ONDCP Seal
 PolicyPolicy
IV. Agency Budget Summaries

INTERNAL REVENUE SERVICE


  1. RESOURCE SUMMARY

  2. METHODOLOGY

    • The Internal Revenue Service (IRS) drug control budget contains two components: Criminal Investigation (CI) and Currency Reporting Forms Processing.

    • IRS-CI commits 23 - 25 percent of its Direct Investigative Time to the investigation and prosecution of Drug and Drug Money Laundering Organizations.

    • Currency Reporting Forms Processing: The resources expended to process the Currency Reporting Forms, such as Currency Transactions Reports and Suspicious Activity Reports as required by the Bank Secrecy Act. Forms are processed for reporting banks, financial institutions, and non-bank money services businesses. This program activity is reported in a separate account in IRS's budget activities and is scored as 100 percent drug-related.

  3. PROGRAM SUMMARY

    • The IRS-Criminal investigation is charged with the enforcement of the criminal statutes contained in the Internal Revenue Service Code (Title 26), the criminal statutes contained in the Bank Secrecy Act (Title 31) and the Money Laundering Control Act (Title 18), in order to encourage and achieve, directly or indirectly, voluntary compliance with the Internal Revenue laws.

      • The IRS-CI accomplishes its mission in supporting the overall IRS mission through the investigation of criminal violations under its purview through its two program areas, the Fraud Program and the Narcotics Program. The Narcotics Program supports the National Drug Control Strategy through investigations and prosecutions.

      • The IRS-CI has also developed and is implementing an international strategy to accomplish its law enforcement objectives in the international arena. The IRS-CI strategy calls for the placement of Special Agents in overseas Posts-of-Duty. These Special Agents facilitate the development and utilization of information obtained in foreign countries in support of criminal investigations over which CI has law enforcement responsibility.

  4. BUDGET SUMMARY

    1998 Program

    • The FY 1998 program provides $72.1 million and 929 FTE.

    Goal 2: Increase the safety of America's citizens by substantially reducing drug-related crime and violence.

    • Of the total counternarcotics funding received by the IRS, $49.2 million supports IRS-CI's effort in the investigation of drug organizations, including domestic drug money laundering organizations. The program provides IRS-CI the ability to participate in the Organized Crime Drug Enforcement Task Force, the High Intensity Drug Trafficking Areas, the High Level Drug Leaders Project and various Financial Investigative Task Forces established by IRS-CI.

    Goal 5: Break foreign and domestic drug sources of supply.

    • The IRS international strategy is designed to accomplish its law enforcement objectives in the international arena. In FY 1998, the IRS will fund $22.8 million for Goal 5 activities. In addition to the placement of Special Agents in overseas Posts of Duty, the IRS places Special Agents in the intelligence community served by Interpol.

    • The IRS, together with its Attache's, provide assistance to foreign governments as it relates to the establishment and/or enhancement of money laundering, criminal tax, and asset forfeiture law.

    • They assist foreign governments in the development of, and improvement to, the exchange of information agreements. They also provide anti-money laundering training courses and financial investigative techniques training courses in conjunction with their National Training Academy in Glynco, GA, with the assistance of their Attache's stationed in foreign posts of duty.

    1999 Request

    • The IRS is requesting a total of $73.1 million and 929 FTE in FY 1999. This represents an increase of $1.0 million over the FY 1998 funding level.

    Goal 2: Increase the safety of America's citizens by substantially reducing drug-related crime and violence.

    • The total drug control request for Goal 2 activities for FY 1999 is $49.8 million, a net increase of $0.5 million over FY 1998.

    Goal 5: Break foreign and domestic drug sources of supply.

    • The total drug control request for Goal 5 activities for FY 1999 is $23.3 million, a net increase of $0.5 million over FY 1998.

  5. PROGRAM ACCOMPLISHMENTS

    • In FY 1997, the IRS-CI recommended prosecution on 1,283 narcotics cases. Approximately 65 percent (projected) of all narcotics cases investigated by IRS-CI recommend prosecution on money laundering violations.

    • In FY 1997, the IRS-CI initiated 1,617 investigations which related to IRS-CI's narcotics program. Of the investigations initiated under the narcotics program in FY 1997, 87 percent, or 1,407, involved money laundering or currency crime violations.

    • In FY 1997, the IRS-CI recommended prosecution on 1,283 investigations initiated in the narcotics program.

    • In FY 1997, the IRS-CI had 1,214 indictments/information's returned as a result of investigations initiated in the narcotics program.

    • In FY 1997, the IRS-CI documented over $4 billion in provable money laundering transactions associated with all (fraud and narcotics) money laundering cases. Over the three year period of 1995 through 1997, IRS-CI documented in excess of $11 billion in provable money laundering transactions associated with all money laundering cases.