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That's the conclusion of independent counsel David M. Barrett, filed in 2004 but only released yesterday, with heavy redactions. The report says the IRS National Office took the case out of normal channels and overrode the IRS South Texas Criminal Investigative Decision to quash tax charges. Tax Analysts reports:
Documentation from the IRS’s examination of Cisneros indicated that IRS lawyers deviated from their normal protocols in the case, according to the report. Also, Barrett’s team unearthed a memo from the head of the Texas criminal division accusing the IRS assistant chief counsel (criminal tax) of conspiring with Justice to intentionally derail the “meritorious” tax case against Cisneros. It alleged that the National Office had stepped in with the intention of “killing” the case. The head of the assistant chief counsel’s office that took control of the case was also accused of maintaining a “cozy” relationship with Cisneros’s lawyers.
For some reason reading about Clinton Administration scandals gives me the same feeling I get when I awake from a nightmare that I am back in high school. But at least when I wake up, I know I won't have to go back to high school.
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Joe Kristan writes the Tax Update items, and any opinions expressed or implied are not neccesarily shared by anyone else at Roth & Company, P.C. Address questions or comments on Tax Updates to