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Memorandum, "I.R.S. Talking Paper," undated and unsigned

Memorandum, "I.R.S. Talking Paper," undated and unsigned
Memorandum, "I.R.S. Talking Paper," undated and unsigned
Memorandum, "I.R.S. Talking Paper," undated and unsigned
Memorandum, "I.R.S. Talking Paper," undated and unsigned

Item Information

Title

Memorandum, "I.R.S. Talking Paper," undated and unsigned

Description

A copy of an undated and unsigned typed memorandum, titled, "I.R.S. Talking Paper," discussing the viability of using the Internal Revenue Service to harass people and organizations who had been identified by the "Political Enermies Project."

Creator

unknown

Source

From 1973: Watergate: Dean, John, Separated Folder SEP-5528/75 in the Rufus Edmisten Papers #5528, Southern Historical Collection, Louis Round Wilson Special Collections Library, University of North Carolina at Chapel Hill.

Date

undated

Rights

http://rightsstatements.org/vocab/NoC-US/1.0/

Format

image/jpg

Language

English

Type

Text

Identifier

https://dc.lib.unc.edu/cdm/singleitem/collection/05ddd/id/471182

Text

I.R.S. TALKING PAPER
BACKGROUND

A) THE BUREAUCRACY

I.R.S. is a monstrous bureaucracy, which is dominated and
controlled by Democrats. The I.R.S. bureaucracy has been
unresponsive and insensitive to both the White House and
Treasury in many areas.

In brief, the lack of key Republican bureaucrats at high levels
precludes the initiation of policies which would be proper
and politically advantageous. Practically every effort to
proceed in sensitive areas is met with resistance, delay and
the threat of derogatory exposure.

B) ADMINISTRATION APPOINTEES

Randolph Thrower became a total captive of the democratic
assistant commissioners. In the end, he was actively fighting
both Treasury and the White House.

Johnnie Walters has not yet exercised leadership. Unevaluated
reports assert he has been either reluctant or unwilling to do
so.

Walters has appointed his deputy, William Loeb, career democrat
from Georgia. Loeb has asserted his democratic credentials in
staff meetings according to reliable sources.

---

I.R.S. Talking Paper
Page two

Walters appears oversensitive in his concern that I.R.S.
might be labelled “political” if he moves in sensitive areas
(e.g. audits, tax exemptions).

During the Democrat Administrations, I.R.S. was used discreetly
for political purposes, but this has been unavailable during
this Administration.

SUGGESTIONS

Walters should be told to make the changes in personnel and
policy which will give the Administration semblance of
control over the hostile bureaucracy of I.R.S. Malek
should supply recommendations.

Walters must be made to know that discreet political actions
and investigations on behalf of the Administration are a firm
requirement and responsibility on his part.

We should have direct access to Walters for action in the sensitive
areas and should not have to clear them with Treasury.

Dean should have access and assurance that Walters will get
the job done – properly!

---

(A) To accomplish: Make IRS politically responsive. Democrat
Administrations have discreetly used IRS most effectively.
We have been unable.

(B) The Problem: Lack of guts and effort. The Republican
appointees appear afraid and unwilling to do anything with
IRS that could be politically helpful. For example:

-- We have been unable to crack down on the
multitude of tax exempt foundations that
feed left wing political causes.

-- We have been unable to obtain information
in the possession of IRS regarding our
political enemies.

-- We have been unable to stimulate audits of
persons who should be audited.

-- We have been unsuccessful in placing RN
supporters in the IRS bureaucracy.

(C) HRH should tell the Sec.

Walters must be more responsive, in two key areas:
personnel and political actions.

First, Walters should make personnel changes to make IRS
responsive to the President. Walters should work with Fred Malek
immediately to accomplish this goal. (NOTE: There will be an
opening for a General Counsel of IRS in the near future – this
should be a first test of Walters’ cooperation).

Second, Walters should be told that discreet political action
and investigations are a firm requirement and responsibility on
his part. John Dean should have direct access to Walters,
without Treasury clearance, for purposes of the White House.

Walters should understand that when a request comes to him,
it is his responsibility to accomplish it – without the White House
having to tell him how to do it!

---

A knowledgeable source at IRS was contacted and given a hypo-
thetical situation in which the White House made a request
for an IRS audit of a group of specific individuals having
the same occupation. This source advised that IRS procedures
would require that such request be handled by Assistant
Commissioner Donald Bacon.

It is known that Bacon is a liberal Democrat holdover who
has been continually identified with anti-Nixon intrigues
at IRS within the past two years.

The source suggested that a priority target be established
within the group with preference given to one residing in
the New York area. He further stated such target could dis-
creetly be made subject to IRS audit without the clear hazard
for a leak traceable to the White House as postured above.