Nixon's Taxes (Contd.)

Although President Nixon has agreed to pay $432,787 in back taxes as assessed by the Internal Revenue Ser vice, his tax problems are not over. At the specific request of the IRS, Special Prosecutor Leon Jaworski will apparently ask a federal grand jury to decide whether Nixon's tax advisers, Attorney Frank DeMarco and Accountant Arthur Blech, should be charged with fraud. DeMarco, at least, is not likely to accept the full blame under any such accusation. At the same time, IRS Commissioner Donald Alexander, by will ingly declaring that Nixon had not been accused of fraud himself but then issuing a series of "no comments" to questions of whether Nixon had been assessed a negligence penalty for his returns, left the implication that such a penalty may have been assessed in ad dition to the President's tax liability.

The White House has had various offers from Nixon loyalists to bail him out of his financial difficulties by buying the pre-presidential papers that he had claimed as a huge tax deduction. Al though that deduction was not allowed, partly because the papers had not been deeded before a deadline for such tax claims, the General Services Administration ruled last week that the papers cannot be sold. According to the ruling, they are now the property of the National Archives under a binding deed, the date of which does not matter for purposes of ownership.

Meanwhile, California's State Franchise Tax Board declared that Nixon owes the state $4,302 in back taxes, plus almost $1,000 in interest. New York State tax officials are also studying the President's newly determined tax deficiencies, particularly whether he should pay a capital gains tax on the 1969 sale of his Manhattan apartment.

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