New-York tribune., 1920-12-19

!
ton, has remained as more or less of O
stumbling block to the lawyers of to-
day in constituting recent legislation.
BY 1872 most of the taxes levied by
ii, except those on liquors and manu-
facturers Of tobacco, had been repealed
and with the exception of short
period following the Spanish
War of 1898 those commodities fur
nished the principal sources Of internal
revenue for some forty years or more
Although an excise tax measured by
income was imposed in 1909 on the
privilege of doing business as cor
poration, 1T was not until after the
constitutional amendment authorizing
the levy of an income tax without ap-
portionment was ratified, in 1918, that
income taxes became an important
feature of internal taxation.
Virgin Fields of Taxation
have gone at such length into the
history of the development of interna.
revenues for the purpose of emphasize
ing the fact that Congress has in re-
cent years ventured into practically
virgin fields of taxation by the passage
of laws which have been on the
statute books so short a time that
there is no established body of authori-
tatlve court opinion to serve as guide
for the determination of many of the
difficult and intricate questions which
daily arise in connection even with the
income tax law, not to speak Of those
inherent in the even more difficult field
of profits taxes. Even such funda-
mental questions as What is income ?"
and "When does it become taxable ?"
q ct icH vi
to much dispute and argument, for
the reason that the principles govern
ing their determination are not yet
clearly and authoritatively established.
1t must be remem bered, too, that the
government is endowed with broad
powers Of summary process in tho col
lection of its revenues. Its policy is
and always has been to collect first
and litigate afterward, in the case of
disputes with the taxpayer. The Col.
lector is charged with the amount of
any assessment sent to him and is
liable under his bond as Collector for
the amount if he fails to use due dill
gence in collection. If a tax is not paid
within ten days after notice and de-
mand he is authorized to issue war
rant of distraint, which has the force
and effect Of an execution upon judg-
ment. Under it he may seize and sell
at public auction any property he can
find belonging to the taxpayer, in salts
tactic nof the tax, and under express
provision of the statute no court can
interfere to stay his action.
Recourse of Taxpayer
The only recourse a taxpayer has in
such a case is to sue for the recovery
of the amount collected. 1t has been
said that a redress is provided by the
Go, a..
possibly the exception which proves the
rule. While real estate, if sold by the
Collector, may be redeemed within
certain period, if personal property is
sold it is gone beyond redemption and
even if the tax was properly levied, the
taxpayer can recover in the court only
the amount for which it sold, which
may have been for less than its real
value.
| think have said enough to show
the absolute need Of some provision
whereby the taxpayer may be assured
OF a thorough and painstaking review
OF his case in the event of differences
OF view between himself and his coun-
sci and the assessing officers before
recourse is had to such drastic meas
ures for collection and it was to meet
TINS need that the Committee on An
peals and Review was created.
In order to function successfully it is
essential that the committee deserve
and win the confidence of the taxpaying
public not only in its ability, but in its
fairness and impartiaiity as we'll
Officers Long Experience
1ts personnel was accordingly Sc
lected from those officers of the bureau
VINO nave not only had long experience
and the greatest possible familiarity
with tax problems, but who have also
demonstrated that they have the
IudIcial temperament and can be re-
lied on TO reach fair and impartial
conclusions, regardless Of the result.
further, to avoid any suggestion Of
prejudice or influence in favor of the
views OF position of the income tax
uhlt' the committee was taken out of
It's jurisdiction, and is responsible onlv
TO the Commissioner and Secretary Of
the Treasury. VI
shortly before leaving the service.
pe'hg curious to know exactly to
whac extent the committee had af-
v'qcu rel.ei 70 the taxpayer in ac
Iuai practice, had an examination
made of all of its recommendations
ana found that in 40 per cent of ali
the cases handled it had reversed the
unit and allowed the taxpayers'
CLAIMS IN full; in 81 per cent it had
supported the unit and rejected tho
'aNPaycrs' contentious, and in % per
cent IT had IN part supported the tax
payers claims and in part the views
OF the unit: This is sufficient \
tn'nk, TO refute any suggestion that
tne committee is unduly prcjudiced
IN favor of approving the work Of the
unit. ~
How Committee Acts
The committee consists of five mem
bers, three Of whom have given their
entire time to it's work, and the other
two, the head of the internal audit
and 'thc head Of the review division.
slt IN on the final determination Of
cases. Tho latter two arc not cx
o'hcio positions, but the men occupy
iuK thcm were selected because of
their peculiar fitness for the york.
Upon the recent resignation of Mr..
Murphy. head Of the internal audit
DIVISION, his place on the committee
w"s filled by member who will give
Han H entirc time to the work, making
four now 70 engaged.
Tho cOfnmitfua han n~n-At~.Y7u