IRS CHANGES TAX CLAIM TO MCGWIRE HOME RUN BALL

The Internal Revenue Service struck out with baseball fans and politicians when it initially said baseball fans could be taxed if they gave back a Mark McGwire home run ball.

Faced with stinging criticism from the White House on down Tuesday, the IRS reversed itself.

Gift tax laws won't apply as a groundskeeper caught Mark McGwire's 62nd home run and returned it to the ball to the St. Louis Cardinals' slugger. McGwire hit his record-breaking home run the fourth inning of the Cardinals-Cubs game Tuesday night.

"Sometimes pieces of the tax code can be as hard to understand as the infield fly rule," IRS Commissioner Charles Rossotti said in Washington.

"All I know is that the fan who gives back the home run ball deserves a round of applause, not a big tax bill," he said.

The IRS said it wanted to clarify speculation concerning the tax issue.

On Monday, an IRS spokesman said a fan would have to pay gift taxes on the ball if it is determined to be worth more than $625,000.

Some have estimated the historic ball could be worth $1 million. At that value, $375,000 could be subject to a 40 percent gift tax, the IRS said Monday. That would have meant the fan would have had to pay $150,000 in taxes.

The thought of such a tax sparked a flood of criticism Tuesday from Capitol Hill.

U.S. Sens. Christopher "Kit" Bond and John Ashcroft said the IRS shouldn't tax a fan for catching a home run ball.

Rep. Jo Ann Emerson, R-Cape Girardeau, scoffed at the very suggestion that such a fan would be saddled with a gift tax.

"That is the most stupid thing I have ever heard," she said when reached in Washington. "This is an assault on our national pastime."

Even the White House ridiculed the threat of taxes.

Presidential spokesman Mike McCurry said it was "the dumbest thing I've ever heard in my life."

Ashcroft accused the IRS of using baseball history to raid Americans' wallets.

"Congress passed a major reform package this year to discourage IRS abuses and strengthen the hand of those taxpayers who find themselves in disagreement with the agency, but the IRS will reflect the values of the American people only when it begins to use common sense," Ashcroft said.

Bond said, "The IRS needs to lighten up. If the IRS wants to know why they are the most hated federal agency in America, they need look no further than this assault on America's baseball fans."

Doyle Privett understands the value of such a baseball. Privett, a certified public accountant from Kennett, serves on the Southeast Missouri State University Board of Regents.

He said the IRS could argue the fan would be giving a gift to McGwire, but "I still think it sounds completely silly to apply it in this case."

Privett said if the fan sold the baseball, it would be a different story. The fan would be subject to income taxes.

Privett was one of 300 Southeast officials, students, alumni and supporters who witnessed McGwire's record-tying 61st home run Monday at Busch Stadium. The Southeast contingent was on hand to celebrate SEMO Day at the ballpark.

Privett and most of the Southeast contingent were seated along the left field area.

"The ball was headed straight for us," he said. "We were sitting right next to the Big Mac Land on the fair side of the left-field foul pole."