Evening star., 1926-02-14
CHANGES TO SPEED
INCOME TAX AUDIT
Commissioner Blair Goes on
With DecentraIizing of
Work.

Carrying forward still further his
plans for decentralizing the work of
| collecting Uncle Sans taxes, Com
missioner OF Internal Revenue Blair
| has ordered additional changes, esti-
| mated to advance the business of
auditing income tax returns from
three to six months.
Work heretofore done at Washing
| ton In the Internal Revenue Bureau
| including the preliminary examina
, ton OF income tax returns individual,
! partnership, fiduciary and corpora tionl
will be transferred to the collectors
offices.
No dismissal Of personnel will &C
! company the shift, it was assured
yesterday by officials. but work will
| be materially expedited by the change.
Will Retain Individual Returns.
| Individual returns filed on Form
! 1040-A reporting earned net income OF
| $1,000 and less. and all individual re
! turns filed on Form 1910, showing
gross income of $4,000 and less. will
! be retained. as they have been here
| tofore, in collectors offices for com
plete audit. In addition TO these. col
! lectors will retain also for preliminary
| inspection. corporation and individual
returns. showing gross income in ex
!
| nlent by the Bureau of Internal Eeve
nue. explaining the matter.
| Revenue agents. working under the
/ supervising internal revenue agents
| or internal revenue agents in charge,
! the statement said, will be assigned
! to collectors Offices to classify the re
! turns as follows: ta) Returns that are
! determined TO be properly prepared
and should not require further audit
| tbb returns that can be adjusted by
| office audit tc) returns that apparently
require a field examination,
Majority i'm Class \.
1t is estimated that SO percent 81
the number of individual returns ano
| 40 per cent of the corporation returns
! will fall into class a. These VIII be
marked accepted, indicating those
which usually will not require any in
| speCtion other than that already given
The number of individual and cor
| poration returns in class b, those
that can be adjusted by office audit
| is estimated each at 80 per cent. These
| are returns usually adjusted within
reasonable time by correspondence be
tween the agents and the taxpayer oi
! by personal interview. The number
| of individual returns in class { i:
| estimated at 10 per cent. and th'
number of corporation returns at p
| per cent a field examination in Sucf
| cases means an intensive audit OF th'
| taxpayers books. Office auditS anc
! field examinations will be conducted
/ by internal revenue agents. civi
! service organization. made UP largely
/ OF auditors who have been transferred
| to the field service after q specia
| course of training in income tax work
| The work of these agents Will be don.
| under the supervision of a supervising
| internal revenue agent or internal rev
! enue agent in charge.
| In the course of it's preliminary in
! Spection the collectors audit section
will not attempt TO make corrections
in connection with which the tax
payer will have ground for protest
| Such corrections are made in the fina
audit. and are followed by 30-day
| letter from the commissioner of in
| ternal revenue to the taxpayer, il
| which the latter is notified of a def
! cheney and given an opportunity with
! IN that time to protest against addi
| tional assessments.
Status for Appeal
IF, following submission and con
! sideration of additional evidence O,
briefs of argument. the commissions,
| finally determines there is a deficiency
and the taxpayer does not agree. the
taxpayer is then advised that he viii
| be allowed 60 days in which to file
| an appeal with the United States
Board of Tax Appeals.
However, mathematical and other
| errors readily diScernible are to he
| corrected before the returns are listed
! 4 form known as correction sheet