contain the complete rulings constituting the body of precedent relied on in settling disputed points. While most of these rulings have not been tested in the courts, one may, nevertheless, learn from them the point of view which the Department will adopt should similar situations again arise. In the Revenue Act of 1926, one will find an administration-made law, accepted by both houses of Congress almost without debate. "Tax simplification," widely heralded as an accomplishment of the last session, meant, actually, no more than lowered rates of taxes applicable to individuals and an increase in corporate taxes. No rules for the computation of taxable income were simplified; many were further complicated, and a few new ones were added. Politics may well dictate the rates of tax, but the orderly development of income tax theory relating to the computation of taxable income should be in the hands of a commission of financial experts who are capable of following business conditions and recommending to Congress needed changes in the law. The instalment sales provision in the Revenue Act of 1926, commendable though its general purpose may be, gives characteristic and striking proof of the lack of expert advice which Congress so badly needs. Is it possible that the highly technical features of recent revenue acts have disqualified its members as originators of income tax legislation? Thanks are due those who have sent the author criticisms of the previous editions. Chicago, Illinois, January 20, 1927. ERIC L. KOHLER This table is intended as an index for those who wish to read farther into income tax cases. It will be observed that 14 volumes of cases have CONTENTS TAXATION-INCOME TAX LEGISLATION Taxation in general. Federal income tax acts prior to 1909. Excise tax of 1909. Acts of 1913, 1916, and 1917. Acts from 1918 to 1926. Some defects of earlier acts. Significance of March 1, 1913, and other dates. Administration of the law. Board of Tax Appeals. Rulings issued by the Department. License to practice. GENERAL APPLICATION; RATES OF TAX Who pays income taxes. Definitions. Tax on individuals. Individual normal tax credits. Individual normal tax. Individual surtax. Surtax on sales of mineral deposits. Capital net gains and losses. Earned income. Estates and trusts. Partnerships. Cor- Sales of intangibles (patents, copyrights, franchise, good-will, and so forth). Rules for ascertaining March 1, 1913, values of intangibles. Hoskold's formula. Sales or pur- Profits from instalment sales taxable when realized. Three kinds of instalment sales. Computation of instalment income. The 25% limitation. Reporting profits twice. Evidences of indebted- Other deferred payment sales. Repossession. Contracts. Profits of a retiring partner. Income of a liquidating corporation. Profits from appropriation by government and from casualty or theft. Property acquired by gift, devise, bequest or inheritance, SALES AND EXCHANGES: STOCKS AND BONDS-RIGHTS- Sale and exchange of stocks and bonds. Cost per share necessary. Effect of stock dividend. Effect of other dividends. Bonus stock. Stock and other property acquired in reorganization. Stock acquired through a corporate organization. Split of original Exempt reorganizations: mergers, consolidations, holding com- panies, subsidiaries, recapitalizations, charter modifications, trans- fers to corporation. Recognition of gain or loss. Basic value in corporate organizations and reorganizations. Reorganization of sole proprietorship. Partnership reorganizations. The Supreme |