. In joint investigations, the discontinued investigation report should contain a statement affirming the cooperating officer's group manager was advised of the discontinuance. When the SAC approves a final report discontinuing a tax or tax-related administrative investigation, they will promptly forward the reports to the TM of SB/SE Technical Services and Advisory Technical Services and ensure the Form 4135 is completed within five days of the investigation closing.
Discontinued Grand Jury Investigation
9.5.14.12.2 (04-01-2026) Discontinued Grand Jury Investigation If a grand jury investigation does not result in a prosecution recommendation, the SA will prepare a discontinued investigation final report similar to the administrative discontinued final report and address it to the AUSA. The SA should prepare separate exhibit folders for information developed during the administrative aspects of the investigation, if there were any, and for documents governed by Rule 6(e). Grand jury information should be clearly labeled, and the SAC should not give copies of documents containing grand jury information to any person not specifically on the grand jury access list. Discontinued grand jury investigations do not fall under the automatic closing procedures. Accordingly, it is necessary to obtain concurrence from the AUSA overseeing the grand jury investigation regarding the decision to discontinue the investigation. The SA or the SSA will be responsible for requesting the closing letter from DOJ, Tax Division. See IRM 9.5.14.1.1(4). At the conclusion of a grand jury investigation that does not result in a criminal prosecution, within five workdays, the SAC will ensure that a closing letter is prepared. The letter should include the following (see Exhibit 9.5.14-4, Closing of Discontinued Tax Grand Jury Investigation Letter - a template for the letter exists on the Unified Checklist CI Documents SharePoint site.): The primary reason the investigation is being discontinued. Whether there are any pending investigations on the other subjects under the same grand jury investigation. An affirmative statement of the government attorney's concurrence with the decision to discontinue the investigation. The SAC will ensure the closing letter is mailed to DOJ, Tax Division, Chief of the Criminal Enforcement Section, and copies to the AUSA and CT Counsel when the grand jury investigation involves tax or tax-related violations. If the investigation was tax or tax-related, the SA will prepare a Criminal Investigation Closing Package. See IRM 9.5.14.5 for a detailed instructions. In Grand Jury investigations, the closing report will be prepared in accordance with Rule 6(e) in that matters occurring before the grand jury will not be disclosed. Information developed during the course of a grand jury investigation typically cannot be used by other operating divisions in the assessment and collection of a tax liability unless a Rule 6(e) Order is obtained by the AUSA. See IRM 9.3.1, Disclosure. Note: The SA must notify DOJ, Tax Division and CT Counsel that the investigation was concluded without a prosecution recommendation if the prosecution recommendation report does not recommend prosecution against the subject(s) of the grand jury investigation or anyone who has been submitted as the subject of the investigation on the Form 9131, Request for Grand Jury Investigation, or a grand jury expansion request. Failure to do so leaves an open grand jury file for which CI is responsible.
Discontinued Simultaneous Criminal Investigation Program Investigations (International)
9.5.14.12.3 (01-31-2025) Discontinued Simultaneous Criminal Investigation Program Investigations (International) If a field office decides to withdraw from a Simultaneous Criminal Investigation Program (SCIP) investigation, (see IRM 9.4.2.6.3.1, SCIP - Investigation Selection): The SAC will submit a memorandum through the Director, Field Operations to the Director, SE:CI:GO stating the reasons for the withdrawal. The field office will also discuss the withdrawal with the treaty counterpart designated SSA and document this in the memorandum. The Director, SE:CI:GO will advise the Competent Authority (Division Commissioner, LB&I) by letter. The field office will proceed with the investigation under normal guidelines and make subsequent requests for information by collateral assistance request.
Notification to Subjects When an Investigation is Discontinued
9.5.14.13 (10-07-2021) Notification to Subjects When an Investigation is Discontinued When an administrative investigation is discontinued, a letter will be prepared by the SAC and sent to the subject and/or representative by mail. The letter will state that CI is no longer investigating the subject. If appropriate, it should also state that the matter has been referred to the civil operating division. If the SAC decides not to notify the subject, a memorandum setting forth the reasons will be prepared. Generally, letters will not be sent in a grand jury investigation, nor investigations involving Stolen Identity Refund Fraud Investigations, multiple filers or individuals related to other prosecution investigations. In investigations where a prosecution recommendation has been made, but declined by DOJ, Tax Division, letters of notification will not be sent by the IRS.
Post Closing Activities
9.5.14.14 (10-07-2021) Post Closing Activities Information developed during a criminal investigation that has civil tax potential should be forwarded to the other operating divisions when possible. If the information is covered by grand jury Rule 6(e) disclosure restrictions, a Rule (6) Order is required for release of the information to the other operating divisions. See IRM 9.3.1, Disclosure. Records obtained during a criminal investigation should be disposed of in accordance with established policy and procedure. See IRM 9.5.14.3 on procedures for closing fully adjudicated grand jury investigations.
Closing Primary and Subject Criminal Investigation related to Whistleblower Claims
9.5.14.15 (04-01-2026) Closing Primary and Subject Criminal Investigation related to Whistleblower Claims In all investigations where a Form 211, Application for Award for Original Information, was filed and it is determined that the investigation does not have criminal potential, a Form 11369, Confidential Evaluation Report on Claim for Award, with attachments and Closing Transmittal Memo must be prepared and forwarded to the Whistleblower Office within 15 business days of receipt of closing the investigation. Primary investigations (PI) and subject criminal investigations (SCI) closing packages should be mailed to the Whistleblower Office at the following address:Internal Revenue Service1973 Rulon White BlvdWhistleblower Office-ICE -- M/S 4110Ogden, UT 84404 Closing a PI: 1. If the information does not warrant further investigation, prepare a Primary Evaluation Memorandum, and close the PI using normal procedures. 2. Prepare Form 11369 and the transmittal closing memo and include additional documents as indicated on the forms for mailing to the Whistleblower's Office. Note: The completed Form 11369 and all relevant documents must be emailed to the Financial Crimes (FC) WB Program at *CI Whistleblower within 15 business day of the PI closing. Closing a SCI:1. For the purposes of processing and evaluating whistleblower claims for award, the investigation is considered closed when it is either discontinued or fully adjudicated. If the SCI is sentenced or discontinued, prepare SCI closing documents using normal procedures. 2. Prepare Form 11369 and the closing transmittal memo, and include additional documents as indicated on the forms. (SAR, Form 13308, Form 14104, Form 211, additional information provided by the whistleblower). If this is a grand jury investigation, see special instructions below. Note: The completed Form 11369, closing transmittal memo, and all relevant documents must be emailed to the FC WB Program at *CI Whistleblower within 15 business days of the discontinued or SCI closing and mailed to the Whistleblower Office at. Internal Revenue Service 1973 N. Rulon White Blvd. Whistleblower Office - ICE -- M/S 4110 Ogden, UT 84404 Special Instructions for grand jury whistleblower-related Investigations:Whether whistleblower information is received in the field or by the Whistleblower Office, Grand Jury Information must not be shared with the Whistleblower Office. The following items are not considered grand jury information; therefore, CI employees are required to provide the following items to the Whistleblower Office:i. The original whistleblower information.ii. Completed and approved Form 11369 signed by your SSA.iii. Copies of all relevant work papers and reports that are not covered under Rule 6(e).iv. Copies of plea and sentencing agreements.v. A written explanation summarizing the SA's actions taken based on the information and/or cooperation of the whistleblower.vi. Any additional information that would assist the director of the Whistleblower Office in making an award determination. Note: Any requests for information from the Whistleblower Office, other than the items listed above should be directed to the headquarters FC analyst listed on the CI Whistleblower Program SharePoint site.
Procedures for Closing the Administrative, Discontinued, Grand Jury and Direct Referral Investigation on Criminal Investigation Management Information System Database
9.5.14.16 (04-01-2026) Procedures for Closing the Administrative, Discontinued, Grand Jury and Direct Referral Investigation on Criminal Investigation Management Information System Database At the conclusion of a criminal investigation, a CIMIS entry is required in the status field to include an entry for "civil actions" and the reason closed field within five workdays. If applicable, the sentencing information fields should also be completed. The data is based solely on information contained in the court issued J&C. Months to Serve - Enter months to serve and months of confinement (if applicable). Months' Probation - Enter months of probation or supervised release.• Fines – Enter fines only, not assessments. The amount in Item 66 "Fines to Pay" should represent only amounts imposed by the courts as a "penalty" for the illegal activity. Tax and/or restitution of any kind ordered by the court should NOT be reflected in Item 66. Restitution:• Only enter dollar ($) amount of restitution ordered payable to the IRS.• For any restitution ordered payable to entity other than IRS, leave the restitution field blank (i.e., Do not enter $0 or any other amount).• Joint and Several Restitution – In some cases the court may order the payment of criminal restitution to the IRS as a joint and several liability of two or more defendants. The total restitution amount should be entered in CIMIS for the lead subject only. A "$0.00" amount should be placed in the restitution field in CIMIS for all secondary subjects. A note should be added in the Conditional Probation Terms field for the Lead and each Secondary Subject that is ordered by the court to pay joint and several restitutions. • An example of a Note is:a. Restitution for this individual is joint and several with (investigation name/number). For CIMIS purposes, restitution amount is shown on (investigation name/number). The probation period does not begin until the subject is released from confinement; therefore, the date may need to be updated during the monitoring period. Note: This section should only be completed if the sentence imposed by the court includes conditions of probation relative to tax or tax-related matters. i. COP Probation Expiration Date:1. If there are IRS COP and/or criminal restitution ordered to the IRS in tax or tax-related investigations, enter estimated date of COP expiration. An example of calculating the COP expiration date is: Date of Imposition on J&C or Report Date+ Months to Serve+ Months' Probation or Supervised Release- 1 day=COP Expiration Date Home confinement is not calculated into the COP expiration date. If individual is required to report to BOPs by a certain date use the report date as the start date (versus date of imposition) to calculate the COP expiration date. 2. Conditional Probation Terms: • Only enter IRS related conditions of probation as shown on the J&C. Cooperate with the IRS. Restitution to the IRS. Cooperate by paying all taxes, penalties, and interest and timely file tax returns. Include other pertinent information: early release info, payments made to date, revocation for reasons other than non-compliance with IRS conditions, tax arrearages, etc. Note: See FAQ document located on the COP page of CI Connections for more info. If all SCIs are closed, then the related PI should also be closed. Note: In addition to the CI Closing Report and the other required documents to close an investigation, the SA must make certain entries into the CIMIS database to close an investigation. After the entries are made the appropriate management official must review and approve the pending closing action. Refer to IRM 9.9.4, Criminal Investigation Management Information System Data Fields, for details on information required for the entries to CIMIS to close a particular type of investigation. Once the probation expiration date has passed and/or the conditions have been met or not met, update CIMIS to reflect probation results.Document reason(s) for closing in CIMIS as a Note. For any question on when to close a COP with "met" or "not met", please consult with your SSA, Assistant Special Agent in Charge (ASAC) or COP Coordinator to ensure your choice is consistent within your field office. Some examples of when to use "met" and "not met" are as follows. THESE ARE EXAMPLES ONLY:i. Taxpayer has MET all the terms of their conditions of probation (fulfilled). Applicable when ordered restitution has been completely met. ii. Taxpayer has NOT MET the terms of their conditions of probation for reasons beyond CI's control. Applicable when taxpayer is complying, making court ordered payments but not fully paid at time of COP expiration, inability to pay as determined through financial statements, etc.iii. Taxpayer has NOT MET all terms of their conditions of probation and the probationary period has expired. CI or one of the IRS operating divisions did not act timely on probation. Applicable when taxpayer did not comply and due diligence was not exercised on IRS and/or CI's part to ensure compliance (i.e., restitution not assessed, non-payment, non-filing and no follow-up with USAO or probation officer (PO) for revocation.) Note: Justification for an entry of "will not be met" will be maintained in the administrative case file.
CLOSING ADMINISTRATIVE INVESTIGATION LETTER
Exhibit 9.5.14-1 CLOSING ADMINISTRATIVE INVESTIGATION LETTER Page 1 Please click here for the text description of the image. Page 2 Please click here for the text description of the image.
CLOSING DOJ TAX GRAND JURY INVESTIGATION LETTER
Exhibit 9.5.14-2 CLOSING DOJ TAX GRAND JURY INVESTIGATION LETTER Page 1 Please click here for the text description of the image. Page 2 Please click here for the text description of the image.
CLOSING DIRECT REFERRAL GRAND JURY LETTER
Exhibit 9.5.14-3 CLOSING DIRECT REFERRAL GRAND JURY LETTER Page 1 Please click here for the text description of the image. Page 2 Please click here for the text description of the image.
CLOSING OF DISCONTINUED TAX GRAND JURY INVESTIGATION LETTER
Exhibit 9.5.14-4 CLOSING OF DISCONTINUED TAX GRAND JURY INVESTIGATION LETTER Page 1 Please click here for the text description of the image. Page 2 Please click here for the text description of the image.
Source: official text