PROPOSALS FOR STRENGTHENING TAX ADMINISTRATION HEARINGS BEFORE A SUBCOMMITTEE OF THE COMMITTEE ON WAYS AND MEANS HOUSE OF REPRESENTATIVES EIGHTY-SECOND CONGRESS SECOND SESSION ON ADMINISTRATION OF THE INTERNAL REVENUE LAWS 94411 JANUARY 22, 23, 24, AND 25, 1952 Printed for the use of the Committee on Ways and Means UNITED STATES WASHINGTON: 1952 HJ2377 CONTENTS 42 Statement of— Page 226, 232 Arent, Albert E., former chairman, committee on procedure in fraud cases, section of taxation, American Bar Association_ McCormick, Robert L. L., director of research, Citizens Committee for Reorganization of the Executive Branch of the Government_ _ _ Mintz, Seymour S., chairman, committee on procedure in fraud cases, Ohl, John P., chairman, committee on taxation, Association of the Parsons, William W., Administrative Assistant, Secretary of the Ramspeck, Hon. Robert, Chairman, United States Civil Service Rothwacks, Meyer, Chief, Criminal Section, Tax Division, Depart- Slack, Ellis N., Acting Assistant Attorney General and Chief, Appel- late Section, Tax Division, Department of Justice--- Snyder, Hon. John W., Secretary of the Treasury. Stein, Lester, Acting Assistant, Penal Division, Bureau of Internal Excerpt from a statement by Secretary of the Treasury Fred M. Letter from Daniel C. Roper, Commissioner, September 8, 1919__ Percentage of convictions of cases sent to Justice Department_ _ _ Statement of policy with respect to the compromise of taxes, in- 142 Title 28, U. S. C., duties of United States attorneys. 124 Treasury Decision 1795, September 10, 1912. 140 Proposed organization of Bureau of Internal Revenue, charts. 10-13, 266, 267 Statement of Secretary Snyder before House Committee on PROPOSALS FOR STRENGTHENING TAX ADMINISTRATION TUESDAY, JANUARY 22, 1952 HOUSE OF REPRESENTATIVES, SUBCOMMITTEE ON ADMINISTRATION OF THE INTERNAL Washington, D. C. The subcommittee met, pursuant to notice, at 9:30 a. m., in the main hearing room of the Committee on Ways and Means, New House Office Building, Hon. Cecil R. King, chairman of the subcommittee, presiding. Present: Representatives Doughton (chairman), King (chairman of the subcommittee), Keogh, Curtis, and Byrnes. Present also: Adrian W. DeWind, chief counsel to the subcommittee; Keith Linden, administrative assistant to Representative King; Stanley S. Surrey, special counsel. Chairman KING. At the hearings we open today, this subcommittee is turning its attention to one of the corrective phases of its work. No more important hearings have yet been undertaken by us than these. As the direct result, I believe, of the investigative hearings that have been held since the subcommittee was created, there is today more public awareness of and interest in the internal revenue service than has existed for many years. In this atmosphere of aroused public opinion there is as great an incentive toward, and opportunity for, basic reform of our taxing system as has ever existed. The Nationwide agreement upon the need for the creation of what the President has described as a "blue ribbon" career service must not go ignored. The response to it must be a real drive to improve our tax-collecting methods at all levels. Seven general topics will occupy our attention this week. They include: 1. Recommendations for the removal of collectors of internal revenue and other officials connected with tax administration from politics and bringing their appointments under the career service. 2. The streamlining of the offices and agencies administering the revenue laws and the reallocation of functions among such agencies and offices along the most practical and efficient lines. 3. The strengthening of the field organizations of such agencies and offices and analyzing the proper distribution of function between the field and central organizations. 4. The strengthening of self-policing methods in the Bureau of Internal Revenue. 5. Changes in the administrative methods for dealing with criminal tax-fraud cases. 1 |