Eric M. Larson P.O. Box 5497 Takoma Park, Maryland 20913 (301) 270-3450 larsone@erols.com May 2, 1998 The Honorable William V. Roth, Jr. Chairman, Senate Finance Committee United States Senate Washington, D.C. 20510 Dear Chairman Roth: I am writing to alert you to an IRS abuse that is being perpetrated by the Bureau of Alcohol, Tobacco and Firearms (BATF), which involves tax returns. I hope that you will consider taking strong actions to correct this abuse, and support the current inquiry into this matter. Under the Tax Code of 1986, certain firearm registration and transfer documents are "tax returns," because they involve payment of a tax to the Government, and BATF characterizes them as tax returns. These tax returns are maintained by BATF in the National Firearms Registration and Transfer Record (NFRTR). The NFRTR was established under the National Firearms Act (NFA) of 1934. The NFA is designed to control firearms thought to be commonly used by criminals by requiring registration of the firearms, and using prohibitive taxes to reduce their manufacture, distribution, and ownership. It is a harsh federal law to discourage illegally manufacturing, selling, or possessing hand grenades, machine guns, and similar weapons, and the cutting down of conventional shotguns or rifles (regardless of their caliber) to make concealable firearms. Any violation of the NFA is a felony, carrying a penalty of up to a $10,000 fine and 10 years imprisonment upon conviction. In a 1996 federal court case, a BATF Special Agent testified that BATF employees have destroyed NFRTR documents. The result of his testimony was that a U.S. Federal District Judge dismissed 5 convictions for nonregistration of firearms. The Assistant U.S. Attorney who prosecuted the case declined to cross-examine, and the BATF has not appealed these dismissals. On April 3 of this year, I testified before the House Subcommittee on Treasury, Postal Service and General Government Appropriations about this and other valid and reliable evidence documenting errors in the NFRTR caused by the BATF. I suggested that the Subcommittee consider removing the NFRTR from custody of the BATF, and relocating it to the Department of Justice. I have enclosed a copy of this testimony for your information and use. As my testimony indicates, top BATF management has been aware of these errors since at least 1995, for many years, and has persisted in trying to cover them up. The BATF has also continued to try and withhold perhaps the most damning evidence: a videotape of a prepared speech delivered on page 2 closed-circuit television within BATF Headquarters on October 18, 1995. This speech was delivered by Mr. Thomas B. Busey, who was then Chief of the National Firearms Act Branch. Mr. Busey's statements were not spontaneous, or "off the cuff"; indeed, he read remarks that he had prepared in advance, and illustrated some of them with charts. Mr. Busey stated that the error rate in the NFRTR was 50% when he first assumed his duties the year before; and that BATF always testified in court that the NFRTR was 100% accurate, although that was not 100% true. Toward the end of his presentation, Mr. Busey discussed correcting a number of errors that he described, and stated: What we're going to do is we're going to go back, starting with the latest entry and working back to the oldest entry and review every hard copy of every document with its entry into the data base to see if it's correct. I think originally we figured this would take 781 man days to do this with five people sitting at a computer eight hours a day. But it's the only way that we can feel that we can ever get it completely accurate. It was fine to begin putting everything in accurate a year ago or at least be guaranteed a year ago it was correct, but what are you going to do with the entries that go back to the early 80s and the 70s and the 60s? [boldface added for emphasis]. Although I complained about the destruction of records, and errors in the NFRTR caused by the BATF, the BATF absolved itself of any responsibility in an internal 1997 report in response to my complaint. They aren't off the hook yet, because Rep. Dan Burton, Chairman, Committee on Government Reform and Oversight, ordered the Treasury Department Inspector General to (1) independently audit the BATF's firearm registration practices, and (2) evaluate the internal 1997 BATF report. I have serious doubts that the Treasury Department Inspector General will do anything except perpetrate the ongoing coverup. No bureaucracy wants to spend effort on something which doesn't advance its interestsand unless and until the NFRTR is damaged, improving it is not in its interest. Not the mention that a good look runs a risk of finding out it can't be repaired, which damages the agency badly. What human in the chain of command is going to take responsibility for a choice which (1) costs a lot of effort without advancing agency goals, and (2) runs a risk of blowing up on them? If (2) happens, the guy who signed the order is going to be in some disfavor. No bureaucrat will do that. If you and others in the Congress don't do something, I think what happens in the future is REALLY hard to call. With all of the evidence I've put into the formal hearing records, everything hinges on what happens in a week, a year, a decade. If, for example, another NFA case is lost on it AND the media picks up on it, you could have a legislative effort against BATFwith both progun and antigun equally outraged. If not, I tend to think it'll remain quiet. The BATF will just write off some Congressional inquiries. The risk of doing something is too great, and given past history I am sure that the BATF will conclude that the odds of Congress doing something really unpleasant to them is pretty small. BATF will swallow some embarrassment (so long as it doesn't impact their budget or legal authorities) rather than take the risk of doing something. page 3 Chairman Roth, do you think it is acceptable for a federal law enforcement agency to finesse perjury in Federal Court? So far, BATF has been absolutely successful in doing just that, as my enclosed testimony documents. If I violated the law and BATF found out about it, I think that BATF would prosecute me relentlessly; I wouldn't be able to say: "I don't choose to allow myself to be prosecuted." Yet, despite the valid and reliable evidence I have brought before the Congress, in official testimony, that the BATF has definitely violated the law, the BATF denies any wrongdoing. As you'll discover by reading my testimony and other evidence, it is absolutely clear that a BATF Special Agent committed perjury in Federal Court. But who will prosecute him for it? Not me. I can't. I don't think you can, either, because a prosecution of this type can only be brought by a federal prosecutor. And a federal prosecutor will only accept a case from a federal law enforcement agency. And what federal law enforcement agency is going to charge a federal law enforcement officer with perjury? I hope that you and your staff will play the videotape I've enclosed, and hear for yourselves what a top BATF executive said in 1995 about the quality of the NFRTR records. This was not some field agent spouting off; this is the guy who was in charge of the entire National Firearms Act Branch, where the National Firearms Registration and Firearms Record is housed and maintained. The BATF is still prosecuting people on the basis of NFRTR records, and I believe that at least some of them may well be innocent. Would you be kind enough to consider supporting the current investigation of the BATF and the NFRTR, and encourage the Treasury Department Inspector General to answer the hard questions, using valid and reliable evidence, even if it means having to fix the errors in the NFRTR? I am asking this because any report that goes to the Congress will be parsed and watered down by political appointees, by definition. These products do not reach the Congress unfiltered, in my experience. If I can assist you or your staff or colleagues in any way regarding this situation, please don't hesitate to contact me. Thank you. Very truly yours, (signed---Eric M. Larson)