Skip to Main Content
 

Mark Matthews Speaks to Tax Notes on IRS Rotating Fraud Technical Advisers

August 17, 2018, Tax Notes

The conversion of the fraud technical adviser role into a rotating position as part of the October overhaul of the IRS’s National Fraud Program could produce several benefits if the IRS carefully monitors the program.

. . .

Sound Reasons

Mark E. Matthews of Caplin & Drysdale, Chtd. said that there are sound reasons for any enforcement bureaucracy to rotate its employees through a variety of experiences. While the effects of the changes should be tracked going forward, it is a promising idea, he said.

. . .

Force Multiplier

. . .

Matthews, who was IRS Criminal Investigation division chief during the development and creation of the fraud technical adviser position, said that making the fraud technical adviser a rotating-type position will, over time, increase the number of people within the IRS who have experience evaluating fraud cases.

“Compare 50 people who are doing it toward the end of their careers and for the rest of their careers versus a rotating position where you might have 200 people who have been in that job at any given time,” he said. “I would think of that as a force multiplier if it works well.”

The three-to-five-year rotation sounds like the right amount of time for people to gain enough experience and do valuable work as fraud technical advisers, while allowing the IRS to get regular fresh faces in the position, Matthews said.

. . .

Keep a Lookout

Matthews said the IRS should monitor the National Fraud Program after the changes to be able to compare the resulting fraud referrals under the old model with those under the new model. “You will want some metrics around this eventually,” he said.

The IRS also needs to monitor the fraud technical advisers to be sure that they do not step over the line between civil and criminal investigative functions as required by United States v. Tweel, 550 F.2d 297 (5th Cir. 1977), Matthews said. The IRS needs to keep the rotating advisers reined in lest they see themselves as junior CI investigators and lull taxpayers into thinking a case is still civil after there has been an institutional decision to refer it for criminal investigation, he said.

To view the full article, please visit Tax Notes’ website (subscription required).

Excerpt taken from the article “Rotating Fraud Technical Advisers Seen as Promising Idea” by Nathan J. Richman for Tax Notes.

________________________________________________

About Caplin & Drysdale
Having celebrated our 50th Anniversary in 2014, Caplin & Drysdale continues to be a leading provider of legal services to corporations, individuals, and nonprofits throughout the United States and around the world. We are also privileged to serve as legal advisors to accounting firms, financial institutions, law firms, and other professional services organizations.

The firm's reputation over the years has earned us the trust and respect of clients, industry peers, and government agencies. Moreover, clients rely on our broad knowledge of the law and our keen insights into their business concerns and personal interests. Our lawyers' strong tactical and problem-solving skills -- combined with substantial experience handling a variety of complex, high stakes, matters in a boutique environment -- make us one the nation's most distinctive law firms.

With offices in New York City and Washington, D.C., Caplin & Drysdale's core practice areas include:
For more information, please visit us at www.caplindrysdale.com.
Washington, DC Office:
One Thomas Circle NW
Suite 1100
Washington, DC 20005
202.862.5000
New York, NY Office:
600 Lexington Avenue
21st Floor
New York, NY 10022
212.379.6000

___________________________

Disclaimer
This communication does not provide legal advice, nor does it create an attorney-client relationship with you or any other reader. If you require legal guidance in any specific situation, you should engage a qualified lawyer for that purpose. Prior results do not guarantee a similar outcome.

Attorney Advertising
It is possible that under the laws, rules, or regulations of certain jurisdictions, this may be construed as an advertisement or solicitation.
© 2018 Caplin & Drysdale, Chartered
All Rights Reserved.

Related Professionals

Related Practice Area(s)