The news scimitar. (Memphis, Tenn.) 1907-1926, 1920-03-04
Be HONEST
IN INCOME REPORT,
LAWRENCE ADVISES


securities or property Of any kind or
any class Of services from teaching
nights to working on the side after
business hours, the man who paid you
more than $500 must tell the government
about IL, And a staff 81 experts works
al the time making list Of persons
who didn't file returns. And some day
a representative OF the government viii
call on a few hundred thousands OF our
people and hand them,a tax return al
ready made out, which they neglected
to do themselves, only the taxes VIII be
much larger because there viii be =
penalty for nonpayment Of taxes long
overdue
There Is a special division Of the in
come tax bureau which does nothing
else but think up penalties on persons
who don't file the correct Kind Of re-
turn. or course, allowance Is made for
error aud for reasonable excuses In case
sick or absent from the country and
can make a sworn statement 70 that
effect which Is convincing to the col
Iector Of internal revenue In their re-
spective districts can be exempted rom
peaalty. But the government has q
staff Of experts who can sometimes tell
at 4 glance whether case looks sus-
picious and the return sheet Is turned
over 10 special investigators who make
a careful examination Of the case in
question.
win Adjust Tax.
The governments aim is to get cor
rect tax returns. II you have paid
more than you should the government
viii call your attention TO u Just as
quickly as II you have paid too little,
The secretary OF the treasury and the
epmnissioner OF internal revenue are
authorized 10 accept compromise set
Elements. Where there u plainly no In.
teBtion to defraud the government and
where the mistake Is simply one OF
computation, compromises are daily
accepted.
collected that way, And tho impor-
tanee OF II Ii this: 40 long as the gov
eminent doesn't get all the money II
has estimated would he given 10 " by
taxpayers, Just no long must taxes be
kept nj high levels In order 10 pay
national debts, Anyone who evades his
taxes, therefore, imposes = burden on
hia neighhor. II prolonEs both the pc.
Rod Of taxation as wen rs the era OF
high eost OF living,
Fully $4,000 people are employed by
the United states government TO check
up income tax returns. Three thousand
are In Washington and 1000 In the
field. OF the $4,000 others, the majori.
~ are engaged throughout the year IN
the task OF getting Information about
taxpayers II Is an intensive study Of
each geographical unit OF population IN
the United States by the most elahor.
ate statistical system ever devised
even more so In some respects than the
census | have just completed first
hand study OF tho income tax machn-
cry. Really tax dodgers have very 1T
tie chance.
Income tax inspectors have access
to state and county records where
business transactions or transfers OF
all kinds are filed. They have avail
able. IL they wish, all brokerage ac-
counts. They can tell by investigation,
ana they are doing II all the time, Just
how much money a man made on the
stock market aud whether he gave the
government the proper share.
The process Is not merely 10 inves"
tlgate each man, That would take too
long. But each brokerage firm, for In
stance, must show how much Y has
paid 70 individuals in excess OF $500. II
must show how much individuals have
paid 10 the brokerage firm The gov
eminent tabulators simply collect al
the information about John Smith
which comes from business firms or In
dividuals In all parts OF the country.
Information about taxpayer might
come one day from Seattle and the next
from Boston. Eventually II Is all put
together In the file Of John Smith, with
the exact address OF the said John
Smith, and II necessary the floor or fiat
OF the building In which he lives, In
the event that there are two persons
OF the same name In the dwelling.