The More Things Change...

In 1924, Michigan Sen. James Couzens spearheaded creation of a special Senate committee to investigate the Bureau of Internal Revenue. There were reports of inefficiency and waste in the bureau and possible fraud in its refund process, as well as allegations that large corporations were receiving favorable tax treatment. The committee found, for example, that there appeared to be no system, no standard and no oversight in the determination of oil property values.

The following year, the bureau notified Couzens that he owed more than $10 million in back taxes. Then-Treasury Secretary Andrew Mellon was believed to be personally responsible for the retaliation against Couzens. Mellon was the principal owner of Gulf Oil, which had benefited from rulings specifically criticized by Couzens.

These events led in 1926 to the creation of the Joint Committee on Internal Revenue Taxation. According to a recent committee document, it was supposed to keep Congress advised about "the systems and methods employed in the administration of the internal revenue laws with a view to the needs for legislation in the future, simplification and clarification of administration, and generally a closer understanding of the detailed problems with which both the taxpayer and the Bureau of Internal Revenue are confronted."

In its first report, issued in 1927, the Joint Committee recommended ways to simplify the federal tax system. It's been following up ever since.