Justice Manual § 6-4.243

The Tax Division authorizes the IRS to refer directly to the United States Attorney’s Office to conduct a grand jury investigation or for prosecution the following categories of matters:

Excise taxes. This category includes all 26 U.S.C. and 18 U.S.C. offenses involving taxes imposed under Subtitles C, D, and E of the Internal Revenue Code (26 U.S.C.), except taxes imposed under Chapter 24 (withholding from wages), 32A parts I through III (motor and aviation fuels), and 38D (ozone-depleting chemicals).

Multiple filings of false and fictitious returns claiming refunds. This category includes all 18 U.S.C. §§ 286 and 287 charges that arise when a taxpayer files, in a single tax year, two or more returns on which false refunds are claimed. This category does not include, and the IRS may not directly refer to the United States Attorney’s Office, cases involving return preparers who falsified returns to claim refunds or cases involving persons who submitted false or fictitious claims for refund to the IRS through the Electronic Filing (ELF) program. (18 U.S.C. §§ 286 and 287).

Trust fund matters. This category involves alleged violations of the trust fund laws. (26 U.S.C. §§ 7215 and 7512).

"Ten percenter" matters. This category includes wage-related cases in which the holder of a winning bet pays a nominee a percentage of winnings in exchange for the nominee's redemption of the winning bet. The IRS may directly refer such cases to the United States only if they involve an arrest that occurs at the time of the offense. 26 U.S.C. § 7206(2).

IRS Form 8300 Returns. This category involves cases in which a taxpayer who receives cash in a trade or business and is required under 26 U.S.C. § 6050I to file an IRS Form 8300, fails to file or files a false Form 8300. With some exceptions, the Tax Division authorizes direct referrals in such cases to prosecute violations under 26 U.S.C. §§ 7203 and 7206. See Tax Division Directive No. 87-61 (February 27, 1987), available at Criminal Tax Manual, Chapter 3.

The United States Attorney’s Office may initiate or decline prosecution of direct referral matters without first obtaining Tax Division approval, but in all other tax matters may initiate proceedings only after the Tax Division authorizes prosecution. Once a prosecution of any tax matter, including a direct referral matter, is initiated, however, the United States Attorney’s Office may not dismiss the indictment, information, or complaint unless and until the Tax Division authorizes dismissal. See JM 6-4.246.