Stealth and Taxes

The public display of dirty linen, particularly Government linen, sometimes has salutary effects. Intrigued by John Dean's charges that the White House has used the Internal Revenue Service to harass anti-Administration organizations, TIME began checking on the activities of a secret IRS Special Services Group. It disclosed that the special group, set up in 1969 to examine the taxes paid by "extremists," had amassed files on some 3,000 organizations and 8,000 individuals, including prison rioters, draft-card burners and rock-concert fans. Three days after the disclosure, the special group was disbanded. "The IRS will continue to pay close attention to tax rebels," declared Internal Revenue Commissioner Donald C. Alexander, who said the IRS had been studying the matter for two months. "But political or social views, 'extremist' or otherwise, are irrelevant to taxation."

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