El Paso herald. (El Paso, Tex.) 1901-1931, 1920-03-10


IITAsHINGroN, D. C. March 10
w Some day the persons who
thought Uncle sam would never
have time 70 check up on individual
returns VIII be Just as surprised
when they are indicted and punished
as the persons who never dreamed
that certain kinds OF graft entirely
unrelated 10 income taxes would be
exposed TO public view.
There are, for instance. plenty OF
laws on the statute books 10 stamp
out political corruption Yet the gov
eminent nav never have had the evil
dence. Suppose a firm has been &C
customed to paying few thousand
dollars to somebody as political pull"
in federal state. county or city. That
item might be uncovered as an IN
vestigaticn Is made OF what conSti-
tutes proper salary allowances The
evidence could be turned over 70 an
other branch OF the government or to
state authorities for prosecution
Hold Back Taxes
Special experts are working with Z
8. attorneys in the prosecution OF
cases in which tax returns have been
falsified. Already there have been in-
government is not publishing all its
Information. but in one rather p0pu-
lous section OF the country, Do Is estt-
mated that at least s10O.o00,000 in
taxes haven't been paid that should
have been paid.
slowly but surely the government
Investigators are getting data. The
treasury departments agents have
the authority 20 subpoena all persons
who have records OF dividends paid
IL chooses. ask for a mans check
book and can get from his bank the
amount OF his deposits. AS a gen
eral rule, that isn't done, unless fraud
is suspected and evidence is being
gathered for possible prosecution
IL took fifty agents OF the govern
ment recently nearly three months
IN the field 10 audit q big account,
and something like 100000 was
recovered when the JOB was over
Aliens Must Pay Tax
Nonresident aliens can't escape any
more than can aliens who try to leave
the United States without paying
their taxes. A special machinery has
been devised 10 act in emergencies
There are certain ports OF the United
States where agents Of the utmost re-
sOurcefulness are stationed They
know how TO get court orders In a
fifty TO stop an individual from go
ing across the international line or
getting his passports for an ocean
voyage, il income taxes have not
been paid.
Not long ago. a group OF foreigners
left the country without paying their
taxes. They complained that they
didn't understand the laws. and gave
any representative take the matter
up for them. either. So the govern
meut merely began attaching the
property they left behind, and would
have sold IL II the individuals in
question hadn't voluntarily given
themselves Up and paid the taxes due.
u amounted 10 several millions Of
they Get II All
Information about every c0nceIV-
able activity. from natural resources
TO farming. 10 shipping. 70 manufac-
turing 80 every phase OF human en-
deayor-is recorded by the govern
menr through income tax returns
Access TO other government records is
available, but nobody else in the gov
eminent no other department or Du-
reau. can get hold OF income tax re-
turns. These are carefully guarded
from prying eyes Yet a mass OF
statistical information Of incalculable
two or three years Mass figures viii
be given out some day showing the
cost 70 run bakery. a candy
shop. a shoe factory, a steel mill, and
the profits made in each group and
the costs Of production in each classi-
fication.
IN fact. that is one OF the ways the
government detects false returns All
the bakers are grouped. all the butch
ers, all the doctors. all the lawyers,
all the farmers in certain sections Of
the country. all the cotton growers.
Each has filed a return showing his
cost Of production and deducting the
expenses which he thinks he should
be allowed to subtract from the total
Of his income
Big Salaries Are Watched
Now. OF course, IL Sc improbable
that all the bakers, for example. acted
in a conspiracy 20 put down exactly
how much their costs OF production
were in any year. Competitors do not
engage in conspiracies. So on the
face OF 10, the government has gem
eral collection OF statistics on each
trade, profession or business And
then when some body comes along
and wants 90 claim that he paid an
employe or manager $4,000 a year,
when nobody in the whole business.
wholesale or retail. included any such
return, the government Investigator
takes the matter in hand.
To be sure, some odd cases have