US Attorneys > USAM > Title 6 > Tax Resource Manual > 19.
prev | next

19.

Restitution Plea Language

  1. Defendant agrees to pay restitution to the Internal Revenue Service in the total amount of ___________________, pursuant to ____________ 1/ ]. 2/ ]

  2. Defendant agrees that the total amount of restitution reflected in this agreement results from defendant's fraudulent conduct.

  3. The total amount of restitution consists of the following: 3/]

Tax Year(s) or Period(s) and Item(s)4/ Amount to be Credited to Tax Interest Under Title 26 Due Through _________*
   
        Totals:  

*This interest figure has been calculated by the IRS, under 26 U.S.C. 6601 and/or 6621, as of the anticipated date of sentencing. This interest figure does not include any interest that may accrue under 18 U.S.C. 3612.

  1. Defendant agrees to pay restitution by making an immediate payment in full on or before the date set for sentencing. 5/]

  2. If the Court orders the defendant to pay restitution to the IRS for the failure to pay tax, either directly as part of the sentence or as a condition of supervised release, the IRS will use the restitution order as the basis for a civil assessment. See 26 U.S.C. § 6201(a)(4). The defendant does not have the right to challenge the amount of this assessment. See 26 U.S.C. § 6201(a)(4)(C). Neither the existence of a restitution payment schedule nor the defendant's timely payment of restitution according to that schedule will preclude the IRS from administrative collection of the restitution-based assessment, including levy and distraint under 26 U.S.C. § 6331.

  3. Defendant agrees that [ he/she ] will sign any IRS forms deemed necessary by the IRS to enable the IRS to make an immediate assessment of that portion of the tax and interest that [ he/she ] agrees to pay as restitution (see paragraph(s) ________). Defendant also agrees to sign IRS Form 8821, "Tax Information Authorization."

  4. Defendant agrees not to file any claim for refund of taxes or interest represented by any amount of restitution paid pursuant to this agreement.

  5. Defendant agrees that [ he/she ] is liable for the fraud penalty under 26 U.S.C. 6663 or 6651(f) on the amount to be credited to tax set forth in paragraph [ 3 ]. Defendant agrees to the immediate assessment of the fraud penalty on the amount to be credited to tax set forth in paragraph [  3 ] and agrees that, in order to enable the IRS to make an immediate assessment of the fraud penalty, the IRS form [ he/she ] agreed to sign in paragraph [ 5 ] will include the appropriate amount of the fraud penalty. Defendant agrees not to challenge or dispute any fraud penalties on the amount to be credited to tax set forth in paragraph [ 3 ]. 6/]

  6. The parties understand that defendant will receive proper credit, consistent with paragraph [ 3 ] above, for the payments made pursuant to this agreement. Except as set forth in the previous sentence, nothing in this agreement shall limit the IRS in its lawful examination, determination, assessment, or collection of any taxes, penalties or interest due from the defendant for the time period(s) covered by this agreement or any other time period.

  7. Defendant agrees that this agreement, or any judgment, order, release, or satisfaction issued in connection with this agreement, will not satisfy, settle, or compromise the defendant's obligation to pay the balance of any remaining civil liabilities, including tax, additional tax, additions to tax, interest, and penalties, owed to the IRS for the time period(s) covered by this agreement or any other time period.

  8. Defendant understands that [ he/she ] is not entitled to credit with the IRS for any payment sent to an incorrect address or accompanied by incomplete or inaccurate information, unless and until any payment is actually received by the Internal Revenue Service and identified by it as pertaining to [ his/her ] particular liability.

  9. The contact information for the Special Agent assigned to this case is as follows:

PROVISIONS REGARDING PAYMENT

  1. Defendant agrees that, unless the Director of the Administrative Office of the United States Courts directs [ him/her ] otherwise, all payments made pursuant to the court's restitution order are to be sent only to the Clerk of the Court at the following address:
    [ insert appropriate address here ]

  2. With each payment to the Clerk of the Court made pursuant to the District Court's restitution order, defendant will provide the following information:
    1. Defendant's name and Social Security number;
    2. The District Court docket number assigned to this case;
    3. Tax year(s) or period(s) for which restitution has been ordered; and
    4. A statement that the payment is being submitted pursuant to the District Court's restitution order.
    Defendant agrees to include a request that the Clerk of the Court send the information, along with defendant's payments, to the appropriate office of the Internal Revenue Service.

  3. Defendant also agrees to send a notice of any payments made pursuant to this agreement, including the information listed in the previous paragraph, to the IRS at the following address:

    IRS - RACS
    Attn: Mail Stop 6261, Restitution
    333 W. Pershing Ave.
    Kansas City, MO 64108

NOTES

1/   Insert 18 U.S.C. 3663(a)(3) or 3663A (Mandatory Restitution), as appropriate.

2/   Please ensure that the fact that the court may order the defendant to pay restitution is included in paragraph setting out defendant's awareness of possible punishment.

3/   This language is for use in a typical criminal tax case, where the defendant agrees to make restitution for his own personal past due income taxes. If taxes other than income taxes are involved, if other taxpayers or entities are involved, or if the restitution order is joint and several, additional information may be required, and different forms may need to be signed by the defendant.

4/   Please explain here (or refer to attached and incorporated documents), in as much detail as possible, the years, periods, and items for which the defendant has agreed to pay restitution.

5/    If payment is to be paid other than immediately please, insert one of the following:

  • making an immediate payment in full on or before _______.
  • making payments as set forth in the payment schedule attached to this agreement. or
  • as ordered by the court in any restitution order entered pursuant to this plea agreement.

6/   If you are unsure about whether the fraud penalty would apply to the defendant's conduct, consult with the IRS agent assigned to your case.

[updated July 2011] [cited in USAM 6-4.370; Tax Resource Manual 18]