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THEODORE ROBERT TETZLAFF Residence: 2020 N. Lincoln Park West, Chicago, Illinois 60614 Born: Milwaukee, Wisconsin, February 27, 1944 Family status: Single Education: Princeton University, A.B., 1966; Yale Law School,

LL.B., 1969 Former employment: 1973-Present, Associate, Jenner & Block,

Chicago, Illinois (on leave of absence). 1972-73, Associate Director (Acting), Office of Economic Opportunity and Director of the Federal Office of Legal Services, Washington, D.C., 1971, Consultant and Special Assistant to the Director, Federal Office of Legal Services, Washington, D.C., 1970, Legislative Assistant, The Honorable John Brademas, U.S. House of Representatives, Washington, D.C. 1970, Executive Director, National Conference on Police Community Relations, Los Angeles, California. 1969, Reginald Heber Smith Community Lawyer Fellowship, Chicago,

Admitted to bar: 1969, Indiana; 1969, District of Columbia


Residence: 9734 Shadydale Lane, Dallas, Texas
Born: Llano County, Texas, April 27, 1936
Family status: Married to Margaret Wallis; no children
Education: University of Texas, Austin, Texas, BB.A., 1961 Uni-

versity of Texas School of Law, J.D., 1966 Former employment: 1973-Present, Vice President of Development,

Club Corporation of America, Dallas, Texas. 1970–72, Private practice, Dallas, Texas. 1968–70, Investigator-Prosecutor, State Securities Board, Austin and Dallas, Texas. 1966-68, Private

practice, Llano, Texas Admitted to bar: 1966, Texas



I. Introduction

The results of the factual investigation of the Impeachment inquiry staff of the Committee on the Judiciary will be reflected in the initial factual presentation to the committee, presently scheduled by the chairman to commence the week of May 6. The presentation will focus on areas of inquiry described in the March 1, 1974, status report to the committee.

The principal work of the impeachment inquiry staff of the Committee on the Judiciary in conducting its factual investigation has been to (1) analyze the information collected by the Senate Select Committee on Presidential Campaign Activities; (2) analyze the information collected by other congressional committees, including the Joint Committee on Internal Revenue Taxation; (3) obtain and analyze all material furnished the Special Prosecutor by the White House; (4) obtain and analyze the report and all material furnished by the District of Columbia grand jury; (5) obtain and analyze certain information from the departments of the executive branch and from certain of the independent agencies; (6) interview a number of witnesses; (7) prepare detailed and specific requests for additional material from the President, together with memoranda justifying each of such requests; and (8) commence preparation of a factual presentation to be made to the committee.

The purpose of this memorandum is to report to the Committee on the Judiciary the progress of the inquiry staff's investigation in certain of the factual areas and categories described in the staff's report of March 1. In each area and category noted in the March 1 report, but not specifically mentioned in this memorandum, the investigation is continuing.

II. Report of Status Paragraph and subparagraph references in this memorandum correspond to those used respecting comparable subject matter in the March 1 report.

Specific factual areas and categories are reported on as follows:


THE PERSONAL FINANCES OF THE PRESIDENT On April 3, 1974, the Joint Committee on Internal Revenue Taxation released the report of its staff: "Examination of President Nixon's Tax Returns for 1969 through 1972." The staff reported that the President has improperly treated as not taxable certain items of capital


gain, had not reported certain items of imputed income, and had claimed a number of tax deductions which were not permissible.

The Joint Committee staff reported that the deduction the President claimed for a gift of pre-presidential papers in 1969 should be disallowed. The President had valued the papers at $576,000; for the years 1969 through 1972, $482,018 had been deducted. The Joint Cominittee staff reported that the gift was not completed until after July 25, 1969, the effective date of a provision in the Tax Reform Act of 1969 eliminating tax deductions for gifts of this kind. In addition, the Joint Committee staff reported that restrictions in the deed giving the papers to the United States made the gift only a "future interest in the papers, which could not qualify for the deduction, regardless of the date of gift. The staff also reported that a 1968 gift of papers was similarly not deductible at that time because of restrictions contained in the deed, and therefore that a carryover deduction for a portion of that gift was not available in 1969.

In his 1969 return, the President claimed that his sale of an apartment in New York and purchase of an estate in San Clemente constituted a change of principal residence and therefore the gain on the apartment's sale was not taxable. The staff reported that, since the President and Mrs. Nixon spent only 15 percent of their time in San Clemente within 1 year of the sale of the New York apartment, San Clemente did not constitute their principal residence for Federal tax purposes during that period and the $151,848 capital gain from the sale was therefore taxable.

In his return for 1970, the President reported that the sale of a portion of his San Clemente property had resulted in no taxable gain. The staff reported that the accounting treatment of the sale was incorrect and that in fact the President realized a taxable capital gain of $117,836 on the sale.

In his returns for 1969 through 1972, the President claimed as deductions for business expenses 25 percent of the cost of operating and maintaining San Clemente, including depreciation, and 100 percent of operating and maintenance expense, including depreciation, of one of his houses at Key Biscayne. The Joint Committee staff concluded that the President's business use of these houses was for his personal convenience, and was not "required as a condition of employment” or “appropriate and helpful,” the standards applied by the courts for determining deductibility of costs related to homes used for business purposes. The total of deductions disallowed for business use of these properties was $56,955. On the other hand, the Joint Committee staff allowed the President a $22,653 deduction on the nonresidential portion of the Key Biscayne property as an investment expense.

During the 4 years covered by the report, the President also deducted $47,766 as "expenses incurred in the performance of official functions as President," including the cost of food, flowers, Christmas cards, gifts, and the like. The Joint Committee staff requested documentation substantiating the business purposes of these expenses, but none was supplied, and the deductions therefore were disallowed.


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