IRS memo reportedly slows gambling probes

An Internal Revenue Service memo circulated in IRS offices nationally has brought investigations of large-scale illegal gambling to a standstill, reports the Chicago Tribune.

The memo warned agents that "careful consideration should be given to the extent of wagering activity [investigations] because of pending legislation." This refers to proposed legislation that would repeal federal gambling taxes where gambling is legal. The memo was interpreted in the field as an instruction to slow down all federal gambling investigations and, as a result, investigations by grand juries in four cities into a nationwide illegal sports betting racket have almost halted, the newspaper said.