Atlanta tri-weekly journal. [volume] (Atlanta, Ga.) 1920-19??, 1924-03-25
CHARGES AGAINST
/. TAX BUREAU FALSE.
DECLARES MELLON
Thorough Investigation of
income Tax Refunds Would
Be Welcomed, Says Secre-
tary of Treasury

WASHINGTON. d. G.. March %
Ketary Mellon declared in a state
DNnt today that he had never in
Referred OF attempted to influence
the bureau of internal revenue in
its decisions OF any tax case.
Issued in connection with the
hearings conducted this week by a
senate committee investigating the
internal revenue bureau. the state
ment added that the treasury vel
coined any Investigation of the reve
nue. bureau (which has for it's pur-
pose the investiSa ton of conditions
with a view to constructive sugges.
tions for an Improvement in the ad-
ministration.
Referring to testimony given be-
fore the committee, the secretary
said it's news value lis obviously
conferred in sensational general
charges made by discharged en-
ployes, rather than the remarka BILE
Il
OF the conditions with which it was
faced after the war"
Charges that preference has been
given to companies in which he is
financially interested, Mr.. Mellon
declared We're "preposterous and UNI
The statement follows:
considerable publicity has been
given the amount of refunds of taxes
allowed by the government, and
vague and general charges have
been made that large sums of money
have been returned to the taxpay-
ers Illegally and unjustly. Reports
of these refunds have been made to
congress from time to time as re-
Quired by law, but only recently
have the papers noticed these re-
ports. The elements which have, in
fact, affected the amounts of re-
funds of taxes are the completion
Of the audits by the bureau of taxes
for high war tax years, decisions of
the supreme court on disputed ques-
tons of tax liability, and the better
recognition by the taxpayer of his
rights.
Total Refunds Small
1T should be borne in mind that
since 1917 there have been about
s26 000,000,000 of taxes collected and
the total refunds are only $3.50 .000,-
600, or | per cent of the amount
collected. The additional assess
nents made by the bureau as re-
suit OF audit of returns are eight
times the amount Of the refunds. In
other words, there is an additional
assessment in favor of the govern
ment OF 81 for every 13 cents OF
refund in favor of the taxpayer.
The charges have been made
that preference has been given to
companies in which the secretary OF
the treasury is financially interest.
ed. Such a charge is preposterous
and unqualifiedly false. The Gulf
Refining company's case, TO which
so much publicity has been directed,
was settled before [ became secre-
tary of the treasury. j have never
interfered or attempted to influence
the bureau of internal revenue in its
decision OF any tax case. No evil
dence has been produced by any one
at any time from which a reason
able inference might be drawn that
discrimination was being made in ia
xAfssb any taxpayer.
Y.TN1e treasury welcomeSany inves,
ti4att6n of the bureau of internal
revenue which has for it's purpose
the investigation of conditions with
as4view to constructive suggestions
for an Improvement in the admins
tration of the bureau in the interests
OF the government and the taxpay-
ers
"The news value OF testimony be.
fore the committee is obviously cen
tered in sensational general charges
made by discharged employees rath-
er than the remarkable achieve.
ments of the bureau in view of the
conditions with which it was faced
after the war.
Early Work Difficult
During the war the internal rev.
enue bureau had to administer new
and exceedingly complicated tax
laws. Capable employees were very
difficult to obtain and were entire.
ly unframed.
THE interests Of the government
at that time were quite properly di
rected to obtaining revenues, and
not to settling difficult questions OF
tax liability. AS a rule the taxpay
ers did not dispute their assessments
and the larger complicated cases
were not touched. Consequently
when the present administration
took hold it found practically nc
work had been done on the large
cases.
Through improved methods OF
administration and hard work the
accumulation OF old cases, pending
in the bureau, has been greatly re
duced, and audit of returns should
be current at the next fiscal year
There are still pending only three
tenths of one per cent of 1917 cases
one half of one per cent of 1915
eases; Ole and two-tenths per cent
OF 1919 cases; two ava two.tenths
per cent -, 1920 eases, and three ant
one.half per cent of 1921 cases"
CRISP WANTS RECORD
OF REFUNDS PRINTED
ontO al