PUBLIC LAW 100-690—NOV. 18, 1988
102 STAT. 4507
(3) EFFECTIVE DATE.—The amendments made by this subsection shall take effect on the date of the enactment of this Act and shall cease to apply after December 31, 1989; and all amounts expended pursuant to such amendments shall be recovered to the extent possible, and deposited in the Treasury of the United States as miscellaneous receipts, before January 1, 1990.
26 USC 7608 note.
SEC. 7602. RECOVERY OF COSTS INCURRED BY STATE AND LOCAL LAW ENFORCEMENT AGENCIES.
(a) IN GENERAL.—Subchapter B of chapter 78 of the Internal Revenue Code of 1986 (relating to general powers and duties) is amended by adding at the end thereof the following new section: "SEC. 7624. REIMBURSEMENT TO STATE AND LOCAL LAW ENFORCEMENT AGENCIES.
"(a) AUTHORIZATION OF REIMBURSEMENT.—Whenever a State or Taxes. 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 equi tably allocate investigative costs among such agencies not to exceed an aggregate amount of 10 percent of the taxes recovered. "(c) No REIMBURSEMENT WHERE DUPUCATIVE.—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.". 0)) ESTABLISHMENT OF LAW ENFORCEMENT AGENCY ACCOUNT —
Section 7809 of the Internal Revenue Code of 1986 (relating to deposit of collections) is amended by adding at the end thereof the following new subsection: "(d) DEPOSIT ACCOUNT.—
OF
FUNDS
FOR
LAW
ENFORCEMENT
AGENCY
"(1) IN GENERAL.—In the case of any amounts recovered as the result of information provided to the Internal Revenue Service by State and local law enforcement agencies which substantially contributed to such recovery, an amount equal to 10 percent of such amounts shall be deposited in a separate account which shall be used to make the reimbursements required under section 7624. "(2)
DEPOSIT IN TREASURY AS INTERNAL REVENUE COLLEC-
TIONS.—If any amounts remain in such account after payment of any qualified costs incurred under section 7624, such amounts shall be withdrawn from such account and deposited in the Treasury of the United States as internal revenue collections.".
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