Nixon, Richard Milhous Second Term: The Watergate Affair Soon after his reelection Nixon's popularity plummeted as the growing revelations of the Watergate affair indicated pervasive corruption in his administration, and there was widespread criticism of the amount of government money spent on his private residences. Further problems ensued when the Internal Revenue Service (IRS) found that Nixon's donation of papers to the federal government, which had been taken as a deduction on his federal income tax returns, had been made after a law went into effect disallowing such deductions. The IRS assessed (1974) Nixon for the back taxes plus interest. Many public officials and private citizens questioned Nixon's fitness to remain in office, and in 1974 the House of Representatives initiated impeachment proceedings. The House Committee on the Judiciary, which conducted the impeachment inquiry, subpoenaed Nixon's tape-recorded conversations relating to the Watergate affair and finally received (Apr. 30) transcripts of most,
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