Evening star., 1952-02-23
George Sees Tighter
Ban on Ex-Reyenue
Men as Tax Counsel


Senator George, Democrat, Of
Georgia, predicted today that
steps would be taken in Congress-
to provide tighter rules governing
the granting Of special permission
to former Internal Revenue en-
ployes to act as counsel for tax
payers in trouble.
This will be one OF several tax
ioophOles to be considered BY the
Senate Finance Committee, which
Senator George heads. ahd the
House Ways and Means Commit
tee. the Senator explained. He
added:
"T'here seems TO have been some
pretty loose handling Of certain
matters"
He said there appeared to be |
"Sof11e laxity" In giving former
bureau 6ffleiais permission to act
IN tax eases. lie added that one
recent disclosure he has In mind
10 that involving Joseph 3, Nunaf1,
jfy former internal revenue com.
missioner, The Revenue Bureau,
records show issued Mr.. humans 8
law fifIil special waivers TO repre-.
sent l07 clients whose taN eases
nae been pending when he left hlsI
FEDERAL pesltieR In ie4T,
Hearings 10 DO Bet.
Meanwhile, the House Ways and
Means subcommittee investigating
taA scandals, II was indicated, viii
get q starting date seen for its
lehgsaWalted hearings Into eondl-
lions IN the revenue efiiees In the
New York area,
subpoenas for some OF tho Wit.
neAAeA are said 10 be retupnable
Monday The subcommittee, head.
% by Representative King, Deno-
gvAt, OF California, Ia expected 10
hold q series OF closed sessions,
ana u may DO several WeekA before
ths public hearings begin.
Mr.. Klhn Ia eApeUted back early
nskt week from California, where
the subcommittee concluded We'd
ileSday q series OF hearings In bah
Ftahelbe0,
Mfl Nuhah and 6thep former
hlah 0filelalb Of the Revenue Bus
Feau aFe scheduled 10 appear be-
f0Re the Klha subcommittee
Wants Exceptions Ended,
Senator Butler, Republican, OF
Nebraska called for no exceptions
IN the law which prevents any pePz
s0h from representing a client be-
I9Pe the Government agency for
at least two years after he leaves
that aReney'S sePVleet
The law was relaxed during The
ias6 war 10 permit exceptions
where the person was net directly
lnV9lvea IN the matters e9neeFn=
mR his client,
Senator williams, Republican,
OF Delaware, In 0 Senate speech
Thursday, questioned the prepFi-
ety OF waiver grants, He con-
tended mot q dime" has been
collected on leng-standing tax
claims tetaling % million In the
cases OF four OF Mr., humans
clients, He said the eases failed
to show UP In Justice Department
hands for criminal action, as
rec commended by revenue agents,
Call Loopholes "Glaring."
Two investigating Senators,
Nixon, Republican, of California,
and Mundt. Republican. of South
Dakota, described tax loopholes
as "glaring." Unless these are
plugged, they said in separate
statements, their investigations
subcommittee's inquiry into al
profitable surplus ship deal will
be a failure"
The subcommittee is headed by
Senator Hoey. Democrat, of North
Carolina, also member of the
Finance Committee, who has
voiced a similar view.
In hearings on the ship deal,
Joseph e. Casey told Senator
Hoey's subcommittee a group he
headed made o $3.25O.OOO profit
on q 100000 cash investment in
war surplus oil tankers.
In the transaction, Mr.. Casey
testified, his group organized a
Panafnanian corporation which
was not subject to United States
taxes.
Senator Mundt said he believes
the evidence shows that tax laws
should be changed TO % restrict
incorporation Of fofeien subsidi.
aries OF United States corpora.
items, and ~ prevent foreign
nationals from exploiting pf0pefu
ties obtained from this severn.
iAent,"
Senator Nixon said tan laws
should be drafted carefully 10
aveld protecting "the men Whe Ia.
slBt upon shlrtlHg the laws and
staying just inside them 10 obtain
dement's MOI available 70 other
l1nhAnuanA