these traffickers will be made, at the Federal level, by the Bureau of Narcotics and Dangerous Drugs and the Bureau of Customs. In addition, special emphasis will be placed on obtaining contributions from State and local agencies. After identification, IRS would continue to maintain liaison with BNDD and the Bureau of Customs so as not to interfere with or duplicate any ongoing substantive narcotics and smuggling investigative activity. Once targets have been selected, two aspects of the investigation will be: (1) An immediate determination to find those who have not filed income tax returns; and (2) For those who have filed, investigations will be instituted to determine whether the reported income is accurately stated. These will generally be "net worth" or "cash flow" investigations which frequently are the most time consuming. It should be understood that the role of IRS is one of support not one of identifying the scope of the narcotics problem nor the identification of targets. IV. Additional Resources Required To achieve the target of 400 full scale investigations annually, the Service will require 541 additional personnel of which 200 would be special agents, 200 revenue agents and 141 supporting personnel. The cost in fiscal year 1972 will be $7,500,000 for 251 average numbers of personnel. The annual cost is estimated at $14,400,000. These manpower requirements are based on the abilities of each trained and experienced special agent who can carry out two full scale investigations per year, at most. New resources are required because the IRS has gone as far as it can go in diverting manpower from its mainstream programs, and it has already reached a dangerous compliance profile throughout the general population. CONCLUSION OF HEARING Senator MONTOYA. That concludes the hearing. The subcommittee will recess and reconvene at the call of the chair. (Whereupon, at 10:10 a.m. Friday, June 25, the hearing was concluded and the subcommittee was recessed to reconvene at the call of the chair.) |