
From the U.S. Code Online via GPO Access
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[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 26USC7624]

 
                     TITLE 26--INTERNAL REVENUE CODE
 
                Subtitle F--Procedure and Administration
 
       CHAPTER 78--DISCOVERY OF LIABILITY AND ENFORCEMENT OF TITLE
 
                 Subchapter B--General Powers and Duties
 
Sec. 7624. Reimbursement to State and local law enforcement 
        agencies
        

(a) Authorization of reimbursement

    Whenever a State or local law enforcement agency provides 
information to the Internal Revenue Service that substantially 
contributes to the recovery of Federal taxes imposed with respect to 
illegal drug-related activities (or money laundering in connection with 
such activities), such agency may be reimbursed by the Internal Revenue 
Service for costs incurred in the investigation (including but not 
limited to reasonable expenses, per diem, salary, and overtime) not to 
exceed 10 percent of the sum recovered.

(b) Records; 10 percent limitation

    The Internal Revenue Service shall maintain records of the receipt 
of information from a contributing agency and shall notify the agency 
when monies have been recovered as the result of such information. 
Following such notification, the agency shall submit a statement 
detailing the investigative costs it incurred. Where more than 1 State 
or local agency has given information that substantially contributes to 
the recovery of Federal taxes, the Internal Revenue Service shall 
equitably allocate investigative costs among such agencies not to exceed 
an aggregate amount of 10 percent of the taxes recovered.

(c) No reimbursement where duplicative

    No State or local agency may receive reimbursement under this 
section if reimbursement has been received by such agency under a 
Federal or State forfeiture program or under State revenue laws.

(Added Pub. L. 100-690, title VII, Sec. 7602(a), Nov. 18, 1988, 102 
Stat. 4507.)


                             Effective Date

    Section applicable to information first provided more than 90 days 
after Nov. 18, 1988, see section 7602(e) of Pub. L. 100-690, set out as 
an Effective Date of 1988 Amendment note under section 6103 of this 
title.


                               Regulations

    Section 7602(g) of Pub. L. 100-690 provided that: ``The Secretary of 
the Treasury shall, not later than 90 days after the date of enactment 
of this Act [Nov. 18, 1988], prescribe such rules and regulations as 
shall be necessary and proper to carry out the provisions of this 
section [enacting section 7624 of this title, amending sections 6103 and 
7809 of this title, and enacting provisions set out as notes under 
sections 6103 and 7809 of this title], including regulations relating to 
the definition of information which substantially contributes to the 
recovery of Federal taxes and the substantiation of expenses required in 
order to receive a reimbursement.''

                  Section Referred to in Other Sections

    This section is referred to in sections 6103, 7809 of this title.
