(UNTITLED)

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP75-00149R000700040047-3
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 1
• Document Creation Date: December 19, 2016
• Document Release Date: December 1, 2005
• Sequence Number: 47
• Publication Date: August 31, 1964
• Content Type: TRANS

Approved For Release 20M0O1
A 714 WX
(210) FOUNDATIONS
AUGUST 31,.1964
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WASHINGTON. AUGUST 31, (AP)--THE J. M. KAPLAN FUND OF NEW YORK,
FIED TODAY.
EXPENDED BY THE CENTRAL INTELLIGENCE AGENCY, REVENUE OFFICIALS TESTI
A 'TAX-EXEMPT FOUNDATION, HAS BEEN USED AS A SECRET CONDUIT FOR FUNDS.
THE DISCLOSURE CAME AT A HEARING BY A HOUSE SMALL BUSINESS SUB-'?
COMMITTEE INVESTIGATING TAX EXEMPTIONS FOR FOUNDATIONS. THE KAPLAN
FUND IS BEING AUDITED BY THE NEW YORK OFFICE OF THE INTERNAL REVENUE.
SERVICE. ITS TAX EXEMPTION WAS ORDERED REVOKED BY NEW YORK DISTRICT-
OFFICIALS IN 1957 AND 1958, BUT THE NATIONAL OFFICE REVERSED THIS
FINDING.: IN 1960 AND CONTINUED THE EXEMPTION..
P
TESTIFIED THE REVENUE SERVICE FIRST,"BECAME AWARE OF THEIR (CIA's)
INTEREST IN THE FUND" LATE IN 1961 WHEN THE SUPERSECRET INTELLIGENCE
MITCHELL ROGOVIN ASSISTANT TO TEE INTERNAL REVENUE COMMISSIONER,.
WHETHER THE FUND"WOULD BE JEOPARDIZED BY THE-AUDITS, ROGOVIN TESTIFIED.
"THEY HAD IEARNEi) THAT AN AUDIT OF THE FUND WAS BEING CONDUCTED
AND THEY WERE CONCERNED WHETHER THEIR INTEREST WOULD BE-MADE PUBLIC AND
AGENCY, BROUGHT THE MATTER UP WITH THE TAX COLLECTORS.
IN RESPONSE TO INQUIRIES FROM NEWSMEN,,-THE CIA SAID IT HAD NO
NOT KNOW OF-THE CIA CONNECTION WITH THE FUND.
SAID THAT EVEN THE NEW YORK OFFICE WHICH WAS-CONDUCTING THE AUDIT DID..:
ROGOVIN'AND HIS SUPERIOR, ACTING COMMISSIONER.BERTRAND M. HARDINGt
THERE . WAS NO. TESTIMONY AS TO HOW MUCH CIA MONEY PASS.,D THROUGH, ;