David E. Hanlon Ralph Orcutt Edmund X. Klipa (Possible Contact by the Senate Select Committee Staff)

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The Office of Security contacts with the Internal
Revenue Service occurred during the period November 1957
through April 1972. It is extremely difficult to affix a
numerical figure to the number of instances where federal
tax information was obtained in view of the fact that some
of these cases involved more than one subject, as well as in
one case the review of a three~man partnership. However, the
tax information was obtained during the conduct of ten (10)
investigations by the Office of Security, all but one of
which were of a counterintelligence nature in an attempt to
determine if an individual associated with the Agency was
receiving money from or recruited by a foreign intelligence
service. The exception was a 1957 investigation of an Agency
employee suspected of misusing his position of trust and
responsibility to his own financial gain. The tax informa—
tion obtained during the course of the above investigations
involves fourteen (14) individuals, although this figure
includes parents and/or other individuals who were considered
in connection with the ten investigations.
With respect to the two instances referred to which
were handled by the Officeiof General Counsel, it would
appear that in the case of the magazine the purpose of the
request for federal tax information centered on the suspicion
the magazine's activities were being funded by a foreign
intelligence service, in view of the nature and extent of
the magazine's disclosures. The Office of General Counsel's
contact with the Internal Revenue Service concerning the
former Agency employee (Mr. Agee) centered on an attempt bythe Agency to determine the former employee's overseas address.
Although no taxpayer information was obtained in this instance,
it would appear that the prime interest in the former Agency
employee dealt with the possibility that he had been in contact
with a foreign intelligence service.
Thus, all but one of those instances in which the
Office of Security and the Office of General Counsel obtained
federal tax information were based on sensitive counterintelli—
gence investigations. The information obtained through this
liaison with the Internal Revenue Service ranged from very
minimal data (such as an individual's reported total income for
a given tax year) to rather extensive data, indicating that an
Agency employee actually viewed the tax forms from which copiou
notes were taken. However, in none of these instances does it
appear that copies of tax forms were obtained by the Agency.
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