The Washington herald., 1920-12-03
TAXREVENUES
FIVE BILLIONS
FOR YEAR 1920
Increase Of 40% Since War
Fiscal Act of 1918
Enacted.
AUDIT SMELLS RETURNS
Liquor Yield Only Third Of
1919 but Spirits Pro-
duction Gains.

Tax revenues collected by the Bu-
reau of Internal Revenue for the rs
cal year ended June 30, 1920, under
the war revenue act Of 1918, amount
ed to S5,4O7, ,5s0,251.s1, an increase of
40.5 per cent over the year 1919. ac-
cordipg to a report by the Bureau
of Internal Revenue, made public
last night. Taxes collected for 1918
amounted to ss.s5o.15o.O7s.5 The
total increase for 1920 over 1918 was
s1.s574sO.17s.25.
Large income taxpayers, 1t is stat
ed. almost universally availed them
selves of the privilege of INSTALL
ment payments, which first became
operative under the revenue act OF
1918. Payments made during the
first six months of the fiscal year
1920 embraced the third and fourth
installments of income and profits
taxes due on incomes received by
individuals and corporations in the
calendar year 1918, together with
additional collections on assessments
made for prior years. Payments
cluded the first and second INSTALL
ments on the income and profits
taxes in the calendar year 1919.
The total OF income and excess
prohts tax collections for 1920
amounted to s3.s56. 6.003.60. COM
pared with $4,000. .7S3.902.70 for the
fiscal ear 1919. an increase Of ST.
356.152.10ose The miscellaneous
collections amounted to S1.450,644.
24s.21 for the fiscal year 1920. COM
pared with s1,249. 9.366.175.S6 for the
fiscal year 1919, an increase of s201,-
27s,072-35.
As a result of the work of the
Income Tax Unit, additional taxes
aggregating S376.977.s67.4s were as
sessed during the year. With the
prospective increase in personnel it
is believed that the assessments to
be made during the fiscal year 1921
may result in the collection of ST.
900. 200. 900 in additional taxes. In
commenting upon these figures Com
missioner Williams said today:
Large as are these additional
taxes collected as the result of the
audit of income tax returns. this
verifcation work accomplishes the
even more important end OF laying
a solid foundation for the collection
of much greater revenues through
voluntary payments by taxpayers.
The vigilance of the bureau sat-
isles the public that the law is be-
ing enforced without fear or favor.
and that all are being required
sooner or later to pay the full
amount of tax due. As taxpayers
become more familiar with the pro-
visions of the law, delinquency will
be stamped out"
Aliens Attempt Evasion.
A large number of aliens in Ieay-
ing the United States attempted to
evade income tax requirements. ac-
cording to the report. During the
ten-months period ended June 30.
1920. the number Of aliens examined
before departing by revenue agents
was 366.1a" and the additional tax
collected Tas s13.117.7SS.3s.
The amount of capital stock tax
collected for the fiscal year was
s93.020.420.50, paid by 325,OO0 cor
porations. This is an excise tax
payable annually in advance, and
is imposed upon corporations, Joint
stock companies, associations, and
insurance companies.
The report does not give the
amount of tax obtained from en-
ployers of child labor. dismissing
the matter by saying that very lit
tie was collected This tax amounts
to 10 per cent of the net profits of
such employers. A total Of 32,2o7
applications for age certificates was
received. and 1880 children receiy-
ed certificates
Revenue derived from sales and
special taxes during the fiscal year
was in excess of the estimates. The
total amount collected is S7S4,S55,-
170.ss.
The total receipts for tobacco
taxes were the largest ever COL
lected. and amounted to s295,sos,-
1854. an increase of $50, SOC, ,2s3. so.
or 43.6 per cent over the preceding
year.
More than four-fifths of the total
receipts from taxes on tobacco come
from seven States: North Carolina
sIOS,457,I56.S6: New York, s4s,IsT,
42S.S3: Virginia, S2O,721. 7s.
Pennsylvania, s20,fs5.573.4s; New
Jersey, s1s,742,131.26; Ohio. sl5,154-
2s6-ss; Missouri, s12.31s,733.4s.
Oleomargarine' and occupational
taxes gave a total revenue of s3,-
72s.276-05. an increase of ss36,44Ie7
ever the preceding year. Receipts
Of 10 cents pound imposed on
manufacturers of adulterated butter
decreased from the previous year,
r. During the fiscal year there were
5s3 breweries in operation, COM
pared with 66s the previous year.
The quantity of fermented liuuor
produced was 9.231, $50 barrels, com
pared with 27.712.s4s barrels the
previous year,
Revenue from taxes on wines and
cordials amounted to s4,O17,5se.s2
compared with $10,52I,sO9.14 In
1913. The total production amount
ed to 2o.es2.45s.4s gallons, of which
1s.747,143.15 gallons had not over
II per cent alcoholic content: S6o.-
540.34 gallonS had over IL per cent.
and 474.775 gallons had over 21 per
cent. -.-.-...- ..
Distill More spirits.
On June 80. 1920. 17,s77,37o.4s
gallons of wine were on hand
compared with 17,521.147.57 gaIlons
on June 80, 1919 During the fiscal
year there were produced ss,6I5.7 1872
taxable gallons of distilled spirits,
an increase Of s3s.e73.7 over pro-
duction during the preceding year.
There were removed from bonded
warehouses on payment Of tax 2s,-
23o,s0s taxable gallons. a decrease
of 53,377.176 from the preceding
year. The decrease resulted from
the prohibition Of the use of dis
- k,