Delinquent Taxmen

A congressional investigation examines corruption and cover-ups at the Internal Revenue Service

When 50 Internal Revenue Service agents swooped down on the New York City headquarters of Jordache Enterprises, spent two days rummaging through files and carted off more than a million documents, the company's executives were shaken but not surprised. They quickly concluded that their rivals at Los Angeles-based jeansmaker Guess, Inc., were involved, and they were right. The IRS raid and a subsequent grand-jury investigation of possible tax violations by Jordache were triggered by tips supplied by Guess to one of the most powerful IRS officials on the West Coast: Ronald Saranow, who then headed the Los Angeles office of the...

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