The Richmond Virginian. (Richmond, Va.) 1910-1920, 1919-05-26
RELATION or BUSINESS TO TAXATION.
tBy Daniel g. Roper, Comnnissoner Of Internal Reyenue)

that Bolshevism which Is now en-
~dangering the future security of many
OF the other nations OF the world.
The greatest deterrent to the real
progress OF Humanity, whether In
dfv1dually or collectively, liz selfish
ness and greed. The extent to which
we appreciate this and cultivate in
ourselves, and in those with whom
we come In contact, q ~forebearing
spirit. a spirit which takes into the
solution of our problems the interest
and problems Of others, will measure
the rapidity with which we reach
the destiny and the possibility of the
American nation. We appre-
ciate the necessity Of maintaining an
even-minded justice. not only among
individuals, but also A. between the
government. and individuals and the
government and its industries. This
must characterize nj actions. both
in making laws and in enforcing
them. We must appreciate the fact
that the government can not exist
apart from its Industries, nor can the
industries. exist apart from their gov
eminent.
I. Therefore, feel in place In dis
cussfng the enforcement of the tax
id y "I1iS+t navy pSNoAiV ~
tant a factor in the economic history
of our country, and in advising with
you concerning plans for h future.
Taxation Is now a very important ele-
ment in tho cost OF doing business.
and the administration of the tax
laws involves a mutual trust as be-
tween the people who pay the tax n
their government which is sustained
by the tax.
Yr~or+a{rfx yr the hn mn ~ bv,cipnUc
The business man naturally seeks
protection against the occurrence of
unforeseen contingencies which
may retard or defeat the &C
complishment of his purpose.
The institution of assurance en-
ah}es him to eliminate a OF the
elements of uncertainty. and the rem
eral use Of insurance in business in
dicates how important ii is to reduce
uncertainty to the minimum. The in
tefnaI revenue laws have injected In
to business an element OF uncertainty
which on account of the relatively
high rates II taxation, looms large
In III business calculations. This
uncertainty IS aggravated by delay
in expediting administrative proce-
dure. With his definite impression
in mind, ] have felt that h gov
eminent should make every effort
possible TO stabilize the administra-
ton of the tax laws I feel that de-
lays at initial stages should be en-
dured with patience IL thereby it Is
possible TO definitely determine upon
equitable AMI lust procedure Every
-fmprovement il This respect provides
Insurance 20 the business man against
! future uncertainty.
The administrative tn sk.sof the In
ternal revenue bureau presents many
difficulties. In devistng means to per-
form this great task. we receive very
little guidance from the past expert
ence of the bureau. The vast increase
! in vernman expenditures has re-
CURED a corresponding increase in re-
ceipts. Extraordinary sums have
been realized from the sale of gov
i,ernment obligations. To provide for
the interest and reduction OF these
obligations, and to pay out of hand
as large a proportion es possible OF
current expense, a new program of
taxation had to be devised. Ninety
five per cent OF all federal taxes under
this new plan are collected through
h fundamentally OF the Internal
Revenue service. Seventy-hve per
cent of all internal revenue taxes
ara collected under the income and
the bureau into relationship with four
millions of taxpayers, not to speak OF
the large number of miscellaneous
taxpayers under the many other pro-
visions of existing laws. 1t Is the
duty of the bureau to interpret the
| provisions Of h law and to provide
every taxpayer with instructions and
forms which will facilitate compli-
anee with the law. The bureau Is
responsible for the enforcement of
the law. Persons liable to tax who
make no return must be discovered
and required to pay the tax and
penalties Il 1t is a further duty Of
the bureau to pass on all claims for
the refund of paid in ex-
cess OF the correct liability. and to
deal with his phase of our obligation
to the taxpayer as effectively and as
speedily as possible
: To meet this situation an unpre-
cendented expansion of the service
has been necessary. In less than two
years tho force has been increased
from 5000 to $4,000 persons. It is
easy 10 see that the innumerable new
and difficult problems and the large
number OF unframed people have
made il impossible to move speedily
in c~o-ordinatirg and systematizing the
work. In dealing with the personnel
problem our plan is, Immediately up
on the appointmen Of persons who
have been found by the civil service
commission to be fundamentally pre-
pared to be initiated into our serv-
ice, to invite them to enroll in courses
OF instruction provided free OF charge
by the bureau and conducted after
office hours. More than sixty instruc-
tors r now carrying nm this work
among about 1900 student employees.
The purpose OF this instruction Is to
familiarixe the employees a. quickly
as possible with tax procedure, legal
and accounting principles and to
make them proficient In the work Of
auditing and reviewing the returns
OF taxpayers.
Two years ago the auditing work
OF the bureau was In arrears even
with the returns for 1913 to 1916.
This old accumulation is now on the
way to completion and hundreds Of
auditors are concentrating on the re-
turns for 1917. In the meantime. I
am a there are delays. exceed
ingly vexations delays. These are the
result OF congestion cause BY the
conveyance OF millions of returns
and thousands OF appeals and claims
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