The Bourbon news., 1919-02-28
HOW UNCLE SAM DEALS WITH
TAX-DODGERS.

How does Uncle Sam deal : with
tax-dodgers? This inquiry, which
was prompted by the severe penal
ties provided: in the new revenue
BILL. has brought from Commissioner
Daniel C. Roper, a frank statement
as to the Internal Revenue Bureaus
attitude toward those who attempt to
evade taxation. -
ANY person who deliberately con-
ceals tax liability, or who falsifies
return in order to reduce or evade
any internal revenue tax, or who de-
liberately abets such concealment or
fraud, finds arrayed against him the
entire strength of this Bureau press
ing for full civil and criminal PEN
alties. That is the attitude toward
the tax-dodger, expressed in one sem
tence Whether he is g. mOonshiner,
a stealthy trafficker in habit-forming
drugs, a juggler of income figures, a
delinquent in making the sworn re-
turn the law requires, or a revenue
violator Of any other kind, the Bu-
reau is charged with the duty of
hunting him out and exacting the
full punishment provided in the law.
Toward the taxpayer who means
to comply with the internal revenue
laws, fully and honestly, the Bureau
extends a helping hand. Co-opera-
word and objective. =. 80 80.
"These two contracts-the teeth
of the law for the tax-dodger and
the violator, and the aid of. every
lawful agency for the voluntary tax
payer, are policies necessary to the
administration of tax laws under
modern conditions. '.... .-.:... ....
lone of the most difficult of the
many problems in tax collecting is
to classify those who fail to fulfill
the obligations imposed by law. The
Bureau is obliged to maintain a
large staff and to use the utmost dis
cretion in properly labelling these
cases. Even-handed justice is a
heavy responsibility, and only
through careful siftings can delin-
quents be classified. .
There are three distinct classes of
delinquency with which we have to
deal First, the taxpayer who had
reasonable cause, brought. about by
exceptional conditions beyond his
control; secondly, the fellow who
didn't look up or didn't realize his
obligations, and thirdly, the person
who willfully evaded compliance
with the law.
LAS for the man who shows a rea-
sonable cause within certain lines
established by the Bureau, no penal
ties are asserted. All other delin-
quent are more carefully investi-
gated before prosecution is begun.
Many of these offenses are caused by
ignorance. Failure to make the re-
ports required by law may in some
cases warrant severe penalty, as
where the delinquent continues his
delinquency after being warned of
the penalty for failure to make re-
turn. However, if the delinquent
takes immediate corrective action,
and it is clearly established through
investigation that he did not wilful-
ly violate the law, the Bureau allows
him to compromise his liability to
specific penalty by rendering nom
inal sum of money. In such instan-
ces the money is not really in COM
promise but assessed to impress the
taxpayer against future violations.
But there is no relief, no COM
promise, for the man who willfully
evades, neglects, or falsifies. He is
classed with other law-breakers in
the eyes of the Bureau, and is vigor-
ously prosecuted in the courts. No
other course is open to the Bureau,
in meeting fairly and squarely the
demand of the willing taxpayer Il
will-the other man must" There
is a solemn responsibility thus ex-
isting between the honest taxpayers
and the Bureau to locate and punish
the dishonest tax-dodger.
''For a decade the drift of Federal
taxation has been from the indirect
tax toward direct payment by each
citizen and resident of his just share
Of the cost of government. Gradu-
ally the circle of 4direet taxpayers
has Sbeen increased: and under the
new revenue law the extension will
include hundreds of thousands who
never before filed declarations with
the. Government. --s
'tsWe are, therefore, now come to
milestone in national pro-
gress: We approach a new test Of
the soundness of a government Of,
by and for the people. The test is
whether our. wonderful victory of
liberty is worth the cost as .appor-
toned to the private pocket-book by
the peoples representatives.
t.It Is such big thing. this col
lection of taxes directly from private
funds and business funds, that moth
ing short of our best American CO.
operative effort can make it sue
cessful and, hence, just. The Bu-
reau. seeks this cooperation Of the
people in collecting the revenues. It
has never been denied or stinted;
anything less than the great, volun-
tary outpouring of shares in the ma
tional assessment is unthinkable.
"And it is such big thing that
the willing taxpayer must have the
guarantee of this Bureau that the