have found that I needed the full fifteen months provided by the present law to handle the administration satisfactorily. I have dealt primarily with assets which were stocks and the liquidation of them in the long bear market has been difficult or impossible on any satisfactory basis. It seems very unwise and unfortunate to change long standing practices for decedents' estates to make up for one year only a needed increase in revenues. If the President's proposal is not to be rejected, then I hope that the amount of the estimated estate tax to be paid will be reduced from 80% to 50%. Otherwise, there can easily be cases in which 80% of the estimated estate tax will exceed the actual estate tax. The liquidation of assets to pay 80% of the estimated estate tax can be prejudicial to an estate and the prejudice will not be overcome by a later refund of the overpayment. If the present law for the payment of estate taxes is to be changed, I would prefer the alternative arrangements proposed by the American Bankers Association and the American Bar Association. However, I very much favor the retention of the present law without change. Respectfully, Mr. JOHN M. MARTIN, Jr., H. PARKER SHARP. WESTERN OILFIELDS SUPPLY CO., Bakersfield, Calif., September 16, 1970. Chief Counsel, Committee on Ways and Means, GENTLEMEN: I wish to submit a written statement regarding the acceleration of payment of Estate Taxes. My father, my brother and I are the owners of a small business. Taxes at the present time are very burdensome, in two ways. They are high, and at least half of our accounting expense is for keeping records for the government. All of our earning capacity and wealth is tied up in this company. Each of us play an important part in the success of the business. On the death of any one of us, there is going to be a lot of confusion and re-adjustment. Should we have to raise and pay the estate taxes in any short period, such as the suggested 7 months, it could well be impossible, or disastrous. We vitally need the protection and assistance as provided in Internal Revenue Code Sect 6166. Yours very truly, W. G. LAKE. AGNES SCOTT COLLEGE, JOHN M. MARTIN, Jr., OFFICE OF PUBLIC RELATIONS AND DEVELOPMENT, Chief Counsel, Committee on Ways and Means, DEAR MR. MARTIN: Agnes Scott College is the recipient throughout the year of gifts from friends and alumnae. The proposed change to require Federal gift tax returns on a quarterly rather than an annual basis might tend to discourage some responses to college needs which arise during the college term. We would hope that these more frequent returns would not be required for charitable gifs. Since there is no tax due, there would be no tax loss. From my experience at Arkansas College as well as at this institution I feel that filing such returns on a quarterly basis would tend to discourage some gifts. Hoping that this requirement will not be imposed, I am Sincerely yours, JOHN M. MARTIN, Jr., PAUL M. MCCAIN, Vice President for Development. ALLENDALE SCHOOL FOR BOYS, Chief Counsel, Committee on Ways and Means, Longworth House Office Building, Washington, D.C. DEAR MR. MARTIN: I would like to strongly urge you and the House Ways and Means Committee that if the quarterly gift tax proposal is enacted, a specific exemption be made for charitable gifts. In this case where charitable gifts are recordable, the report should be on an annual basis as in the present law. Requirement for quarterly reporting of charitable gifts will tend to discourage year around giving and result in donors postponing gifts to the end of the year. Sincerely, Mr. JOHN M. MARTIN, Jr., DEAN BEGUHL, Director of Development. ALFRED UNIVERSITY, Alfred, N.Y., September 4, 1970. Chief Counsel, Committee on Ways and Means, DEAR MR. MARTIN: I understand that the Committee on Ways and Means is considering a Treasury proposal requiring donors to file quarterly Federal gift tax returns for many charitable gifts. I would like to suggest in the interest of charitable institutions that this proposal, if enacted, would restrict charitable gifts that have been coming in on a year round basis to year end gifts in order for the donor to avoid having to file more than one tax return. Many charitable institutions operate on a July to June 30th fiscal year and depend heavily on the gift income for annual campaigns in the spring. Therefore, year end gifts for at least the first year following an enactment of this Treasury proposal would seriously affect the financial status of such organizations. Therefore, I would strongly recommend considering that an exemption be made for reportable charitable gifts keeping the requirement for tax reporting on an annual basis as under present law. Sincerely, JOHN M. MARTIN, Jr., ROBERT A. CLINGER, Director of Development. ALTA BATES HOSPITAL, Berkeley, Calif., September 2, 1970. Chief Counsel, Committee on Ways and Means, Longworth House Office Building, Washington, D.C. DEAR MR. MARTIN: As a non-profit community hospital that depends for a large part of its support through voluntary gitfs, we are very much concerned regarding the Federal gift tax return for charitable gifts which is now being considered by the House Ways and Means Committee. We believe that if the quarterly tax filing proposal is enacted a specific exemption be made for charitable gifts. All those gifts are reportable and should be on an annual basis, as under the present law. We do believe that the requirement for quarterly reporting of charitable gifts could discourage year-round giving and result in donors postponing gifts to the end of the year so that only one tax return, instead of four, be filed. We are most hopeful that the House will give this request favorable consideration not only in the interest of this non-profit hospital but also for all non-profit organizations including universities, colleges, etc. Sincerely, ALFRED G. WARDLEY, AMERICAN BAPTIST HOMES OF THE WEST, INC., JOHN M. MARTIN, Jr. DEAR SIR: The Treasury Bill, now being considered by your Committee which would require donors to file quarterly Federal gift tax returns, could work a hardship upon a ministry of my Institution. I am, therefore, writing you of our concern that it not be enacted. The requirement for quarterly reporting of charitable gifts would discourage year-round giving and result in postponing gifts to the end of the year so that one tax return, instead of four, need be filed by the donor. American Baptist Homes of the West has many residents in need of supplementary income for costs of living and medical services which are provided in most part, through the benevolence of interested friends of the Homes. This supplementary money must be provided monthly and is solicited regularly with the appeal for meeting immediate needs and individual circumstances. Without a regular flow in income, it is most difficult to budget adequately for special needssome of which are acute and expensive. Therefore, I urge that if the quarterly gift tax filing proposal is enacted, there be a specific exemption made for charitable gifts. In those cases where charitable gifts are reportable, the report should be on an annual basis-as under the present law. Thank you for your consideration. I am sure that you are as concerned as I am for the needs of the aging who are dependent upon the beneficence of others more fortunate. Sincerely yours, L. EARLE SHIPLEY, Director of Development. AMERICAN FRIENDS SERVICE COMMITTEE, INC., JOHN M. MARTIN, Jr., Chief Counsel, Committee on Ways and Means, DEAR SIR: We wish the Committee on Ways and Means to know of our concern regarding the proposal to require quarterly filing of gift tax returns. Our concern relates to the inconvenience which this requirement would cause for charitable donors who make substantial periodic gifts. We urge the Committee to exempt charitable gifts from the quarterly filing requirement if it is enacted. Sincerely, JOHN II. CURTIS, Comptroller. THE ALUMNI COUNCIL OF AMHERST COLLEGE, Mr. JOHN M. MARTIN, Jr., Chief Counsel, Committee on Ways and Means, DEAR MR. MARTIN: I understand that your Committee is now considering a Treasury proposal which would require the filing of gift tax returns and payment of gift taxes on a quarterly basis. I take it that as it presently stands this bill would include gifts to charitable institutions, such as Amherst College. I write to urge that the quarterly requirement be eliminated for charitable gifts. I have been involved in fund-raising for Amherst College for twenty-four years, both in annual giving and in deferred gifts, bequests, estate planning, etc. and I am firmly convinced that the requirement of quarterly filing will result in a decrease and in discouragement of gifts by alumni and friends to this institution. I believe the same would be true of proposed donors to other charitable institutions. I hope very much that the House Ways and Means Committee would at least provide for a specific exemption of charitable gifts from such requirement. Sincerely, Mr. JOHN M. MARTIN, Jr., J. ALFRED GUEST, Secretary. ANDERSON COLLEGE, OFFICE OF THE PRESIDENT, Anderson, Ind., September 2, 1970. Chief Counsel, Committee on Ways and Means, Longworth House Office Building, Washington, D.C. DEAR MR. MARTIN: It is my understanding that a Treasury proposal now being considered by the House Ways and Means Committee, if supported, would require donors to file quarterly Federal Gift Tax reports. Certainly the requirement for quarterly reporting of charitable gifts would discourage year-round giving to my institution and result in donors postponing gifts until the end of the year so that only one tax return, instead of four, need be filed. Such postponing of gifts would probably result in fewer gifts. I urge the House Ways and Means Committee to consider a special exemption in the case of charitable gifts. In cases where charitable gifts are reportable, it would serve the best interest of institutions of higher education if the report is required annually, as under present law. Your consideration in this matter will be appreciated. ROBERT H. REARDON, Persident. ARIZONA CONFERENCE OF SEVENTH-DAY ADVENTISTS, OFFICE OF THE PRESIDENT, Phoenix, Ariz., September 14, 1970. Mr. JOHN M. MARTIN, Jr., DEAR MR. MARTIN: It is my understanding that consideration is being given to requiring quarterly reports on gift tax and charitable gifts. This could discourage the giving of gifts to church organizations, for you know how people are regarding forms that have to be filled out. We hope that some exemption could be made for our church organizations so that they need be reported only once a year, at the normal time for turning in the annual income tax report. If giving is discouraged sufficiently by forms, then certain programs that are carried on by churches, like welfare and educational work, et cetera, which are saving the government some funds, might be dropped due to lack of funds. This would mean that should the government need to pick up this expense then perhaps it may find itself looking for tax funds with which to carry on such programs. We recognize that there is a tremendous need for more dollars with which to carry on the work, and we wish you much wisdom, good judgment and discretion in arriving at a fair and equitable decision. Very sincerely yours, Mr. JOHN M. MARTIN, Jr., JOHN V. STEVENS, President. ASHER STUDENT FOUNDATION, East Lansing, Mich., September 2, 1970. Chief Counsel, Committee on Ways and Means, DEAR MR. MARTIN: It is my understanding that the House Ways and Means Committee is considering a Treasury proposal which would require filing of gift tax returns and payment of gift taxes on a quarterly basis. Furthermore, I understand charitable gifts are included in this proposal even though they are not subject to gift taxes. I would like to suggest that your committee should include a specific exemption for charitable gifts requiring only an annual report. The requirement of a quarterly report could easily discourage year-round giving in order that a donor might avoid filing four tax returns. Considering the fact that the tax treatment of charitable gifts is different from regular gifts, this exemption seems reasonable. Thank you. Mr. JOHN M. MARTIN, Jr., ROBERT B. LARSEN, Director of Development. AZUSA PACIFIC COLLEGE, Azusa, Calif., September 4, 1970. Chief Counsel, Committee on Ways and Means, DEAR SIR: This letter is in regard to the enactment of legislation requiring quarterly gift tax filing. I urge you to consider the adverse effect on gifts to charities if donors are required to file gift taxes on a quarterly basis. Many charities depend on regular systematic giving which this law would discourage. Please support an amendment for a specific exemption for charitable gifts to be included in this proposed legislation. Sincerely, CLARENCE MEYERS. BARRINGTON COLLEGE, JOHN M. MARTIN, Jr., Barrington, R.I., September 10, 1970. Chief Counsel, Committee on Ways and Means, Longworth House Office Building, Washington, D.C. DEAR MR. MARTIN: Barrington College depends very heavily upon year-round gift support for its economic stability. A failure in receiving this monthly support could prove disastrous. Therefore, I urge that if the quarterly gift tax filing proposal is enacted, a specific exemption be made for charitable gifts. In those cases where charitable gifts are reportable, the report should be on an annual basis, as under present law. The requirement for quarterly reporting of charitable gifts could discourage year-round giving and result in donors postponing gifts to the end of the yearso that only one tax return, instead of four, need be filed. Cordially yours, JOHN M. MARTIN, Jr., CHARLES E. HUMMEL, President. BENNETT COLLEGE, Millbrook, N.Y., September 11, 1970. Chief Counsel, Committee on Ways and Means, Longworth House Office Building, Washington, D.C. DEAR MR. MARTIN: I understand that a Treasury proposal now under consideration by the House Ways and Means Committee would require, under conditions specified, the filing of gift tax returns and payment of gift taxes on a quarterly basis, on the last day of the month following the end of the calendar quarter in which the gift is made. On behalf of Bennett College, I urge that if the quarterly gift tax filing proposal is enacted, a specific exemption be made for charitable gifts, with the present requirement of annual filing being continued therein. Private colleges urgently need the financial benefits accruing from year-round giving. Bennett is no exception. Quarterly reporting of charitable gifts could seriously reduce these benefits, since many in our various constituencies might postpone their gifts until the end of the year, so that only one tax return instead of four would need to be filed. As the committee no doubt is well aware, we are greatly concerned in these times about our ability to survive and flourish as free private institutions, and feel that the country would lose something of incalculable value in its educational strengths were we to go under or become part of tax supported state systems, as some colleges and universities already have done. Consequently, we urge that every reasonable incentive for donor support be allowed to remain. Sincerely yours, JOHN M. MARTIN, Jr., PAUL M. WINSHIP, BETH ISRAEL HOSPITAL, Boston, Mass., September 16, 1970. Chief Counsel, Committee on Ways and Means, Longworth House Office Building, Washington, D.C. DEAR MR. MARTIN: Reference is made to the proposed Treasury Department bill requiring donors to file Federal Gift Tax returns for charitable and noncharitable gifts on a quarterly basis rather than annually by April 15 following the year of the gift. I believe that this requirement for quarterly reporting of charitable gifts could discourage year-round giving and result in donors postponing their gifts to the end of the year-so that only one return, instead of four need be filed. |