Evening star., 1949-11-27
By Don S. Worren

Confessional hearing probably
will be scheduled early in the
coming session on a series OF pro-
posals for revamping the organ
ization and procedures Of the
Bureau of Internal Revenue. ON
cials indicated.
One objective is the strengthen
ing Of the enforcement Of taxes.
Other proposals deal with the
handling Of assessment appeal
cases and will urge that the
Washington headquarters be freed
of all but supervisory and man
agement work.
Decentralization Of the routine
case handling, transferring this to
field Offices, has been under way
for nearly 20 years and is con-
tinuing. Oficials Of the Bureau
Of Internal Revenue, however. re-
newed assurances this does not
mean any drastic reduction In
STAN here though some functions
are transferred to the field.
Thomas c. Atkeson. assistant
to Commissioner. George j.
Schoeueman. said about 30 per
cent Of the bureau had been de-
centralized 10 years ago and that
today the figure was about 50 per
cent. Decentralization. he indi-
Gated, might be carried on for
another ! or 2 per cent.
Some Employees Reassigned.
In the decentralization process.
some employees here formerly en-
gagged in case work now shifted
to the field have been reassigned
to other tasks.
The size Of the Washington
headquarters stan has been cut
back by PIT In the past three
years, bureau officials say. At
the end Of the 1947 fiscal year, the
bureau had 52.830 employees, with
4,771 assigned to the Washington
ONCE. At the end Of the 1949
nscal year, last June 80. there
were 52,266 workers, with 4,554
assigned here.
In the program Of strengthen
ing the bureaus work. Congress
provided funds for the current
fiscal year for the hiring Of about
1000 additional employees.
The s0th Congress set the cur
rent reorganization studies In
motion by directing IN investiga-
ton Of the bureaus work by IN
advisory group. This was released
In April, 194s, with comments by.
Treasury oficials and forms .
basis for additional studies by
both the bureau and congressional
committees.
Hearings Postponed.
Hearings were tentatively
scheduled for last June but be-
cause Of the legislative logjam
they were postponed until the
new session IN January. A de-.
cidon On the hearings % expected
soon by Chairman George Of the
Senate Finance Committee, who
Is expected to head the Joint
Committee on Internal Revenue
Taxation next session.
Meanwhile, industrial manage
ment firms are proceeding with
other studies for the bureau un.
der m appropriation Of $l50.o0o
Congress provided for tudepend-
ent surveys. .I
The 194s survey report held
that not less than 81, 100 employees
were needed under the present
type Of bureau organization, or
10000 more than were employed
in March Of that year.
A. L. M. Virgins, then Under
secretary Of the Treasury, who
now u . consultant on manage
ment procedures. told the Joint
Committee the Treasury concurred
in the finding that the bureaus
enforcement activities were In
adequate to cope with the re-
sponsibility Of equitable tax ad-
ministration. The survey proposal
for IN additional 10000 employees
was called realistic BY Mr.. Wig
gins. He added that, assuming
appropriations were granted, some
time would be required to recruit
and train the new workers.
30,oee Tax Evasion Leads.
Tests run at the bureau, Mr..
Virgins added. disclose substan-
tial areas Of tax evasion that can
not now be pursued for lack Of
enforcement personnel" There is
Q backlog Of more than 10000
leads On tax evasion In the files
Of the Intelligence Unit and sew
eral times that number Of cases
Of large currency transactions that
require Investigation. I
Commissioner Schoeneman con-