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98 HASKINS & SELLS October The Tax PRIOR to the enactment of the Revenue Act of October 3, 1917, the Federal income tax was not, owing to the low tax rates, of vital importance to the financial community. The provisions of previous laws and the Regulations issued by the Treasury Department interpreting such laws, were comparatively simple and no great difficulty was encountered in preparing the returns. Advice in connection with any involved question was obtained by corporations from counsel. These points arose principally in connection with estates. The entire situation was radically changed upon the enactment of the Revenue Act of 1917, this Act and the subsequent Act of 1918 being looked upon by many as impossible of interpretation and practical application except by accountants, or those with a knowledge of accounting, who have specialized in this work. This is due largely to the involved provisions relating to the determination of net profits and invested capital. Anticipating requests from clients and the public in general for advice in connection with tax returns and the preparation thereof, the firm, immediately after the enactment of the 1917 Act, organized an Executive Tax Department. Mr. George M. Dallas was given charge of this department, the personnel of which comprises accountants who had made and who have continued to make a thorough study of Federal, State, and foreign taxes. A similar department has been organized at each of our practice offices, under the supervision and direction of the Executive Tax Department, the purpose being to render competent assistance to our clients through- Situation out the country in the solution of their tax problems. The personnel of the tax organization at the practice offices has been specially trained through tax courses and correspondence conducted by the Executive Tax Department. Information bearing on taxes is collected from all sources by the Executive Tax Department and distributed to our practice offices with advice as to the use to be made of it. Difficult questions are submitted by all practice offices to this department for discussion and advice. This department maintains constant contact with the officials of the Bureau of Internal Revenue at Washington. Mr. Dallas is quoted on the subject of legislative tendencies as follows: "It is not anticipated that any new tax legislation will be enacted by Congress to become effective prior to January 1, 1921, hence Federal tax returns for the calendar year 1920 and for fiscal years ending in the calendar year 1920, must be prepared in accordance with the provisions of the Revenue Act of 1918. Thus it is essential that those responsible for the preparation of Federal returns be thoroughly familiar with this Revenue Act. "Many severe criticisms have been made of the Excess and War Profits sections of the Revenue Act of 1918. Such criticisms are due primarily to the difficulty encountered in the preparation of the returns owing to lack of comprehensive knowledge of the practical application of the provisions of the Act, and the high percentage of net profits exacted by the Federal Government. It must be conceded, however, by those who have made a conscientious study of the Act, that it is the most scien-
Object Description
Title |
Tax situation |
Author |
Anonymous |
Subject |
Taxation -- Law and legislation -- United States |
Personal Name |
Dallas, George Mifflin |
Office/Department |
Haskins & Sells. Tax Department |
Citation |
Haskins & Sells Bulletin, Vol. 03, no. 10 (1920 October 15), p. 098-099 |
Date-Issued | 1920 |
Source | Originally published by: Haskins & Sells |
Type | Text |
Collection | Deloitte Digital Collection |
Digital Publisher | University of Mississippi Libraries. Accounting Collection |
Date-Digitally Created | 2009 |
Identifier | HS Bulletin 3-p98 |