[Deposit of IRS Undercover Operation Receipts Into the Treasury]

The Internal Revenue Service (IRS) requested a decision regarding whether it should treat its undercover operations as single transactions when determining the amount of money for deposit into the U.S. Treasury as miscellaneous receipts. GAO held that IRS was: (1) not authorized to conduct ongoing undercover operations that regularly set off expenses against income; and (2) authorized to consider short-term undercover operations as single transactions for purposes of the deposit requirement. Accordingly, IRS should deposit its net gains into miscellaneous receipts at the end of short-term operations.