The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1911-03-01
MANY CONF PAN|ES
ARE DELINQUENT
Government Is Likely to Follow
Corporation Tax Arrears
With Prosecutions.
FINES WILL EXCEED TAX
BY ALMOST ONE MILLION
Local Collector Estimates De-
Iinquents in Utah, Idaho and
Montana Will Reach 1000.

If the government corporation tax
law is enforced strictly in Utah. ldaho
and Montana, the outlook is that the
government will collect about S2oo,Oo
tax and about 81, 100000 in fines.
From the books mt the local oftices
of the United States collector of in
;ernal revenue there will be host OF
corporations failing to get their re-
turns on their net earnings Tor i9lV
into the hands Of the local collector
of internal revenue before tomorrow
night, in which event they Will he de-
linoucnt. The outlook is there Will
be about 1000 corporations delinquent
When the office Of the collector III
the federal building was opened tues
day morning there were about 4O0o out
of the 10000 corporations IN the thrce
states under the jurisdiction of the
local collector which had not filed their
returns. In the office of the collector
two clerks were kept busy most of the
dav receiving the returns and about
eco were received in the mail. 1t was
figured at the close of business Tues
day night that there were about 2ouo
reports not made. Counting on there
being 1000 received today, the number
of delinquents will be about 1000.
The corporation law provides line
of not less than $1,000 and not more
than $4,000 for delinquent companies
II this law is adhered to, the fines
will amount 10 great deal more than
the tax itself
Prosecutions Are Likely.
AS to what procedure the governor
will take in the matter of prosecuting
delinquent companies remains TO be
seen. but it is the opinion at the local
office of the revenue collector that
the delinQuents will be prosecuted.
Thursday morning the collector will pre-
pare list of the delinquents and send
out notices to the effect that it is up !
to them TO make explanations of why
they failed to make their returns.
These explanations will be in the
form of sworn affidavits and will be
sent to the commissioner of the col
lector of internal revenue in Washing
ton. From the tone of letters received
from that official recently there will
he no leniency shown and unless the
explanations are satisfactory the cases
will be referred back 10 the local col
lcctor with instructions TO take them
up with the United States district at
torney. 1t will be the duty of the at.
torney to prosecute the dcllnquents.
Was Lenient Last Year,
Last year the government was leni
ent in respect 70 delinquents because
the corporation law was new and the |
corporations did not understand ey
actly what was required. Instead of
prosecuting the delinquents the commits
sioner imposed fine Of 30 per cent of
ba Aax OIL
a long list of corporations paid this
fine for being delinquent. This year.
however, the law is understood and,
therefore. no leniency will be shown.
The corporation law was made effect
i've by the act of August 10, 1909, and |
is entitled "Law relative TO excise tax
on corporations, joint stock companies, |
associations and insurance companies -
The annual report from the corpora |
tions fall due March / and the law
calls for a complete statement of the |
business of The corporation in the year
ending December 81. The government
checks mp on the net earnings of the |
corporations and makes an assessment |
of ] per cent on all the earnings over
$1,000. The money falls due June 30. |
and failure to pay subjects the delin-
quent TO heavy fine. Last year the
income to the government from all the
states amounted to $20,959, ,7S3.74. In |
Utah, idaho and Montana the tax
amounted to 1903, ,444.S3
Many Object.
Many of the corporations are object
ing to the corporation tax on the
grounds that il is not in compliance
with the constitution of the United
States. Test cases are pending in the
federal courts in the east and corpora
tions are hoping 10 get back the tax
money paid so far.
II. E. Booth. United States ds sfrict /
attorney, when seen on the subject
Tuesday, said that as yet he had re.
celved no Instructions regarding prose-
cution in cases of delinquency and he
will take no action in any case of the !
kind until he receives instructions.
I,ctIlrl nIrI 70 A.