Delaware gazette and state journal. (Wilmington, Del.) 1883-1902, 1895-04-04
COLLECTION OF INCOME TAX
MIR. Thomas Hariana's Exposure OF the
Administrative Deficiencies OF the Law
as Passed by Congress.
New York Evening Post


Administrative Deficiencies oil the Law
as Passed by Congress.
New York Evening Post "
The exposure by MIR. Thomas Harland.
formerly of the bureau of internal
revenue, of the administrative deficiencies
of the income-tax law, presents u serious
question for the consideration of the
Treasury Department II Mir. Harlapd's
interpretation of the law is correct, the
government must depend for collection
of the tax upon the ignorance or timidity
of the taxpayers. Citizens who avail
themselves of their rights under the law
cannot be reached. for the reason that
Congress has not provided the bureau Of
internal revenue with sufficient force OF
officers properly qualified to represent the
government. The number of collectors to
be appointed for the entire United States IL
only l26. and there are at present only 60.
There are only two in the City Of New
York, and only one for the three States Of
Maine. New Hampshire and Vermont. 1t
is obvious that if every citizen subject to
the income tax waits for the collector to
call upon him. as Mr.. Hariand contends
that he has the right to do, the tax cannot
be collected with impartiality and thor
oughness. The collector must, in the first
instance, determine who of the many IN
his collection district are subject to tax.
He must then call in person upon each
one subject To tax and demand his return
of income. If required, he must sit down
with him and make ont the return from
data furnished by the taxpayer. Not until
this process has been gone through WIN
can the collector ndd any penalty to the
tax.
1t would require the services of an expert
accountant for several months to decide as
to the amount due from some of the larger
corportions. Even when it is determined,
an appeal can be taken from the collector
To the commissioner of internal revenue.
Doubtless the collector might make q
wholesale dissemination Of the questions
of fact involved in the assessment OF the
amount due, but this would be so obvious
an exercise OF arbitrary authority that 1t
would hardly stand the scrutiny OF the
courts, were we TO assume that II wouiu be
approved upnn an appeal to the commis-
sioner of internal revenue.
Mr.. llarland's reasoning il SO sound and
conclusive that it has, rs we are informed.
convinced the Judgment OF every lawye:
who has THUS far examined his brief. The
Internal HcVcnue Record of this city shows
that it has the approval of Eiihu Root,
late United States district attorney Charlcs
II. Truax, ex-iudge OF the New York
supreme court; ex.Surrogate Daniel u.
Rollins, aud William Hildreth Field. We
| are further informed that lawyers in this
| city. in boston, and elsewhere are very
| generally advising their clients to refrain
from voluntarily making II return Of IN,
| como, and 10 wait Tor the collector to cali
| 4 universal adoption OF this practice VIII
paralyze the hands of the government. aud
will permit tho gFeuter part of those sue-
| iect To the iucnne-taS 10 escape payment,
because of tho inability Of the bureau OF
internal revenue, with its inadcq lnts force
| of collectors. to make II proper demand
upon them. If the law cannot be enforced
| With Justice and impartiality because of
the default OF Congress- action under It
should be suspended until its defects can
be remedied This was done in the case
| of the Income Tax law oFthirty years ago.
The Treasury Department was brought 70
a stand at that time by decision of thu
attorney general Opinions Attorney gen
eral. Vol. Nj, p. 2u9( That the act Ut March
| Sd, 1865, so far us il attempted to vest the
appointment OF assistant ASSESSORS III the
assessor, was unconstitutional. The error
contained in the act of 1858 has been re-
pcatcd in the act OF August 18th, 1857. Sd
| far rs we have seen, no attempt has been
male to answer the arguments Of the eAli'
! nent attorneys who accept Mr.. HHrland's
conclusions. They apply to corporation
returns, inasmuch as tic term persons, as
| used in the act. includes corporations. y