Nixon Updated on IRS Attacks on Hughes

Nixon’s problem was that some money was intentionally moved in circuitous ways because at least $100,000 had been taken from casinos and passed to Rebozo, earmarked for the White House. The IRS was beginning to turn up bits and pieces of evidence pointing to a Hughes-Nixon relationship and the investigation was immediately flagged “sensitive.” In May 1972, less than a month before the Watergate break-in, Roger Barth, assistant to the commissioner of the IRS reported to Ehrlichman at the White House. He said the IRS had developed information that might embarrass the President (meaning ruin his chances for re-election). The IRS further told Ehrlichman that Donald Nixon’s name kept coming up in the Hughes investigation.