BRIEFING ON INTERNAL REVENUE CODE S 6050M

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP89T00234R000200280062-8
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 2
• Document Creation Date: December 27, 2016
• Document Release Date: February 19, 2013
• Sequence Number: 62
• Publication Date: May 5, 1987
• Content Type: MEMO

Declassified in Part - Sanitized Copy Approved for Release 2013/02/19: CIA-RDP89T00234R000200280062-8
A I,
TO Id C
OCA 87-1898
5 May 1987
MEMORANDUM FOR THE RECORD
SUBJECT: Briefing on Internal Revenue Code S 6050M
1. On 5 May 1987, of the Office of General Counsel and I
briefed staff members of the Senate l'inance Committee and the Joint Committee
on Taxation regarding classified contracts and the Agency's problems in
complying with S 6050M of the Internal Revenue Code. Attending from the
Senate Finance Committee were Frank Cantrell and Norm Richard. Barry Wold and
Joseph Nega attended on behalf of the Joint Committee on Taxation. Patty
McClanahan of the Department of the Treasury was also present as were Tom
Coleman, Linda Christensen and Dick Stark of the Internal Revenue Service.
2. Degan by briefly explaining that the Agency has a problem
with this particular section because it involves collection procedures and not
enforcement procedures, for which administrative accommodations have been
made. Wold, who led the meeting, asked why IRC S 6103 does not offer adequate
protection (this section prohibits disclosure of certain tax information).
Breneman explained that that section does not afford the same protections as a
security clearance and that the IRS does not have the mechanisms to ensure
that S 6103 is indeed working.
3. While Wold and the other staff members seemed to have no problems with
the Agency acquiring an exemption from S 6050M for contracts in which the
contractor's relationship with the Agency is classified, he did not understand
why the Agency would need an exemption for contracts in which only the subject
matter is classified, explained that we could not fully detail this
in an unclassified forum and would be happy to provide him the answer when we
have checked the clearances of whatever staff member he chooses to have
briefed on the issue. He said that he anticipated that it would be himself,
but he would have to check with the staff member of the Ways and Means
Committee, Maxine Champion, in order to ensure that that committee has no
problem with the exemption. He will telephone me with the necessary
information to obtain the clearance once he has touched base with Champion.
4. The exemption would be placed in a technical corrections package to be
introduced within the next two weeks. Thus, he would need the briefing and
the suggested language within one week to 10 days. gave him a copy
of draft language and I stated that we had not yet finalized this language
with the other agencies within the Intelligence Community, but would begin
that process immediately.
Legislation Division
Office of Congressional Affairs
Declassified in Part - Sanitized Copy Approved for Release 2013/02/19: CIA-RDP89T00234R000200280062-8
Declassified in Part - Sanitized Copy Approved for Release 2013/02/19: CIA-RDP89T00234R000200280062-8
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Distribution:
Orig. - OCA/LEG Subject File: Procurement/Small Business
1 - OCA Registry
1 - OCA/LEG/RH Signer
1 - OCARead
OCA/LEG (6 May 87)
2
Declassified in Part - Sanitized Copy Approved for Release 2013/02/19: CIA-RDP89T00234R000200280062-8
STAT