Dear Commissioner Wenzel:
I am writing to you regarding the Internal Revenue Service's (IRS) audit of Judicial Watch Inc. ("Judicial Watch"), a 501(c)(3) organization.
Former IRS Commissioner Donald Alexander made a declaration to the U.S. District Court for the District of Columbia on May 6, 2002, regarding the IRS' audit of Judicial Watch. In his declaration, Mr. Alexander stated that at the request of Judicial Watch he had reviewed a series of documents related to the IRS' audit of Judicial Watch.
After reviewing the documents, Mr. Alexander's opinion is as follows:
1) the circumstances surrounding the IRS' audit of Judicial Watch are unusual and deviate from the procedures and practices normally followed by the IRS when investigating and auditing 501(c)(3) tax-exempt organizations;
2) the breadth and scope of the IRS' audit and the information and documents requests accompanying the audit notices to Judicial Watch are significantly greater than what is usually encountered with IRS audits of 501(c)(3) organizations and beyond any audit I have been involved with in my career as a tax practitioner; and
3) the IRS' summons and document information requests to Judicial Watch in connection with the audit are excessively broad and overreaching in their scope.
(Emphasis added).
Mr. Alexander's sterling integrity is well known in the tax community. His statements are therefore very disturbing given that they call into question the appropriateness and propriety of the IRS' actions in this matter.
To ensure that the IRS is performing its audit function in a fair and impartial manner that is expected by American taxpayers, I request that you please provide the Finance Committee all documents that refer or relate to the audit of Judicial Watch. This request would encompass any audit, prospective audit, request for an audit or consideration of an audit of Judicial Watch.
In responding to this request please provide all: 1) e-mail; 2) fascimiles; 3) fascimile logs; 4)
correspondence; 5) memoranda; 6) telephone logs; 7) notes; 8) working papers; 9) audit files; 10) reports; 11) Executive Control Managements System documents; 12) communications to and from IRS and third-party governmental and non-governmental agencies, offices, or personnel, including the White House; and,13) correspondence, memoranda and other documents relating to communications between or among employees or representatives of the IRS, the Department of the Treasury and/or the Department of Justice.
This request should include any information that is protected by 26 U.S.C. 6103. As Chairman, I designate that Mr. Dean Zerbe and Mr. Robert Kerr of the Finance Committee may receive and review any 6103 material received pursuant to this request.
Thank you for your time and courtesy, I ask for this material in two weeks.
Cordially yours,
Charles E. Grassley Chairman
cc: Senator Baucus Ranking Member
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Source: Ranking Member’s News
