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Friday, Nov. 11, 2005 11:58 a.m. EST

Court Orders 'Deletions' in Clinton IRS Report

A three-judge panel overseeing Independent Counsel David Barrett's investigation into abuses by the Internal Revenue Service under the Clinton administration has ordered Barrett to make "discrete deletions" is the draft he submitted 15 months ago.

The deletion order "has stoked speculation that [it] has more to do with the next presidential campaign," reports the Wall Street Journal, noting widespread rumors that "the draft report contains information potentially embarrassing to another Clinton administration figure, former first lady and current New York Sen. Hillary Clinton."

"The one Clinton official rumored to be implicated in the report is former IRS Commissioner Margaret Richardson, a friend of the former first lady," the paper said.

The Clintons' lawfirm Williams & Connolly has reportedly filed numerous motions with the court in a bid to trim the report and stall its publication.

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  According to the Journal: "The judges agreed with [individuals named in the report] that some deletions were needed 'to protect extremely confidential information.' They also told Mr. Barrett to omit one section before publishing the report, but to include that material with the report to congressional leaders of both parties."

The section at issue is said to cover "investigations of alleged obstructions of justice and tax-related matters."

In 1997, then Commissioner Richardson denied allegations that her agency had targeted Clinton scandal witnesses and administration critics, despite ample evidence of selective scrutiny.

Clinton accusers Bill Dale, Gennifer Flowers, Elizabeth Ward Gracen and Juanita Broaddrick were all audited during the 1990s. Paula Jones, whose sexual harassment lawsuit led to Mr. Clinton's impeachment, was both audited and had her confidential tax returns leaked to the media.

Adding to the appearance of a massive abuse of power, conservative organizations like the National Rifle Association, the Heritage Foundation, and the Freedom Alliance were also slapped with audits during the Clinton years.

Reports last April on the Barrett investigation said his report zeroed in on Richardson's involvement. But a source familiar with the prosecutor's unedited draft told the Journal she isn't mentioned by name.

The paper said that congressional Republicans cried foul earlier this week over the plan to censor Barrett's report, proposing an amendment to an annual spending bill to release it without any deletions.

For his part, Mr. Barrett will only say: "When, and if, the report becomes known, people will understand more than they do now."

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