Atlanta Georgian. [volume] (Atlanta, Ga.) 1912-1939, 1914-02-08
INCOME TAX|S
HONESTY TEST
FOR VEAL THY
With Governments Machinery
Incomplete, Revenue CoIIec-
tors re Already Swamped.
EARLY TO FIND "CHEATERS"|
What to Do in Case of $500
Limit for First Ten Months
Explained.
EARLY TO FIND "CHEATERS"

NEW YORK, Feb THE honesty
of citizens amenable TO the proyi
sions of the new income tax law is a
question which Collector of Internal
Revenue Charles Anderson has mark
ed down for future Investigation.
That there have been many eyasions
in fillng out blanks and filing the re-
turns he already has knowledge
As TO the filing Of dishonest returns
grossly Understanding personal net
incomes, nothing has yet been un-
esrthed and neither can it be dis
closed until the machinery of theslaw
is put into uniform motion and sys-
iematic investigation Of suspected
ca ses are undertaken. In time staff
of investigators for each internal
revenue district 10 ascertain the
sources and size Of all personal in
comes will be established.
At present this work might be I'M
dertaken by the already complete
forces of the Internal Revenue De-
partment, whose duty it 10 to probe
into liquor and tobacco tax matters
affecting the Government, but it is
explained that this force could
scarcely take up the special work OF
income tax investigation before the
legal machinery itself is going at top
speed
All Is Confusion.
At present ali is confusion in the
income tax branch of the Collectors
extensive department The STAFF OF
clerks is wholly Inadequate, bsins
compelled to work late into the nigh,
IN order to try and keep abreast Of
the tide of applicants for blanks.
Thousands Of letters from we'll
known lawyers who And themselves
unable to fully comprehend the com
pick phraseoiogS of the written law
reach the Collector every day HIS
has applied TO Washington for the
privilege of appointing additional men
ard women clerks, but Washington
has not vet given him authorization
There is no question as to the
honesty Of the people who have come
with a rush To this Office and who
have written letters seeking the
light, said the Collector yesterday,
"but ] feel assured that there are
many who have not and will not come
forward with the statement of their
income for the present. There are
many who really do not realize that
they are amensb Bile and who appear to
regard the whole matter as something
to he smiled at
Time Is Nes.ied
IF false statements have been
filed with us the fact can only be
brought to light after we have got
ever this first rush The whole mat
ter will simplify itself In time and in
6ividual investigation will reveal any
frauds II will prove very serious
matter for any person coming under
the provisions Of the new law to try
and avoid his or her obligations. and
severe penalty attends"
The most interesting portion of the |
income tax law is the part affecting
individuals whose net income exceeds
$4,000 for the FIRST ten months of the
new law. This individual" class ap-
plies 10 both married and single and |
the fling is done by the employer,
who under one Of the A.. varieties
of forms, fills out the blank and re-
turns II 10 the Collector of Internal
Revenue in the district in which the
business is established The word
employer applies TO co partnerships.
companies. corporations. Joint stock
companies and associations or in%ur-
ance companies The employer gives
the names and addresses of all per
sons receiving rents salaries. wages
ROYALTIES taxable annuities and en-
clements in excess Of So goo
But in addition to this the indvid-
uai employee himself and herself re-
eeiviue s3a0o or more must file an
independent return, SO il may be seen
the Government has in ats possession
the documentary corroborstiNe evil
dence
Fines for the Reesleitrant.
n n no - ri Nh
have no employment but are in re-
eeipt Of incomes exceeding the three
thousand dollar mark. they In turn
must 1le a complete statement 4
discretionary fine Of from $40 to 81 ,000
for failure 10 make these individual
returns on or before March l next is
i'm posed
In order 10 cover the ten months
between March !. 1913. and December
81, 1913, when the new law was eff
fective. returns in the individual
class must be made on the basis of an
income for those ten months of s., 500
or over, Under the individual provi-
sion married person with children
or other dependents will be given an
extra allowance of S3333S i'm addi-
ton to the three thousand dollars
Although all are exempt under the
$4,000 and S3.3S333 clause. he and
she receiving that amount must file
return 10 show good faith never
theless
Next year. or after March /, there
aEiil ne greater lee~sv. for then all
receiving incomes greater than "a 600 ,
will be required TO pay the per cent
tax, and as usual. the man Of family
viii receive the extra 1898 SO consid-
GRAFTON