Evening star., 1927-11-04
TAX REGULATION
! CHANGES URGED
s- EEEuAUVv1U n EvhU1E HI
MI klIHAE1
-
House Committee Is Told
. Board of Tax Appeals
Docket Is Swamped.
-
ny the Associated Press.

sDs the Associated Press.
- Having heard specific suggestions
abr readjusting taxes on corporation
And individual incomes. the House
ways and means committee today de.
jfrred further testimony on tax revi-
sion to hear recommendations apply.
Ing to general administrative features
suf the revenue law and Board of Tax
appeals.
= Witnesses presented for the record
u number of technical proposals for
amendments, aimed to simplify the
law. The first witness was John NJ.
Murphy, New York City. representing
the Committee of Banking Institutions
on Taxation. an organization compris.
Ang 80 national banks. State banks,
Afust companies and private banking
Instututions in ana around New York.
1Ie struck the keynote for the day
when he disclaimed any intent to re.
uuest tax cuts. MY purpose" he
Ead. lis to submit recommendations
for revision of tax regulations which
Have proved expensive and burden.
some to the taxpayer and of no ad.
vantage to the Government"
III r
VOutu CIIfpHiy SeCtiOHS.
- Murphy submitted the suggestions
ehis organization already had made to
1.-The joint congressional tax committee.
sThese included proposed amendments
TO the tax on capital gains and to per.
init deductions for capital losses and
sfor simpljfication of the section ap-
4 fn ~
ILLUMINATION of the requirement for list.
ing tax exempt securities. He also
scalled for abolition Of the necessity
kfor prorating exemption where the
sstatus of the taxpayers changes dur.
ling the year.
I Murphy recalled Secretary Mellon's
Sproposai Of tax exemptions for in
sdomes derived from American bank.
sers' acceptances held by foreign cen.
stral banks OF issue. and suggested its
iextension to exempt profits OF non.
PRESIDENT aliens arising from the pur.
schase and holding of banks accept
sances to maturity" This present tax.
The argued. discourages the investment
sdf foreign capital in the United
Estates.
I Immediately prior to the start of the
ways and means hearing. the Treas
fury Department advised the joint com.
Srnittee on internal revenue legislation.
THAT petitions being fled with the
picard of tax appeals exceeded the
snumber disposed OF by more than 200
sper month. The Treasury report, in
tpart. adding: .@ 4.
I 1.-THE office of the general counsel
sis literally swamped with work. Al
Though the nature of the problems re-.
sTnains substa ntially the same, the bur.
1,nu -<l.x f1.a
sreau of Internal Revenue to the gen.
teral counsel's Office and the Board Of
TAX Appeals.
4 "In cases before the board involving
famounts of $4,000 or more, the Gov
sernment has succeeded in sustaining
konly about so per cent Of the deficien.
lcies assessed. &. +.
I THE period Of delay between the
fdate OF the bureaus action and the
sfinal decision OF the board prevents
sthe decision from becoming q pre-.
scedent for the action OF the bureau
lupon similar points. Taxpayers not
gfnvolved In the proceedings before the
sboard can protect their interests. The
sbureau can protect the GOvernnert's
Tnterests In doubtful cases only by de-
sciding against the taxpayers or. after
sobtaining wavers. by failing to de-
scide.
] There are only IL attorneys in the
office of the general counsel who have
sserved in the Office more than six
years. Since July. 1924. So attorneys
have resigned from the general coun.
sells Office. There have been in the In.
come tax unit alone 4.727 designations
9Df professional and technical officials
during the last seven years."
I While this view by the Treasury OK
conditions confronting the Board of
TAX Appeals did not become known un.
Ill today, the legal profession and the
Business world has complained for
rome time about the congested con.
sdition OF the boards machinery and
Representatives from both with sug.
Eestions for remedying the situation
were among the witnesses called for
Testimony.