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

i‘
4. Comments: None of those cases referred to above
would appear to fall into the category of harassment, and
all were linked to legitimate concerns by the Agency. The
tax information would have been legitimately available to
the Agency if requested via the established procedures which
govern such disclosures. However, by virtue of the close
liaison relationship between the Office of Security, Office V
of General Counsel, and senior representatives of the Internal
Revenue Service, as well as the sensitivity of the cases which
predicated the requests for tax data, the Agency was able to
obtain the required information without submitting the requests
in writing. g
At the present time, the Internal Revenue Service is
conducting an extensive investigation into the possible ille-
gality/impropriety of these disclosures of federal tax
information to the Agency. In this regard the Internal Revenue
Service investigators assigned to this task have been briefed
concerning each instance outlined above, although in the
sensitive case involving the former high-ranking Agency employee
an Internal Revenue Service request for written material per-
taining to this disclosure,is still outstanding.
It should be noted that there is no way to be certain
that the cases referred to herein constitute the total number
of instances where the Agency has obtained federal tax infor-
mation as Agency records are not maintained in a manner which
would make such incidents retrievable. As a matter of fact,
the cases of the high-ranking Agency employee and the magazine
were brought to the attention of the Agency by the Internal
Revenue Service during a recent review of its own records.
While the above is a general description of the Agency's
past activities in obtaining federal income tax data, each of
the cases was complex and involved extensive investigative efforts
by the Agency. Accordingly, it is difficult to put the request
for the federal income tax data in each instance into proper
perspective without a rather detailed summary of each case.
Further, this memorandum does not address those instances where
the Office of General Counsel or other Agency components have
engaged in liaison with the Internal Revenue Service with regard
to such items as covert tax returns and/or cover problems.
3
r\&fl5'“' "i I
1. __