Here are some highlights from the June 1970 issue. Click here to view an interactive timeline of tax and other events from the past 50 years.
Responsibilities in tax practice
Thirteen years ago, then AICPA President Marcus J. Eaton appointed the committee on cooperation with the IRS … whose basic objectives were: 1. To explore the possibility of devising standards of conduct for CPAs in tax practice which would serve as guides to members of the profession and as a protection to those who followed such standards against unjust charges of misconduct. 2. To explore the possibility of establishing standards of conduct and procedures for revenue agents … 3. To explore the possibility of encouraging maximum co-operation between revenue agents and CPAs representing taxpayers, with the object of minimizing the expense to the taxpayer, of determining and settling his tax liabilities. During the next several years there was some public discussion concerning the responsibility of the CPA when he prepared or assisted in the preparation of a federal income tax return. Then IRS Commissioner Mortimer Caplin proposed the idea of a "certified" tax return — a proposal which did not get very far.
— Gordon S. Moore, CPA, "IRS Practice Should Not Be a Contest Between Adversaries," p. 357. Moore was a partner with Arthur Young & Co. in Houston.
Citrus grove tax savings
Among the tax savings ventures which are no longer as sweet as they were are investments in citrus groves. Taxpayer can no longer deduct the cost of planting, cultivating, maintenance or development of the groves for the first four years of planting. [New Sec. 278.] Therefore, the popular device of expensing the costs of developing the citrus groves and realizing favorable capital gains on sale of the groves is no longer available to investors.
— Jack Crestol, CPA, "After TRA: Tax Exempt Bonds Remain an Excellent Investment and Planning Tool," p. 368. Crestol was manager of the National Tax Research Department of Lybrand, Ross Bros. & Montgomery in New York City.
Estate and gift tax reform
Although some congressmen have called for estate and gift tax reform this year, Treasury Department officials and the House Ways and Means Committee Chairman, Congressman Mills, have publicly suggested that such legislation will not be considered until 1971 at the earliest. Sufficient time exists for estate planning in advance of these changes which are likely to be substantial, if not radical in nature as well.
— Byrle M. Abbin, "Estate Planning: 'Rithmetic of a Net Gift," p. 378. Abbin was with Arthur Andersen & Co. in Chicago.