Evening star., 1927-10-30
S55O,O(O,0(ID IN TAX
CLAIMS PENDING
Deficiencies Charged Against
Payers Cited in Survey
by Treasury.
RY DAVID LAWRENCE.

Probably the most disinterested and
non-partisan survey of the subject OF
income tax administration has just
been submitted to the Joint committee
OF Congress on internal revenue by
the Treasury Department.
From the survey it Is learned that
approximately $55O,000,000 is charged
against taxpayers as deficiencies In
their payments-more than enough
If all of it was recovered, to take care
of A years cut In taxation for every
body.
But the Government will not re-
s,cover it all in fact only about 90 per
.,eent of the deficiency claims have been
Sustained in cases involving amounts
of 900 or more.
- The Treasury Department discloses
that for the first time since the war
.the auditing work is up to date with
current returns and that negligible
number of old cases await action, most
OF them being reOpened by taxpayers
claiming refunds.
10000 Cases Pending.
More than 10000 cases are pending
before the board of tax appeals and
a month Perhaps the biggest problem
of all which the Internal Revenue
faces is the turnover in personnel.
The report says there are only IL
attorneys in the office of the general
counsel who have served more than
six years and that since July, 1924, 50
attorneys have resigned from the
general counsels Office while 4.727
designations of professional and tech
meal officials have occurred during the
last seven years. Many individuals
regard theb Internal Revenue Bureau
AS a training school for private work
in their profession.
The Treasury survey enumerates
some of the difficulties as follows:
THE Government is handicapped In
litigation. It can we'll afford to settle
many more cases without resort to
litigation. Cases must be closed
fairly and finally by the Bureau. The
shifting of responsibility to the gen.
eral counsel's office and to the board
and the constant reopening of cases as
O result of decisions of the court or
The board of tax appeals or a change
in regulation should be brought to
an end"
Personnel Biggest Problem.
The major problem is declared to
be personnel. The principal difficulty
is that the salary limitations and other
restrictions surrounding the engaging
of experts as we'll as their retention
makes it hard to train or keep per-
sonnel thus resulting ultimately in a
greater loss to the Government than
would be the case if flexibility in sal
aries were allowed. Finally the sur
yey concludes with the observation
that there must be some method by
which the practice of constantly re-
working cases, after a fair and salts
factory decision Of one or more OF the
issues involved have been reached,
may be stopped. The purpose Of the
report is to guide Congress in making
constructive changes in the admins
trative provisions of the income tax
laws which are expected to be re-
yised at the session beginning in De-
cember On the occasion of the franz
ing of the last revenue act both the
Democrats and Republicans were able
to agree on the administrative sec.
tions making it really non-partisan
affair. An effort is being made to get
a unanimous report from the joint
committee so as to be able to bring
about non-partison consideration and
approval again of the administrative
sections.
tCopyright. 1877