« iepriekšējāTurpināt »
OVERSIGHT HEARINGS INTO THE
OPERATIONS OF THE IRS
SUBCOMMITTEE OF THE
JUNE 28, 29, AND JULY 1, 1976
Printed for the use of the Committee on Government Operations
COMMITTEE ON GOVERNMENT OPERATIONS
JACK BROOKS, Texas, Chairman L. H. FOUNTAIN, North Carolina
FRANK HORTON, New York JOHN E. MOSS, California
JOHN N. ERLENBORN, Illinois DANTE B. FASCELL, Florida
JOHN W. WYDLER, New York WILLIAM S. MOORHEAD, Pennsylvania CLARENCE J. BROWN, Ohio WM. J. RANDALL, Missouri
GILBERT GUDE, Maryland BENJAMIN S. ROSENTHAL, New York PAUL N. MCCLOSKEY, JR., California JIM WRIGHT, Texas
SAM STEIGER, Arizona FERNAND J. ST GERMAIN, Rhode Island GARRY BROWN, Michigan FLOYD V. HICKS, Washington
CHARLES THONE, Nebraska DON FUQUA, Florida
ALAN STEELMAN, Texas JOHN CONYERS, JR., Michigan
JOEL PRITCHARD, Washington BELLA S. ABZUG, New York
EDWIN B. FORSYTHE, New Jersey JAMES V. STANTON, Ohio
ROBERT W. KASTEN, JR., Wisconsin LEO J. RYAN, California
WILLIS D. GRADISON, JR., Ohio CARDISS COLLINS, Illinois JOHN L. BURTON, California RICHARDSON PREYER, North Carolina MICHAEL HARRINGTON, Massachusetts ROBERT F. DRINAN, Massachusetts EDWARD MEZVINSKY, Iowa BARBARA JORDAN, Texas GLENN ENGLISH, Oklahoma ELLIOTT H. LEVITAS, Georgia DAVID W. EVANS, Indiana ANTHONY MOFFETT, Connecticut ANDREW MAGUIRE, New Jersey LES ASPIN, Wisconsin
WILLIAM M. JONES, General Counsel
JOHN E. MOORE, Staff Administrator
LYNNE HIGGINBOTHAM, Clerk
COMMERCE, CONSUMER, AND MONETARY AFFAIRS SUBCOMMITTEE
BENJAMIN S. ROSENTHAL, New York, Chairman CARDISS COLLINS, Illinois
GARRY BR WN, Michigan ROBERT F. DRINAN, Massachusetts
WILLIS D. GRADISON, JR., Ohio ELLIOTT H. LEVITAS, Georgia
JOHN N. ERLENBORN, Illinois
JACK BROOKS, Texas
FRANK HORTON, New York
ROBERT H. DUGGER, Economist
JEAN S. PERWIN, Counsel
DORIS FAYE TAYLOR, Clerk
Rosenthal, Hon. Benjamin S., a Representative in Congress from the
State of New York, and chairman, Commerce, Consumer, and
Richard G. Darman, Assistant Secretary for Policy; accompanied by
Clancy, Thomas J., Director, Intelligence Division, Internal Revenue
Service: Information concerning transmission of photocopies to any
Letters, statements, etc.—Continued
Macdonald, David R., Assistant Secretary of the Treasury, Enforce-
international travelers and persons who have identified them- Page
45 Prepared statement and additional material.
47– Smith, John T., II, General Counsel, Department of Commerce, and
Richard G. Darman, Assistant Secretary for Policy: Prepared
178–203, 204-205 Stankey, Robert J., Jr., Assistant to the Director, Financial Crimes
Frauds, Office of Law Enforcement, Department of the Treasury:
OVERSIGHT HEARINGS INTO THE OPERATIONS OF
MONDAY, JUNE 28, 1976
Washington, D.C. The subcommittee met, pursuant to notice, at 10:05 a.m., in room 2172, Rayburn House Office Building, Hon. Benjamin S. Rosenthal (chairman of the subcommittee) presiding.
Present: Representatives Benjamin S. Rosenthal, Robert F. Drinan, Anthony Moffett, Elliott H. Levitas, Edward Mezvinsky, and Garry Brown.
Also present: Peter S. Barash, staff director; Herschel F. Clesner, chief counsel; Eleanor M. Vanyo, assistant clerk; and Henry C. Ruempler, minority professional staff, Committee on Government Operations.
OPENING STATEMENT OF CHAIRMAN ROSENTHAL
Mr. ROSENTHAL. This morning the subcommittee continues its oversight review of the Internal Revenue Service and Federal agency enforcement of the Bank Secrecy Act of 1970.
The initial phase of the hearings will explore the use of foreign financial facilities for illegal and improper purposes by U.S. citizens or residents and by persons doing business here.
We will be examining the effectiveness of administrative steps undertaken by the Government under the Bank Secrecy Act to meet the problem.
At hearings of the House Banking Committee in the late sixties relating to foreign bank secrecy, it was estimated that the use of foreign secret financial facilities created a loss of tax revenues to this Government in the hundreds of millions of dollars. We will attempt to determine if this situation continues to exist today.
Recent public disclosures showing that foreign secret financial accounts were utilized for many questionable corporate payments and illegal campaign contributions raises serious questions as to the reporting and disclosure programs instituted under the Bank Secrecy Act.
The subcommittee will explore what use has been made of information relating to foreign financial accounts obtained by the Internal