To: AllPolitics
From: Ann Curley, Candy Crowley/CNN
In: Washington
Posted: 3-24-97

Subject: Alleged IRS Politicking

Concerned by what they called "very serious" allegations that the IRS is conducting politically motivated audits, top congressional tax-writers have directed an investigation by the Joint Committee on Taxation, the first investigation of politicking by the IRS since the Watergate era.

Specifically, the bipartisan group of lawmakers is concerned about audits of a variety of tax-exempt organizations or of individuals associated with those organizations.

In a letter to the Joint Committee on Taxation, the lawmakers are asking for a report on or before Sept. 15, 1997. The letter is signed by by Sen. Bill Roth (R-Del.), chairman of the Senate Finance Committee, Sen. Daniel Patrick Moynihan (D-N.Y.), the ranking Democrat on Senate Finance, Rep. William Archer (R-Texas), chairman of the House Ways and Means Committee, and Rep. Charles Rangel (D-N.Y.), the ranking Democrat on the House Ways and Means Committee.

In their letter, they say the "allegations are very serious and should be carefully reviewed as expeditiously as possible."

The letter stems from recent reports accusing the IRS of targeting assorted individuals, and a large number of conservative groups to see if they were engaging in unlawful political activities. According to a Ways and Means source, much of this came to light when former White House Travel Office employee, Billy Dale, was audited after being dismissed.

Since then, the Heritage Foundation and the Center for Western Journalism have revealed that they too are being audited by the IRS. The source also says that a spot check of liberal groups did not turn up any audits.

IRS Commissioner Margaret Richardson sent a letter to Roth, denying any partisan activity on the part of the IRS.

The congressmen directed the staff of the Joint Committee to investigate whether the IRS's selection of tax-exempt organizations for audit is politically motivated, including an analysis of the selection of such tax-exempt organizations for audit for reasons related to their alleged political or lobbying activities.

The Joint Committee on Taxation is responsible for researching and analyzing tax matters for both houses of Congress.