Opinion ID: 734910
Heading Depth: 1
Heading Rank: 1

Heading: gathering of evidence

Text: 3 Appellant argues for the exclusion of evidence allegedly gathered in violation of IRS policy. Absent unusual circumstances, the exclusionary rule does not apply when IRS agents violate internal regulations, without also infringing on constitutional or statutory rights. United States v. Snowadzki, 723 F.2d 1427, 1430-31 (9th Cir.1984). Here, however, there was no violation of internal regulations or of appellant's rights. 4 Labertew's information was only a first indication of fraud, which does not warrant transfer to the Criminal Investigation Division (CID). See Internal Rev.Manual, § 4565.21. The district court was not erroneous in determining that there was no firm indication of fraud until January, 1993, when Anderson failed to receive adequate explanations in response to documentation provided in December, 1992. IRS policy dictates that at a suspicion of fraud, examiners should endeavor to ask the taxpayer, the preparer, the representative, or any other involved party for an explanation of the 'discrepancies' which are the basis of the examiner's suspicion of fraud and any other questions which will resolve the question of the taxpayer's intent. Id. This is precisely the type of investigation Anderson undertook with regard to his questioning of Bennallack, Smith, Southern Distributors, and Labertew. The investigation comported with IRS policy. 5 Moreover, appellant's Fourth Amendment rights were not violated. There is no evidence that CID was involved in agent Anderson's investigation prior to January, 1993, and appellant was therefore not deceived as to the investigation's nature. See U.S. v. Tweel, 550 F.2d 297, 299 (5th Cir.1977). Appellant has not met his burden of showing that the investigator engaged in sneaky deliberate deception or that he affirmatively and intentionally misled the defendant as to the nature of the investigation. See Id. The district court correctly denied defendant's motion to dismiss the indictment or, in the alternative, to suppress evidence.