Contents Page


-CITE-

     5 USC APPENDIX - REORGANIZATION PLAN NO. 1 OF 1952          01/24/94
 
-EXPCITE-
    TITLE 5 - GOVERNMENT ORGANIZATION AND EMPLOYEES
    TITLE 5 - APPENDIX
    REORGANIZATION PLANS
    REORGANIZATION PLAN NO. 1 OF 1952
    .
 
-HEAD-
    REORGANIZATION PLAN NO. 1 OF 1952
 
-MISC1-
      EFFECTIVE MAR. 14, 1952, 17 F.R. 2243, 66 STAT. 823, AS AMENDED
      JUNE 28, 1955, CH. 189, SEC. 12(C)(19), 69 STAT. 182; SEPT. 13,
            1982, PUB. L. 97-258, SEC. 5(B), 96 STAT. 1068, 1085
    Prepared by the President and transmitted to the Senate and the
      House of Representatives in Congress assembled, January 14, 1952,
      pursuant to the provisions of the Reorganization Act of 1949,
      approved June 20, 1949 (see 5 U.S.C. 901 et seq.).
                         BUREAU OF INTERNAL REVENUE
                  SECTION 1. ABOLITION OF EXISTING OFFICES
      There are abolished the offices of Assistant Commissioner,
    Special Deputy Commissioner, Deputy Commissioner, Assistant General
    Counsel for the Bureau of Internal Revenue, Collector, and Deputy
    Collector, provided for in sections 3905, 3910, 3915, 3931, 3941,
    and 3990, respectively, of the Internal Revenue Code (of 1939). The
    provisions of the foregoing sentence shall become effective with
    respect to each office abolished thereby at such time as the
    Secretary of the Treasury shall specify, but in no event later than
    December 1, 1952. The Secretary of the Treasury shall make such
    provisions as he shall deem necessary respecting the winding up of
    the affairs of any officer whose office is abolished by the
    provisions of this section.
                    SEC. 2. ESTABLISHMENT OF NEW OFFICES
      (a) New offices are hereby established in the Bureau of Internal
    Revenue as follows: (1) three offices each of which shall have the
    title of ''Assistant Commissioner of Internal Revenue''; (2) so
    many offices, not in excess of 25 existing at any one time, as the
    Secretary of the Treasury shall from time to time determine, each
    of which shall have the title of ''District Commissioner of
    Internal Revenue''; and (3) so many other offices, not in excess of
    70 existing at any one time, and with such title or titles, as the
    Secretary of the Treasury shall from time to time determine.
      (b) (Repealed. Pub. L. 97-258, Sec. 5(b), Sept. 13, 1982, 96
    Stat. 1068, 1085. Subsection established a new and additional
    office of Assistant General Counsel. See 31 U.S.C. 301.)
                    SEC. 3. APPOINTMENT AND COMPENSATION
      Each assistant commissioner and district commissioner, the
    assistant general counsel, and each other officer provided for in
    section 2 of this reorganization plan shall be appointed by the
    Secretary of the Treasury under the classified civil service and
    shall receive compensation which shall be fixed from time to time
    pursuant to the classification laws, as now or hereafter amended.
    (As amended Act June 28, 1955, ch. 189, Sec. 12(c)(19), 69 Stat.
    182).
                       SEC. 4. TRANSFER OF FUNCTIONS
      There are transferred to the Secretary of the Treasury the
    functions, if any, that have been vested by statute in officers,
    agencies, or employees of the Bureau of Internal Revenue of the
    Department of the Treasury since the effective date of
    Reorganization Plan Numbered 26 of 1950 (15 F.R. 4935).
                          MESSAGE OF THE PRESIDENT
    To the Congress of the United States:
      I transmit herewith Reorganization Plan No. 1 of 1952, prepared
    in accordance with the Reorganization Act of 1949 and providing for
    reorganizations in the Bureau of Internal Revenue of the Department
    of the Treasury.
      A comprehensive reorganization of that Bureau is necessary both
    to increase the efficiency of its operations and to provide better
    machinery for assuring honest and impartial administration of the
    internal revenue laws.  The reorganization plan transmitted with
    this message is essential to accomplish the basic changes in the
    structure of the Bureau of Internal Revenue which are necessary for
    the kind of comprehensive reorganization that is now required.
      By bringing additional personnel in the Bureau of Internal
    Revenue under the merit system, Reorganization Plan No. 1 likewise
    removes what the Commission on Organization of the Executive Branch
    of the Government described as ''one of the chief handicaps to
    effective organization of the Department * * *.''
      It is my determination to maintain the highest standards of
    integrity and efficiency in the Federal service.  While those
    standards have been observed faithfully by all but a relatively few
    public servants, the betrayal of their trust by those few demands
    the strongest corrective action.
      The most vigorous efforts are being and will continue to be made
    to expose and punish every Government employee who misuses his
    official position.  But we must do even more than this.  We must
    correct every defect in organization that contributes to
    inefficient management and thus affords the opportunity for
    improper conduct.
      The thorough reorganization of the Bureau of Internal Revenue
    which I propose will be of great help in accomplishing all of these
    ends.  It is an integral part of a program to prevent improper
    conduct in public service, to protect the Government from insidious
    influence peddlers and favor seekers, to expose and punish
    wrong-doers, and to improve the management and efficiency of the
    executive branch.
      I am confident that the Congress and the public are as deeply and
    earnestly concerned as I am that the public business be conducted
    entirely upon a basis of fairness, integrity, and efficiency.  I
    therefore hope that the Congress will give speedy approval to
    Reorganization Plan No. 1, in order that we may move ahead rapidly
    in to achieving the reorganization of the Bureau of Internal
    Revenue.
      The task of collecting the internal revenue has expanded
    enormously within the past decade.  This expansion has been
    occasioned by the necessary additional taxation brought on by World
    War II and essential post-war programs.  In fiscal year 1940, tax
    collections made by the Bureau of Internal Revenue were slightly
    over 5 1/3 billions of dollars; in 1951, they totaled almost 50 1/2
    billions.  In 1940, 19 million tax returns were filed; in 1951, 82
    million.  In 1940, there were 22,000 employees working for the
    Bureau; in 1951, there were 57,000.
      Throughout this tremendous growth, the structure of the
    revenue-collecting organization has remained substantially
    unchanged.  The present field structure of the Bureau of Internal
    Revenue is comprised of more than 200 field offices which report
    directly to Washington. Those 200 offices carry out their functions
    through more than 2,000 suboffices and posts of duty throughout the
    country.  The Washington office now provides operating supervision,
    guidance, and control over the principal field offices through 10
    separate divisions, thus further adding to the complexities of
    administration.
      Since the end of World War II, many procedural improvements have
    been made in the Bureau's operations.  The use of automatic
    machines has been greatly increased.  The handling of cases has
    been simplified.  One major advance is represented by the recently
    completed arrangements to expedite criminal prosecutions in
    tax-fraud cases.  In these cases, field representatives of the
    Bureau of Internal Revenue will make recommendations for criminal
    prosecutions directly to the Department of Justice. These
    procedural changes have increased the Bureau's efficiency and have
    made it possible for the Bureau to carry its enormously increased
    workload.  However, improvements in procedure cannot meet the need
    for organizational changes.
      Part of the authority necessary to make a comprehensive
    reorganization was provided in Reorganization Plan No. 26 of 1950,
    which was one of several uniform plans giving department heads
    fuller authority over internal organizations throughout their
    departments.  The studies of the Secretary of the Treasury have
    culminated since that time in a plan for extensive reorganization
    and modernization of the Bureau. However, his existing authority is
    not broad enough to permit him to effectuate all of the basic
    features of the plan he has developed.
      The principal barrier to effective organization and
    administration of the Bureau of Internal Revenue which plan No. 1
    removes is the archaic statutory office of collector of internal
    revenue.  Since the collectors are not appointed and cannot be
    removed by the Commissioner of Internal Revenue or the Secretary of
    the Treasury and since the collectors must accommodate themselves
    to local political situations, they are not fully responsive to the
    control of their superiors in the Treasury Department. Residence
    requirements prevent moving a collector from one collection
    district to another, either to promote impartiality and fairness or
    to advance collectors to more important positions.  Uncertainties
    of tenure add to the difficulty of attracting to such offices
    persons who are well versed in the intricacies of the revenue laws
    and possessed of broadgaged administrative ability.
      It is appropriate and desirable that major political offices in
    the executive branch of the Government be filled by persons who are
    appointed by the President by and with the advice and consent of
    the Senate. On the other hand, the technical nature of much of the
    Government's work today makes it equally appropriate and desirable
    that positions of other types be in the professional career
    service.  The administration of our internal-revenue laws at the
    local level calls for positions in the latter category.
      Instead of the present organization built around the offices of
    politically appointed collectors of internal revenue, plan No. 1
    will make it possible for the Secretary of the Treasury to
    establish not to exceed 25 district offices.  Each of these offices
    will be headed by a district commissioner who will be responsible
    to the Commissioner of Internal Revenue and will have full
    responsibility for administering all internal-revenue activities
    within a designated area.  In addition, all essential collection,
    enforcement, and appellate functions can be provided for in each
    local area and under one roof so far as is practicable.  It is not
    proposed to discontinue any essential facilities which now exist in
    any local areas.  Rather, the facilities will be extended and the
    service to taxpayers improved.  These new arrangements should make
    it possible for the individual taxpayer to conduct his business
    with the Bureau much more conveniently and expeditiously.
      In addition to making possible greatly improved service to the
    taxpayer, the establishment of the district offices will provide
    opportunity in the field service of the Bureau of Internal Revenue
    for the development of high-caliber administrators with experience
    in all phases of revenue administration.  These offices will be the
    backbone of a modern, streamlined pattern of organization and
    operations with clear and direct channels of responsibility and
    supervision from the lowest field office to the Commissioner, and
    through him to the Secretary of the Treasury. The creation of this
    new framework of district offices is a necessary step in carrying
    out the overall reorganization of the Bureau.
      Plan No. 1 also makes it possible to provide a new framework of
    supervisory offices in the headquarters of the Bureau of Internal
    Revenue. Under plan No. 1, the offices of Deputy Commissioner,
    Special Deputy Commissioner, and Assistant Commissioner are
    abolished.  Three Assistant Commissioners, all in the classified
    civil service, are authorized, and will be available, to perform
    such functions as may be assigned to them.  The intention of the
    Secretary of the Treasury under the comprehensive reorganization is
    to utilize one Assistant Commissioner to assist the Commissioner of
    Internal Revenue in supervising the operations of the district
    offices, another Assistant Commissioner to aid in the preparation
    of technical rulings and decisions, and the third Assistant
    Commissioner to supervise for the Commissioner the inspection
    activities of the Bureau.
      Two additional advantages will be obtained when the
    reorganization around this new framework is completed.
      First, the strong inspection service which the Secretary is
    establishing will keep the work of the Bureau under close and
    continuous observation.  Working under the direct control of the
    Commissioner of Internal Revenue, it will be responsible for
    promptly detecting and investigating any irregularities.
      Second, the new pattern of organization will strengthen and
    clarify lines of responsibility throughout the Bureau, thus
    simplifying and making more effective and uniform the management
    control of the organization.  This is essential in any effort to
    provide our principal revenue collection agency the best possible
    administration.
      In order to eliminate Presidential appointment and senatorial
    confirmation with respect to the Assistant General Counsel for the
    Bureau of Internal Revenue, and in order to provide a method of
    appointment comparable to that obtaining in the case of other
    assistant general counsel of the Department of the Treasury, plan
    No. 1 abolishes that office and provides in lieu thereof a new
    office of Assistant General Counsel with appointment under the
    classified civil service.
      The success of the reorganization of the Bureau of Internal
    Revenue will to a considerable extent depend upon the ability to
    attract the best qualified persons to the key positions throughout
    the Bureau. In order to do so, it is necessary to make provision
    for more adequate salaries for such key positions.  Plan No. 1
    establishes in the Bureau of Internal Revenue a maximum of 70
    offices with titles determined by the Secretary of the Treasury.
    Those offices are in addition to the offices with specific titles
    also provided for in plan No. 1 and to any positions established
    under other authority vested in the Department of the Treasury. The
    compensation of these officials will be fixed under the
    Classification Act of 1949, as amended, but without regard to the
    numerical limitations on positions set forth in section 505 of that
    act.  This provision will enable the Chairman of the Civil Service
    Commission, or the President, as the case may be, to fix rates of
    pay for those offices in excess of the rates established in the
    Classification Act of 1949 for grade GS-15 whenever the standards
    of the classification laws so permit.
      All organizational changes under plan No. 1 will be put into
    effect as soon as it is possible to do so without disrupting the
    continued collection of revenue.  Plan No. 1 will in any event be
    effective in its entirety no later than December 1, 1952.
      The taking effect of the reorganizations provided for in
    Reorganization Plan No. 1 of 1952 will make possible many benefits
    in improved organization and operations which may be expected to
    produce substantial savings in future years.  Those savings should
    not be expected to be reflected in an immediate reduction in
    expenditure by the Bureau of Internal Revenue but in an improved
    service to the public and a more efficient collection of revenue.
      It should be emphasized that abolition by plan No. 1 of the
    offices of collectors and others will in no way prejudice any right
    or potential right of any taxpayer.  The abolition of offices by
    plan No. 1 will not abolish any rights, privileges, powers, duties,
    immunities, liabilities, obligations, or other attributes of those
    offices except as they relate to matters of appointment, tenure,
    and compensation inconsistent with plan No. 1. Under the
    Reorganization Act of 1949, all of these attributes of office will
    attach to the office to which the functions of the abolished office
    are delegated by the Secretary of the Treasury.
      After investigation, I have found and hereby declare that each
    reorganization included in Reorganization Plan No. 1 of 1952 is
    necessary to accomplish one or more of the purposes set forth in
    section 2(a) of the Reorganization Act of 1949.
      I have found and hereby declare that it is necessary to include
    in the accompanying Reorganization Plan No. 1, by reason of
    reorganizations made thereby, provisions for the appointment and
    compensation of the officers specified therein.  The rates of
    compensation fixed for these officers are not in excess of those
    which I have found to prevail in respect of comparable officers in
    the executive branch.
      I cannot emphasize too strongly the importance which should be
    attached to the reorganization plan that I am now transmitting to
    the Congress. The fair and efficient administration of the Federal
    internal-revenue laws is of vital concern to every citizen.  All of
    us have a right to insist that the Bureau of Internal Revenue be
    provided with the finest organization that can be devised.  All of
    us are entitled to have that organization manned by personnel who
    get their jobs and keep them solely because of their own integrity
    and competence.  This reorganization plan will be a major step in
    achieving those objectives.                         Harry S. Truman.
      The White House, January 14, 1952.
-END-
 


Contents Page