By Larry Margasak

Associated Press Writer

WASHINGTON (AP) - IRS whistleblower Jennifer Long had planned to testify

behind a screen in an electronically distorted voice when she told a Senate

hearing that her agency harassed taxpayers. Plans changed when the Houston-based tax auditor arrived at the airport for her flight to Washington, and ran into an IRS supervisor she knew. Her cover blown, Long decided to criticize the IRS' conduct in full view of the cameras in the nationally televised Senate hearing, while fellow whistleblowers hid their identifies.

Long believes she's still paying for her decision of four years ago. The Internal Revenue Service this month sought to derail her application for a

certified public accountant's license, prompting new concern on Capitol Hill

about possible retaliation.

Two years ago, the IRS gave Long a notice of termination. Although the threat

never was carried out, it also sparked congressional outrage over possible retaliation.

The latest controversy began in February, when IRS officials sent a routine

form back to Texas licensing regulators, declining to answer questions about Long's skill, character and integrity while alerting the agency it was sending a "narrative" required for derogatory information.

The agency then drafted a three-page letter to the regulators dated March 22

that sharply criticized her work on multiple fronts - including suggesting

she mishandled audits. "The probes for unreported income were not adequate," said the letter, which was obtained by The Associated Press.

The Texas Board of Public Accountancy, however, granted Long's license in the

interim and the IRS letter was never sent.

Long was the star witness at 1997 hearings before the Senate Finance Committee that examined alleged abuses by the IRS. She was the lone agency worker to shun a voice disguise and protective screen used by fellow whistleblowers to conceal their identities.

In 1999, IRS officials sent her a termination notice but never fired her after members of Congress inquired about possible retribution.

The latest episode prompted Finance Committee chairman Charles Grassley, R-Iowa, to allege that the letter drafted for Texas regulators amounted to new retaliation.

"I can only conclude that this action by the IRS may be a precursor to a

termination of Ms. Long in retaliation for her testimony as a congressional

witness," Grassley wrote IRS Commissioner Charles Rossotti this month.

Grassley added he would "take every recourse within my power to protect her."

IRS officials declined to discuss why the letter was drafted and why it was never sent, citing employee privacy.

But Rossotti said in an interview with AP he was "very familiar ... up to

date" on the situation and was confident there was no retaliation against any

agency whistleblowers.

"There have been various incidents of complaints that have come up. I have

made it a point to be sure that every one of those situations has been thoroughly, and I would say very thoroughly, investigated," he said.

"I can tell you I am personally certain that none of these people were

retaliated against and all have been treated fairly." (Wonder from where he received his iformation? IRS agents?)