Seventeen Month Report of the Treasury/IRS Narcotics Trafficker Tax Program During November, Treasury Agents and support personnel of the Internal Revenue Service seized and collected $2.4 million from narcotics traffickers and made assessments of $5.4 million. In addition, 68 new major targets were selected and 157 minor targets were placed under tax action. In the Courts, 2 traffickers were convicted, and 4 indictments were returned. The Treasury has recommended an additional 11 cases for prosecution. The additional targets expanded the program into one new state, South Dakota, and eight metropolitan areas --Aberdeen, South Dakota; Augusta, Georgia; Peoria, Illinois; Annapolis, Maryland; Reno, Nevada; Chattanooga, Tennessee; Fort Worth, Texas, and Bridgeport, Connecticut. The 17 months result of this program are as follows: 1,175 Major Targets and 1,239 Other Traffickers In 46 states, 82 metropolitan areas and the District of Columbia, 1,175 targets have been selected by Treasury's Target Selection Committee and referred to the IRS for intensive tax investigation (see attached Table I). Under the direction of IRS Commissioner Johnnie M. Walters, 550 Treasury Agents and 112 support personnel are presently conducting these investigations. The Congress has passed a supplemental appropriation of $4.5 million which will increase the number of Treasury Agents to 648. In addition, 1, 239 minor targets traffickers are under tax action. $82.5 Million Assessed--$15.6 Million Collected $82.5 million in taxes and penalties have been assessed under the program, of which more than $15.6 million have already been collected. The drug traffickers illegal profits are being used to put them out of business (see attached Tables II and III). 20 Convictions +44 Indictments 61 Prosecution Recommendations = 125 Twenty men have been convicted on criminal tax charges; 44 other criminal tax cases are pending in Federal District Courts in Atlanta, Miami, Detroit, Los Angeles, San Francisco, Seattle, Boston, Indianapolis, Baltimore. and Washington, D. C., and in other areas; and another 61 investigations have been completed with prosecution recommendations (see attached Tables II and 1/ Jeopardy assessments are assessments of taxes made where a return has been filed or should have been filed, but where circumstances exist under which delay might jeopardize the collection of the revenue. 2/ Termination of tax year is a computation of the tax due and assessment made where the time for filing the return has not become due where circumstances exist under which delay might jeopardize the revenue. 3/ These are assessments made as a result of seizures by other las enforcement agencies of cash or other assets against current income of narcotic traffickers where delay might jeopardize collection of the revenue. Treasury Department December 1..1973 |