[NOTE: COUNSEL HAS CLASSIFIED THIS CASE AS NON-COMPLEX CASE]
This heading should appear if the administrative case is designated non-complex. |
| CC:CT:XXX:- -03 |
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Date |
| MEMORANDUM FOR SPECIAL AGENT IN CHARGE, XX FIELD OFFICE |
| FROM: |
[Criminal Tax Attorney/Senior Counsel], XX POD |
| SUBJECT: |
Evaluation of SAR and Exhibits [Administrative or Grand Jury] Tax Case
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| CRIMINAL SUBJECTS(S) |
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Name
Address
SSN
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Related Case(s) If related cases(s), provide the names(s) of the criminal subject(s). |
| COUNSEL'S RECOMMENDATION |
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Charge(s) |
Year(s) |
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Count(s) |
If Counsel believes prosecution is warranted, one of these sentences should follow:
This recommendation concurs with the Special Agent's recommendation.
This recommendation differs from the Special Agent's recommendation and will be explained below.
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If Counsel believes prosecution is not warranted, then this sentence should follow "COUNSEL'S RECOMMENDATION"
, and there is no need for "Charge(s), Year(s), Count(s)"
:
In our opinion, prosecution is not warranted in this matter.
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Venue |
Statute of Limitations
Bold the Statute of Limitations date if imminent.
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| EXECUTIVE SUMMARY |
| In a nutshell, either in a short paragraph or using bullets, summarize the subject's actions that give rise to the criminal prosecution recommendation as well as relevant information
important to the reader of this document. For instance, include or note: the amount of tax dollars (including relevant conduct);
harm to the government; the indirect method of proof; an expiring statute of limitations; investigative techniques; and the
technical tax issues(s). For example:
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• Questionable Return Preparer
• Undercover Investigation
• Twenty-five false returns
• $250,000 of tax harm including relevant conduct |
CRIMINAL VIOLATIONS(S) AND DISCUSSION OF THE LAW
Elements of the offense
Discuss the principal evidence available to establish the elements of the criminal offense(s). Please cite Supreme Counsel
and/or your specific Circuit Court law, when applicable.
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Element #1
Use subheadings for each element of the proposed offense. Set forth items of evidence with bullets to separate and give the
reader and idea of how many exhibits/how much evidence there is on a given element.
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• EVIDENCE |
| Element #2 |
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• EVIDENCE |
| Element #3 |
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• EVIDENCE |
| Discuss any legal, procedural, and/or policy issues regarding: (1) venue; (2) statute of limitations; (3) how the investigation
originated (when and by whom the taxpayer was first contacted); (4) investigative techniques; (5) aspects of personal history
of significance to the case; age, marital status during the years at issue (especially in community property states), health
(if a major problem is known), education and criminal record.
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TAX LOSS, COMPUTATIONS, METHOD OF PROOF AND TECHNICAL TAX ISSUES
Every case may not have a Technical Tax Issue, so this heading will only be utilized when applicable. Note the tax loss, computations
and method of proof. When an indirect method of proof is utilized, additional discussion on the method of proof is warranted.
When warranted, provide a further discussion. Discuss any tax or tax-related issues or any technical tax issues, e.g., a trust
fraud case would include a discussion of the issue of whether a trust was a sham for tax purposes; a case involving a tax
shelter promotion would discuss the merits of underlying shelter; etc. Other technical tax issues include: providing the actual
line item of the return which is false; Greenberg problem in both specific items and indirect method of proof cases; earnings and profits in corporate diversion cases; failure
to file involving one married taxpayer (joint or separate tax rates/community property). Also discuss coordination with other
Counsel functions.
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CURRENT LIFESTYLE
Bring the case up-to-date. Update information relative to each subject's current lifestyle; job history (is the subject working
on the same job); filing history (the recommended offense may be failure to file, but the subject has since been current in
filing tax returns); audit history (i.e., was the subject cooperative or obstructive during prior contact with the Service); etc. Note, if this information is relevant
to the case and it is not readily available to the agent, then discuss this in the OTHER ISSUES AND SUGGESTIONS section.
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DEFENSES
Discuss defense contentions or reasonably probable defenses and available rebuttal evidence. When no defenses are foreseeable,
so note.
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OTHER ISSUES AND SUGGESTIONS
This heading is optional and should be utilized when applicable.
Discuss problems/issues/concerns with the case. For example, a key witness may have died. Discuss suggestions where the case
can be improved. For example, there is an additional witness that should be interviewed; the accountant/return preparer’s
testimony may need to be tied down in the grand jury; additional expenses may need to be investigated.
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SENTENCING
In either a short paragraph or by using bullets, summarize sentencing, including the base offense level, specific offense
characteristics, and proposed adjustments for aggravating or mitigating offense related conduct. For example:
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• TAX LOSS - $250,000 (includes relevant conduct)
• BASE OFFENSE LEVEL - 18 (2001 Book)
• NOTE POSSIBLE ENHANCEMENTS and/or REDUCTIONS |
CONCLUSION
After careful consideration, we are [convinced/not convinced] that the evidence relied upon to support the recommended prosecution is sufficient to indicate guilt beyond a reasonable
doubt and that there [is/is not] a reasonable probability of conviction.
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| We are closing our file in this case as of the date of this memorandum. Please be advised that the "referral"
of this matter will remain in effect until terminated within the meaning of I.R.C. § 7602(d)(2)(B).
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| Should you have any questions about this memorandum, please contact the undersigned at xxx-xxx-xxxx. |
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XXXXXXXXXXXX
Area Counsel (XXX), Criminal Tax
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By: |
_________
NAME
Criminal Tax Attorney
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