Evening star., 1944-03-12
Withholding Tax
Receipt Instead :.
Of Return Urged
Revenue Office Will
Stoy Open Longer
For Next Three Duys


While the local Internal Rev.
enue Office announced longer
hours during the next three days
to help harassed taxpayers meet
the Wednesday midnight income
tax deadline, Treasury Depart
ment official disclosed yesterday
that plans to simplify next
years tax contemplate adjusting
the individuals withholding tax
receipt so that it can be used as
a simple tax return.
The disclosure was made in q
letter from Randolph E. Paul, gen.
eral counsel for the Treasury, to
Representative Brooks, Democrat,
of Louisiana. Mr. Paul discussed
use of the withholding tax receipt
as IAN extremely simple return"
and said:
Taxpayers whose tax is very
largely discharged by withholding
would be permitted to file this
simple statement with the collectors
in lieu of any other return. The
collectors would then compute the
tax and either assess additional tax
or issue a refund, as the case might
be-
Two Other Proposals.
Another plan would broaden the
privilege of using the short form
return 104oA), while third would
eliminate entirely the filing of re-
turns by some taxpayers, Mr.. Paul
disclosed.
Results of joint study in income
tax simplification, made by the
Treasury, the Internal Revenue
Bureau and the Joint Committee on
Taxation, will be submitted to Con-
gress shortly, MIR. Paul's letter said.
Meanwhile, the House Ways and
Means Committee will meet tomor-
row to work on simplification of the
income tax law.
Prospects appeared bright last
night that some real relief for tax
headaches-in the form of easier
to-prepare tax returns by March,
1945-may result from the current
discussions.
While Congress and the Treasury
have been at swords points over
the recent tax bill which Congress
passed over presidential veto,
spokesmen from both camps have
indicated they already are drawing
closer to agreement on plans for
simpliflcation.
One Plan Calls for New Form.
1t was said in reliable quarters
one proposal would call for a new
W. withholding tax form, which
the employer would make out and
send to the Collector of Internal
Revenue, showing the amount of
taxes due from the employe and
the amount taken out by withhold
ing. This plan would leave wage
or salary earners with incomes
Of less than $4,000 free from making
any kind of tax return.
Should any such simple system
be adopted, persons entitled to
large deductions and those with
complicated business or professional
affairs would, of course, be given
the opportunity of filing a regular
return. simplifled from it's present
form.
Although there are still champions
of the Victory tax, it has been in
timated that this may be abolished
as a special levy and consolidated
with the income tax.
300 Aid on Returns.
Some Federal tax experts are
known to be working on master
tables from which the average tax
payer. at glance, could gain some
indication of how much he
would owe.
Meanwhile, nearly 300 persons
are on duty in the local income tax
Office to help taxpayers who are
struggling with the complicated re-
turns due Wednesday.
Tomorrow and Tuesday. the doors
in Room 1902 of the Internal Reve-
nue. Building, Twelfth street and
Constitution avenue NV, will be
open from 8:15 am. to pm. On
Wednesday the hours will be from
8:l5 am. to midnight-the deadline.
A Parks Rasin, head of the office.
predicted tremendous crowds tomor-
row. He pointed out that the Mon
day prior to the income tax filing
date always brings in a flood of
taxpayers who have done some fig
uring the day before
1914 Declarations Due Soon.
To add to their woes, taxpayers
will face the necessity soon of max
ing out a declaration estimating
how much their 1914 incomes and
taxes on them, will be. Forms for
this declaration have been prepared,
will be sent to taxpayers shortly
after Wednesday, and must be filed
on or before April Is.
Because of changes in the law,
nearly all taxpayers will have to
pay out additional cash to the
Government when they file this
declaration.
Although the withholding tax was
adopted to put payments on a pay
as-you-go" basis, elimination of the
earned income credit of 10 per cent
and of credit for taxes paid on
telephone and telegraph, automo-
bile use. transportation and certain
excise taxes, will make the amount
withheld insufficient to cover the
tax on the 1914 income in many
cases, experts said.
Doenitz's Son Killed
LONDON Mar II (Pl-Thp Rpr-