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INTELLIGENCE ACTIVITIES SENATE RESOLUTION 21 HE~~RINGS BEI'ORE 'rnE SELECT CO}fMITTEE TO STUDY GOVERN1,fENTAL OPiJRATIONS WITIl RESYFJCT TO INTELLIGENCE ACTIVITIES OP THE UNITED STATES 8}JNArrE NINETY-FOURTH CONGRESS l<'IRS'l' SESSION VOLUMI<J 3 INTERNAL REVENUE SERVICE OCTOBER 2, 1975 l'rintr·d for thE' nsp of th,' SelPC'1 Committee To Study (jnv2rnmE'ntal Operations With Respect to Intelligence ActivltiE's U.S. GOVERNMENT PRINTING OFFICE 60-877 0 W.-\''fII.\GTOX : 1976 }"or sale by the Superintendent of Documents, u.s. Government Printing Omce W"shington. D.C. 20102 - Price $2 SENATE SELECT COMMITTEE TO STUDY GOVERNMENTAL OPERATIONS WITH RESPECT TO INTELLIGENCE ACTIVITIES FRAXK CHURCH, Idaho, Chairman JOHN G. TOWER, Texas, Vice Cooirman PHILIP A. HART, ;\I1chigan HOWARD H. BAKER, JR.. Tennessee WALTER F. ;\lONDALE, ;\Iinnesota R\RRY GOLDWATER. Arizona WALTER D. HUDDLESTOX, Kentucky CHARLES ;\IcC. ;\L\.THIAS, JR., ;\Iaryland ROBERT MORGAN, North Carolina RICHARD SCHWEIKER, Pennsylvania GARY HART, Colorado WILLIA~I G. ;\I!LLER, Starr Director FREDERICK A. O. SCHWARZ, Jr., Chief Counsel CVRTIS R. S~lOTHERS, Counsel to the Jlinority AUDREY HATRY, Clerk of the Committee (II) CONTENTS HEARING DAY Thursday, October 2, 1975 _ WITNESS Page 1 Donald C. Alexander, Commissioner, Internal Revenue Service; accompanied by Singleton Wolfe, Assistant Commissioner, Compliance; Warren Bates, Assistant Commissioner, Inspection; :\1eade 'Whitaker, Chief Counsel; Thomas J. Clancy, Director, Intelligence Division; William E. 'Williams, Deputy Commissioner_____________________________________ 4 HEARINGS EXHIBITS 1 No.1-November 1-2, 1972 IRS report; Subject: The Special Service Staff; Its Origin, Mission, and PotentiaL_______________________ 39 Xo. 2-August, 1969 memorandum to the Director, Federal Bureau of Investigation from the Assistant Commissioner (Compliance), IRS; Subject: Request to be placed on Dissemination List. August 15, 1969 memorandum for )lr. W. C. Sullivan from D. J. Brennan, Jr. Subject: Internal Revenue Service (IRS) Investigations of New Left and Extremist Organizations and Individuals__ 42 Xo. 3-April 14, 1964 excerpt from communication to Director, FBI from Special Agent in Charge, Atlanta_______________________________ 45 No. 4--February 2, 1967 memorandum; Subject: IRS Briefing on RAM PARTS _ 46 No. 5-Deeember 6, 1972 memorandum to District Director, St. Louis District, Internal Revenue Service from Chief, Intelligence Division, San Franeisco District; Subject: Tax Protest Movement, with excerpts from attached lists of individuals and organizations______ 48 No. 6--July 9,1974 memorandum to Speeial Agents, IG & R Group, Jacksonville District from Group Manager. IG & R Group, Miami, Florida; Subject: Payment to (J{)nfidential Sources (Informants). Handwritten note entitled, "Instructions from J. K. W."__________ 53 No.7-Chart of the Organization and Functions of the Internal Revenue Service: Organization of the Office of Assistant Commissioner (Compliance). iMceap of Regional and District Offices of the Internal Revenue Serv- 57 Xo. 8--June 6, 1974 letter to Donald C. Alexander, Commissioner of Internal Revenue from Assistant Commissioner (Inspection) with 'attached Internal Audit Report on the On-Line Audit of the Narmcoetinctss Traffickers Program-Termination Assessments, with attach- 59 No. 9--April 18, 1973 memorandum to Chief, Audit Division, Chicago, Illinois, from Chief, Intelligence Division, Chicago, Illinois; Subject: Request for Sen'ices of Accounting Clerk [deleted] 78 No. 10-Excerpt from 1974 IRS Internal Audit ReporL_________________ 79 No. ll-April 15, 1975 letter to es. Attorney, Los Angeles, California from Group Manager, Intelligence Division__________________________ 82 No. 12-List of Intelligence Gathering and Retrieval Unit (IGRU) Data__ 86 1 Under crHeria determined by the Committee in consultation with the Internal Revenue i'ervlce "nd the Feder"1 Bure~u of Tnvestlg-atlon. certain materials have been deleted from these exhibits. some of which were previously classified. to maintain the Integrity of the Internal operating- procedures of the ag-encles involved. and to protect Intelllg-ence sources Rnd methods. Further deletions were made with respect to protecting- the privacy of certain Individuals and groups. These deletions do not change the material content of these e;l1lblts. (nJ> IV Ko. 13-August 24, 1971 memorandum to District Directors, Midwest Region, Attention: Cllief, Intrlligence Division from ARC-Intelligence. ~Iidwest Region: Subject: Operation ~Iercury. August 11, 1974 memorandum to Regional Commissioner, ~Iidwest Region, Attn: ARC-Intelligence from Intelligence Division, Washington, D.C.; Subject: Operation Mercury 87 No. 14----November 5, 1970 memorandum to: AlI District Directors, Southeast Hegion from AHC (Intelligence) I, Southeast Hegional Office; Subject: Operation Bird Dog. November 5, 1970 memorandum to Director, Intelligence Division, National Office from ARC (Intelligence), Southeast Regional Office; Subject: Operation Bird Dog. November 17, 1970 memorandum to Hegional Commissioner, Midwest Region, Attention: ARC-Intelligence from Director, Intelligence Division, Washington, D.C.; Subject: Birddogging Operation involving Muhammed Ali-Jerry Quarry Fight. November 8, 1971 memorandum to Regional Commissioner, Midwest Region, Attention: ARC-Intelligence, from Chief Intelligence Division, St. Louis District; Subject: Operation Bird Dog. Involving: ~Iuhammed Ali-Jerry Quarry Fight, Final ReporL___ 89 No. I5-0ctober 1, 1971 letter to Springfield Police Department, Springfield, :Missouri from Special Agent. Internal Revenue Service. October 11, 1971 letter to Special Agent, Intelligence Division, Internal Revenue SeHice, from Chief of Police, Springfield, Missouri, and Detedin'. Identifieation Division____________________ 94 No. 16-December I, 1969 and November 2, 1970 examples of bi-weekly reports of the Specal Service Staff of the Internal Revenue Service to Assistant CommissionI' (Compliance) dated December 1, 1969 and November 2, 1970________________________________________ 96 No. 17-List of Federal Agency Requests for Tax Information___________ 103 APPENDIX Questions by Senator Goldwater to Commissioner Alexander Concerning IRS Activities, and Commissioner Alexander's Hesponses_____________ 104 Attachment I-Agreement on Coordination of Tax Administration with the St.ate of Ohio Provided to the Senate Select Committee by Commissioner Alexander 106 Attachment 2-Internal Revenue Service Manual SupplemenL____ 116
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