Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1920-06-26

and for which no deduction had been
claimed.
9. BY filing amended reports for
1917 and succeeding years and COM
putting the tax at the rate imposed
for the respective years.
8. (a) BY paying tax on inventory
basis with all items included in the
opening inventory and CD by paying
an additional or separate tax begin
ming at the minimum rate on an
amount representing the difference
between the opening inventory and
the cost Of all items included therein
not previously deducted for income
tax purposes: provided, however. that
the additional or separate tax so paid
in adjustment is not less than the
additional tax to be paid under sug-
gested method No. 2 above.
Ask Time to Consider Plan.
These are approximately correct,
neither of which, however, was ac-
copied by the department for that
reason. they stating that at this time
they could not approve any system
that would not assure absolute ac-
curacy without change in, the
present law.
The committee also saked the
board of appeal and reviews If they
could suggest some simple method
Of making the change and this board
in turn said that this same matter
had been brought to their attention
blu that they had been unable to
solve it.
The committee also asked the
Is a mutual understanding that will
at some time lead to practical and
equitable method of changing from
the cash" basis to inventory system
which will eliminate so much dis
sension and criticism. The commit
tee welcomes any suggestion of NOR
it.
The board OF appeal and review
agrees to change the present ruling
and to allow the taxpayer to pro-
duce back inventories in order to
make adjustments and change from
cash to inventory which we ac-
knowledged was fair put which In
fact cannot be used In all cases as
the figures are not obtainable-
Accounting Methods.
The accounting methods Of the
farmer do differ from that OF other
businesses for this reason, that the
accountant demands cost and a de-
probation on capital assets. But
since from the beginning Of agrlcul-
ture in this country farmers have
buildings, fences and drains, as their
capital assets in the strictest sense
of the word and all other personal
property as having a quick tangible
value which we will call market val
ne. less cost OF marketing as their
stock in trade, they wish to include
in their inventories all Of those items.
including stock of all kinds, grains OF
all kinds, and machinery used in the
business.
This method clearly reflects the
actual income or profit and possesses
the merit Of being absolutely fair to
both the taxpayer and the depart
ment.
The board Of appeal and review
holds that IL the farmer will estab-
lish system of accounting and
bookkeeping practical for his bust
ness which does actually reflect the
income that they will be willing to
recognize that system as an eQuit-
able system Of reporting.
System Near Completion.
This system Of accounting has been
practically completed by US in con-
junction with the department Of
agriculture ad will be filed with
the treasury department for its APP
prevail.
This committee feels that the de-
spartment has bean fair with them
and altho some few things are yet to
no worked out, that both sides are
endeavoring to reach fair and
equitable adjustment whereby we
may pay our tax on our profits as
they accrue.
4 The fact that the law IL new to
this country IL the reason for differ
ent interpretations Of its application.
It varios In each state and with the
local revenue COLLECTORS. The depart
ment gave us to- understand that
this was not their intention and that
every effort would be made to make
# as uniform and equitable a. pos.
sible. 4
This committee recommends that
as many. change from cash to the
inventory system as can do SO with
out being required to pay on any
amounts which were tax free when
earned. as the inventory method
seems to be the only equitable and
satisfactory method Of arriving at
income for purposes Of taxation. The
farm accounting book has been made
with this thought in view and to
conform to a system which coulJ
be, recognized by the department as
accurately reflecting the actual prof
it of any taxable year.
News Of Eldora.
Special to mes-Republican.