The Prince George's enquirer and southern Maryland advertiser. (Upper Marlborough, Md.) 1882-1925, 1920-07-16
after sales And
TAX DELINQUENTS
Special Drive to Be Made by U. S.
Government Against Soft
Drink Dealers.
BIG REVENUE EXPECTED.
Revenue Collectors Instructed to
Prosecute All Cases of WilfuI At
tempts to Evade Payment-Agents
to Ferret Out Tax SIackers.

Washington. In it's nationwide
drive for the collection of delinquent
sales and other miscellaneous taxes,
the Bureau of Internal Revenue is de-
voting special attention to the cOllec-
ton of the soft drink tax. Reports
from certain districts are that many
dealers are failing to account for this
tax.
Instructions have been sent to col
lectors of internal revenue to assess
penalties in all cases where there is
evidence of wilful attempts to evade
payment. The maximum penalty for
such offense is a fine of not more than
$1,000 or one years Imprisonment or
both. Whether offers of compromise
will be considered, or recommendation
made for prosecution will depend upon
the facts disclosed in each particular
case.
Collectors are advised also to note
that persons who knowingly appropri-
ate to their own use taxes which it is
their duty to collect and return to the
government are Iiable to prosecution
under section At of the Criminal Code.
1t is not necessary tha, the intent be
to appropriate money so as to forever
exclude the government, but the mere
use Of the money with the knowledge
that it belongs to the United States
constitutes the fraudulent appropria
lion.
The soft drink tax of one cent for
each 10 cents or fraction thereof Of the
amount paid applies to all sales of soft
drinks, ice cream, ice cream sundaes
and similar articles of food and drink
in an ice cream parlor Or similar place
Of business if sold for consumption in
or in proximity of the place Of sale.
All sales from soda fountains of the
articles mentioned are taxable, regard
less of the nature of the place of busi-
ness in which the fountain is located.
In these two instances the tax applies,
whether or not the sales are accom-
panied by the purchase of substantial
articles of food or drink, as a part
Of meal.
If the sale is made at q hotel, res
taurant, cafeteria, lunch room or club
ticles are not sold from a soda foun-
tain, no tax is due. Sales at such
places when made separately and not
as part of meal are taxable.
If several articles are purchased at
the same time, the total price paid is
the unit for computing the tax. Thus,
If purchaser orders two sodas, each
selling for Is cents, the total tax Is
cents, and not four cents.
Regulations governing the collection
Of the soft drink tax required that daily
records be kept showing the number Of
sales and the tax thereon. In case the
vendor does not use an adequate cash
register or check system from which
records may be kept, the regulations
require that separate receptacle shall
be used to retain the tax collections.
Vendors are required to make on or
before the last day of the month re-
turn and payment of the tax collected
the preceding month The penalty for
failure to make a return and pay on
time Is fine Of not more than $1,000
For willful refusal to truly account for
and pay over the tax, the penalty is
fine of not more than $4,000, or one
years Imprisonment, or both.
The bureau is making a drive not
only for the collection Of d delinquent
soft drink tax, but the so-called luxury
tax, the tax on rentals earned from
the lease or license of motion picture
films, the admission taxes, the manu-
facturers' tax on jewelry and works Of
art, and the tax on toilet articles and
proprietary medicines. Following a
course Of instruction at Washington,
Commissioner William NJ. Williams has
assigned to the work large force of
special revenue officers. These men
compose a flying squadron, which will
visit every large city in the United
States, cooperating with assistant su-
oervisors and field deputies.
The drive is under the immediate
supervision of collectors of internal
revenue.