PANEL: NO WIDE ABUSES BY THE IRS

Government: An Independent Review Does Recommend That The Agency's Agents
Focus On Tax Matters, Not Drug Busts.

Washington-The Internal Revenue Service's criminal division has
"drifted" from its proper focus on tax enforcement but is not guilty
of widespread violation of taxpayer rights, according to an
independent review released Tuesday.

A task force of federal law-enforcement officials headed by William
Webster, a former federal judge and former director of both the FBI
and the CIA, said instances in which taxpayer rights are violated are
"isolated and individual" despite some high-profile horror stories.

"No evidence was found of systemic abuses," Webster wrote. But he
cautioned that agents must be aware "that even isolated instances of
abuse of authority can create impressions that undermine the public's
confidence."

The report also found that the 3,000-agent IRS Criminal Investigation
Division properly uses search warrants, grand juries and raids, and
that deadly force was extremely limited. In fact, since 1995 only one
case involved use of a firearm - the shooting of a pit bull dog that
charged an agent during a search.

"There is no evidence in the use-of-force incidents to suggest that CI
agents are overly aggressive, use force unnecessarily or are
improperly trained," Webster wrote.

But the division, Webster wrote, has "drifted from its primary
mission," which is to "investigate criminal violations of the Internal
Revenue Code." This has happened mainly because the division possesses
"sophisticated financial expertise" needed by other law-enforcement
agencies.

In fact, 25 percent of agents' time is spent on drug investigations,
and they are often under the control of a local U.S. attorney as part
of a wider-ranging criminal probe. This does little to help collect an
estimated $195 billion in annual unpaid taxes, Webster found.

Webster urged the division to rededicate itself to enforcing the tax
laws and not get sidetracked on the tax aspects of crimes such as
money laundering and drug trafficking.

In a letter to Webster, IRS Commissioner Charles Rossotti agreed with
Webster's conclusions and promised "more considered decisions"
regarding use of criminal investigation agents for matters other than
tax compliance.