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![handle is hein.gao/gaobaacqg0001 and id is 1 raw text is:
DCCUMEWT RESUME
03451 - (A2E33751]
Internal Revenue Service's Contrcs over the Use of Confidential
Infrnmants: Recent Improvements Not Adequate. GGD-77-46;
B-147762. September 1, 1977. 54 pp. + 5 appendices (53 pp.).
Repor; to Chairman, Joint Committee on Taxation; Vice Chairman;
by Elmer E. Staats, Comptrcller General.
Issue Area: Law Enforcement dnd Crime Prevention (500) ; Tax
Adinistraticn: Intelligence Activities to Insure Tax Law
Compliance (2703).
Contact: General Government Div.
Budget Function: General Government: Central Fiscal Operations
(803); Law Enforcement and Justice: Federal Law Enforcement
and Prosecuticn ('151).
Organization Concerned: Internal Revenue Service.
Congressional Relevance: House Ccmmittee on Ways and Means;
Senate Committee on Finance: Joint Committee on Taxation.
Authority: 26 U.S.C. 7623. Internal Revenue Code of 1954, sec.
7623.
Primarily because of inadequate management attention,
the Internal Revenue Service (IRS) had not done all it could to
get the most benefits with the least :isk in dealing with
confidential informants. Findings/Conclusions: Informants were
sometimes used in ill-defined and overly broad intelligence
gathering efforts, procedures for evaluating their information
were inadequate, and their use was not systematically reviewed
by management. Since 1975, the IRS has strengthened its
controls. but it could do more. Management needs to pay more
attention to the fact that an informant is used only after the
potential benefits and risk have been properly assessed.
Recommendations: 7he Cohmissioner of Internal Revenue should
require that higher level management officials--preferably
regional ccmuissicners--authorize the use of any informant who
will be gathering information at the Service's request or
encouragement after a determination that there is: reasonable
cause to believe a tax law has been violated, no practical
alternative for ottaining essential information, and. a specific
limitation cm the time and scope of the informant's activities.
The Commissioner should also require that requests to use each
such informant show, among other things, why the informant is
needed, how be was developed and determined reliable, and how he
will be used. In ord-.r to spur proper implementation of the
guidelines and adequate management attention to informant
activities, the Commissioner should review those actirities at
least annually. (Author/SC)](ViewImageLocal?handle=hein.gao/gaobaacqg0001&div=1&collection=&method=preview&ext=.png&size=3)