Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-03-15
COUzENS PRAISES
REFUND PUBLICITY
Says Order Vastly Improves
Existing Conditions-MeI-
lon Issues Statement.

President Hoover's executive order
giving publicity to tax refund decisions
of the Commissioner of Internal Reve-
nue. brought statement from Senator
Couzens, Republican, Michigan, declar-
Ing that the order was vast improve
nent over existing conditions" and fully
complied with the amendment to the
FIRST deficiency appropriation bill.
THE real test of its efficacy. how
ever said the Senator, who headed
the special Senate tax investigating
committee which sharply criticized
methods of arriving at tax refunds.
twill be the honest intent and DISPOSE
ton on the part of those charged with
the responsibility of carrying out the
order. The Secretary of the Treasury,
when the Senate amendment TO the
first deficiency appropriation bill was
! passed by the Senate, protested vigor-
i ously to the chairman of the appro-
priationS committee, Senator Warren,
against the Senate amendment. He said
it was his opinion that the old system
completely and adequately protected
the Government interests. but 1t Is OBJ
vious that the carrying out of the pres
ent executive order in good faith will
necessitate a reversal of Mr.. Melons
attitude"
Secretary Mellon, in making public
the executive order. explained that 1t
had been the consistent policy OF the
Treasury that tax returns, and the in
formation thereon should under no cir
cumStances be open to public inspection.
Policy Not Affected by Order.
s"This policy" he said, "is based on
the principle that taxpayers should be
permitted to contribute their share OF
the revenue necessities of the Govern
ment without subjecting their business
affairs and transactions to the scrutiny
of their competitors, the idly curious,
solicitors of contributions and unscru-
pulous tax petitioners seeking out pos
sible future clients. This policy Is not
affected by the executive order. Inc
. regulations specifically provide that
Neither the return, nor any part thereof,
shall be open to inspection, and in ad-
dition, the publication of the source OF
any income, gains. or profits, or trans
actions resulting in losses or expenol-
lures, is specifically prohibited.
THE Congress adopted, as an amend
rnent to the first deficiency approprla-
ton act, provision which, as matter
of legal Interpretation, would propaoiy
require no material change in the pro-
cedure or practice OF the Bureau OF IN
ternal Revenue. Furthermore, what
ever effect might have been intended
was. of course, limited to the specific
appropriation made by that act and
would not be applicable to any OF the
other appropriations available for MAX
ing refunds.
Soundness of Position Reiterated.
sThe Treasury has entered serious
objections to all so-called publicity
proposals. The soundness OF this posi-
to dispel any misunderstanding that
might have arisen in the minds OF the
public because of the recent discussions
of the matter, the Treasury has under
taken to go much further than the
amendment requires. 1t is believed that
the publication of the decisions in the
manner outlined above will, IN very
short period of time, show conciusiVe!y
that the Treasury has nothing to hide
in the matter of tax refunds; that tnere
Is nothing mysterious about tax refunds.
that practically all refunds, credits and
attachments, which are allowed, are at
tributable directly to such causes as
decisions of the courts or of the Board
of Tax Appeals overturning the Treas
ury position or holding provision OF
the statute unconstitutional, sto retro
active legislation, to uncertainties, am
biC,Iities or omissions lin the statute. 10
mathematical error, to factors when
could not have been determined at tne
TINE the tax was paid or TO the puoilc-
spirited attitude of taxpayers in decid-
ing doubtful questions against them
selves at the time the tax is paid, rely
ing upon a proper administrative policy
in reaching final determination OF
the amount properly due, and that the
refunding of overpayments OF taxes Is
merely necessary part OF the ad-
ninistration of our tax laws-in TACT,
an essential corollary of any tax system
founded upon the payment first prin-
ciple so frequently discussed"