Contents
(c)
(1)With respect to any undercover investigative operation of the Internal Revenue Service (hereinafter in this subsection referred to as the “Service”) which is necessary for the detection and prosecution of offenses under the internal revenue laws, any other criminal provisions of law relating to internal revenue, or any other law for which the Secretary has delegated investigatory authority to the Internal Revenue Service—
(A)sums authorized to be appropriated for the Service may be used—
(i)to purchase property, buildings, and other facilities, and to lease space, within the United States, the District of Columbia, and the territories and possessions of the United States without regard to—
(I)sections 1341 and 3324 of title 31, United States Code,
(II)sections 6301(a) and (b)(1)–(3) and 6306 of title 41, United States Code,
(III)chapter 45 of title 41, United States Code,
(IV)section 8141 of title 40, United States Code, and
(V)section 3901 of title 41, United States Code, and
(ii)to establish or to acquire proprietary corporations or business entities as part of the undercover operation, and to operate such corporations or business entities on a commercial basis, without regard to sections 9102 and 9103 of title 31, United States Code;
(B)sums authorized to be appropriated for the Service and the proceeds from the undercover operations may be deposited in banks or other financial institutions without regard to the provisions of section 648 of title 18, United States Code, and section 3302 of title 31, United States Code, and
(C)the proceeds from the undercover operation may be used to offset necessary and reasonable expenses incurred in such operation without regard to the provisions of section 3302 of title 31, United States Code.
This paragraph shall apply only upon the written certification of the Commissioner of Internal Revenue (or, if designated by the Commissioner, the Deputy Commissioner or an Assistant Commissioner of Internal Revenue) that any action authorized by subparagraph (A), (B), or (C) is necessary for the conduct of such undercover operation.
(2)If a corporation or business entity established or acquired as part of an undercover operation under subparagraph (B) of paragraph (1) with a net value over $50,000 is to be liquidated, sold, or otherwise disposed of, the Service, as much in advance as the Commissioner or his delegate determines is practicable, shall report the circumstances to the Secretary. The proceeds of the liquidation, sale, or other disposition, after obligations are met, shall be deposited in the Treasury of the United States as miscellaneous receipts.
(3)As soon as the proceeds from an undercover investigative operation with respect to which an action is authorized and carried out under subparagraphs (B) and (C) of paragraph (1) are no longer necessary for the conduct of such operation, such proceeds or the balance of such proceeds remaining at the time shall be deposited into the Treasury of the United States as miscellaneous receipts.
(4)
(A)The Service shall conduct a detailed financial audit of each undercover investigative operation which is closed in each fiscal year; and
(i)submit the results of the audit in writing to the Secretary; and
(ii)not later than 180 days after such undercover operation is closed, submit a report to the Congress concerning such audit.
(B)The Service shall also submit a report annually to the Congress specifying as to its undercover investigative operations—
(i)the number, by programs, of undercover investigative operations pending as of the end of the 1-year period for which such report is submitted;
(ii)the number, by programs, of undercover investigative operations commenced in the 1-year period for which such report is submitted;
(iii)the number, by programs, of undercover investigative operations closed in the 1-year period for which such report is submitted, and
(iv)the following information with respect to each undercover investigative operation pending as of the end of the 1-year period for which such report is submitted or closed during such 1-year period—
(I)the date the operation began and the date of the certification referred to in the last sentence of paragraph (1),
(II)the total expenditures under the operation and the amount and use of the proceeds from the operation,
(III)a detailed description of the operation including the potential violation being investigated and whether the operation is being conducted under grand jury auspices, and
(IV)the results of the operation including the results of criminal proceedings.
(5)For purposes of paragraph (4)—
(A)The term “closed” means the date on which the later of the following occurs;
(i)all criminal proceedings (other than appeals) are concluded, or
(ii)covert activities are concluded, whichever occurs later.
(B)The term “employees” has the meaning given such term by section 2105 of title 5, United States Code.
(C)The term “undercover investigative operation” means any undercover investigative operation of the Service; except that, for purposes of subparagraphs (A) and (C) of paragraph (4), such term only includes an operation which is exempt from section 3302 or 9102 of title 31, United States Code.
United States Government work; public domain under 17 U.S.C. § 105.