Abstract
Recent regulations of the Internal Revenue Service regarding tax deductibility of expenditures for “institutional” advertising tend to restrict and discourage the use of advertising by business management as a method of mass communication. The author points out that the concept of “institutional” advertising which the Internal Revenue Service has followed for forty years is narrow and, for many purposes, outdated. Attempts to modify present regulations under the old concept are not satisfactory.
According to the author, there is need for a recognition on the part of Treasury officials of the growing responsibilities of management and of the expanded function of advertising to carry messages, of a public-relations and public-interest nature, as a means of informing and influencing public attitudes and opinions.
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