Tuesday, July 20, 2010

Even More on DOJ Authority to Investigate Tax Crimes (7/20/10)

I have previously blogged this issue here to address DOJ Tax's claims that it has authority to investigate tax crimes. I had cited the Webster Report to the effect that the IRS was the only federal agency authorized to investigate tax crimes. I was reading a new TIGTA Report today titled The Criminal Investigation Division Can Take Steps to Ensure Its Seizure Opportunities Are Maximized, No. 2010-30-058 (6/18/10). The report also says (Background, p. 1):  "The CI Division is the only Federal agency that can investigate potential criminal violations of the Internal Revenue Code."

Well, I thought, perhaps TIGTA is just not as smart or savvy as DOJ Tax and was just talking off the reservation (as was, presumably Judge Webster in the Webster report). So, I just did the trusty Google search and I find that the following sources, among many others, also repeat this notion, perhaps rotely (maybe cloning it from Judge Webster or whoever he cloned it from).





You know, I guess if it is said often enough by somewhat credible sources (I am not among them, but can repeat what I read on the internet), someone may begin to believe this stuff.


  1. If DOJ has no authority to conduct tax investigation, does it mean that HSBC (or other's) client who received a letter from DOJ can simply disregard it? Or return it back mentioning that DOJ has no authority to ask those questions? What would DOJ do in such a hypothetical case?

  2. Anonymous,

    I don't think that the target of a DOJ Tax criminal tax investigation can ignore the investigation or any indictment that may come from it. I think the test of the propriety of the investigation would come after the indictment.

    I can't speak for what DOJ Tax would do in a case where the taxpayer sent back the letter stamped unacceptable or some such. I suspect that DOJ Tax would not affected one way or the other.

    Thanks for your comment.

    Jack Townsend

  3. Sheesh! I think its safe to say if you got a letter like that from DOJ Tax you had better be lawyered up and hopefully you had already "Got In Line Brother". Ya think?

  4. I may be a little late to this discussion, but, in response to Anonymous' question, I would hire the author of this blog, Jack Townsend, if I got such a letter. His commentary is knowledgable, thoughtful, and not a bombastic account of how great he is, unlike most of his lawyer brethren. For the record, I have no connection to Jack other than as a reader and sometimes commentator on this blog!


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