In 1931, the Internal Revenue Service’s Intelligence Unit completed an investigation of Alphonse Capone which led to his conviction for tax evasion for which he served 11 years in prison. A recent Freedom of Information Act Request for a copy of Special Agent Frank Wilson’s report to Elmer Irey about the Capone investigation led to a review of the records in light of the confidentiality provisions of Internal Revenue Code Section 6103. The review concluded that this information could be made available to the public – principally because Capone never filed a tax return.
The following are copies of reports and letters from the actual file which summarize the events and activities of the three year investigation of Al Capone.
- Letter dated July 8, 1931, from W.C. Hodgins, Jacque L. Westrich, and H.N. Clagett, all Internal Revenue Agents, to the Internal Revenue Agent in Charge, Chicago, Illinois, in re Alphonse Capone, 7244 Prairie Avenue, Chicago, Illinois.
- Summary Report dated December 21, 1933, prepared by Special Agent Frank J. Wilson at the request of the Chief, Intelligence Unit, Bureau of Internal Revenue, Washington, D.C., in re Alphonse Capone, Lexington Hotel, 2300 Michigan Boulevard, Chicago, Illinois.
- Letter dated March 27, 1931, from Special Agent Frank J. Wilson to the Chief, Intelligence Unit, Bureau of Internal Revenue, Washington, D.C, providing an update on the status of the “Capone investigation.”
- Letter dated April 8, 1931, from Special Agent Frank J. Wilson to the Chief, Intelligence Unit, Bureau of Internal Revenue, Washington, D.C, providing an update on the status of the “Capone investigation.”
- Excerpt referencing Al Capone from “A Narrative Briefly Descriptive of the Period 1919 to 1936.” This was a report prepared on the organization, functions and activities during that time period by Elmer Irey, Chief, Intelligence Unit, for the IRS Commissioner, Bureau of Internal Revenue, Guy T. Helvering.
We welcome your comments after reviewing these records.
2 comments on “Historical Documents Relating To Al Capone And The IRS”
Very interesting. But I do not see how an IRS investigation into a taxpayer’s income and failure to file does not constitute return information subject to the confidentiality rules of IRC sec. 6103.
the definition of return information (6103-b-2-A) includes:
a taxpayer’s identity, the nature, source, or amount of his income, … or any other data, received by, recorded by, prepared by, furnished to, or collected by the Secretary with respect to a return or with respect to the determination of the existence, or possible existence, of liability (or the amount thereof) of any person under this title for any tax, penalty, interest, fine, forfeiture, or other imposition, or offense,
These documents would seem to be data collected with respect to the determination of the possible existence of liability for fines and offenses. Does the IRS really believe that examinations are not covered by taxpayer confidentiality just because no return was filed? Or possibly these documents were made part of the public record at some point and that is why they could be released?
A mystery for tax disclosure geeks.
Agree with you wholeheartedly… IRC 6103 reference
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