TAX REPORTING OF CLASSIFIED CONTRACTS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP89T00234R000200280063-7
• Release Decision: RIPPUB
• Original Classification: C
• Document Page Count: 2
• Document Creation Date: December 27, 2016
• Document Release Date: February 19, 2013
• Sequence Number: 63
• Publication Date: March 5, 1987
• Content Type: MEMO

7/2,o-narte,
Declassified in Part - Sanitized Copy Approved for Release 2013/02/19: CIA-RDP89T00234R000200280063-7
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MEMORANDUM FOR:
FROM:
SUBJECT:
REFERENCE:
5 March 1987
OCA 87-0773
Associate Deputy General Counsel for
Operations Support and Procurement Law/OGC
Deputy Director for Legislation/OCA
Tax Reporting of Classified Contracts
OCA 87-0654
1. On 20 February, met with
and to discuss a problem posed by section 6050M
of the Internal Revenue Code of 1986. That provision requires
that the head of every Federal executive agency report to the
Internal Revenue Service (IRS) certain identifying information
with regard to all contracts. It was decided at that meeting
that would contact the Department of the Treasury to
determine what arrangement could be worked out, i.e., whether
the reporting of classified contracts could be excluded by
regulation or whether a legislative fix was necessary. If it
is decided that the regulation route is the way to go, I trust
that your people will take the lead.
2. The Treasury referant, Lenore B. Mintz, said that she
understood that the problem could not be remedied with a reg-
ulation. However, she did mention that one of the four methods
suggested by the IRS, which is a non-legislative remedy, could
correct the problem and, in fact, would be the easiest way to
do so. This method consists of including language in the
General Explanation of the Act, the "Blue Book," that states
that authority exists to interpret the statute by regulation
CON ? NTIAL
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in a manner consistent with national security and law enforce-
ment needs. Accordingly, we sent to the referenced
memorandum with suggested language for implementing this method
as well as the other three.
3. on 3 March 1987 to indicate
that any of the suggested methods is suitable, including the
Blue Book remedy. Because incorporating language into the Blue
Book would be the simplest way of handling this problem and
would not involve a legislative fix we assume your office will
handle this matter at this stage.
Distribution:
Orig. - Addressee
1 - D/OCA
1 - DDL/OCA
1 - DD/SA/OCA
1 - DD/HA/OCA
1 - OCA Registry
1 - OCA/LEG12.11.milamg
OCA/LEG,
(4 Mar 87)
2
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Declassified in Part - Sanitized Copy Approved for Release 2013/02/19: CIA-RDP89T00234R000200280063-7