New-York tribune., 1920-06-09
Government to
Open Tax Drive
On Delinquents
Movement Conducted bv
''Flying Squadrons'' Is
Expected to Result in
Collection of Millions
Prosecutions Prom'i's ed
Special Attention Will
Be Paid Miscellaneous
Sales Assessments

from The Trtbune's Washington Bureau
WASHINGTON, June e-William NJ
Williams, Commissioner of Internal
Revenue, to-day announced a general
tax drive, which will extend into every
section of the country and which is ex-
pected to result IN the collection of
millions Of dollars of delinquent taxes
and penalties.
Flying squadrons," like those en-
ployed by the prohibition enforcement
division and the Department of JUS
tee in its war on profteers, are to
be employed
Special attention is to be given to
the collection of the miscellaneous
taxes-those on sales. Injuries, jewvlry
loliet articles. proprietary medicines
SOFT drinks and theater admissions. The
bureau has had reports from many
cities that dealers and others charged
WIN The collection of these taxes are
failing in their duty
Instruction for Raiders
Men who will be in the squadron
have been summoned here for sna.
clal course Of instruction. Thew are
revenue officers who are experienced in
the handling Of sales taxes. They will
receive instructions to conduct a thor
ough and effective campaign, using
methods designed to bring those who
are wlllfully evading taxes to Justice
without causing embarrassment to per
sons who are making an honest en-.
deayor to comply with the law.
The Bureau also plans to seek out
those VINO failed to make income tax
returns IN accordance with the law
Agents Will compare local tax records
sources OF information with its lists OF
clup members. real estate transfers
corporation dividend records and othe,
sources of information, with Is lists if
taxpayers. In this way it is believed
names OF delinquents and evaders may
be found. Every automobile owner is
considered prospective income tax.
many sections greatly exceeds the
payer, and the number of autos in
number Of those who filed tax returns
This work, it Is understood, will begin
the latter part of June.
Plans are already well under way
for the presentation in court of those
who failed to make proper returns.
I. S. Suffers Heavy Losses
Through the failure of retailer. te
collect in full the tax on toilet arti.
cles and medicinal preparations, IT is
estlmated the government is losing sew.
eral millions of dollars annually" sale
statement from the bureau "This
tax of one cent for each twenty-five
cents, or fraction thereof. of the
amount for which the article is sole
is collected by means Of stamps, rang
lng IN denomination from one to fort,
cents. The law provides that the
stamps shall be affixed by the deale,
and cancelled. Failure TO cancel the
stamp IS punishable. upon conviction
by tine Of not more than S1OO.
additional penalties of fine Of No,
more than $1,000 for failure and moi
more than $4,000 for wilful refusal tc
collect and pay the tax are provided
together with an added assessmen,
equal to the amount of tax evaded
Employers, dealers, officers OF cor.
poratlon or members of partnership
whose duty is to collect the tax are
alike subject to these penalties. Care
full survey will be made of establish
ments selling toilet articles and me-
dlclnal preparations, and employers
viii be advised 10 instruct their EN-.
ployees IN the laws and regulations
governing the collection of the tax or
such sales. Persons who are negligent
~ OHc iHaltcI u correcting Cne CHX, OF
who refuse TO bother with revenue
stamps will be made to realize thei,
delinquency.
Recent arrests in New York and
Chicago Of theater ticket brokers anc
persons charged with failure to ac-
count for admission taxes will be fol
lowed by similar prosecutions in other
cities. Reports from Chicago are that
150 theaters and moving picture
houses failed to make proper monthly
returns of admission taxes.
Educational Object
The purpose Of the drive will be one
of education as we'll as enforcement I
Where, prior to government investiga
ton, amended returns are fled, &C
companied by evidence, TO show that
the delinquency is due to no wrongful
intent the policy Of the bureau WILL be
one Of leniency. Where evidence is
discovered tending to show wtlful eva
sion or refusal to collect and pay the
tax the policy will be to enter prose
cutions and urge the imposition of ex
treme penalties.
Revenue officers engaged in the tal
drive will be armed with authority
from Commissioner Williams to exam
inc any books, papers, records OF
memoranda bearing upon the items tt
be included in the returns and to sum
mon for examination under oath al
persons having knowledge in the prem
ises.'