Creation of Special Investigation Units in the Revenue Regions

November 6, 1980 REVENUE ADMINISTRATIVE ORDER NO. 05-80 SUBJECT : Creation of Special Investigation Units in the Revenue Regions TO : All Internal Revenue Officers and Others Concerned I. OBJECTIVES This Order aims to render more effective the administration of the tax fraud program of the Bureau through the creation of special investigating units in every Revenue Region. Specific objectives for the establishment of such units are: 1. To promote the development of tax fraud cases in the revenue regions; 2. To achieve greater psychological impact on taxpayers all over the country thus encouraging voluntary compliance; acd 3. To further reduce enforcement costs through decentralization of investigation of tax evasion cases, at the same time increasing revenue take. II. ORGANIZATION To attain these objectives, a Special Investigation Unit is hereby created in every Revenue Region which shall be directly under the Office of the Regional Director. The Unit shall be composed of a Unit Head, preferably a Supervising Revenue Examiner II, an Assistant and an appropriate number of revenue examiners (but not to exceed ten) and supportive personnel to carry out its functions. The personnel of the Unit shall be drawn from among the qualified personnel of existing investigating offices. In the choice of personnel for the unit, preference shall be given to those with special training in fraud investigation. III. FUNCTIONS The Unit shall have the following functions: 1. Administer the tax fraud program of the Bureau within each region; 2. Implement policies and plans for the effective conduct of tax fraud investigations within the region; 3. Initiate tax fraud investigations in accordance with prescribed guidelines, procedures and techniques; 4. Receive complaints, denunciations, or information relative to fraud or violation of any provisions of the National Internal Revenue Code or any law or regulation administered by the Bureau of Internal Revenue; cd i 5. Evaluate allegations/indications of violations of the National Internal Revenue Code and related statutes to determine appropriate course of action; 6. Conduct surveillance and other activities on suspected violations of the Tax Code and related statutes; 7. Submit periodic reports and other data for use by top management in the formulation of policies, programs, techniques and procedures regarding tax fraud cases; and 8. Serve as the investigating arm of the Regional Director on administrative cases of erring personnel in close coordination with the Legal Branch. IV. JURISDICTION As a general rule, the Unit shall have jurisdiction over cases referred to the Region by the Tax Fraud Division and those developed on taxpayers within the jurisdiction of the region except when investigations would transcend regional boundaries, and policy cases. Guidelines, policies and procedures shall be prescribed in a Revenue Memorandum Order. V. REPEALING CLAUSE All Revenue Orders, Circulars and other issuances or portions thereof that are inconsistent with the provisions of this Revenue Administrative Order are hereby repealed or revoked. casia VI. EFFECTIVITY This Order shall take effect upon approval. cdasia RUBEN B. ANCHETA Acting Commissioner