Time: Mon Sep 15 06:24:27 1997
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Date: Mon, 15 Sep 1997 06:16:53 -0700
To: (Recipient list suppressed)
From: Paul Andrew Mitchell [address in tool bar]
Subject: SLS: USAToday-IRS after Paula Jones (fwd)

>Paula Jones receives an IRS audit notice
>WASHINGTON - The IRS is scrutinizing Paula Jones' income taxes, her legal
>fund chairman said Sunday, describing the move as "very peculiar" coming
>days after Jones rejected a settlement proposal and her lawyers quit.
>Jones and her husband, Stephen, received a notice Friday that they would be
>audited for their 1995 tax return, said Susan Carpenter-McMillan, Jones'
>adviser and chairman of the Paula Jones Legal Fund since July.
>The notice arrived roughly a week after a Little Rock, Ark., judge granted
>a request from Jones' lawyers to leave the case. The lawyers, Gil Davis and
>Joseph Cammarata, said they had "fundamental differences of opinion" with
>Jones, who rejected a proposed settlement that involved giving her $700,000
>and a statement of regret from Clinton for any damage to her reputation.
>While stopping short of calling the audit outright retaliation,
>Carpenter-McMillan said it seemed strange that federal auditors were
>suddenly so interested in the Joneses, who own little property and live off
>of Stephen Jones' $37,000 annual salary.
>"I find the timing very peculiar," Carpenter-McMillan said in an interview.
>"I would only ask the American public what they think about the timing.
>Most people in the public would find it a little odd."
>White House spokesman Lanny Davis declined comment Sunday, referring
>reporters to Clinton attorney Robert Bennett.  Bennett was traveling and
>unavailable for comment Sunday.
>Jones, a former Arkansas state employee, filed a lawsuit claiming that
>Clinton asked her for oral sex in a Little Rock hotel room during a May
>1991 conference he attended as governor of Arkansas. Clinton has denied
>Jones' accusation, saying he does not remember meeting her.
>In an appearance Sunday on NBC's "Meet the Press,"  Carpenter-McMillan said
>Jones is entitled to an apology or "some kind of clarification" from
>Clinton to make up for the
>humiliation hurled at her by "frothing pit bulls out of the White House."
>"This has never been about money for Paula," Carpenter-McMillan said. "If
>she took my advice, I would say, 'What you demanded in  (1994) is very
>different than what you should demand today,' what they put her through the
>last three or four years."
>She asked that Jones' grievances be resolved in a way that's "broad enough,
>obviously, for the president to accept it but narrow enough for Paula to
>accept it."
>As for the audit, Carpenter-McMillan said she was "just appalled" when she
>learned of it, and said there is nothing about Jones, a housewife with no
>job, that should draw IRS scrutiny.
>"They're a family with two little children. They have one car, they rent a
>little apartment," Carpenter-McMillan said. "How many people renting and
>making under $40,000 a year get audited?"
>She said Jones is not involved in her legal defense fund, which The
>Washington Times reported has collected between $250,000 and $300,000 in
>small gifts on Jones' behalf.
>"She never signed a check. She doesn't even get the bank statements,"
>Carpenter-McMillan said.

Paul Andrew Mitchell                 : Counselor at Law, federal witness
B.A., Political Science, UCLA;  M.S., Public Administration, U.C. Irvine

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