The Washington Times July 15, 1995 New Papers Show Foster Feared IRS Would Audit Whitewater By Jerry Seper and Gretchen Lacharite The Clinton administration, bowing to congressional pressure, has released additional Whitewater documents found in Vincent W. Foster Jr.'s office, including a note showing he was worried about a possible Internal Revenue Service audit of the Whitewater project involving President and Mrs. Clinton. . . . . Meanwile, Metropolitan Police and the FBI continued their investigation into Tuesday night's burglary of notes from the car of a White House lawyer who was preparing for hearings in both the Whitewater and Waco affairs. . . . . Associate White House Counsel Cheryl D. Mills told investigators someone broke into her car Tuesday shortly after 11 p.m. while it was parked in the 2200 block of H Street NW, smashing a passenger-side window and taking a blue gym bag containing her handwritten notes and correspondence between the White House and Congress. . . . . Ms. Mills told police she was in the area to conduct personal business. . . . . According to law-enforcement officials, the papers -- said to be copies of original notes already turned over to the various Whitewater and Waco committees --included information on the White House's handling of Mr. Foster's office papers on the night his body was found in a rural Virginia park, and documents on raids by the Bureau of Alcohol, Tobacco and Firearms and the FBI on the Branch Davidian compound in Waco, Texas, in 1993. . . . . White House spokesman Michael McCurry predicted the burglary would become fodder to "all the conspiracy nuts who are doing all the stuff on Whitewater," noting that Ms. Mills' purse, wallet, portable telephone and other personal items also were stolen. . . . . "Someone threw a rock through the window and took some stuff out of her car, including some stuff she had brought home from work," Mr. McCurry said. "She had some documents that she had been working on at the time. They are replaceable documents. She lost some of her own notes and work material that had gone with that, but it is not a catastrophic loss." . . . . Metropolitan Police, assisted by FBI agents and uniformed U.S. Secret Service officers, searched a four-block area around the burglary site in an unsuccessful attempt to locate the missing documents. . . . . Witnesses told police the suspected burglar was a black male about 19 years old, 5-foot10, with closely cropped hair. He was wearing a baggy, white T-shirt and white shorts. . . . . Ms. Mills, who was questioned by Senate Whitewater investigators this week over the loss of the notes, was not available for comment yesterday. She also testified before the grand jury in March about a White House meeting she attended after Mr. Foster's suicide. . . . . The Foster note outlining his concern about a possible audit was released by the White House on Thursday after administration officials said on Sunday that all the Whitewater documents had been turned over to Senate investigators. . . . . Senate staffers complained, and the new records were released, described as having been listed as Clinton tax records and not included in the original 72-page Whitewater packet. . . . . According to notes found in Mr. Foster's West Wing office, the deputy counsel -- who also served as the Clintons' personal attorney -- was concerned that an IRS audit would begin if Mr. and Mrs. Clinton, his longtime friends, declared losses on the venture, known as Whitewater Development Corp. . . . . In a handwritten note, the former law partner of Mrs. Clinton's said declaring a loss on the couple's 1992 tax returns for the sale of their share of the Whitewater venture to partner James B. McDougal could result in a "can of worms you shouldn't open." . . . . He also noted it was not possible for the Clintons to substantiate claims they made during the campaign -- and after -- that they had lost thousands of dollars on the venture because, he said, the loss calculations "included some items for which there were no canceled" checks. . . . . The Whitewater project, a 203-acre development along the White River in northern Arkansas, and Madison Guaranty Savings and Loan Association, owned by Mr. McDougal, are key targets in an ongoing investigation by independent counsel Kenneth W. Starr. He is looking into accusations that money was illegally diverted from Madison to Whitewater, and that other funds were improperly routed to Mr.
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