The Washington times., 1922-05-06
Banks Not Allowed to
Handle Tax Business
Treasury Makes Sweeping Regulations Gov
erning Representation Before Tax
! Bureau and Other Offices.
/ By HARRY GUsACK
The service department of banks which have been han
ding tax business for customers before the Treasury
Department can not continue to represent them under
the and important changes announced by the Treas
ury Department.
By HARRY GUSACK.

ury Department.
Sweeping regulations governing
representation by attorneys before
the tax bureau and other offices,
which viii have the effect Of inter
fertng with a large amount Of prac.
tice before the Internal Revenue
Bureau have been issued by Secre-
tary Mellon.
feet principally the tax practice.
custom house brokers and other rep
resentauves are touched upon to
some extent.
Will Affect Banks.
Representation in tax cases must
be by individuals who cannot appear
until they are passed upon by
qualifying committee and formally
enrolled. The service department
OF n bank which has been handling
the tax business Of its customers
cannot continue to represent them.
A corporation whose business 1t is to
represent tax claimants, cannot con.
tinue to do so as a corporation. Not
even partnership can appear be-
fore the department.
ed by attorneys. personally enrolled
as representing, not a firm or tax
agency, but the principal in person.
The Department states that it
frowns on solicitation Of tax busI.
hess by agents or attorneys and for.
bids enrolled attorneys to advertise
on business cards, announcements
or even personal letters intended to
imply such action. in the solicitation
Of business.
Contingent Fees.
The Department particularly OBJ
1ects to contingent fees; especially in
tax cases, 1t has been practice for
agents and attorneys to collect fees
contingent on the amount OF the
saving in taxes effected. The De-
partment claims the right to inquire
ney the compensation he is on with
his principal. II 1t objects to the
basis, the attorney will be disbarred.
The regulations especially are EN-.
phatic in forbidding any person seek
ing tax business to make known that
he formerly has been employed by
the Treasury.
When claims are allowed, the
Treasury reserves the right to send
the proceeds direct to the principal,
II being placed within the discretion
OF the Treasury officers to ignore
completely the attorney or agent in
turning over any sum collected.
Provisions are contained for dis
barment or suspension, but a hear
ing Is to be allowed the attorney or
agent, and he is to be given an op-
portunity to answer any charges
which may be filed against him.
Any officer or employe of the Treas
ury, in Washington or elsewhere
who has reason to believe" thai any
agent or attorney has violated any
rule, shall promptly make written
report thereof"
Objections Made.
Attorneys and agents. who have
been engaged in tax practice as
we'll as auditors, accountants and
others having business with the
Treasury, are much incensed by the
new regulations and characterize
them As the most bureaucratic and
high handed ever issued by q Gov
ernment department. Protests al
ready are being made. and 1t is
possible some modification may be
made, but this by no means is
certain and now does not seem
likely.
Limits Activities.
The complaint IL voiced that the
regulations raise a presumption OF
fraud against every attorney or
agent appearing before the tax bu-
reau and that at no time is the le-
Eitimate practitioner secure against
disbArment or suspension from
trivial or imagined violations Of
the regulations. 1t also is COM
planned that these rules deprive
many tax payers Of the services OF
expert agents, auditors and account
anita