Head of IRS Entertainment Crackdown Shifts to New Post

The head of the Internal Revenue Service’s highly visible crackdown on the entertainment industry has quietly shifted to another post within the agency, a move some sources speculated is due to internal IRS politics.

IRS veteran Ed Mieszerski confirmed in an interview that he has replaced Pamela K. Christensen in overseeing the agency’s special Hollywood task force, and said Christensen will handle more general work in a position that remains equal to his own. Mieszerski said the move was part of larger efficiency reorganization by local agency officials that took effect in October.

“Everything was too spread out,” Mieszerski said.

Although the move took place as early as October, sources said it was unexpected. The agency has not announced it, and word is only now drifting out into the entertainment community.

Sources familiar with the agency said the decision also was unusual because the respected Christensen, who could not be reached for comment, has given every indication that she wanted to continue overseeing the special group. Asked whether Christensen’s move was voluntary, Mieszerski said, “I can’t speak for Pam.”

Those familiar with the agency said it is highly unlikely that Christensen’s move was brought about by external pressure from those being audited, noting that the IRS has been sensitive to any such attempts since the Nixon Administration tried to use the agency for political purposes in the early 1970s.

They said the more likely scenario is that IRS officials may have been unhappy that Christensen had developed such a high profile, something the agency frowns upon. Asked if that was the case, Mieszerski said, “I haven’t heard that.”

He said the transition is continuing and that Christensen is still giving talks to entertainment industry groups.

The task force has been closely watched in Hollywood, sending out several hundred audit notices a month.

Among the areas it has looked at: deductions for such expenses as massages, makeup and other expenditures that might be considered personal living expenses, “personal services corporations” formed for tax reasons and the use of offshore tax havens by film producers.

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