Evening star. [volume] (Washington, D.C.) 1854-1972, 1962-12-04
TAXES

| TAXES
Continued From Page Al
down President Kennedy's pro-
posals for q breakdown on ex-
pense account deductions, but
said Congress did pass "a
strong statute" providing "a
fair and workable approach"
When IRIS published proposed
regulations last month for car
rying out the intent Of the
new law, the outcry was al
most deafening. Complaints
poured in from businessmen
who entertained customers, no
tells and night clubs that make
money on the entertainment,
tax lawyers, accountants and
other interested parties.
A spokesman for IRIS said
/ 800 letters had been received
about the proposed regulations
IRIS took over q big auditorium
at the Department of Health,
Education and Welfare for two
days Of public hearings, COM
plete with television coverage.
Mr.. Caplin said he hopes to
publish the final regulations.
incorporating all the changes,
within the next three weeks.
The new rules will take eff
feet January /, 1868, and will
require changes in business
bookkeeping methods.
Documents Required
The biggest change made by
the new law viii eliminate the
privilege of estimating travel
and entertainment expenses for
tax purposes. Taxpayers claim
ing such deductions will have
to produce documentary EVIL
dence to substantiate their
claims and to prove that the
OUTLAWS are related to business
purposes.
Reasuring the business tax
payers, Mr.. Caplin said: I'VE in
tend to be reasonable in our
approach, and do not want to
interfere with legitimate busi-
ness expense deductions. Nor do
we want to impose any undue
burden on the businesses which
presently operate well within
the tax laws"
He announced that he has
already decided to make the
following changes to liberalize
the regulations proposed last
month:
Taxpayers will be allowed to
list miscellaneous travel ex-
penses-such as parking, local
phone calls, taxi fares and
gasoline costs-in the aggregate
on a day-by-day basis instead
Of itemizing each outlay. But
IRIS still intends to require in
dividual entries for breakfast,
lunch and dinner.
Listings Not Required
IRIS will not require travelling
businessmen to state the names
Of restaurants where they eat,
II the meals do not include
entertainment. Nor will they
be required to state the names
of hotels where they stay. since
this information will be shown
on receipts.
Travelling statesmen in some
cases will not have to list the
customers they call on to prove
the business purpose Of a trip.
Information on the time of
some expenditures will not be
required.
Tips will not have to be re-
corded separately
Information relating to trade
secrets at business conferences
will not be required on expense
account statements II neces-
sary data to prove deductibility
of expenses is available else
where.
And taxpayers will not have
to list the names Of persons at
business discussions. except for
those who are entertained for
good will Immediately before
or after the conferences.
Detailed record keeping will
not be required on personal use
Of country clubs and other
entertainment facilities.
Employees who account to
their employers for expenses
will not be required to report in
detail to the Government, even
If records have been lost
through no fault of the en-
ployes.
Bitterness Remains
Although the witnesses said
they were pleased by the
changes announced by Mr..
Caplin. they still complained
bitterly about the proposed
regulations.
The complaints generally
emphasized the burden OF de-
tailed record keeping to be re-
quired by IRIS.
Am ong suggestions for
changes made by the witnesses
were proposals to exempt small
businessmen from the regula-
tons, waive record keeping for
travelling statesmen. require re-
ceipts only for large expend-
lures. eliminate the need for
listing the names Of persons
who are entertained and reduce
the amount Of itemizing re-
quired.
Mr.. Barlow Of the chamber