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COPY  17 January 1950  COPY

Mr. David L. Behncke, President
Air Line Pilots Association
3145 West 63rd Street
Chicago 29, Illinois

Dear Dave,

NWA's Council #1 at Minneapolis saw the need for, and set up, an Income Tax Committee in December of 1948.  I have headed this Committee since that date and will herewith describe my activities and their results in chronological order.

1.  It was determined that a good share, if not all, 1946, 1947 and 1948 Federal Income Tax returns for our airline pilots were to be audited.  (Approximately 45% of the 1946 returns have been audited to date).

a.  To eliminate the local Deputy Collector's varied opinions I went to the Collector and convinced him it would be advantageous to appoint a single Deputy to audit all returns that were to be audited.

b.  I determined what were to be definite industry tax deductions, checked ruling and had round table discussions on these matters in both Saint Paul and Washington, D. C. 

c.  I went over any and all problems with the appointed Deputy Collector, took him to the airport and showed him how the airline and the ALPA functions.  I convinced the appointed Deputy and his superiors that a dinner, for instance, in a large city can come to $5.00 or $6.00 or more, etc.

2.  The writer conducted an educational campaign to familiarize Council #1's pilots with the complete tax picture.  Believe me, 90% did not thoroughly understand our problems

a.  This program, coupled with proper knowledge, stopped all undue kickbacks to the Dept. of Internal Revenue. (A good share of the Deputy Collectors have had the attitude, "Collect all you can".  We stopped this cold in Minneapolis).

3.  The air line uniform had never been an allowable deduction.  By going through Government channels I wound up filing a petition for a ruling to change the law and on December 3, 1949, I