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Special Report

Senator Kerry on IRS Hit List

Now some fresh pickings from the Political Grapevine:

Taxing Issue

The IRS is seeking more than $800,000 in payroll taxes from Massachusetts Democratic Senator John Kerry's 2004 presidential campaign. The Washington Times reports the IRS has filed a lien and says a previous attempt to collect was unsuccessful. Kerry's spokeswoman Whitney Smith says the campaign paid the taxes in 2004: "We filed these forms correctly, and we're working with the IRS to provide them any and all needed information to set the record straight."

Liens are usually filed to ensure the IRS has a legal claim on property to collect a tax debt. But the Kerry campaign officially closed its books last year showing a cash balance of zero, meaning there is no campaign property left to be claimed.

It remains unclear if Senator Kerry could pay the taxes from his personal funds if the IRS rules against him.

Letter of Intent

Some British members of Parliament are circulating a letter calling for Prime Minister Gordon Brown to step down. The London Guardian reports that group believes it can persuade up to 80 members of Brown's own party to sign on.

The plan aims for Brown's resignation next week and a new prime minister in power by the first week of July. The group expects Brown's Labor Party to do poorly in Thursday's local elections because of the ongoing scandal over member expenses.

News of the letter came as Communities Secretary Hazel Blears submitted her resignation. It was the fourth ministerial departure in Brown's party inside 24 hours, and the second member of his Cabinet.

Tuesday, Home Secretary Jackie Smith announced her intention to step down.

Game Over

The company planning to market a video game in which Guantanamo Bay inmates kill their guards is pulling the plug. We told you Tuesday about "Rendition: Guantanamo" developed by a British software firm.

T-Enterprise Director Zarrar Chishti says: "As a direct result of the extreme reaction that the game and its popular misconceptions have provoked, T-Enterprise has decided to pull out of the project."

The company tried to get around the obvious public relations issue of shooting at U.S. troops by pretending that Guantanamo had been sold to mercenaries.

It also hired former Guantanamo Bay detainee Moazzam Begg as a consultant. The FBI says Begg admitted to training with and recruiting for Al Qaeda, as well as providing money and material support.

— FOX News Channel's Zachary Kenworthy contributed to this report.