Conversations with ChatGPT: Armed Federal Agencies

Conversations with ChatGPT is an occasional series where I interview ChatGPT-4, the leading Artificial Intelligence conversational agent, about topics that are popping up in social media or my friends are talking about.

Today’s topic was inspired by this article: https://leohohmann.com/2023/08/30/why-is-the-irs-buying-40-caliber-submachine-guns/#more-15632, titled “Why is the IRS Buying .40-Caliber Submachine Guns?”

Bottom line up front (BLUF):

1. The IRS can be used as a state police force if the government can tie the illegal activity to potential tax evasion. Which could be pretty much anything.  This happened back during prohibition when IRS "revenue agents" were assigned to find and destroy moonshine stills.

2. The IRS maintains a criminal investigations unit called IRS-CI that investigates financial crimes and makes arrests. They are authorized to carry firearms.

3. Law enforcement is generally considered a state and local responsibility, and the constitution reserves these powers to the states under the Tenth Amendment.  But nevertheless federal law enforcement agencies do exist. The IRS gets its power primarily from the 16th amendment, and the IRS-CI from 26 U.S. Code § 7608, along with tax code.

4. The IRS-CI has been accused of intimidation, unlawfully seizing assets, lack of transparency, not investigating complex crimes, and unfairly targeting groups for political reasons.

5. Many other agencies have armed police forces you might not think of.  These include the USDA and its subsidiary  the US Forest Service, along with NOAA, the US Postal Inspection Service, the US Fish and Wildlife Service, the Social Security Administration, the Bureau of Land Management, NASA, Amtrak Police, the Library of Congress Police, the FDA and the EPA.

6. In addition, the Federal Reserve, which isn't even a government agency, has its own police force and can make arrests. This came about from the USA Patriot Act after 9/11.

7. While this is concerning, none of this is new. The IRS has been buying guns and bullets for years now, and the 700K the article talks about is about the average amount the IRS spends per year on guns and bullets.

I remember on the Beverly Hillbillies TV show back in the 70’s that Grannie used to carry on about the "revenuers" and her moonshine still. So is there a precedent that the IRS can be mobilized as a police force? As the world’s laziest reporter, I thought I’d interview ChatGPT about it and see what we can find out. Here’s how it went:

Q: Pretend I am a reporter and I am interviewing you. Please introduce yourself.

Certainly! Hello, I'm ChatGPT, a conversational agent trained by OpenAI based on the GPT-4 architecture. My training data consists of a wide range of text from the internet and other sources, up until September 2021. I'm designed to assist with a variety of tasks, such as answering questions, providing explanations, generating text, and more. I can also perform code-based tasks using Python. However, it's important to note that while I strive for accuracy, I don't have real-time or updated information, and I can't browse the internet. How may I assist you today?

Q: During prohibition, what was the IRS' role in enforcing moonshine production and distribution?

During the Prohibition era in the United States, which lasted from 1920 to 1933, the production, sale, and transportation of alcoholic beverages was banned. Despite this, there was a significant black market for alcohol, and many individuals and groups engaged in illegal production and distribution, commonly referred to as "moonshining."

The Internal Revenue Service (IRS) was heavily involved in enforcing Prohibition laws, although its primary focus was on tax evasion rather than the illegal production of alcohol per se. The IRS had a special unit, often referred to as the "revenue agents," whose job was to track down illegal stills and producers of moonshine. The primary goal was to crack down on the evasion of federal taxes that would normally be levied on legal alcoholic beverages. By shutting down illegal operations, the government aimed to recapture lost revenue.

Here are some key points about the IRS's role:

Tax Evasion as a Legal Strategy

One of the strategies employed by the federal government during Prohibition was to go after moonshiners for tax evasion. This was also the strategy used to successfully prosecute gangster Al Capone. Although he was involved in various criminal activities, it was tax evasion charges that ultimately led to his conviction and imprisonment.

Special Agents and Task Forces

The IRS employed special agents trained in law enforcement techniques, including surveillance and undercover operations, to locate and dismantle illegal stills and distribution networks. These agents were sometimes accompanied by local law enforcement or federal agents from other departments.

Financial Records and Auditing

The IRS also used its expertise in auditing and financial investigation to track down moonshiners. By following the money, agents could often uncover large, organized networks of illegal production and distribution.

Penalties

Those caught in the act of moonshining could face heavy fines, imprisonment, and the confiscation of property used in the production of illegal alcohol. The IRS was responsible for collecting these fines as a form of back tax.

Post-Prohibition

After the repeal of Prohibition in 1933, the IRS continued to regulate the production and sale of alcoholic beverages through the Alcohol and Tobacco Tax and Trade Bureau (TTB), which is still responsible for collecting taxes on alcohol and ensuring compliance with federal laws.

So, in summary, the IRS played a significant role in enforcing Prohibition, primarily by focusing on the tax evasion aspect of illegal alcohol production and distribution.

Q: Has the US Government typically armed the IRS? For what purpose?

The U.S. Internal Revenue Service (IRS) is primarily known as the federal agency responsible for tax collection and tax law enforcement. However, the IRS does have armed law enforcement agents, specifically within its Criminal Investigation Division (IRS-CI). These agents have the authority to carry firearms, make arrests, and execute search warrants.

Here are some reasons why certain IRS agents are armed:

Criminal Investigation

IRS-CI is responsible for investigating potential criminal violations of the Internal Revenue Code and other related financial crimes, such as money laundering, currency violations, and cybercrimes. Given the nature of these investigations, which can involve dangerous individuals or criminal organizations, agents are trained and authorized to carry firearms.

Enforcing Tax Compliance

IRS-CI agents play a critical role in enforcing tax compliance. Tax evasion can involve large sums of money and is often linked to other forms of organized crime. Having armed agents serves as a deterrent and provides the agents with the means to protect themselves and the public.

Specialized Training

IRS-CI agents undergo specialized training similar to that of other federal law enforcement agencies. This training includes the appropriate use of firearms, tactics, and procedures for making arrests and executing search warrants.

Operations with Other Agencies

IRS-CI often works in conjunction with other federal, state, and local law enforcement agencies. Being armed allows them to integrate seamlessly into broader law enforcement efforts where the use of force may be necessary.

Historical Context

As mentioned in your previous question about Prohibition, IRS agents have had enforcement roles that required them to be armed. Prohibition was just one era; over the years, the IRS has been involved in various types of enforcement that necessitated armed agents.

Safety Concerns

The nature of the crimes being investigated can pose a risk to agents. People involved in large-scale tax evasion or financial fraud are often desperate to avoid capture and may be dangerous. Arming agents is seen as a necessary precaution to ensure their safety and the safety of the public.

It's important to note that the majority of IRS employees are not armed and do not have law enforcement duties. The Criminal Investigation Division makes up a small portion of the IRS workforce, but its agents are crucial for enforcing tax laws and investigating financial crimes.

So, while the IRS is not a "military" or "security" agency, it does have a law enforcement arm that is armed and trained to investigate and enforce criminal violations of tax and financial laws.

Q: Seems like the constitution prohibits the federal government from operating a police force within the United States. What laws form the legal basis for IRS-CI?

The U.S. Constitution does not explicitly prohibit the federal government from operating a police force within the United States. However, the Constitution does delineate the powers of the federal government and reserves other powers to the states under the Tenth Amendment. Law enforcement is generally considered a state and local responsibility, but federal law enforcement agencies do exist and operate under specific mandates and jurisdictions defined by federal law.

Legal Basis for IRS-CI

The legal basis for the Internal Revenue Service's Criminal Investigation division (IRS-CI) primarily comes from the Internal Revenue Code, which is Title 26 of the United States Code. IRS-CI is also authorized by various pieces of legislation and executive orders that grant it jurisdiction over particular types of financial crimes.

Key Points:

1. Internal Revenue Code: IRS-CI derives its authority from the tax laws in the Internal Revenue Code. These laws make certain acts illegal, such as tax evasion, and IRS-CI is empowered to investigate these crimes.

2. Creation of the IRS: The IRS itself was created following the passage of the 16th Amendment to the U.S. Constitution, which granted Congress the power "to lay and collect taxes on incomes, from whatever source derived."

3. Revenue Act of 1862: Before the 16th Amendment, the Revenue Act of 1862 established the Commissioner of Internal Revenue and enacted the nation's first income tax to fund the Civil War. This act also laid the groundwork for tax enforcement.

4. 26 U.S.C. § 7608: This section of the Internal Revenue Code grants enforcement authority to IRS agents, specifically those involved in the enforcement of subtitle E (alcohol, tobacco, and certain other excise taxes) and other agents, such as those in IRS-CI, for the enforcement of subtitle A (income taxes and other internal revenue taxes).

5. Organized Crime Control Act of 1970: This act includes provisions that expanded the jurisdiction of IRS-CI to investigate money laundering and currency reporting crimes.

6. Bank Secrecy Act of 1970: This act requires financial institutions to keep certain records and file certain reports that could be helpful to detect and prevent money laundering and other financial crimes. IRS-CI is among the agencies that enforce compliance with this act.

7. Cooperation with Other Agencies: IRS-CI often works in conjunction with other federal, state, and local agencies, sharing jurisdiction and enforcement responsibilities. This cooperation is often codified in federal law or regulations.

The Internal Revenue Service's Criminal Investigation division operates within a well-defined scope, focusing on tax fraud, money laundering, and other financial crimes that are closely related to tax issues. It does not function as a general police force but rather as a specialized investigative unit within the framework of federal law.

Q: Has IRS-CI been increasing its purchase of guns and ammunition over the last several years? What public websites might track this?

As of my last update in September 2021, I cannot browse the internet to provide real-time data. However, the question of whether IRS-CI or any other federal agency is increasing its purchase of guns and ammunition would generally be a matter of public record and could be tracked through various means.

Potential Sources of Information:

1. Federal Procurement Data System (FPDS): This is a centralized system that tracks government-wide procurement. Information about purchases made by federal agencies can usually be found here.

2. Government Accountability Office (GAO): This independent agency provides auditing, evaluation, and investigative services for Congress. The GAO might publish reports on the subject.

3. Freedom of Information Act (FOIA) Requests: Individuals can file FOIA requests to obtain information about federal agency operations, including purchases of weapons and ammunition.

4. Congressional Oversight Committees: These committees sometimes investigate and publish reports on federal agency activities. Transcripts, reports, or summaries of these activities might be available to the public.

5. News Organizations: Investigative journalists often dig into federal spending and might publish articles that detail increases or decreases in spending on weapons and ammunition by federal agencies.

6. Public Interest Groups: Organizations interested in government transparency, gun control, or other relevant issues might track and publish such information.

7. Agency Annual Reports: Some federal agencies publish annual reports that might include information about operational costs, which could potentially include purchases of weapons and ammunition.

If you are interested in this topic, these resources might provide you with the information you are looking for. Keep in mind that the purchase of weapons and ammunition by federal agencies like IRS-CI is generally for specific law enforcement purposes and would be subject to various controls and oversight mechanisms.

Q: What are the typical criticisms of IRS-CI, and have they been accused of abusing their power?

The Internal Revenue Service Criminal Investigation (IRS-CI) is the law enforcement arm of the IRS, responsible for investigating criminal violations of the Internal Revenue Code and related financial crimes. While IRS-CI has been successful in prosecuting a number of high-profile tax evasion cases and financial crimes, it has also faced some criticisms and controversies. Here are some common criticisms:

Typical Criticisms:

1. Aggressive Tactics: IRS-CI agents have been criticized for using aggressive or intimidating tactics during investigations, including unannounced visits and extensive surveillance.

2. Seizure and Forfeiture: Critics argue that the agency has been too quick to seize assets without sufficient evidence of wrongdoing, putting innocent people through a difficult and costly legal process to get their assets back.

3. Lack of Transparency: Some say there is a lack of transparency and public accountability, as IRS-CI operations are often shrouded in secrecy due to taxpayer privacy laws.

4. Resource Allocation: Questions have been raised about whether IRS-CI focuses too much on easier-to-prosecute cases rather than tackling larger, more complex tax evasion schemes.

5. Fairness: There are concerns about selective enforcement or a focus on particular groups, industries, or political affiliations, although such claims often require thorough investigation to substantiate.

Accusations of Abuse:

While IRS-CI generally operates under strict guidelines, like any law enforcement agency, it has faced allegations of abuse. However, these allegations vary in credibility and are subject to legal scrutiny. Some common allegations might include:

1. Abuse of Power: This could include inappropriate use of surveillance, harassment, or other tactics that go beyond the scope of a typical investigation.

2. Civil Liberties Concerns: Some critics argue that IRS-CI's extensive investigative powers can be invasive and infringe upon individuals' civil liberties.

3. Political Targeting: While less common, there have been allegations over the years that IRS-CI or the broader IRS has targeted groups or individuals based on political beliefs. However, these claims are usually subject to extensive investigation and scrutiny.

It's worth noting that while criticisms and allegations exist, IRS-CI also has many defenders who argue that its work is essential for maintaining the integrity of the federal tax system and that it holds individuals and corporations accountable for tax evasion and related financial crimes.

Q: Does the US Department of Agriculture have an armed police force?

Yes, the United States Department of Agriculture (USDA) has an armed law enforcement division known as the Office of Inspector General (OIG), which includes Special Agents who are armed and have full law enforcement authority to carry firearms, make arrests, and execute search warrants. These agents investigate criminal activities related to the programs and operations of the USDA, including fraud, waste, abuse, and violations of law related to USDA projects and subsidies.

Additionally, the U.S. Forest Service, a branch of the USDA, has its own law enforcement and investigations unit. Officers in this unit are responsible for enforcing federal laws and regulations governing national forest lands and resources. They have the authority to carry firearms, make arrests, and execute search warrants as well. Their jurisdiction is primarily focused on the National Forest System lands and they often work in remote areas.

Roles and Responsibilities:

1. Fraud Investigation: The USDA's OIG investigates fraudulent activities related to USDA programs like food stamps (SNAP), agricultural subsidies, and grants.

2. Resource Protection: Forest Service law enforcement officers are responsible for protecting natural resources from illegal activities like timber theft, illegal grazing, and environmental damage.

3. Public Safety: Both the OIG and Forest Service law enforcement aim to ensure the safety of the public and employees on USDA-managed lands and related facilities.

4. Interagency Cooperation: These law enforcement officers often work closely with other federal, state, and local law enforcement agencies to carry out their duties.

5. Regulatory Enforcement: These agents also enforce regulations related to animal and plant health, food safety, and other areas under USDA jurisdiction.

While it may seem unusual for a federal department focused on agriculture to have armed agents, these law enforcement units play a critical role in ensuring the integrity of vast and complex programs and operations that are susceptible to fraud, abuse, and other criminal activities. Their work helps to protect valuable natural resources, taxpayer money, and public safety.

Q: What other federal agencies have armed agents that are not well known?

Many people are aware that agencies like the Federal Bureau of Investigation (FBI), the Drug Enforcement Administration (DEA), and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) have armed agents. However, there are several other, less well-known federal agencies that also maintain armed law enforcement divisions. Here are a few:

1. National Oceanic and Atmospheric Administration (NOAA)

• Office of Law Enforcement: NOAA has special agents and enforcement officers who enforce laws related to the nation's marine resources. They carry firearms and are authorized to make arrests.

2. U.S. Postal Inspection Service

• This is the law enforcement arm of the United States Postal Service. Postal Inspectors are federal law enforcement agents who carry firearms, make arrests, and enforce postal laws, including mail fraud and mail theft.

3. U.S. Fish and Wildlife Service

• Office of Law Enforcement: Agents are responsible for enforcing federal wildlife laws, protecting endangered species, and managing migratory birds. They are armed and have arrest authority.

4. Social Security Administration (SSA)

• Office of the Inspector General: Special agents in this office are armed and have arrest authority. They investigate fraud, waste, and abuse within SSA programs.

5. Bureau of Land Management (BLM)

• Law Enforcement: BLM Rangers are armed and enforce laws on public lands, including regulations concerning land use, mining, and natural resources.

6. National Aeronautics and Space Administration (NASA)

• Office of Inspector General: Special agents are armed and have authority to investigate crimes related to NASA operations, including fraud and misuse of NASA assets.

7. Amtrak Police

• While not a federal agency, Amtrak Police are a special police force whose officers have similar authority to state police and are authorized to carry firearms. They have jurisdiction over crimes committed against Amtrak, its employees, or its passengers.

8. Library of Congress Police

• Responsible for protecting the Library of Congress buildings and grounds, these officers are authorized to carry firearms and make arrests within their jurisdiction.

9. Federal Reserve Police

• Officers protect Federal Reserve facilities and are authorized to carry firearms and make arrests related to crimes committed on Federal Reserve property.

10. Food and Drug Administration (FDA)

• Office of Criminal Investigations: Special agents are armed and focus on violations of federal laws governing FDA-regulated products.

11. Environmental Protection Agency (EPA)

• Criminal Enforcement Program: Special agents are armed and investigate violations of environmental laws.

These agencies and their respective law enforcement divisions operate within specific jurisdictions and mandates. The presence of armed agents in these agencies underscores the range and complexity of responsibilities that the federal government has, as well as the diverse set of challenges and threats it faces.

Q: OK wow. There are a lot of armed federal agencies. But one strikes me as odd. The Federal Reserve is not a part of the United States government. What legal basis do they have to operate a police force and make arrests? Shouldn't this really be a private security force?

The Federal Reserve is a complex institution that occupies a unique space in the American governmental landscape. While it's true that the Federal Reserve is not a government agency in the way that, say, the Department of Justice or the Environmental Protection Agency are, it's also not a purely private institution. It's often described as "independent within the government," meaning that it carries out public duties but operates independently of the political process to some degree.

The Federal Reserve does have its own law enforcement arm, often referred to as the Federal Reserve Police. These officers protect the facilities, operations, and personnel of the Federal Reserve System and can have a law enforcement role on Federal Reserve property. The legal basis for this comes from Section 11(q) of the Federal Reserve Act, amended by the USA PATRIOT Act, which states:

Law enforcement officers designated or authorized by the Board or a reserve bank are authorized while on duty to carry firearms and make arrests without warrants for any offense against the United States committed in their presence… Such officers shall have access to law enforcement information that may be necessary for the protection of the property or personnel of the Board or a reserve bank.

So, although the Federal Reserve operates in a space that is neither purely governmental nor purely private, it is authorized by federal law to maintain its own police force with certain law enforcement powers. This is somewhat analogous to how certain other governmental-related entities (like the U.S. Postal Service, for example) have their own enforcement divisions.

Q: What did Section 11(q) of the Federal Reserve Act say before it was amended by the PATRIOT act?

Before the USA PATRIOT Act amendments, Section 11(q) of the Federal Reserve Act did not provide for a Federal Reserve Police force with law enforcement authority. The amendment essentially granted Federal Reserve law enforcement officers the ability to carry firearms and make arrests without warrants for offenses against the United States committed in their presence. Before this, the Federal Reserve relied more heavily on standard security measures and local law enforcement for the protection of its facilities.

The USA PATRIOT Act, passed shortly after the terrorist attacks of September 11, 2001, included a wide range of provisions aimed at enhancing various aspects of U.S. security, including financial infrastructure. The amendments to the Federal Reserve Act were part of these broader efforts to safeguard key elements of the U.S. economy and government.

The change allowed the Federal Reserve to have a more active role in securing its own facilities, similar to the way that other sensitive governmental (or quasi-governmental) installations are protected. However, the authority of Federal Reserve Police is generally limited to Federal Reserve property and personnel.

Thank you for your time today.

You're welcome! If you have any more questions in the future, feel free to reach out. Have a great day!