**CHAPTER 400 -- INVESTIGATIONS**

**(400)-280** **[IRS Employee Investigations]{.underline}**

280.1 [Overview.]{.underline}

TIGTA-Office of Investigations (OI) investigates complaints and
allegations against Internal Revenue Service (IRS) employees. The
results of investigations are submitted to management without
recommendation as to any action to be taken. Investigations of TIGTA
employees are addressed separately in [Section
330](../../../../../../../../I:/chapter400-inv/400-330/chapter400-330.doc)
of this chapter.

This section includes the following information related to Employee
Investigations:

-   [IRS Employees Subject to TIGTA
    Jurisdiction](#IRSEsSubjectToTIGTAJurisdiction)

-   [Complaint Procedures](#ComplaintProcedures)

-   [Investigative Jurisdiction for IRS Employee
    Investigations](#InvestigativeJurisdiction)

-   [Initiating Employee
    Investigations](#InitiatingEmployeeInvestigations)

-   [Investigative Procedures](#InvestigativeProcedures)

-   [Reports of Investigations](#ROIs)

-   [Special Reporting Categories](#SpecialReportingCategories)

-   [TIGTA Investigations of Sexual Harassment Allegations at
    IRS](#TIGTAInvOfSexualHarassment)

-   [Tax and Financial Crime Related Employee
    Misconduct](#TaxFinCrimeEmployeeMisconduct)

An Employee Investigation is initiated if:

-   The subject is identified as having been an IRS employee, including
    an IRS Office of Chief Counsel employee or member of the IRS
    Oversight Board, at any time during the commission of the alleged
    violation; or

-   The identity of the subject is unknown, but, based on the best
    information available, is believed to have been an IRS employee at
    any time during commission of the alleged violation.

The employment status of the subject at the time the case is carded is
not relevant, only what his/her status was at any time during the time
the violation was alleged to have been committed.

280.1.1 [Acronyms
Table.](../../../../../../../../I:/chapter400-inv/acronyms-table/acronyms-table.doc#Intro11)

280.2 []{#IRSEsSubjectToTIGTAJurisdiction .anchor}[IRS Employees Subject
to TIGTA Jurisdiction.]{.underline}

OI is responsible for conducting investigations of alleged misconduct
(as defined in [Section 280.4](#InvestigativeJurisdiction)) by all IRS
employees, including, but not limited to:

-   GM/GS-15 and above employees;

-   IR-1 employees;

-   Office of Chief Counsel employees;

-   IRS Oversight Board; and

-   International employees.

    See [Section
    210.2.1](../../../../../../../../I:/chapter400-inv/400-210/chapter400-210.doc#EmployeesDefined)
    of this chapter for a more detailed discussion of covered IRS
    employees. Also, please note that investigations of some of these
    IRS employees must be referred to OI's Special Inquiries and
    Intelligence Division (SIID). See [Section
    280.5.2](#AllegationsReguiringSIIDCoord) of this chapter.

280.3 []{#ComplaintProcedures .anchor}[Complaint
Procedures.]{.underline}

Whenever possible, complaints should be entered into the Performance and
Results Information System (PARIS) within 15 days of receipt. The
appropriate OI division will interview the complainant, evaluate all the
information, and decide whether to initiate an investigation. See
[Section
240.2](../../../../../../../../I:/chapter400-inv/400-240/chapter400-240.doc#GuidelinesRecComplaints)
through 240.9 of this chapter for further information.

4.  []{#InvestigativeJurisdiction .anchor}[Investigative Jurisdiction
    for IRS Employee Investigations.]{.underline}

OI is responsible for detecting and investigating violations involving
IRS employees and former employees. An allegation must be related to the
administration of the programs and operations of the IRS to be
considered for investigation. See [Section
10.7](../../../../../../../../I:/chapter400-inv/400-10/chapter400-10.doc#TIGTAOIResponsibilitiesDuties)
of this chapter for OI divisional responsibilities and duties.

5.  []{#InitiatingEmployeeInvestigations .anchor}[Initiating Employee
    Investigations.]{.underline}

OI will initiate an Employee Investigation if the allegation meets all
of the following four elements:

-   The complaint is against an identified IRS employee, or if the
    identity is unknown, against a person believed to be an IRS
    employee;

-   The alleged violation occurred when the subject was employed by the
    IRS, regardless of the subject\'s employment status at the time the
    case is initiated;

-   The allegation involves criminal or serious administrative
    misconduct; and

-   There is a nexus between the alleged violation and the
    administration of the programs and operations of the IRS.

    280.5.1 [Post-Appointment Arrests.]{.underline} OI SAs, upon receipt
    of information concerning a post-appointment arrest of an identified
    employee or contractor or someone believed to be an IRS employee or
    contractor, will enter the initial complaint in PARIS and then
    verify the arrest.

280.5.1.1 [Initiating a Post-Appointment Arrest
Investigation.]{.underline} After verifying the arrest, the SA will
evaluate the complaint and initiate an investigation. All
post-appointment arrests concerning matters within TIGTA's jurisdiction
(see [Section 280.5](#InitiatingEmployeeInvestigations)) will be
investigated, including arrests involving financial crimes, theft, or
controlled substances. Arrests for domestic violence are investigated
when the subject is an IRS Criminal Investigation Division (CID) SA.

2.  [Notifying IRS of Post-Appointment Arrests.]{.underline} In all
    post-appointment arrests,

the Special Agent-in-Charge (SAC) will notify the IRS as follows:

-   If the post-appointment arrest information was received from the
    IRS' Investigations Management & Process Improvement (IRS-IM)
    division, the SAC will notify the IRS, via the two-way memorandum
    received from IRS-IM, whether OI will investigate the arrest. If no
    investigation is initiated by OI, the SAC will return the
    post-appointment arrest documents with the two-way memorandum.

-   If the post-appointment arrest information was received from a
    source other than IRS-IM, and no investigation is initiated, the SAC
    will notify the IRS via a Complaint Referral Memorandum (Form OI
    2070).

280.5.2 []{#AllegationsReguiringSIIDCoord .anchor}[Allegations Requiring
Special Inquiries and Intelligence Division (SIID)
Coordination.]{.underline} Allegations made against IRS CID employees,
employees of the IRS Office of Chief Counsel, TIGTA employees,
International IRS employees as defined in [Section
340.2.2](../../../../../../../../I:/chapter400-inv/400-340/chapter400-340.doc#IDInternationalPersonnel)
of this chapter or senior IRS officials as defined in [Section
340.2.1](../../../../../../../../I:/chapter400-inv/400-340/chapter400-340.doc#IDSeniorIRSOfficial)
of this chapter should be referred to the SAC-SIID for investigative
consideration and coordination.

280.6 []{#InvestigativeProcedures .anchor}[Investigative
Procedures.]{.underline}

SAs will make a thorough analysis of the complaint or allegation and
prepare an investigative work plan outlining all evident steps. SAs will
place this information on the approved Chronological Case Worksheet
(Form OI 6501). SAs will conduct all leads to prove or disprove the
elements of the violation, or to show that the issue cannot be resolved.
Refer to [Section
250.4](../../../../../../../../I:/chapter400-inv/400-250/chapter400-250.doc#ChronCaseWorksheetOI6501)
of this chapter for further instructions on investigative work plans.

280.6.1 [Initial Interviews.]{.underline} Whenever possible, SAs will
interview the complainant within 15 days. If extenuating circumstances
prevent this, the SA should contact the complainant by telephone to
arrange for a mutually convenient interview time.

The decision to interview or not interview an IRS employee who is the
subject of an Employee Investigation should be made on a case-by-case
basis and consistent with the Privacy Act of 1974. See [Section
210.2](../../../../../../../../I:/chapter400-inv/400-210/chapter400-210.doc#EmployeesInterviewed)
of this chapter for a list of general guidelines. Where there is no
reasonable indication that a criminal statute has been violated, the SA
must consider interviewing the subject at the outset of the
investigation.

280.6.2 [Pledges of Confidentiality.]{.underline} Generally, OI does not
extend an assurance of confidentially to any individual who may be
involved in the violation being investigated. See [Section
210.5.5](../../../../../../../../imds-temp/chapter400-inv/400-210/chapter400-210.doc#PledgesOfConfidentiality)
of this chapter concerning pledges of confidentiality for witnesses and
requirements for reporting such matters on a Memorandum of Interview or
Activity (Form OI 2028-M). See also [Section
150.5.1](../../../../../../../../I:/chapter400-inv/400-150/chapter400-150.doc#GeneralGuidelinsForUseOfCS)
of this chapter for guidelines on the use of confidential sources
(CS's).

280.6.3 [Granting Confidentiality.]{.underline} Pursuant to [Section
210.3.3](../../../../../../../../I:/chapter400-inv/400-210/chapter400-210.doc#EmployeeComplainantsConfidentiality)
of this chapter, all Department of the Treasury employee complainants
are presumed to have confidentiality under Section 7(b) of the
[Inspector General (IG)
Act](http://www.access.gpo.gov/uscode/title5a/5a_2_.html), unless they
specifically consent to allow TIGTA to disclose their identities. As a
result, Treasury employees who furnish information to TIGTA and request
confidentiality pursuant to the IG Act are processed as follows:

-   Fully document the identity of the Treasury employee in PARIS;

-   Identify the employee in the Report of Investigation (Form OI 2028)
    (ROI) by the temporary identifier T-1, T-2, etc., as the employee's
    identity should not be made known outside of TIGTA; and

-   Check "No" to the "Confidentiality Waived" question in PARIS.

280.7 []{#ROIs .anchor}[Reports of Investigation.]{.underline}

SAs will close Employee Investigations and/or refer the ROIs for
criminal prosecution or administrative adjudication promptly.

SAs will prepare ROIs as outlined in [Section
250.7](../../../../../../../../I:/chapter400-inv/400-250/chapter400-250.doc#ROI)
of this chapter.

280.8 []{#SpecialReportingCategories .anchor}[Special Reporting
Categories.]{.underline}

280.8.1 [Report of Conflict of Interest Referrals.]{.underline} Pursuant
to 5 U.S.C. app. 4 § 402(e)(2) and [5 CFR §
2638.603](http://a257.g.akamaitech.net/7/257/2422/01feb20071500/edocket.access.gpo.gov/cfr_2007/janqtr/5cfr2638.603.htm),
TIGTA is required to report to the Director, Office of Government Ethics
(OGE), possible violations of Federal conflict of interest statutes, [18
U.S.C. §§ 203](http://www4.law.cornell.edu/uscode/18/203.html),
[205](http://www4.law.cornell.edu/uscode/18/205.html),
[207](http://www4.law.cornell.edu/uscode/18/207.html),
[208](http://www4.law.cornell.edu/uscode/18/208.html), and
[209](http://www4.law.cornell.edu/uscode/18/209.html). OGE requires a
report whenever a potential violation of any of the above statutes is
referred for criminal prosecution. OI utilizes a Notice of Conflict of
Interest Referral (OGE Form 202) to fulfill this reporting requirement.
The OGE Form 202 must be updated and resubmitted (in cumulative form)
whenever any of the following occurs:

-   Referral to Assistant United States Attorney (AUSA);

-   AUSA declination;

-   Issuance of an information or indictment;

-   Final disposition of criminal prosecution;

-   Referral to the IRS for administrative adjudication; or

-   Administrative action taken by the IRS or the employee (e.g.,
    resignation, retirement).

280.8.1.1 [Reporting Procedures.]{.underline} Following all actions that
require reporting, divisions must forward completed OGE Forms 202
through the Assistant Special Agent-in-Charge (ASAC) and SAC to the
"\*TIGTA Inv Operations" e-mail box by the 10^th^ of each month. If the
division has no conflict of interest referrals or subsequent actions to
report for the month, a negative report is required and must also be
sent to the "\*TIGTA Inv Operations" e-mail box by the 10^th^ of each
month.

Divisions should use the OGE SEARCH screen function in PARIS to assist
in determining whether referrals and/or actions have occurred in
conflict of interest cases that require the submission of an OGE Form
202.

The OGE Form 202 must include:

-   The specific action being reported;

-   The date the action occurred; and

-   All prior criminal and/or administrative actions. All actions must
    be reported on the same OGE Form 202. The initial OGE Form 202 must
    be updated and resubmitted in cumulative form as subsequent actions
    occur.

**Note:** Before reporting cases involving undercover (UC) operations,
electronic equipment usage and/or confidential grand jury information,
coordinate with the Operations Division for guidance on reporting
requirements.

The SAC-Operations will prepare a monthly memorandum to the Director,
OGE, advising of any referrals and subsequent actions.

280.8.2 [Recovering Unjust Enrichments.]{.underline} As an alternative
to or in addition to criminal prosecutions, civil sanctions should be
pursued in any case involving employees or non-employees who were
unjustly enriched. SAs should discuss civil and criminal aspects of
their investigations with an AUSA to ensure that all possible sanctions
available to the Government are pursued.

SAs should discuss debt collection activity with IRS officials following
an employee's arrest, suspension, or removal when the employee may be
indebted to the Government due to unjust enrichments. Coordinate with
the AUSA in prosecution cases. See [26 U.S.C. §
7804](http://www4.law.cornell.edu/uscode/26/7804.html) for additional
information.

280.8.2.1 [Initial IRS Notification in Theft and Embezzlement
Cases.]{.underline} In all investigations, including lockbox
investigations, where TIGTA receives information that a theft or
embezzlement of funds deposited with the IRS has occurred, notify the
IRS by memorandum from the SAC within 10 days of interviewing the
complainant and making a determination that there is a reasonable basis
to conclude a theft or embezzlement has occurred.

Generally, if financial harm to a taxpayer has occurred, notify the IRS
immediately so that appropriate action can be taken to make the taxpayer
whole. In cases where the affected taxpayers have been identified, the
SAC will provide the IRS with a list of the taxpayers so that the IRS
can protect the taxpayers from any undue collection activity. The SAC
will send the memorandum to the Field Director of the Submission
Processing Center that services each taxpayer's account. The memorandum
must contain the following available information:

-   Assigned case number;

-   Taxpayer's name, identification number, type of tax, tax period, and
    amount and date of payment;

-   Request that the taxpayer's account be credited;

-   Where the theft/loss occurred;

-   Status of the remittance; and

-   The name and telephone number of the SA.

If, during the investigation, the IRS needs information that was not
available when the initial notification was given, direct the IRS to
contact the SA identified in the initial memorandum. If the information
is provided verbally by the SA, the IRS may request that the verbal
information be confirmed in writing by a memorandum. When verbal
information is requested in writing, the SAC will provide the Field
Director of the respective Submission Processing Center with a
memorandum detailing the updated information.

See
[Exhibit(400)-280.1](../../../../../../../../I:/chapter400-inv/400-exhibits/exhibit400-280-1.doc)
for sample format of memorandum to a Field Director, Submission
Processing Center.

See
[Exhibit(400)-280.5](../../../../../../../../I:/chapter400-inv/400-exhibits/exhibit400-280-5.doc)
for Submission Processing Center addresses.

280.8.2.2 [Final Notifications in Theft and Embezzlement
Cases.]{.underline} At the completion of an investigation involving a
theft or embezzlement, notify the IRS of the final results of the
investigation, including the results of any prosecution and sentencing
so that the IRS can determine when to initiate collection action and the
amount to be assessed.

The SAC will send a memorandum of the results of prosecution and
sentencing to the Field Director of the Submission Processing Center
that services each taxpayer's account. The memorandum will contain the
following:

-   Subject's name;

-   Disposition of the case (e.g., guilty, not guilty, pretrial
    diversion);

-   Sentence (e.g., length of incarceration or probation, or amount of
    court-ordered restitution, fines, and court costs); and

-   If applicable, notification that TIGTA is transferring tax
    remittance money to the IRS that was seized during the investigation
    and forfeited by the court to TIGTA.

When tax remittance money is seized during a theft or embezzlement
investigation, the case SA should request the court to order that the
money be forfeited to TIGTA so TIGTA can transfer it to the IRS for
deposit into the Treasury General Fund to be credited to the affected
taxpayers' tax accounts. If the court orders the forfeiture of the
seized tax remittance money to TIGTA, the SA must convert the cash money
to a cashier's check or money order made payable to the U.S. Department
of the Treasury. The SAC will forward the check or money order with the
results memorandum and attach an IRS Form 3210, Document Transmittal
that contains the following information:

-   To Block: IRS Submission Processing Center Address where the results
    memorandum is being sent.

-   Document Identification Block: Seized tax remittance money, case
    number, cashier's check or money order number, made payable to the
    U.S. Department of the Treasury, and the amount.

-   Remarks Block: Overnight tracking number.

-   From Block: Case SA's mailing address.

-   Releasing Official Block: SAC signs.

The Form 3210, results memorandum, and check or money order must be
sealed in an inner "Confidential" envelope and mailed to the IRS using
traceable overnight mail.

Once the signed Form 3210 is received from the IRS, the SA must attach
the signed Form 3210 to a Statement of Special Moneys and Property
Transaction (Form OI 141), as supporting documentation for disposal of
the money. See Form OI 141 instructions for preparation and disposition
of the form, and Chapter 600, Sections 50.11.8.2 and 50.11.8.4 for
receipt and disposal of special moneys.

See
[Exhibit(400)-280.4](../../../../../../../../imds-temp/chapter400-inv/400-exhibits/exhibit400-280-4.doc)
for the format of the memorandum of prosecution and sentencing to a
Field Director, Submission Processing Center.

See
[Exhibit(400)-280.5](../../../../../../../../I:/chapter400-inv/400-exhibits/exhibit400-280-5.doc)
for Submission Processing Center addresses.

The SAC will prepare a memorandum transmitting the final ROI to the
Field Director of the Submission Processing Center that services each
taxpayer's account and attach to it a copy of the ROI. The transmittal
memorandum, ROI, and Referral Memorandum (Form OI 2076) is then sent to
IRS-IM as instructed in [Section
250.12](../../../../../../../../I:/chapter400-inv/400-250/chapter400-250.doc#ReferringROItoIRSActionInfo)
of this chapter. If the IRS Remittance Security Coordinator or the Field
Director, Submission Processing Center requests more information, direct
them to contact the originating SAC directly.

See
[Exhibit(400)-280.3](../../../../../../../../imds-temp/chapter400-inv/400-exhibits/exhibit400-280-3.doc)
for the format of the memorandum transmitting the final ROI to a Field
Director, Submission Processing Center.

[]{.mark}

280.8.2.3 [Court Ordered Restitution.]{.underline} The IRS has
designated a centralized office to collect and process all criminal
restitution payments in which the IRS is a victim of crime, and has
coordinated this procedure with the Administrative Office of the United
States Courts (AOUSC). In cases where the court orders restitution as a
part of sentencing, advise the AUSA's office and U.S. Probation Office
that restitution payments should include the defendant's name and be
sent to the following address:

> Internal Revenue Service
>
> Attn: MPU, STOP 151 (Restitution)
>
> P.O. Box 47-421
>
> Doraville, GA 30362
>
> Fax number: (770) 445-2299

[]{.mark}

[]{.mark}

280.8.2.4 [Stopping Payment of Money Due an Employee.]{.underline} The
IRS has authority to withhold the final payments of salary and benefits
of a separating employee who has been found to have embezzled or stolen
Government funds. To request that IRS consider such a stop payment of
funds, the SA should:

-   Obtain concurrence from the AUSA prosecuting the case;

-   Keep the AUSA apprised of the status of the employee to ensure that
    criminal prosecution is not influenced by any administrative action;
    and

-   Send a memorandum from the SAC to the Associate Director,
    Transactional Processing, at the following address:

> IRS-AWSS
>
> 1111 Constitution Avenue, NW
>
> A:PS:TP-CP6 2nd Floor
>
> Attention: Associate Director
>
> Washington, DC 20224
>
> Fax Number: 202-283-9425

See
[Exhibit(400)-280.2](../../../../../../../../imds-temp/chapter400-inv/400-exhibits/exhibit400-280-2.doc)
for a sample format of the memorandum to the Associate Director,
Transactional Processing.

**Note:** In cases where TIGTA funds are embezzled or stolen during a
remittance test, the above procedures involving stopping payment also
apply. For further information on remittance tests see [Section
390](../../../../../../../../I:/chapter400-inv/400-390/chapter400-390.doc)
of this chapter.

280.8.3 [26 U.S.C. § 7431 Notifications.]{.underline} Upon information
or indictment under 26 U.S.C. § 7213, 26 U.S.C. § 7213A, or 18 U.S.C. §
1030(a)(2)(B), the SAC-Operations, upon notification from the field,
will provide the information to the IRS Office of Security and Privacy,
which will notify the affected taxpayer(s) pursuant to the notification
provision of 26 U.S.C. § 7431(e). For further information on 26 U.S.C. §
7431 Notifications to the IRS, see Section 290 of this chapter.

280.9 []{#TIGTAInvOfSexualHarassment .anchor}[OI Investigations of
Sexual Harassment Allegations at the IRS.]{.underline}

TIGTA is responsible for investigating the following types of Sexual
Harassment allegations at the IRS:

-   Quid pro quo situations, in which submission to or rejection of
    sexually harassing behavior is used as a basis for employment
    decisions affecting the employee. Examples of quid pro quo behavior
    include promises of a promotion for engaging in sexual activity,
    negative appraisals for refusing to engage in sexual activities, or
    employment action taken against an employee for refusing to engage
    in sexual activities;

-   Unwanted physical contact of a sexual nature; and

-   Conduct of a sexual nature for the purpose or effect of unreasonably
    interfering with an individual\'s work performance or creating an
    intimidating, hostile, or offensive working environment.

280.9.1 [IRS Policy and Authority.]{.underline} IRS policy is to provide
a work environment free from sexual harassment. Sexual harassment will
not be tolerated, whether committed by executives, supervisors,
employees, or non-employees such as contractors, taxpayers, or visitors.

Sexual harassment is:

-   Illegal under Title VII of the Civil Rights Act of 1964, as amended;

-   Illegal under Equal Employment Opportunity Commission (EEOC)
    regulations, [29 CFR §
    1604.11](http://a257.g.akamaitech.net/7/257/2422/08aug20031600/edocket.access.gpo.gov/cfr_2003/julqtr/29cfr1604.11.htm);
    and

-   Specifically prohibited by Treasury Employee Rules of Conduct, [31
    C.F.R. §
    0.214](http://a257.g.akamaitech.net/7/257/2422/03jul20071500/edocket.access.gpo.gov/cfr_2007/julqtr/31cfr0.203.htm).

280.9.2 [Reporting Sexual Harassment Allegations.]{.underline} An IRS
employee can report sexual harassment through any of the following
methods:

-   The statutory EEO complaint process, which includes EEO counseling
    and the option of simultaneously bringing the allegation to the
    attention of the Commissioner and TIGTA;

-   The Treasury Hotline 800-359-3859;

-   Contact with IRS management such as a supervisor or head of office;

-   The negotiated grievance process for bargaining unit employees; or

-   The toll-free TIGTA Hotline 800-366-4484 or direct contact with
    TIGTA if the sexual harassment involves quid pro quo circumstances
    or unwanted physical contact of a sexual nature.

A victim is not required to report sexual harassment allegations to
TIGTA. However, EEO officials and IRS managers to whom allegations are
reported are required to refer to TIGTA those allegations meeting the
criteria set forth in Section 280.9.

280.9.3 [Relationship Between EEO and TIGTA Investigations.]{.underline}
A victim may report an allegation of sexual harassment to both TIGTA and
EEO. Employees may continue to seek a remedy under the statutory EEO
complaint process even if a TIGTA investigation is initiated.

Separate TIGTA and EEO investigations may be conducted simultaneously
regarding the same incident. The referral to TIGTA does not suspend the
EEO process and an EEO investigation does not suspend the TIGTA
investigation.

SAs will explain to complainants that a TIGTA investigation is not the
same as an EEO investigation and that:

-   Victims are not required to report the allegation to EEO;

-   If EEO remedies are desired, victims making a sexual harassment
    complaint to TIGTA must contact an EEO counselor within 45 days of
    the alleged discrimination to preserve their EEO rights; and

-   TIGTA investigations concentrate on the issue of employee
    misconduct, while EEO investigations concentrate on resolving the
    alleged workplace discrimination.

When a victim initially reports an allegation to EEO that meets the
criteria for referral to TIGTA, EEO informs the victim that:

-   A referral to TIGTA will be made;

-   His/her identity will not be revealed without his/her written
    authorization; and

-   His/her request to be anonymous may limit IRS management's ability
    to conduct an inquiry or resolve the allegations.

If the victim does not consent to reveal his/her name, EEO refers the
allegation to TIGTA, but maintains the anonymity of the victim.

**Note:** Once an employee files a *formal* complaint in the EEO
process, he/she has no right to anonymity.

Do not provide EEO investigators with a copy of a TIGTA ROI or allow
them to review the ROI. Refer all requests for TIGTA documents to the
TIGTA Disclosure Officer. See [Chapter 700, Chief Counsel, Section
20.3](../../../../../../../../I:/chapter700-counsel/700-20/700-20.doc#Disclosure)
of the TIGTA Operations Manual for an overview of the responsibilities
of the TIGTA Disclosure Section.

280.9.4 [Case Initiation Procedures.]{.underline} SAs will document the
receipt of any complaints regarding sexual harassment, regardless of the
source. Forward the allegation to the ASAC for evaluation. If
communicated verbally, confirm the complaint in writing, via a
Memorandum of Interview or Activity (Form OI 2028M) to the ASAC.

The ASAC evaluates allegations of sexual harassment to determine if the
circumstances warrant a TIGTA investigation. While not every sexual
harassment allegation warrants an investigation, an investigative
determination is made in every complaint meeting the criteria in Section
[280.9](#TIGTAInvOfSexualHarassment) of this chapter. TIGTA officials
may consult with EEO officials to determine whether the allegations meet
either of the two criteria.

After this threshold determination, the ASAC decides whether the
allegation should be investigated by OI. The ASAC forwards the
information to the SAC-Field Division or, in the case of a TIGTA
employee, to the SAC-SIID, for concurrence prior to initiating an
investigation.

**Note:** The SAC must concur before an investigation is initiated. The
ASAC will document this concurrence and its date in the "Remarks"
section in PARIS.

Use Violation Code "590 -- Sexual Harassment" in PARIS to indicate quid
pro quo or touching allegations.

Use Violation Code "952 -- EEO Issue/Sexual Harassment" in PARIS for
sexual harassment allegations that may be administrative in nature
(e.g., verbal comments).

280.9.5 [Notifying IRS Management.]{.underline} Prompt notification to
IRS management allows for immediate and appropriate corrective action in
cases of sexual harassment. Within five workdays of receiving the
complaint, the SAC or his/her designee will notify IRS management
concerning OI's decision to:

-   Initiate an investigation to resolve the sexual harassment
    complaint; or

-   Not investigate the sexual harassment complaint.

280.9.6 [Sexual Harassment Allegations Requiring Special Inquiries and
Intelligence Division Coordination.]{.underline} Allegations made
against IRS CID employees, employees of the IRS Office of Chief Counsel,
TIGTA employees, International IRS employees as defined in [Section
340.2.2](../../../../../../../../I:/chapter400-inv/400-340/chapter400-340.doc#IDInternationalPersonnel)
of this chapter or senior IRS officials as defined in [Section
340.2.1](../../../../../../../../I:/chapter400-inv/400-340/chapter400-340.doc#IDSeniorIRSOfficial)
of this chapter must be referred to the SAC-SIID.

280.9.7 [Investigations of Sexual Harassment.]{.underline} Absent
unusual circumstances:

-   SAs will complete sexual harassment investigations within 45 days
    after receipt of a complaint; and

-   SAs will give sexual harassment investigations a high priority.

SAs must:

-   Establish an investigative strategy upon receipt of the case; and

-   Consider the benefit of having an SA of the opposite sex assist in
    conducting the investigation.

A victim is not required to provide testimony in instances where third
parties have provided the sexual harassment complaint or allegation. A
victim's right to confidentiality must be maintained at all stages of
the investigative process and will only be disclosed on a "need to know"
basis. While there are no Federal criminal statutes that directly
address quid pro quo sexual harassment, consider the elements of the
case and other Federal statutes which may fit the circumstances, such as
blackmail, extortion, bribery or gratuities.

The following reference material may be helpful when investigating
allegations of sexual harassment:

-   [IRS Document 12011, Plain Talk About Ethics and
    Conduct](http://publish.no.irs.gov/DOCS/PDF/35691D03.PDF);

-   The [Equal Employment Opportunity Commission](http://www.eeoc.gov/);

-   U.S. EEOC Regulations, [29 C.F.R., Part
    1614](http://ecfr.gpoaccess.gov/cgi/t/text/text-idx?c=ecfr&rgn=div6&view=text&node=29:4.1.4.1.13.1&idno=29);

-   U.S. EEOC Management Directive 110, Federal Sector Complaint
    Processing Manual; and

-   [18 U.S.C. §§
    2241](http://www4.law.cornell.edu/uscode/18/2241.html), [18 U.S.C §
    2242](http://www4.law.cornell.edu/uscode/18/2242.html) and [18
    U.S.C. § 2245](http://www4.law.cornell.edu/uscode/18/2245.html).

280.9.8 [Referral for Administrative Adjudication.]{.underline} When
referring a TIGTA ROI involving sexual harassment to IRS management, the
SA will make the following annotation in the "Remarks" section of Form
OI 2076: "This Report of Investigation involves a matter in which there
may be related EEO activity."

280.10 []{#TaxFinCrimeEmployeeMisconduct .anchor}[Tax and Financial
Crime-Related Employee Misconduct. S]{.underline}As may request
assistance from IRS CID for tax and financial crime-related employee
misconduct. Allegations of misconduct by IRS or TIGTA employees are the
investigative responsibility of TIGTA. Although IRS CID has been
delegated responsibility to investigate substantive tax offenses and
related offenses, the overriding goal of the IRS to maintain the
integrity of its workforce mandates that disputes involving joint
investigations regarding IRS personnel ultimately be resolved by TIGTA.

If IRS CID declines investigation of potential tax or financial
crime-related misconduct, request an employee audit to determine if the
employee has violated a rule of conduct - including a potential
violation of Section 1203(b)(9) of the Restructuring and Reform Act of
1998 (RRA), concerning the willful understatement of a tax liability.

In cases where IRS or TIGTA employees are allegedly committing
substantive tax or financial offenses such as filing false returns or
other documents, willfully failing to file returns or pay taxes,
willfully attempting to evade the assessment or payment of taxes, filing
false claims for refunds, conspiring to defraud the U.S., or to commit
an offense against the U.S. ("Klein conspiracy"):

-   The SAC contacts IRS CID to obtain assistance in investigating the
    substantive tax and financial aspects of any allegations;

-   The SAC requests an SA from IRS CID to assist in evaluating and, if
    appropriate, conducting the investigation for substantive tax or
    financial offenses;

-   TIGTA\'s request for assistance in such investigations is normally
    made by the SAC to the appropriate IRS CID management official;

-   The IRS CID SA will investigate allegations pursuant to IRS CID's
    delegated responsibilities to investigate substantive tax offenses
    and related offenses.

In any substantive tax or financial crime investigation independently
initiated by IRS CID which is found to involve an IRS employee:

-   IRS CID will immediately notify TIGTA of the allegations; and

-   The OI SA will prepare a Form OI 2028-M which will be placed in the
    investigative file to document the notification.

If, after initial review of an employee tax allegation, the IRS CID SA
working with TIGTA believes that no criminal violation has occurred:

-   The IRS CID SA should consult with IRS CID management for
    concurrence and advise TIGTA accordingly;

-   If TIGTA concurs that no criminal violations have occurred, the IRS
    CID SA will share their investigative findings with TIGTA and
    provide a report to TIGTA summarizing the tax issues and
    investigative activity to date;

-   The IRS CID SA will not include conclusions or recommendations in
    the ROI;

-   If approved by TIGTA management, the IRS CID report will become an
    attachment to the TIGTA ROI.

This same process will be followed if IRS CID conducts an investigation
but does not believe there is a reasonable probability of conviction.

However, if tax charges are recommended by IRS CID and agreed to by
TIGTA, the ROI will be submitted through normal IRS CID channels to the
appropriate OI SAC. The SAC will be responsible for forwarding the
report to the local IRS CID SAC for referral to the United States
Department of Justice (DOJ) Tax Division.

If employee tax violations are alleged to have been committed by an IRS
CID employee:

-   The information will be provided by the responsible OI SAC to the
    responsible IRS CID Director of Field Operations;

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-   The IRS Cl Director of Field Operations will ensure that the
    assigned IRS CID SA is from a district other than the district to
    which the targeted IRS CID employee is assigned.

Additional information on investigative responsibility is outlined in
the "[MOU between the IRS and TIGTA Regarding Investigative
Responsibility](http://web.tigta.treas.gov/IMDS/mous/ci08-10-00.pdf),"
effective 08/10/00.

Because a potential violation of RRA § 1203(b)(9) may also be a
violation of I.R.C. § 7206, any subject interview of an IRS or TIGTA
employee regarding false statements on his/her tax return should be
conducted using an Advisement of Rights - Non-Custodial (OI Form 5230),
unless prosecution has been declined by the appropriate Department of
Justice authority (DOJ Tax Division). To obtain a prosecutive
declination in this type of case from DOJ Tax Division, complete a
Referral for Prosecutive Declination and Kalkines Warning Authorization
(Form OI 8110), and mail the referral to the DOJ Tax Division at the
address indicated on the form. The DOJ Tax Division will return the form
to the requesting office with a prosecutive decision. After the DOJ Tax
Division has declined prosecution, interviews of the employee should be
conducted using a Statement of Rights and Obligations (Form OI 8112).

280.10.1 [Requesting Employee Audits.]{.underline} When an investigation
declined by IRS CID includes allegations that an IRS or TIGTA employee's
tax return may contain false statements and/or an understatement of tax
liability, the ASAC will request a tax audit by following the procedures
outlined in [Section
140.10](../../../../../../../../I:/chapter400-inv/400-140/chapter400-140.doc#AuditReferrals)
of this chapter.

IRS will provide the results of the audit to the TIGTA office or
individual identified in the requesting memorandum. Upon receipt of the
audit results for IRS employees, the SA will prepare a final ROI,
including the results of the audit, and forward the ROI to IRS-IM for
adjudication as instructed in [Section
250.12](../../../../../../../../I:/chapter400-inv/400-250/chapter400-250.doc#ReferringROItoIRSActionInfo)
of this chapter.

ROIs that allege violations of RRA § 1203 (b)(9) should not be forwarded
to IRS-IM without audit results. IRS is unable to adjudicate this type
of allegation without the audit results.