- 9 - ministerial act in regulations. [S. Rept. 99-313 (1986), 1986-3 C.B. (Vol. 3) 208-209.] The regulations provide: The term "ministerial act" means a procedural or mechanical act that does not involve the exercise of judgment or discretion, and that occurs during the processing of a taxpayer's case after all prerequisites to the act, such as conferences and review by supervisors, have taken place. A decision concerning the proper application of federal tax law (or other federal and state law) is not a ministerial act. [Sec. 301.6404-2T(b)(1), Temporary Proced. & Admin. Regs., 52 Fed. Reg. 30163 (Aug. 13, 1987).] Petitioner argues that the refusal to continue the civil investigation and proceeding, when the criminal investigation commenced, was the result of a ministerial act. Initially, we note that the assumption that the civil investigation terminated is incorrect. A tax fraud investigation contains both criminal and civil aspects. It is only when the criminal case is forwarded to the Department of Justice that "the criminal and civil aspects of a tax fraud case begin to diverge." United States v. LaSalle Natl. Bank, 437 U.S. 298, 311 (1978). In a joint investigation with the Examination Division and CID, the investigation is controlled by CID, and to that extent it may be said that the criminal aspects dominate the investigation. But, even then, as the Court noted in United States v. LaSalle Natl. Bank, supra at 311-312: "The Government does not sacrifice its interest in unpaid taxes just because a criminal prosecution begins." Moreover, the civil fraud additions to tax (see sec.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 Next
Last modified: May 25, 2011