Barnes & Nobleinfoseekad



Related Stories
 Senate Panel Hears Testimony About Botched IRS Raid(04-29-98)

 Senate Panel Hears Stories Of Alleged IRS Abuses (04-28-98)

 Surprisingly, IRS Gets Better (04-15-98)

 Tax Cut Talk Dominates Budget Discussions (04-13-98)

 Tax Code Reform Heats Up (04-13-98)

 IRS Reform Moving, But More Slowly (04-13-98)

Related Sites
 Internal Revenue Service Web site



Former Sen. Baker Says He Was Target Of IRS Abuse

Senate hearings continue with more allegations of misconduct


WASHINGTON (AllPolitics, April 30) -- An angry former Sen. Howard Baker told Capitol Hill lawmakers Thursday a rogue IRS agent tried to frame him in a bribery, money-laundering and tax evasion investigation.

"I knew nothing of that investigation, either before or during the time it was going on or after it was terminated, until I was informed by (Senate Finance) Committee staff," Baker testified. "The allegations, as related to me, were absolutely and totally without foundation and did not occur."

Baker appeared on the third day of hearings by the committee into problems at the IRS. Congress is considering legislation to bolster taxpayers' rights and improve accountability at the tax agency.


Appearing with Baker were two other targets of the aborted frame-up, David Crockett, district attorney general for the First District in Tennessee, and former congressman James H. Quillen, also of Tennessee.

Tommy A. Henderson, a retired IRS agent, told the committee the attempted frame-up was an effort by an IRS supervisor with a severe drinking problem to gain points with his supervisors and repair his career.

Henderson said the target was a "former United States senator," but two committee aides identified the senator as Baker.

"What I had uncovered was an attempt to create an unfounded criminal investigation on two national political figures for no reason other than to redeem this agent's own career and ingratiate himself with his supervisors," Henderson testified.

Earlier in the day, four IRS tax auditors offered additional horror stories about the tax agency, alleging misconduct and mismanagement inside the IRS.

The witnesses, who said they feared retaliation for coming forward, offered a series of lurid accusations, including money-laundering, tax evasion, favoritism toward wealthy taxpayers and even bringing a stripper to visit an IRS office to perform.


One of the witnesses, Maureen O'Dwyer, complained her supervisors prematurely closed an audit of a large multinational corporation where she had recommended repayment of $12 million in back taxes. With penalties, the possible revenue could have been twice that.

"My manager, through ambition, incompetence and lack of integrity, gave up a potential tax deficiency which could have brought in as much revenue as $24 million," O'Dwyer said.

Democrats on the committee complained again that they had no advance word of the witnesses or testimony, making it impossible to prepare. After some wrangling, the witnesses continued their testimony.

On Wednesday, senators heard from taxpayers who alleged mistreatment at the hands of the IRS' criminal investigations division. The hearings resume Friday with testimony expected from IRS Commissioner Charles Rossotti. So far, he has declined to comment on specific allegations of misconduct or mistreatment of taxpayers.

In Other News

Thursday, April 30, 1998

Grand Jury Indicts Hubbell, Wife
McMillan Denies Report She's Leaving Jones' Cause
Clinton Brushes Aside Most Lewinsky Questions
Gephardt Lashes Out About Gingrich Comments
Sources: Judge Decides No Lewinsky Immunity
Judge Declares Mistrial In Hale Case
Former Sen. Baker Says He Was Target Of IRS Abuse
Senate Favoring NATO Expansion As Vote Nears

Archives   |   CQ News   |   TIME On Politics   |   Feedback   |   Help

Copyright © 1998 AllPolitics All Rights Reserved.
Terms under which this information is provided to you.
Read our privacy guidelines.
Who we are.