Page:United States Statutes at Large Volume 102 Part 5.djvu/499

 PUBLIC LAW 100-690—NOV. 18, 1988

102 STAT. 4505

"(1) CERTIFICATION REQUIRED FOR EXEMPTION OF UNDERCOVER OPERATIONS FROM CERTAIN LAWS.—With respect to any under-
 * (c) RULES RELATING TO UNDERCOVER OPERATIONS.—

cover investigative operation of the Internal Revenue Service (hereinafter in this subsection referred to as the 'Service') which is necessary for the detection and prosecution of offenses under the internal revenue laws, any other criminal provisions of law relating to internal revenue, or any other law for which the Secretary has delegated investigatory authority to the Internal Revenue Service— "(A) sums authorized to be appropriated for the Service may be used— "(i) to purchase property, buildings, and other facilities, and to lease space, within the United States, the District of Columbia, and the territories and possessions of the United States without regard to— "(I) sections 1341 and 3324 of title 31, United States Code, "(II) sections 11(a) and 22 of title 41, United States Code, "(III) section 255 of title 41, United States Code, "(IV) section 34 of title 40, United States Code, and "(V) section 254(a) and (c) of title 41, United States Code, and "(ii) to establish or to acquire proprietary corporations or business entities as part of the undercover operation, and to operate such corporations or business entities on a commercial basis, without regard to sections 9102 and 9103 of title 31, United States Code; "(B) sums authorized to be appropriated for the Service and the proceeds from the undercover operations, may be deposited in banks or other financial institutions without regard to the provisions of section 648 of title 18, United States Code, and section 3302 of title 31, United States Code, and "(C) the proceeds from the undercover operation may be used to offset necessary and reasonable expenses incurred in such operation without regard to the provisions of section 3302 of title 31, United States Code. This paragraph shall apply only upon the written certification of the Commissioner of Internal Revenue (or, if designated by the Commissioner, the Deputy Commissioner or an Assistant Commissioner of Internal Revenue) that any action authorized by subparagraph (A), (B), or (C) is necessary for the conduct of such undercover operation. "(2) LIQUIDATION OF CORPORATIONS AND BUSINESS ENTITIES.—If

a corporation or business entity established or acquired as part of an undercover operation under subparagraph (B) of paragraph (1) with a net value over $50,000 is to be liquidated, sold, or otherwise disposed of, the Service, as much in advance as the Commissioner or his delegate determines is practicable, shall report the circumstances to the Secretary and the Comptroller General of the United States. The proceeds of the liquidation, sale, or other disposition, after obligations are met, shall be deposited in the Treasury of the United States as miscellaneous receipts.

Gifts and property.

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