Letter to Mark W. Everson Commissioner Internal Revenue Service

January 9, 2004

The Honorable Mark W. Everson
Commissioner
Internal Revenue Service
1111 Constitution Avenue, NW
Washington, D.C. 20224

Dear Commissioner Everson:

As developments unfold regarding the investigations of various Enron executives, we are following up on our letters dated July 19, 2002; September 24, 2002; and January 8, 2003 (Commissioner Rossotti and then Acting Commissioner Wenzel) requesting information on possible tax investigations of Enron executives.

Specifically, we requested (1) information as to whether any Enron executive is listed in the information the IRS has developed with respect to the use of offshore bank accounts, (2) information as to whether there is any evidence suggesting that such executive has attempted to conceal income from the IRS, (3) that the IRS advise the Committee about any action taken against any Enron executive regarding their individual income liability, (4) a follow-up to the IRS response dated September 18, 2002, that "the individual income tax returns of at least four Enron executives are undergoing 'preliminary review' ", we asked for a description of the phrase "preliminary review" and whether these corporate executives' tax returns are under examination, (5) the number of key officer and executive income tax returns examined as part of the Enron corporate income tax examination for the past 5 years, and (6) whether the individual income tax examinations were opened during the corporate income tax examination.

We reiterate our previous requests and ask for a written response and briefing by January 15, 2004. Pursuant to Internal Revenue Code section 6103(f)(4), the Chairman hereby authorizes Mssrs. Dean Zerbe and Patrick Heck and Ms. Anita Horn Rizek to receive and inspect tax returns and return information with regard to this request.

Sincerely yours,

Max Baucus Charles E. Grassley
Ranking Member Chairman