The Washington times., 1915-12-08

tions OF personal returns for the
months OF June, July, August. and Sep
tember. 1915. IS a basis Of calculation,
showed that an additional average tax
of s16o.G was due the Government on
each return. On this ba sis the 81 .10l re-
turns vet to be examined would produce
si.66.sE additional tax"
Examination of corporation returns
taxes due the 264.s22 returns vet TO be
examined. would net over Sc. 0.oo0.o0o. The
report continues:
II do not. OF course. claim that the
deductions here made are conclusive.
but they demonstrate that the returns
accurate to such degree that very
much additional tax will be collect BILE
as soon as the returns nre investigated
and checked bv competent men, and
that 1t Is IN the interest Of the Gov
ernment tina. q sufficiently large field
force shall be created 10 do this work
thoroughly and promptly.
Have Double Eject.
"Such investisations and accounting
have the double effect OF educating tax
PAYERS to the law itself and showing
them how their accounts should be kept
to enable them to make accurate re-
turns TO the Commissioner OF Internal
Revenue. 1t also serves the purpose
of putting all taxpayers upon notics
that the Government has a sufficiently
to examine the returns.
The Commissioners Of Internal Revenue
has submitted an estimate of an in
crease for the income tax field force,
and ] earnestly recommend that il he
allowed, ! am sure that as a result OF
q n thoranf VI
be returned to the Treasury several
times over. to say nothing OF the In
creased efficiency that Will result in
the administration Of the income tax
law.
80 much for the Administrative fca-
In the law itself which ought to be
made both in the interest OF clarifica
ton and for the accomplishment OF
more NOR effective results desire !, to re, re,
made in my last annual report that the
law be changed so that each person
having gross income Of 5000 or
more for the taxable year shall make
person having a net income Of 5000 OF
over for the taxable year IL required "a
make a return. Consequently. the person
who has a gross income Of more than
termines for himself. without any re,
view on the part OF the department
whether his net income is more or less
than 5000. Msnifestly the returns, with
the deductions. should be made TO the
department so that the deductions ma!
be reviewed by lawful authority to de
termine whether they are properly made
or not.
Information At Source.
II am OF the opinion that it woult
be very advantageous TO have this Law
a. IN a atx-n,- tt,tfh H.
Withholding Of the income tax at tn,
source. and In place thereof to reQuir,
Information at the source that It will
mean the collection Of a larger amour
Of revenue and eliminate II great dea
OF criticism which has been directed
against the law. II such an amendmen
Is adopted. an exception should be mad,
in the case Of nonresident aliens, Whose
tax would necessarily lie withheld a
the source
There are proposed amendments max
arising or accruing from ali source
within the United States taxable, an
providing for the payment of the ia
at the source; requiring return fror
withheld at source or not; requiring div
idends to be included in the. returns
exempting certain mutual and co-opera
tive companies and associations. clubs
| and corporations not organized 70
, Profit which are similar in nature t
! organizations now exempt; broadeEin
the scope OF the liability OF foreign cor
porations; requiring receivers, trustees
etc. operating properties to make re
turns and pay TAX: and prohibi:in
! benefits.
Another proposed amendment author
| lies, By express words, the Commis
sioner of Internal Revenue TO make a
! "a II n wal
erroneous as well as in the case OF thos
! false and fraudulent. One enlarges tn
time within which an. individual ma
| file his claim for deducations with tn
the tax shall become due on June
| of zach year instead of June 30, so tha
| II may be collected before the end c
| tho fiscal year, and one gives the con-
an erroneous or false return as well a
| TO make a return. Others forbid col
| porations which agree to pay any take
on their bonds from deducting sue
taxes from their gross income, and es
tend the provisions OF Section 3lT3, Re-
vised Statutes. 10 corporations. ioip'
stock companies. associations, and IL
| surance companies.
Customs Situation.
Calling attention to decreased custom
duties which involved not only import
|
tax, the Secretary says:
"It Is obvious that II one Of the chic
| sources OF. revenue of the Governmer
Is customs duties the greater the declin
! in imports the greater will be the los
| in revenues. II Is fortunate for III
country that sources IF revenue othe
than customs duties have Deen provide
to meet the exlgencies of the situatio
created by the European war. With Ii
restoration of peace in Europe the cu'
toms duties collected under existin
laws will gradually increase as import
from the countries now at war Al
gradually restored to formal bGsi
How long this process will take no OF
can. say, nor can anyone predict wit
certainty when the European war wi
end, Our obvious duty. in the meal
time, is TO provide the revenues OF II
Government from sources affected {
little as possible by foreign wars or e,
ternal disturbances. This we can reaC
lily do, as stated in another part OF tn
report, without imposing heavy burdel
upon the people of the country, e..