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Roughly the form asks for total number of employees in plan, total ineligible employees, length of service, number of employees eligible, and total compensation paid. List of the 25 highest paid employees under the plan. Even after the report was finished our auditors reported that the internal revenue agent who requested the report was not sure, himself, if it was made out correctly.
The second statement was prepared by James G. Reaser, assistant treasurer of the Albany Felt Co. The main plant and offices of the company are located in Albany. I would like to read the letter of transmittal.
Mr. JOHANSEN. May I interrupt at this point, Mr. Chairman, lest we forget it, and ask that the documents and correspondence referred to by the witness be incorporated in the record of the hearing?
Mr. OLSEN. It is so ordered.
ALBANY FELT Co.,
Albany, N.Y., April 29, 1964.
GENTLEMEN : While unable to appear in person at the subcommittee hearing on Government reports and paperwork, we certainly would not want to pass up this opportunity to express our feelings on the subject.
We are a medium-sized industry with manufacturing operations in three States—New York, Maine, and South Carolina. The attached list shows the 52 different Government reports which we are required to furnish to various Federal and State agencies 6 on a monthly basis, 18 quarterly, 1 semiannually, and 27 annually or a total of 173 per year. Of course, some of these are obviously necessary, but some surely could be eliminated completely, while others could be simplified. Duplication of the same information to different Federal bureaus should not be necessary and an effort should be made to consolidate the reports in which the same statistics are now being furnished to both Federal and State agencies.
We appreciate this opportunity to add our protest to the many which we know the subcommittee will get and sincerely say that we too “look forward to some substantial relief from the paperwork burden. It is long overdue.” Very truly yours,
JAMES G. READER,
Government reports, Federal and State, as of May 1, 1964
Department of Commerce monthly industry survey, BE-3..... Monthly.... 0.8. Government.
sales. orders, and inventories. 0.8. Department of Commerce, Bureau of the Census, M-220.
do..--. Do. consumption of fibers in woolen spinning and produc
tion of top, noils, and sales yarn. U.S. Treasury Department, Federal depository receipt, 450-A
do...--- State bank; U.S. income tax withheld.
Do. New York State Department of Labor, confidential re 44R47.10.
New York State. port of employment, payroll, and hours. State of Maino Bureau of Taxation, sales and use tax. ST-7..
Maine. U.S. Department of Commerce, reports of company em CBP-1..-- Quarterly. - U.S. Government.
ployment and taxable wages. 0.8. Department of Commerce, Bureau of the Census, M-22T.
Do. broad fabric (except knit) woven, non woven and felts. U.S. Department of Commerce, Office of Business Eco
Do. nomics, transactions with foreign subsidiary or affill
ated corporations, Federal Trade Commission, Division of Financial Sta FTC-MG29 --...do....
Do. tistics, consolidated balance sheet and profit and loss
statement. U.S. Treasury Department, employers' quarterly Fed. 941.
Do. eral tax return. U.8. Treasury Department, employers' quarterly Fed 941 F8..
Do. eral tax return. State of New York, Department of Taxation and Fi TMT 3.2. do.. New York State.
nance, truck mileage tax. New York State Department of Labor, unemployment 1A5.
Do. insurance tax. New York State Department of Labor, employers' in R.86.1.
Do. dustry and location report. New York State Income Tax Bureau, income tax with IT2101.
..do.... Do. beld. New York State disability insurance tax (employers' 705- 104.
do.. New York State. mutual). State of California Board of Equalization, combined 8-401-P.
do. California. State and local sales and use tax. Maine Employment Security Commission, unemploy. C-1...
do.. Maine. ment insurance tax. State of South Carolina Tax Commission, use tax. St-7.
South Carolina. South Carolina Income Tax Division, quarterly non WH1605..
Do. resident withholding report. South Carolina Employment Security Commission, UCE-120.
do. quarterly report of individual employees' wages
stated gross and net taxable. South Carolina Employment Security Commission, UCE-101... do.
Do. employers' contribution report. 0.8. Department of Commerce, inventory and sales
Semiannual. U.S. Government. expectations survey. U.8. Department of Commerce, annual survey of man MA 100... Annual...
Do. ufacturers. U.S. Department of Commerce, census of manufacturers. MC-22A. do.
Do. U.S. Department of Commerce, census of manufactur MC-D11.
Do. ers supplementary inquiries. U.S. Department of Commerce, censuses of business NC-K1... do.
Do. manu facturers and mineral industries. U.S. Department of Commerce, distribution of sales by NC-K4M... do..
Do. class of customer. U.S. Department of Commerce, censuses of business, NC-X1A.. do.
Do. manufacturers, and mineral industries, report of company organization. U.S. Department of Commerce, international receipts BE-93..
Do. and payments of royalties, licensing fees, rentals, etc. U.S. Department of Commerce, Office of Br’siness Eco BE-5778.
Do. nomics, transactions of primary foreign organizations
with secondary foreign organizations. 0.8. Department of Commerce, Bureau of Census, MA-22M.
Do. consolidated inventory of wool. U.8. Treasury Department, report by individual W-2.
Do. employee of income tax withheld from wages. U.S. Treasi'ry Department, reconciliation of income W-3
Do. tax withheld from wages. U.8. Troasury Department, Federal unemployment 940.
Do. tax. Federal Trade Commission, nature of business schedule. NB-57.
Do. U.S. Department of Commerce, annual survey of MA 101..
Do. manufacturers expenditures, plant, and equipment. U.8. Department of Commerce, office of Business Eco BE-10A..
do nomics, survey of American business investments in foreign countries.
Government reports, Federal and State, as of May 1, 1964—Continued
Mr. YOUNG. Detailed information on the form numbers, description, and reporting is included in the supporting papers.
The third statement was prepared by Joseph H. Murphy, commissioner of the Department of Taxation and Finance, State of New York. The commissioner asked me to advise the committee that a prior commitment made it impossible from him to appear personally.
For that reason he prepared a statement in the form of a letter to the Greater Albany Chamber of Commerce and asked me to read it into the record. Mr. Murphy's letter reads:
STATE OF NEW YORK,
Albany, April 30, 1964.
DEAR MR. YOUNG: Thank you for your letter of April 21, 1964, and the opportunity to submit for your May 1 hearing on Federal paperwork requirements this brief summary of simplification efforts being carried forward in the New York State Department of Taxation and Finance.
In administering the tax laws of the State of New York, we have been increasingly aware of the burden of paperwork imposed on business and individuals by government—Federal, State, and local.
It has been our conscious and sustained effort, in these past few years, to ease and simplify our reporting and recordkeeping requirements for State taxes to the greatest possible extent.
While I am sure that far more needs to be done in this area-and we are continuing our studies and efforts to that end—we have, I think, made very real progress in New York in the past 5 years.
In the State personal income tax, for example, a major reduction in paperwork was made possible by the Wise-Calli constitutional amendment and subsequent legislation conforming New York law to Federal law. In planning for its administration, beginning with returns for 1960, the Department pursued the goal of easier tax reporting. Thus, the State personal income tax form IT-201 was reduced from a complex four-page document to the present simple two-page return. Equally important, in terms of reduced paperwork, was elimination of the need for taxpayers to keep separate personal and business records for New York State taxes and Federal taxes.
Consideration was also given to the needs of taxpayers in the lower income brackets. The short form income tax form IT-200 was greatly simplified from an 842- by 11-inch sheet to a small card. The individual using this form may also be relieved of the effort to compute his tax by requesting the income tax bureau to do the work for him.
Enactment of income tax withholding placed certain responsibilities on business for reporting and paying taxes withheld from employees. The department, in developing plans for implementing the statute, made special efforts in forms design and procedures to hold to a minimum the paperwork required of employers. Employers are provided with a preaddressed card form for reporting taxes withheld. All that is required are entries for the amounts withheld and paid, signature, business title, and date. The end-of-the-year report is merely a summary of this information filed on a card form.
Prior to 1963, corporations reported income for franchise tax purposes on a four-page form of more than 150 items. Carrying forward department policy, technicians in our corporation tax bureau developed a new form which asks for only 36 items of information. The new form can be used by all except a small number of the larger corporations operating under article 9A of the tax law.
More recently, we improved the form used by banking institutions reporting income under articles 9B or 9C. This form was a formidable 3142- by 1542-inch, six-page report with an added single page insert measuring 10% by 154 inches, making a staggering total of 1,302 square inches of paperwork. To compound the difficulty, lines on the report were not spaced for typewriter preparation. For reporting 1963 income, the department was able to provide the banks with a four-page from measuring 842 by 14 inches, suitable for efficient typewriter preparation.
All of these advances are the direct result of continuing study and effort directed to the problem of reducing the paperwork burden on New York State taxpayers. But the effort is not confined to paperwork alone. It has been extended into areas af audit activity. Field audit of business records is an essential part of tax administration. The department is currently working on plans for combining field audit of diesel and truck mileage taxes in cases where a business entity is subject to both taxes. A desirable objective would be to cover all field auditing requirements with a single visit by departmental employees. For technical reasons this is not possible at this time but continuing studies are being made toward this end.
Paperwork reduction must also consider those areas affected by lack of uniformity among units of a large organization. Our department has under constant review the large number of form letters and other documents sent to the public. One recent study disclosed 12 different letters being sent from various offices to the public requesting information. The result was elimination of 11 by substituting 1 letter which combined the best features of the 12.
Enactment of procedural amendments to the New York State income and corporation tax laws, largely conforming them to Federal law, represent another step in the direction of simplification. In this instance it offers the advantage to the public and to business of being able to meet tax requirements essentially under one basic set of rules.
A number of recent developments hold out good prospects for further simplification and reduced paperwork:
There was established last January by Governor Rockefeller a 21-member Interdepartmental Management Improvement Council which has as one of its principal objectives, simplified State forms and procedures. The council is working on a variety of assignments pointed to reducing paperwork.
There has recently been formalized an agreement between the Federal Government and New York State for exchange of information and other forms of co operation which should further aid business and the general public in their problems of tax compliance.
Finally, a little more than a year ago, I appointed a tax advisory committee of some 14 representatives of business, industry, and the professions in New York for the purpose of aiding us in finding means of improving forms, regulations, and procedures to make tax compliance as easy as possible. The committee is making a fine contribution to this cause.
All of these efforts, on so many fronts, hopefully will help level off the mountains of paperwork and bring substantial relief to individuals as well as to business and industry. The benefits are worth all of the attention we can give the problem.
I appreciate the opportunity to report some of the pertinent developments in the New York State Department of Taxation and Finance, and to assure you of our continuing interest in the problem. You may, if you wish, make this letter a part of the record of your hearing. Sincerely yours,
JOSEPH H. MURPHY, Commissioner. Mr. Young. In closing, it is my belief that there are many business people in this area who are unaware that this hearing is being held today. We at the Greater Albany Chamber of Commerce would like permission to seek written statements from these people and deliver them to your office within the month.
Mr. OLSEN. It is so ordered. The record will remain open for that purpose.
Mr. Young. In closing, I want to thank the committee for permitting me to appear and make statements for Barber & Bennett, the Albany Felt Co., and the commissioner of the Department of Taxation and Finance, State of New York.
Mr. OLSEN. Thank you very much, Mr. Young. Also, we want to thank you for your splendid care and hospitality extended to the Members of Congress. I think it is wonderful the way you folks have taken care of us. We really appreciate it.
I hope you will take it to your chambers, naturally from this committee, our genuine thanks for helping arrange for this meeting, to arrange for witnesses, and every nice thing you have done. It has been a great service.
Mr. Johansen ?
Mr. JOHANSEN. Mr. Chairman, I want to associate myself with those words of appreciation. I have been waiting for some appropriate point in this hearing to make the observation that you have a great city and a great community here, not only in terms of modern and current enterprise, but in terms of great historic interest and association with this community.
As I mentioned to you last evening, I bring the greetings of Kinderhook, Mich., in my own third district, to the neighboring community of Kinderhook here on the Hudson River.
I have one question. I realize you may not be in a position to answer it, because you are proxy for Commissioner Murphy. I notice reference to the agreement between the Federal Government and New York State for exchange of information and other forms of cooperation relating principally, as I interpret it, to problems of reporting and so on in connection with tax compliance.
I wonder whether, in this field of Federal-State cooperation and collaboration to the end of eliminating duplication, thought is being given to extending that to other areas of paperwork beyond that of the tax field.
It seems to me that what you are pioneering in this State could profitably be extended to other areas of governmental paperwork.