Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1919-03-11
REPORT ON INCOME
OR PAY LARGE FINE
Those Who Fail to Make Re-
turns This Week Liable
to Prosecution.
TROUBLE FOR TAX SLACKERS
Gamblers. Bootleggers and Moon
sinners Permitted to Deduct
Losses; Must Pay on Gains.
'Bv Associated Press.l


WASHINGTON. March lO.-Warning
was issued today by Internal Revenue
Commissioners Roper that persons who
fail to file income tax returns with rev
enue collectors before next Saturday
night will be subject 10 prosecution.
He called on honest taxpayers to aid
in the roundup OF slackcrs by report
ing any information they might have
which would assist in detection.
Those who merely neglect TO flo
returns are subject on prosecution to
fine OF not more than 81 900 and
those who ''willfully refuse" arc sub
jcct 10 fine of not moro than sIe,-
both
Ignorance of the law" said the com
missioner, cannot consistently be Of
tered as an excuse by the man who
Wide publicity has been given the pro-
visions Of the new revenue bill. The
vast majority. therefore. OF the Amer
lean people know the demands OF the
government.
WANTS TAX SLACKERs
BROUGHT UNDER LAW
Il believe the majority OF persons
subject 10 the tax will pay their just
obligations this year as last, cheer
fully and willingly. But the duty OF
the homes, man does not end with the
payment of his own tax |. call upon
hum Tor aid in bringing into camp the
tax Stacker"
Means Of detecting tax dodgers in
ciude the posting as soon as possibl c
in each revenue district of the names
of persons who have filed returns and
formation At the source" made by per
sons who paid more than 81 900 last
year to any individual or business in :
tcrest.
TO the extension of forty-1v days al
lowed taxpayers who arc unable 10 file
complete returns BY next Saturday
providing they report an estimate of
payment Of at least one-fourth Of the
estimate tax. This applies to both cor
porations and individuals
Business losses OF gamblers. moon
sinners. bootleggers and other partici-
pants in illegal practices are deduct
able from gross income in deterrnin In &
net income subject to tax. .js
the internal Revenue Bureau decided d
the question today in passing upon
Inquiries from professional gamblers
in New York, Chicago, Boston and
other cities. and from lone query OF
Il Southern eX-moons sinner
The bureaus attitude is that income.
even from an illegal business. is tax
able. and that losses in connection
not to an extent exceeding earnings
from the business.
Tax collectors. according to this at
titude. arc concerned with collecting
revenue. and not prosecuting illegal
businesses. Consequently. they will re-
gard. as confidential any disclosures of
illegal source of income
SAYS HE WAS MAKING
WHISKY LAST YEAR
This inquiry came from a Southern
State:
Il was engaged last year in the bus!-
EeSs OF making whisky, which the rev
enue law says is illegal. | was raid ed
b. the revenues and my still was
taken. and was fined. have
now quit the business. but want to
know whether ] have TO make income
return OF the money | made off the
whisky, and whether l can deduct the
loss OF my still or my fine"
The reply was that both the loss OF
the still and fine could be deducted.
Similarly. the proprietor OF "A gam
bling-house. whose place was raided
and whose furniture and gambling
equipment was destroyed, was per-
mitted to deduct the value of the fur
nishinss in calculating net taxable
income. Poker players must include
winnings in their income. but may de-
duct losses only IL they do not exceed
winnings.
Taxpayers of these classes may re-
port their earnings as 9th. income
or under some other classification. not
disclosing illegal source OF the earn
inGS