January 2, 1952
AFTER extensive study of the matter with the Secretary of the Treasury, I have decided to institute a sweeping reorganization of the Bureau of Internal Revenue.
This reorganization is part of a program to prevent improper conduct in the public service, to protect the Government from the insidious influence peddlers and favor seekers, and to expose and punish any wrongdoers. It is one of a series of actions I am taking to insure honesty, integrity, and fairness in the conduct of all Government business. It is another step to promote responsible and efficient management in the executive branch.
Some of the changes basic to the reorganization will require a reorganization plan. To accomplish this I propose to submit such a plan to the Congress when it reconvenes. Other of the changes can be accomplished by administrative action. I have directed the Secretary of the Treasury to proceed with these immediately with a view to placing the full plan in effect as soon as possible.
In addition to the reorganization of the Bureau of Internal Revenue, I expect to take further administrative action and to make other recommendations to the Congress to insure complete integrity in the operations of the Government.
Some persons in the Bureau of Internal Revenue have betrayed the public trust posed in them. The revelation of that fact has come as a shock to all decent citizens. I have directed that every effort be made to expose and punish such persons wherever they may be found. I intend to have the highest standards of integrity maintained in the Federal Service. Those standards are high now and have been observed faithfully by the overwhelming majority of our public servants.
We must rid the Government of any employees who misuse their official positions for personal gain. Equally important, we must correct any conditions which make it possible for such practices to exist. I believe that this reorganization will be of great help in achieving both of these purposes.
The following major changes in the Bureau of Internal Revenue will be made by this reorganization:
1. The offices of the 64 collectors of Internal Revenue will be abolished.
2. Only one officer, the Commissioner of Internal Revenue, will be appointed by the President by and with the advice and consent of the Senate. All other positions will be filled through civil service.
3. All operating functions of the Bureau will be placed in not more than 25 district offices, each headed by a District Commissioner. All field activities in each district will be under the jurisdiction of the District Commissioner, and he alone will be responsible to the Commissioner in Washington. The present complex system under which more than 200 separate field officers report directly to Washington will thus be abolished. Taxpayers hereafter can look to the District Commissioner or his local representative as the official in complete charge of all Federal tax matters in the district.
4. A strong, vigorous inspection service will be established and will be made completely independent of the rest of the Bureau. Through a comprehensive system of audits and inspections, this service will keep operations and management of the Bureau under continual scrutiny and appraisal. It will have the responsibility, coupled with full authority, of detecting and investigating any irregularities. It will be alert to the practices of the influence peddlers and fixers. There will be an inspection office in each district under a Chief Inspector who will be independent of the District Commissioner. In view of its importance, the nationwide direction of the inspection service will be the sole responsibility of one of the three Assistant Commissioners of Internal Revenue.
5. Bureau headquarters at Washington will be reorganized and its operating functions further decentralized. Three Assistant Commissioners will replace the present intricate structure of supervision. One will be in charge of the inspection service. Another will be in charge of field operations. A third will be responsible for technical matters such as preparation and issuance of tax forms, regulations, and rulings.
6. More adequate salaries will be paid to officials responsible for administering the Revenue Service. We must try to obtain and hold the services of the best qualified persons in this highly intricate and technical field of Government.
The Bureau of Internal Revenue has grown from a small organization to one employing about 57,000 persons. The greater part of this growth occurred between 1941 and 1947. In those war years the rapidly expanding Bureau had to work under a century's accumulation of laws, administrative divisions, and obsolete procedures. While much has been done to simplify the Bureau's operation since the war, more fundamental changes are needed now.
In assessing the current problems of the Revenue Service, we should not overlook its high achievements in the face of the tremendous burdens rapidly piled upon it in recent years. Never in the history of this or any other country has a government organization been required to deal with such mounting technical responsibilities. The manner in which the Revenue Service has met its tremendous duties is a tribute to the thousands of its loyal and faithful servants.
The reorganization is intended to preserve the best of that tradition and mold it administratively to achieve even higher goals. It is based on the recognition that the very solvency of our country depends in part upon the integrity of the Revenue Service.
The greatly increased tax collections necessary to support our defense effort are placing more and more heavy responsibilities upon the Bureau of Internal Revenue. This fact alone makes it especially urgent that we give the Bureau the best organization and management that can be obtained. We must move ahead rapidly in accomplishing this. I, therefore, hope that the Congress will give speedy approval to the reorganization plan which I am submitting.
The new, streamlined Revenue Service will have clear, direct channels of responsibility and supervision from the lowest field office to the Commissioner. It will be thoroughly inspected and controlled from top to bottom to assure complete integrity and fidelity in its operations. I am confident that it will give the taxpaying public the soundest and most efficient tax system that we can provide.
It is my intention to make the Bureau of Internal Revenue a blue ribbon civil service career organization. I intend to make it a service in which all of us can place genuine confidence and have justified pride. I hope that I will have the full support of the Congress and of the public in bringing this about.
AFTER extensive study of the matter with the Secretary of the Treasury, I have decided to institute a sweeping reorganization of the Bureau of Internal Revenue.
This reorganization is part of a program to prevent improper conduct in the public service, to protect the Government from the insidious influence peddlers and favor seekers, and to expose and punish any wrongdoers. It is one of a series of actions I am taking to insure honesty, integrity, and fairness in the conduct of all Government business. It is another step to promote responsible and efficient management in the executive branch.
Some of the changes basic to the reorganization will require a reorganization plan. To accomplish this I propose to submit such a plan to the Congress when it reconvenes. Other of the changes can be accomplished by administrative action. I have directed the Secretary of the Treasury to proceed with these immediately with a view to placing the full plan in effect as soon as possible.
In addition to the reorganization of the Bureau of Internal Revenue, I expect to take further administrative action and to make other recommendations to the Congress to insure complete integrity in the operations of the Government.
Some persons in the Bureau of Internal Revenue have betrayed the public trust posed in them. The revelation of that fact has come as a shock to all decent citizens. I have directed that every effort be made to expose and punish such persons wherever they may be found. I intend to have the highest standards of integrity maintained in the Federal Service. Those standards are high now and have been observed faithfully by the overwhelming majority of our public servants.
We must rid the Government of any employees who misuse their official positions for personal gain. Equally important, we must correct any conditions which make it possible for such practices to exist. I believe that this reorganization will be of great help in achieving both of these purposes.
The following major changes in the Bureau of Internal Revenue will be made by this reorganization:
1. The offices of the 64 collectors of Internal Revenue will be abolished.
2. Only one officer, the Commissioner of Internal Revenue, will be appointed by the President by and with the advice and consent of the Senate. All other positions will be filled through civil service.
3. All operating functions of the Bureau will be placed in not more than 25 district offices, each headed by a District Commissioner. All field activities in each district will be under the jurisdiction of the District Commissioner, and he alone will be responsible to the Commissioner in Washington. The present complex system under which more than 200 separate field officers report directly to Washington will thus be abolished. Taxpayers hereafter can look to the District Commissioner or his local representative as the official in complete charge of all Federal tax matters in the district.
4. A strong, vigorous inspection service will be established and will be made completely independent of the rest of the Bureau. Through a comprehensive system of audits and inspections, this service will keep operations and management of the Bureau under continual scrutiny and appraisal. It will have the responsibility, coupled with full authority, of detecting and investigating any irregularities. It will be alert to the practices of the influence peddlers and fixers. There will be an inspection office in each district under a Chief Inspector who will be independent of the District Commissioner. In view of its importance, the nationwide direction of the inspection service will be the sole responsibility of one of the three Assistant Commissioners of Internal Revenue.
5. Bureau headquarters at Washington will be reorganized and its operating functions further decentralized. Three Assistant Commissioners will replace the present intricate structure of supervision. One will be in charge of the inspection service. Another will be in charge of field operations. A third will be responsible for technical matters such as preparation and issuance of tax forms, regulations, and rulings.
6. More adequate salaries will be paid to officials responsible for administering the Revenue Service. We must try to obtain and hold the services of the best qualified persons in this highly intricate and technical field of Government.
The Bureau of Internal Revenue has grown from a small organization to one employing about 57,000 persons. The greater part of this growth occurred between 1941 and 1947. In those war years the rapidly expanding Bureau had to work under a century's accumulation of laws, administrative divisions, and obsolete procedures. While much has been done to simplify the Bureau's operation since the war, more fundamental changes are needed now.
In assessing the current problems of the Revenue Service, we should not overlook its high achievements in the face of the tremendous burdens rapidly piled upon it in recent years. Never in the history of this or any other country has a government organization been required to deal with such mounting technical responsibilities. The manner in which the Revenue Service has met its tremendous duties is a tribute to the thousands of its loyal and faithful servants.
The reorganization is intended to preserve the best of that tradition and mold it administratively to achieve even higher goals. It is based on the recognition that the very solvency of our country depends in part upon the integrity of the Revenue Service.
The greatly increased tax collections necessary to support our defense effort are placing more and more heavy responsibilities upon the Bureau of Internal Revenue. This fact alone makes it especially urgent that we give the Bureau the best organization and management that can be obtained. We must move ahead rapidly in accomplishing this. I, therefore, hope that the Congress will give speedy approval to the reorganization plan which I am submitting.
The new, streamlined Revenue Service will have clear, direct channels of responsibility and supervision from the lowest field office to the Commissioner. It will be thoroughly inspected and controlled from top to bottom to assure complete integrity and fidelity in its operations. I am confident that it will give the taxpaying public the soundest and most efficient tax system that we can provide.
It is my intention to make the Bureau of Internal Revenue a blue ribbon civil service career organization. I intend to make it a service in which all of us can place genuine confidence and have justified pride. I hope that I will have the full support of the Congress and of the public in bringing this about.