My dear Mr. President:

I am transmitting herewith for your consideration an executive order and an amendment to the existing regulations, the effect of which is to make the decisions of the Commissioner of Internal Revenue allowing a refund, credit, or abatement of income, excess-profits, war-profits, estate and gift taxes, open to inspection by the public, if in excess of $20,000. The decision will give the amount of the overassessment, a brief summary of the facts, and a citation of the applicable statutory or judicial authorities.

It has been the consistent policy of the Treasury that tax returns, and the information thereon, should under no circumstances be open to public inspection, and that taxpayers should be permitted to contribute to the revenues of the Government without subjecting their business affairs and transactions to the scrutiny of their competitors or the curious, this policy is not affected by the proposed executive order and regulations.

The Congress adopted as an amendment to the First Deficiency Appropriation Act a provision which, as a matter of legal interpretation, would require no material change in the procedure or practices of the Bureau of Internal Revenue. However, [p.25] upon the assumption that this provision reflects an inexpressed Congressional policy, and in order that the public generally may know that there is nothing mysterious about tax refunds and that there is nothing which the Treasury desires to hide (except to the extent necessary to maintain and effectuate the policy outlined in the second paragraph above), I am recommending your approval of the proposals submitted herewith.

Faithfully yours,

A. W. MELLON Secretary of the Treasury

[The President, The White House]