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,
81, Der cent Of the returns examined
showed that an additional average tax
Of si51.0 was due the Government on
each return. On this be sis the 81 .i0i re-
turns vet to be examined would produce
S4.66.SN ADDITIONAL tax"
Examination OF corporation returns
show that on the average basis Of
taxes due the 26I.s2 returns vet TO be
examined. would net over so, 10000 The
report continues;
II do not. OF course. claim that the
deductions here made are conclusive.
Aot individuals and corporations are In
accurate to such = degree that very
much additional tax will be collectable
as soon as the returns are investigated
and checked bvN competent men, and
that It Ia IN the Interest. Of the Coy
crnmeBt that sufficiently large field
force shall be created 10 do this work
thoroughly and promptly. a..
Have Double Eject.
"such investigations 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
T..
Of putting al taxpayers upon noIicA
that the Government has q sufficiently
large and competent force in the field
to examine the returns.
The Commissioned Of Internal Revenue
has submitted an estimate of an in
crease for the income tax field force.
and earnestly recommend that II he
allowed, am sure that as a result OF
such an increase the cost thereof will
be returned to the Treasury several
A.. 49, - Al l.
creased efficiency that Will result in
the administration OF the income tax
law.
80 much for the Administrative fea-
tures. We now come to certain changes
made both in the interest OF clarified
/ ton and for the accomplishment OF
more effective results. desire to re-
new earnestly the Recommendation
made in my last annual report that the
/, having, a gross income of 5000 or
more for the taxable year shall make
a return. Under the existing law each
over for the taxable year is required to
make a return Consequently, the person
who has q gross. income OF more than
5000 makes his. own deductions and de-
/ view on the part OF the department,
whether his net income is more or less
than 80 900. MAnifestly the returns, with
the deductions, should be made 10 the
department so that the deductions may
be reviewed by lawful authority 10 de-
termipe whether they are properly made
or not
Information At Source.
~ am OF the opinion that it would
be very advantageous TO have this law
Namended so as to do away with the
Withholding Of the income tax at the
| md In Nil 80,
[ information at the source: that II will
mean the collection Of larger amount
of revenue and eliminate great deal
of criticism which has been directed
against the law. II such an amendment
Is adopted. an exception should be made
/ in the case OF nonresident aliens, whose
tax would, necessarily be withheld al
! the source"
There are proposed amendments max
| ing the income of nonresident aliens
\ arising or accrulng from ali source.
| within the United States taxable, and
! providing for the payment of the taS
| at the source; requiring return from
| alt individuals. whether tax has beer
! 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 Il
] organizations now exempt; broadeEinI
the scope OF the liability OF foreign cor
| porations: requiring receivers, trustees
! etc. operating properties. to make re
i turns and pay tax; and prohibiting
| CORPORATIONS deducting taxes for lOca
Another proposed amendment author
IZes. ,by express words. the Commits
sioner OF Internal Revenue TO make al
! assessment in case OF returns merely
| erroneous as we'll as in the case of-thos
! false and fraudulent. One enlarges tn,
1 fIfnA within which iDnAgrintAQl mn,
! file his claim for deducations with tn
| Withholding agent, one provides tina
! the tax shall become due. on June /
1t may be collected before the end o
| tho fiscal year, and one gives the com
missioner specific authority TO cofrec
an erroneous or false return as well a
| to make 4 return. Others forbid cor
porations which agree TO pay any take
on their bonds from deducting sucl
taxes from their gross income, and ex
| tend the provisions OF Section SiF3, Re
vised Statutes. 10 corporation joint
surhnce companies. ..
| Customs Situation.
Calling attention to decreased custom
duties which involved not only imports
but tonnage tax and Immigrant hea
tax, the Secretary says:
'1t is obvious that II one OF the chic
is customs duties the greater the declln
in imports the greater will be the los
In revenues. II Is fortunate for tn
coNntry that sources of revenue othe
than customs duties have been provide
to meet the exlgencies jOf the situation
created by the European war. With tn
restoration Of peace In Europe the Gus
toms duties collected under existin
laws VIII gradually increase as import
from the countries now at war ar
gradually restored to- a normal basi.
How long this process viii take no on
can. say, nor can anyone predict wit
certainty when the European war wi
END Our Obvious duty. IN the mean
time, is to provide the revenues OF tn
Government from sources affected a
little as possible by foreign wars or eS
ternal disturbances. This we can read
, ilV do. "a ataiah In nnnihar mart nf ihl