Atlanta tri-weekly journal. [volume] (Atlanta, Ga.) 1920-19??, 1923-12-29
APPEAL TRIBUNAL
| PLAN|VED To HEAR
INCOME TAX PLEAS
Twenty-Eight Members Pro-
posed for Body-Big Saw
ing to Courts IS Forecast in
Move
BY DAVID LAWRENCE
Neased Wire Service to The Journa1.)
Copyright, 1929

(Leased Wire Service to The Journa1.)
Copyright, 1929
WASHINGTON, Dec. 27.-Admin-
istration of the income tax law is
to be simplified at last.
Decision by the ways and means
committee to include a court or
tribunal Of appeal composed of twen-
ty-eight members, who will sit as
quasi-judicial body, is one Of the
most important steps taken since
the income tax law was first passed.
1t has been constantly sought by
business and trade organizations.
Business men have felt that under
the present system the officials of
the income tax bureau acted as
prosecuting attorneys as well as
judges and that the desire to in
crease the government revenues
sometipes took precedence over
equity.
Under the plan the tribunal
would be a court Of last resort be.
fore which attorneys representing
private parties and attorneys rep
resenting the treasury or income
tax units would argue their cases.
This, it is expected, will have a
far-reaching effect not only in say.
ing the federal courts, from many
appeals taken from treasury deci-
slons but in making the parties at
interest feel that they have had
| judicial consideration.
Relieves Secretary
Again )and again there have been
| lteraI interpretations of the in
come tax law by various parts Of
) the income tax unit which have
been made the basis of equity suits
later on. The law itself has vested
a great deal of power in the secre.
tafy of the treasury and in the
commissioner Of internal revenue.
but both of these officials are lar
100 busy to give personal considera.-
ton to income tax controversies
even OF major Importance in dollars
ana cents. With a special tribunal
created, this. discretionary power
| PROBABLY will be exercised for the
commissioner Of internal revenue m.
the secretary Of the treasury.
Another important step provided
Tor in the bill being framed in the
house ways and means committee is
one relating to collections. Hard.
ships have been imposed in the nast
| ny, the treasury department in en-.
.orceo corrections but the treasury
mas had no discretion in the matter.
Inc law has required collection in
cash III thirty days. Most business
men have their money tied I'D in cap.
l'al assets SUCH as machinery or
| GOODS on hand. Dozens of them have
oeen compelled to raise large sums
on thirty day notice. The banks
| nave not always been able to lend
the needed amounts and in MANY
eases bankruptcies have resulted.
Inc concerns have in reality been
solvent but unable to realize on their
assets quickly enough to suit the
| government.
Bond PrOvisO Included
frequently under the advice of
counsel business men have made OUT
their returns and felt that they had
legitimately returned to the govern
ment the right tax only to find out
suddenly, two or three years later.
that an additional assessment is re-
quired. The bill introduced in the
house with the approval of the treas
ury gives the defendant a chance to
give bond for the amount of his as.
seSsment. 1t means an opportunity
to turn around with a period of rea-
sonable length. Treasury officials
| themselves want to see the provision
adopted because they have recognize
ed many cases in which the law
worked unjustly. To force a COM
pany into bankruptcy means to cut
OFF in future years source Of reve-
rue. 1t is to the interest Of tbs
treasury to have as many companies
| paying taxes as possible and there
is no advantage in forcing any body
to the wall. The statisticians have
not been able to compute the losses
to the government Indirectly as a
result of the enforced bankruptcies
but the treasury realizes that from
viewpoint of the government and the
tax payer it is wrong and sentiment
\ in congress likewise favors the
change.
AS the tax bill is being considered
this time officials of the treasury
hope to have many provisions cor-
rected which time and experience
have shown to be unwise.
i