The Washington herald., 1921-11-28
SLUMP IN U. S.
TAX RETURNS
is $500 , 900 600

strIction of several hundred thou
sand income tax returns and re-
lated papers. Such a loss would
represent hundreds of millions of
dollars in increased assessments.
and irreparsbly disrupt the work.
ings of the income tax unit.
Another cause for the increased
operating cost during the past year
given in the report. was the re-
duced collections and increases in
the enforcement of the prohibition.
narcotic and child-labor sections Of
the bureau. The administration of
the prohibition and narcotic laws
was s6,S99. 4G7.57. Of which $685.
S26.32 was for the enforcement Of
the narcotic laws. and approximate
ly s130,0OO for the administration
of the child-labOr tax section. An
addition to the expenses was also
made by the enlargement Of the
income tax organization in ord er
to facilitate the completion "f the
audit of the 1917 and 1918 returns,
and to eliminate the large number
of contested claims.
During the past year 1,51O,937 in
come and excess profits return ;
were audited by the Income Tan
Unit. compared with 697.S5 for the
preceding year. As result of these
audits additional taxes amount
ing to S3JT JT.O7S.422.SG were rs
sessed. of which amount $llS.6Gi,-
275.99 was the result of office
audits and s243.414.146.S7 the re-
suit of field examinations by reve-
nue. agents.
The Committee on Appeals and
Review received 971 appeals from
taxpayers and 80 requests for ad-
vice from the income tax unit dur
ing the past year. as well as 1.l33
important letters on new railings
or new applications of old rulings
for criticism. submitted by the in
come tax. unit. ia Teasrury deci-
siUns and IS law opinions. beside
rrany oral hearings on appeals.
The total collection made by the
estate. capital and Child-la-
Dor tax unit shows an increase of
SI2i.TS7.404.15 over 1919 and S3S.-
934,T73 over 1920. due in part to
the retroactive feature Of the CAPT
tal-stOck tax provisions of the
revenue act OF 1878. which in
creased the amount Of tax from
$50 to 81 thousand and reduced
the exemption from $4,000 to So
900
Receiving an average of $50. 900
returns monthly. the sales tax di-
vision Of the bureau made a total
collection for the past fiscal year,
Of s7S5,447.322. despite the fact
that the tobacco tax was removed
from this department on April II,
1921. The total amount collected
by the tobacco unit for the year
was S255.219.3S5 40. a decrease of
S4O.5S9. $685. or 1872 per cent.
The premises of 246 persons seek
ing permits to handle and manufac-
ture alcoholic preparations for in
dustrial and medical purposes. were
examined by the operatives of the
permit division, which was created
10y an order Of October 10, 1920. re-
sultinG in the revocation of 1T5
permits. Penalties and assessments
against these pcrmittees' amounted
to s1O.592. 900. for which compromise
offers amounting to s35O.OOO were
made and accepted.
During the fiscal year just pas.
there were produced from material
other than fruit S6.365.65S.l taxable
gallons of distilled spirits. a de-
NANthSN Va AoH-c'1 lo".' Helll'llS eiS
compared with the quantity pro-
duced during the previous year OF
this amount of spirits there were
removed from bonded warehouses
on payment Of tax. 34.e93.154.6 tax
able gallons, an increase of 6.77e.-
245 gallons over the preceding year.
The quantity Of spirits remaining
in distillery and general sonded
D s..T L. II
bonded warehouses at the close of
the year was 49.S9O.S55 taxable
gallons.
According to the monthly reports
of the narcotic manufacturers and
importers during the year a total
Of s53,5i7 at the rate Of cent per
ounce, was paid upon narcotic drugs
and preparations.
At the beginning of the year 72I
violations Of the narcotic act were
pending against persons not en-
titled to registration under the Har-
risOn Act and a total of 2.7sT vio-
latiOns against such persons were
reported during the year. While
at the beginning Of the year 9j.
violations were pending against
registered persons and during the
year penalties were assessed
against 37.lS9 others. Special taxes
and penalties amounting to S37.-
696.33 were assessed during the
year. and miscellaneous collec.
tiOns, including ) per cent penal
ties. interest. offers in compromise
fines. amounted to s2G2.775.75.
collections amounting to s2.152..
3S7.45 were made during the year
under penalty provisions of the Ma
tiOnal Prohibition Act. including
taxes. offers in compromise. costs
fines and so forth.
Revenue from taxes on wines and
cordials during the year amounted
to s2.OO1.1T9.S7. COmrared with 81
Ol7.596.S2 in 1920, slO,521, 6O914 in
1919. s9.124.36S.56 in 1918 and s5.-
l6i.O75.04 in 1917. The total pro-
duction amounted to 1851, ,595. 26
gallons
The number Of employees in the
bureau here increased from $50 at
the beginning of the. year to sos
at the end an increase of SO en-
ployees represents 14S designations
and POI appointments, making A
total plvrOll at the end of the
fiscal year of s776.9OO.