FROM THE OFFICE OF PUBLIC AFFAIRS

Mr. Chairman, Senator Moynihan, and members of the Committee, I would like to express my appreciation for this opportunity to sit before you again to be considered for the position of Treasury Inspector General for Tax Administration. I would like to begin by saying it has been a great honor to serve this Committee as the Inspector General for the Department of the Treasury and the Social Security Administration, and I look forward to continuing this relationship as I am considered for the Inspector General for Tax Administration.

I would like to briefly discuss my background as well as my recent work at the Department of the Treasury, specifically regarding my participation on the transition task force for the establishment of an Office of Inspector General for Tax Administration.

My government service began in the US Army, where I was a special agent with military intelligence in the American Infantry Division in Vietnam. After my service in the Army, I obtained two graduate degrees at the University of Illinois. Upon completion of my graduate studies in 1975, I joined the United States Secret Service as a Special Agent. In 1979, I went to work for the Labor Department's Office of Inspector General in the Office of Labor Racketeering where I investigated Organized Crime in the Teamsters union and other organized crime controlled labor unions. During this time, I served in Chicago and was the Special Agent in Charge in Cleveland and New York City. I was also asked to serve on President Reagan's Commission on Organized Crime. Following this assignment, I became the Field Director for the Office of Labor Racketeering until 1986.

I then became the first Director of the Office of Special Investigations for the General Accounting Office. As Director, I was responsible for conducting and supervising investigations for various Congressional committees. In 1989, I had the pleasure of being nominated by President Bush to become the first Inspector General for the Nuclear Regulatory Commission. And in 1996, I was nominated by President Clinton to become the first Inspector General for the Social Security Administration.

As you know, in 1998, I was again nominated by President Clinton to be the Inspector General for the Department of the Treasury. Although my tenure as Treasury Inspector General has been quite brief, I feel that this organization has made significant improvements over the last several months. I believe these improvements are consistent with changes that this Committee identified as being essential. The organizational structure has been simplified and strengthened to allow for a more efficient and effective operation. We have attempted to improve communications with our stakeholders by creating a Public and Congressional Affairs group. In addition, we have added resources to our Investigations Division to strengthen oversight of Treasury's Law Enforcement Bureaus and to expand our presence along the southwest border and Miami areas. I have been pleased with the quality of journeymen investigators and the many new managers that we have been able to recruit into the office.

More recently, I have been an active member of the Treasury Task Force responsible for establishing and implementing the Office of the Treasury Inspector General for Tax Administration. The Task Force was formed immediately after the IRS Restructuring and Reform Act of 1998 was signed into law. We immediately began to tackle the enormous task of creating a new government organization. Issues addressed by the Task Force included: budget, human resource management, information technology, Treasury Orders and Directives, policies and procedures, administrative support, and more. The Office of the Treasury Inspector General for Tax Administration became operational on January 18, 1999, exactly as scheduled.

I would also like to recognize that this Committee was responsible for the creation of the Inspector General for Tax Administration, and, if confirmed, it would be my personal goal to ensure that the organization becomes all that your Committee envisioned. I will dedicate myself to working with the Committee to see that this goal is realized. I have great appreciation for the legislation which created the Treasury Inspector General for Tax Administration. The provisions for law enforcement authority, direct referrals to the Department of Justice, and public disclosure will make the organization effective and responsive.

This concludes my statement and I would be pleased to answer any questions that you have. Thank you.