Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1922-05-09
Drastic Changes
Made in Ruling
on Tax Practice
Representation Must B.
by individuals Only
Department Objects to
Attorneys Fees.

Washington. May s,-lspe.lal) D
Important changes arc made By See
Ietary OF the Treasury Mellon IN dc
partment circular 30. revised. which
VIII interfere with large amount o
practice before the internal revenue
bureau. The revised regulations aneeI
principally the tax practice. but Gus
toms house brokers and other repre-
heniations are touched on 10 some
extent.
Representation in tax eases must
be by individuals who cannot appear
until they are passed upon by a quail.
flying committee and formally en-
rolled. The service department. OF a
bank which has been handling the tax
business at It's customers cannot con-
iinuc 10 represent them. A corpora
ton whose business II is 10 represent
tax claimants cannot continue 10 do
so As a corporation. Not even a part
nership can appear before the depart.
ment.
Direct Representation.
Tax claimants must be represented
by attorneys. personally enrolled as
representing. not firm or tax
agency. but the principal in person.
The department states that il frowns
on solicitation OF tax business by
agents or attorneys and iorbids en-
rolled attorneys TO advertise that they
arc enrolled or TO use any adjectives
on business cards. announcements or
even personal letters intended 10
imply such action. in the solicitation
OF business.
The department particularly OBJ
jects to contingent tees: especially in
tax cases. il has been a practice for
agents and attorneys TO collect fees
contingent on the amount OF the saw
ing in taxes effected. The department
claims the right to inquire at any
time OF an agent or attorney the conf
pcnsation he is on with his principal.
II il objects 10 the basis. the attor-
ney will be disbarrcd. The regula-
tons especially are emphatic in for
bidding any person seeking tax bust
ness 10 make known that he formerly
has been employed by the treasury.
Collection OF Claims.
When claims are allowed. the
treasury reserves the right to send
the proceeds direct to the principal,
il 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 surpcnsion. but hearing
is to be allowed the attorney or agent
and he is to be given an opportunity
TO answer any charges which may be
filed against him. ANY officer or EN-
pIoye Of the treasury in Washington
or elsewhere. who "has reason to be-
lieve" that 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 well
as auditors. accountants and Others
having business with the treasury,
are much incensed by the new regu-
lations and characterize them as the
most bureaucratic and high-handed
ever issued by government depart
ment. Protests already are being
made and it is possible some modi-
fcation may be made, but this by no
means is certain and now does not
seem likely.
The complaint is voiced that the
regulations raise presumption OF
fraud against every attorney or agent
appearing before the tax bureau and
that at no time is the legitimate prac-
titioner secure against disbarment or
suspension from trivial or imagined
violations Of the regulations. 1t also
is complained that these rules de-
privc many taxpayers Of the services
Of expert agents, auditors and ac-
countants.