Evening star., 1938-05-29
MORE REVIEW
OFF|CESPLANNED
Success of Branch at Los
Angeles Prompts Move
to Expand.

So great has been the success Of
an experiment in establishing special
branch of the Bureau of Internal
Revenue at Los Angeles, to review In
come tax cases there, that the Treas
ury Department, 1T was learned last
night, plans to expand the decentrali-
zation program, probably beginning
July /.
The cities in which it is understood
such special branches will be estab-
Iished are San Francisco, Seattle, Salt
Lake City and Honolulu.
July / is natural date for taking
such an important step in decentraliz-
ing income tax review, as 1t Is the
start of the Governments new fiscal
year.
Expansion Of the experiment, which
was launched in Los Angeles on March
/, follows a prediction by Secretary
of the Treasury Morgenthau that If
it proved sound" it would be ex-
tended gradually to the rest of the
country"
May Expand Eastward.
Predictions were made freely last
night that the success of the scheme
at Los Angeles had been so marked
that in all likelihood, unless setbacks
occurred elsewhere, the program may
be brought eastward.
Such program, with its far
reaching effect on the tax ADJUST
ment machinery of the Government,
is expected to have repercussions here,
not only in the personnel Of the Bu-
reau Of Internal Revenue. but among
the big corps of tax experts, account
ants and lawyers which has formed
here to handle the cases Of clients
from all parts Of the country.
The decentralization will take some
people out of the bureau here and
send them into the field, but this is
not expected to be sweeping reor-
ganization. 1t probably will effect
principally the personnel OF the So
called "technical staff" of the Office
of Commissioner of Internal Revenue,
and the group known as "conferees."
Radical Shifts Not Expected.
No one could estimate last night
the number of bureau experts and
employees who may be transferred to
the field If the experiment expands
to the whole country. But the best
guesses placed the figure at rela-
lively small proportion of the bureau,
possibly only few hundred. Some
OF the experts for the new work may
be taken from the field.
In Los Angeles, the new division OF
the technical staff has been review
ing income tax cases originating in
Southern California and Arizona.
This staff consists Of accountants,
engineers and other tax specialists
of the same skill and experience as
the men who handle contested cases
for the country as a whole IN the
Office of the Commissioned of Internal
Revenue.
Under the Los Angeles plan tax
payers who protest findings of the in
ternal revenue agents go to Los An
geles for review and conference. The
new division has full authority to re-
wise or reverse the findings Of the
agent in charge, and its decisions are
final. so far as the bureau and Treas
ury Department are concerned. II the
taxpayer is not satisfied his recourse
is an appeal to the Board Of Tax
Appeals.
Morgenthau Likes Plan.
Secretary Morgenthau believes the
plan results in "fairer treatment and
greater convenience to tax payers, in
quicker administrative decisions ana
in fewer appeals from the bureau TO
the Board Of Tax Appeals and the
courts.
There are 80 other Offices to which
the new plan might be extended.
These offices, each of which is headed
by an internal revenue agent. are at
Atlanta, Baltimore, Boston, Brooklyn.
Buffalo, Chicago, Cincinnati. Cleve-
land, Columbia, S. c.; Dallas. Denver,
Detroit, Greensboro, N. c.; Hunting
ton, w. Va; Indianapolis, Jackson
vile, Fla; Louisville, Milwaukee, Nash
vile, Newark. New Haven, New Or
leans. Oklahoma City, Omaha, Phila-
delphia, Pittsburgh, Richmond st.
Louis, ST. Paul, Seattle, Springfield,
H., and Wichita, Kans.