Evening star., 1923-12-05
CHANGES IN TAX
PROCEDURE. URGED
Board of Appeals asked to
Decide on Problems of
Collection.

rDecentraliZation" of procedure. for
collecting federal taxes was recon-
mGnded to Congress. today by the tax
simpilfication board in a report max
ing numerous suggestions as to pro-
posed improvements in the admins
tration of revenue laws.
The board proposed a board Of tax
appeals, to be constituted similar to
the Court OF Customs Appeals, as a
judicial tribunal, before which the
taxpayer might go to- contest his
case. Congress also was urged to give
careful consideration ito the wisdom of
eliminating capital gains as income
and capital losses as deductions"
Help for Taxpayers.
By the term decentralization" the
tax sirplfication board said, it meant
procedure whereby the returns of
taxpayers shall be audited, questions
arising in connection Herewith de-
termined, and any change in tax liza
bility from that shown lin the return
settled in various local offices through
out the United States as convenient
as possible to the residences of the
respective taxpayers"
The inconvenience and expense to
the taxpayer in having to wait for
final decision on his case to be made
at Washington, and the necessity of
expense in trips to the Capital were
cited as sufficient to warrant change
in the procedure.
The expense to taxpayers result
ing from trips to Washington to set
tie their" tax liability or from the
employment of counsel here" it was
said, lis estimated to involve tre-
mendous sums in the aggregate"
The present procedure was worked
out in the stress of war times, when
mountain of work was encoun-
tered" said the board, but it be-
hooveS US now that we are at peace
to establish procedure which will re-
suit in etticaciOus administration of
the revenue laws, with as little vexa-
tion to the public and as little ham
pering to business possible" No
Legislation would be necessary to de-
centralize. II was pointed out.
ShOrtcOminY of Board.
The committee on appeals and re-
view. under the control of the COM
missioner of internal revenue, while
considered by the tax simplification
board to be doing good work, does
not go far enough in its efforts TO
afford adequate opportunity to the
taxpayer in adjudication of his
claims, it is held. a board of tax ap-
tended, to be judicial tribunal for
the taxpayer. The function of the
commissioner of internal revenue was
said to be 10 assess and collect the
taxes" an administrative not a judi
cial function. THE appeal given to
the taxpayer from the action or pro-
posed action of the commissioner" +"
said the tax simplifcation board.
should be to judicial body inde-
pendent of the commissioner"
1t is the belief of our board that il
such tribunal were established tax
payers would feel that they would
receive a fair and impartial hearing
before being required to pay any ad-
ditional tax assessments. We believe
that the law creating the board
should be so drafted as to permit the
members to function in groups in
various parts of the United States"
Although admitting that the prob
lem is beyond the proper scope of
recommendations to be made by our
board" the report discusses the pro-
posal to eliminate profits on sales OF
capital assets as income and of loss
es on such sales a deductions, declar-
Ing that such change would he'sone
of the most effective measures which
eould be adopted to simplify the reve-
nue. act
The best considered opinions of
accountants, actuaries. and economists
appear to us TO indicate" said the
board. that the elimination of both
capital gains and capital losses, even
now, would result in no decrease, in
revenue to the government over
period of years"