greyseal
10-29-2011, 07:26 AM
Can the IRS Audit You
Not to be taken as legal advice
Delegation Order Number 115 (Rev. 5) of May 12, 1986, is the only delegation of authority to conduct Audit. It states that the I.R.S. and B.A.T.F. can only audit themselves, and only for amount of $750.00 or less. Any amount above that amount, must be audited by the Controller General according to Title 31 USC. No other authority to audit exists. No I.R.S. or B.A.T.F. agent, or representative can furnish any law, rule, or regulation, which gives them the authority to audit anyone other than themselves
The form 4564 used to Audit
Internal Revenue Manual. (located on line)
4.61.2 Foreign Based Books and Records
4.61.2.2 (05-01-2006)
Procedures for Obtaining Books and Records Located Outside the United States
Request the taxpayer having possession, custody, or control of records located outside the United States to make them available for examination in the United States. A summons can only be enforced against the person having possession, custody, or control of the records.
All requests must be in writing. Form 4564 (Information Document Request) should be used.
The taxpayer is generally given 60 days to furnish requested books and records. There is a 30-day limit for purposes of IRC section 6662(e).
If the taxpayer is unable or unwilling to furnish records, the examination could occur at the foreign site. The provisions related to on-site examinations are found in IRM 4.60, International Procedures.
Part 4. Examining Process
Chapter 26. Bank Secrecy Act
Section 6. Bank Secrecy Act Examiner Responsibilities
4.26.6 Bank Secrecy Act Examiner Responsibilities
Exhibit 4.26.6-4 Examination Information Report, Form 5346
1. The purpose of the Bank Secrecy Act (BSA) examination is to:
• Determine a financial institution’s compliance with the Federal government’s anti-money laundering (AML) statutes and regulations, with an emphasis on AML program requirements;
4.26.6.2 (11-14-2006)
Identification
1. The BSA coordinator is responsible for the identification of NBFIs subject to the registration, reporting, recordkeeping, and compliance program requirements under the BSA. The BSA examiner is responsible for assisting in the identification of NBFIs
4. When conducting a BSA examination, the BSA examiner must verify and document in the administrative file that the financial institution received the Letter 1052, Notice of Possible IRS Check to Verify Maintenance of Required Records and Filing Reports. The BSA examiner should determine who received the letter, when it was received, and if the information was shared with all office personnel who routinely conduct the currency transactions of the financial institution. A copy of Letter 1052 should be retained in the administrative file. If the financial institution states that they did not receive it, the BSA examiner should reissue the letter to the financial institution. If the BSA examiner determines that the financial institution has changed ownership or legal status, the BSA examiner must contact Criminal Investigation (CI) to secure clearance prior to the issuance of a Letter 1052 to the financial institution along with notifying the BSA coordinator. The Letter 1052 should be signed by the BSA examiner if the BSA examiner issues the letter.
4.26.6.4.1.2 (11-14-2006)
Evaluation of Program, Policies, Procedures, and Internal Controls
1. Each financial institution must develop and implement a written AML compliance program reasonably designed to assure and monitor compliance with Title 31 regulations *(31 CFR 103.125). Determine if a written AML program exists and obtain a copy. *See notes
4.26.6.4.1.4 (06-01-2005)
Initial Contact
1. The initial contact may be made by telephone, letter, or a cold call visit in person. Cold call visits require management approval.
2. Whether the initial contact is made by letter or telephone call, the BSA examiner will need to:
• Use the Initial Title 31 Entity Contact Check Sheet during the initial telephone conversation with the entity;
6. The BSA examiner should request the appropriate records on Form *4564, Information Document Request (IDR), and submit this form to the financial institution at the time the initial appointment is scheduled. Examples of IDRs for each type of NBFI are included in IRM 4.26.9. The IDRs are examples that must be expanded or contracted as the facts and circumstances of each BSA examination warrant.
4.26.6.4.4 (11-14-2006)
Inspection of Books and Records
1. The review of books and/or records as well as policies and procedures is critical in order to measure the degree of compliance with the BSA. (Refer to IRM 4.26.5.)
__________________________________________________ __________________________
(comment) the form 4564 is a Treasury Form, not an IRS form, the Treasury audit the banks not the IRS. That’s how it’s done, Congress approves the form with strict limitations, and the abuse follows.
Not to be taken as legal advice
Delegation Order Number 115 (Rev. 5) of May 12, 1986, is the only delegation of authority to conduct Audit. It states that the I.R.S. and B.A.T.F. can only audit themselves, and only for amount of $750.00 or less. Any amount above that amount, must be audited by the Controller General according to Title 31 USC. No other authority to audit exists. No I.R.S. or B.A.T.F. agent, or representative can furnish any law, rule, or regulation, which gives them the authority to audit anyone other than themselves
The form 4564 used to Audit
Internal Revenue Manual. (located on line)
4.61.2 Foreign Based Books and Records
4.61.2.2 (05-01-2006)
Procedures for Obtaining Books and Records Located Outside the United States
Request the taxpayer having possession, custody, or control of records located outside the United States to make them available for examination in the United States. A summons can only be enforced against the person having possession, custody, or control of the records.
All requests must be in writing. Form 4564 (Information Document Request) should be used.
The taxpayer is generally given 60 days to furnish requested books and records. There is a 30-day limit for purposes of IRC section 6662(e).
If the taxpayer is unable or unwilling to furnish records, the examination could occur at the foreign site. The provisions related to on-site examinations are found in IRM 4.60, International Procedures.
Part 4. Examining Process
Chapter 26. Bank Secrecy Act
Section 6. Bank Secrecy Act Examiner Responsibilities
4.26.6 Bank Secrecy Act Examiner Responsibilities
Exhibit 4.26.6-4 Examination Information Report, Form 5346
1. The purpose of the Bank Secrecy Act (BSA) examination is to:
• Determine a financial institution’s compliance with the Federal government’s anti-money laundering (AML) statutes and regulations, with an emphasis on AML program requirements;
4.26.6.2 (11-14-2006)
Identification
1. The BSA coordinator is responsible for the identification of NBFIs subject to the registration, reporting, recordkeeping, and compliance program requirements under the BSA. The BSA examiner is responsible for assisting in the identification of NBFIs
4. When conducting a BSA examination, the BSA examiner must verify and document in the administrative file that the financial institution received the Letter 1052, Notice of Possible IRS Check to Verify Maintenance of Required Records and Filing Reports. The BSA examiner should determine who received the letter, when it was received, and if the information was shared with all office personnel who routinely conduct the currency transactions of the financial institution. A copy of Letter 1052 should be retained in the administrative file. If the financial institution states that they did not receive it, the BSA examiner should reissue the letter to the financial institution. If the BSA examiner determines that the financial institution has changed ownership or legal status, the BSA examiner must contact Criminal Investigation (CI) to secure clearance prior to the issuance of a Letter 1052 to the financial institution along with notifying the BSA coordinator. The Letter 1052 should be signed by the BSA examiner if the BSA examiner issues the letter.
4.26.6.4.1.2 (11-14-2006)
Evaluation of Program, Policies, Procedures, and Internal Controls
1. Each financial institution must develop and implement a written AML compliance program reasonably designed to assure and monitor compliance with Title 31 regulations *(31 CFR 103.125). Determine if a written AML program exists and obtain a copy. *See notes
4.26.6.4.1.4 (06-01-2005)
Initial Contact
1. The initial contact may be made by telephone, letter, or a cold call visit in person. Cold call visits require management approval.
2. Whether the initial contact is made by letter or telephone call, the BSA examiner will need to:
• Use the Initial Title 31 Entity Contact Check Sheet during the initial telephone conversation with the entity;
6. The BSA examiner should request the appropriate records on Form *4564, Information Document Request (IDR), and submit this form to the financial institution at the time the initial appointment is scheduled. Examples of IDRs for each type of NBFI are included in IRM 4.26.9. The IDRs are examples that must be expanded or contracted as the facts and circumstances of each BSA examination warrant.
4.26.6.4.4 (11-14-2006)
Inspection of Books and Records
1. The review of books and/or records as well as policies and procedures is critical in order to measure the degree of compliance with the BSA. (Refer to IRM 4.26.5.)
__________________________________________________ __________________________
(comment) the form 4564 is a Treasury Form, not an IRS form, the Treasury audit the banks not the IRS. That’s how it’s done, Congress approves the form with strict limitations, and the abuse follows.