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16 October 1975 '
MEMORANDUM FOR THE RECORD
SUBJECT: Review of U.S. Internal Revenue Service
Income Tax Information
l. Allegations: The Central Intelligence Agency has
obtained U.S. Internal Revenue Service income tax data regarding
individuals, firms, and/or organizations without following the
prescribed procedures pertaining to the disclosure of such
federal tax data as outlined under Section 6103 of the Internal
Revenue Code. Further, it is alleged that in some of these
instances the Agency used the tax information to harass these
individuals, firms, or organizations and influenced the U.S.
Internal Revenue Service to take certain actions on the Agency's
behalf.
2. Issues: Has the Central Intelligence Agency, or any
of its employees, violated Federal statutes pertaining to the
illegal disclosure of federal tax information? Was the purpose
of the Agency's review of taxpayer information as alleged, or
were these reviews properly justified?
S. Summary: During the Rockefeller Commission's inquiry
concerning the Agency, all known cases in which the Office of
Security had obtained federal income tax data were reported to
the Commission. Since the conclusion of the Rockefeller Com-
mission's inquiry, one additional case has been discovered
wherein the Office of Security obtained federal tax information
concerning a former high-ranking Agency employee. The Office
of General Counsel also maintains liaison with the U.S. Internal
Revenue Service, and it was found that in one instance it
obtained federal tax data concerning a magazine (Ramparts) which
was at the time publishing classified information concerning the
Agency's relationships with certain taX—exempt organizations.
The Office of General Counsel was also in contact with the
Internal Revenue Service concerning a former Agency employee
(Philip B. P. Agee), who was writing a book containing highly
classified Agency information, although no federal income tax
information concerning this individual was obtained.
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