Evening star., 1925-10-28
TAX APPEAL BOARD
FACES SUSPENSION
Chairman Says Estimate Has
Been Cut to Point Where
Body Cannot Operate.
By the Assoclatch Pre- -.

BY the Associated Press
Appropria tions recommended by the
Budget Bureau foL, the Board of Tax
Appeals next year will force suspen-
sion of the board. its chairman today
told the House Ways and Means com
mittee.
Budget Director Lord has cut the es
timated appropriation for 1927 by
$50 900. Chairman korner declared;
but a cut of S54 900 in the deficiency
appropriations asked for this year will
force suspension early in the Spring.
He said the major expense of the
board was S277 900 annually for sal
aries He did not mention what appro-
priation had been recommended by
the Budget Bureau, which has not
made public its estimates for the next
fiscal year.
While members Of the board inform
ed the committee Of its operations in
dealing as judge between the Govern
ment and taxpayers. Chairman Green
OF the committee was preparing
amendments for incorporation in the
new revenue bill to relieve the board
from some of the vast accumulation OF
cases coming before ii.
Mr.. Green's plan along this line is
to impose docket and witness ices on
those appealing to the board 90 as
to divert TO the courts some of the
minor cases which form the big bulk
of the work before the board.
IL Members Named.
The law called for appointment of
- members on the board to serve
for two years, after which seven
would be retained. Only II members.
however. have been named by Presi-
dent Coolidge.
The committee also directed its at
tention today TO some of the general
administrative provisions of the law.
In this connection A. w. Gregg, sole
itor of the Internal Revenue Bureau.
Yesterday suggested that the Govern
,,ent be empowered ito levy interest
up TO per cent on assessments of
back taxes.
Mr.. Gregg and Undersecretary
Winston also warned the committee
that considerable losses in revenue
would result if it acted favorably on
the numerous appeals for repeal of
the capital stock tax and for permis-
sion of corporations to file as part
ners and partners to file as corpora
tions. They did not otherwise op-
pose the suggestions.
Would Extend Field.
Extension of the jurisdiction of the
BOARD of Tax Appeals to include all
issues arising from administration of
all revenue laws now and heretofore
in effect was proposed in petition
prepared for presentation today by
Edward E. Gore, representing the
American Institute of Accountants.
The institute also favored having
the burden of proof placed on the
commissioner of internal revenue In
cases where appeal is taken TO the
board from additional assessments I'M
nosed by the commissioner. Permis-
sion for corporations and partnerships
70 deduct from their incomes dona-
tions made to religious, charitab BILE or
educational organizations was another
of it's suggestions.
A brief prepared by the New York
State Society of Certified Public Ac-
cOuntants for presentation by Joseph
I Klein of New York recommended
numerous administrative changes and
we'll as repeal of the estate, gift and
capital stock taxes and reduction of
the surtax The society approved
the Treasury's proposal to levy an
interest charge on assessments for
deficiencies.
Means of Simplification.
Representative Bacharach, Repub-
Ijcan, New Jersey, asked Mr.. Klein s
view of the feasibility of eliminating
the surtax rates and having instead
lust a graduated scale of normal
rates. 1t would make no great diff
ference in the rate schedules, he
said, except to replace the present
two systems of normal and surtaXes
with one Other committee members
agreed it might simplify the income
tax computations.
Explaining the views of the COM
mittee in not allowing deductions for
losses sustained in 1920, Chairman
Green declared today 1t was felt that
allowances for deductions in past
years would open up an unlimited
field.
Mr.. Kroner told the committee an
average of 200 to $50 appeals week
were being brought to the board.
OF the S,417 appeals filed, the board
has acted on 1927 The average ap-
peal involved $4,000 while the total
sum involved was S134. 900, 900.