Evening star., 1944-01-18

Hannegan came here only a few
months ago and now he is to be
taken away for political campaign
ing. Will he be given back the job
after the election?
Any bureau of the Government
which touches the pocketbook of
millions of persons and handles bill
lions of dollars of taxes must be
without suspicion of being political
football. It has the power to con-
strue the revenue laws and hence is
a .quasijudicial body. For this rea-
son, If for no other, the recent pro-
posal of Representative Knutson to
separate the Internal Revenue Bu-
reau from the Treasury Department
and give it the status of an inde-
pendent bureau has much merit
The Bureau of Internal Revenue
should have the dignity and the
prestige of the Office of controller
general or of the Interstate Com
merce Commission or the Federal
Trade Commission. 1t should be
governed by bipartisan board or
- commission OF at least seven men,
bers chosen proportionately from
the major political parties SO that
the minority members might con-
stantly check the majority and vice
versa.
The rank and file of employees of
the Bureau Of Internal Revenue are
under civil service rules and are
themselves free from political bias.
They do magnificent job. consid-
ering the handicaps under which
they labor. But some of them are
intimidated by fears from above and
instead of accepting responsibility
for the adjustment of taxpayers
claims they often refuse to make
such adjustment, forcing the tax
pare into expensive litigation.
Indeed, the whole attitude of the
Bureau of Internal Revenue toward
the taxpayer might we'll undergo
the scrutiny of Congressional
committee. Why, for instance, is 1t
common knowledge among tax at
torneys that it is harder to get
refund on an overpayment of taxes
than it is to settle claim involving
underpayment? Why is it common
knowledge among tax attorneys that
the auditors for the Internal Reve-
nue. Bureau often feel that they
must impose some trumped-up claim
for the Government the minute the
taxpayer applies for refund on
some item beneficial to him?
The stories of the peculiar tactics
and strategy of the Internal Reve-
nue. Bureau among those familiar
with the operation of the tax laws
are numerous. The charge that
politics influences action. however,
relates mostly to businessmen who
feel that opposition to the admin |
istration leads to a sudden checkup
of old returns or some equally haras-
sing maneuver If there is nothing
to any of these charges. Congress
sional study of the subject would
do great deal once and for all
toward improving the relations be-
tween the taxpayers and their Gov
ernment
Separation of the Internal Reve-
nue. Bureau altogether from the
Treasury would improve the ad-
ministration of the tax laws and
result in something Of the efficient
practice prevalent in Great Britain
where tax auditors are given the
power to effect settlements on the
spot, thus saving costly litigation
and endless delay. The public gen.
orally hasn't the slightest idea, for
instance, of how far behind the
Internal Revenue Bureau is in
handling tax returns, especially for
business. Manpower shortages and
heavy loss of men to the draft of
trained men might not have oc-
Cured if the bureau had had an