New-York tribune., 1921-06-20
IT. 5. to Launch
Drive ON Sales
Tax Evaders
Prosecutions Where Neces-
sary i'm Revenue Bureaus
Campaign TO Collect Mil
lions Due Government
Inquiry Nation Wide
Theater Men and Dealers
in Soft Drinks and Ice
Cream Face Big Penalties
r-o,a The Tri6uue's Washington Bureau

From he Trj61;ae's Washington BUrsdu
WASHINGTON, June ia general
.ax drive. which will reach every sec
,;eu of the country in an effort to col
let the millions of dollars due the
eovern Aaent IN delinquent taxes and
negaities, VIII begin next month. the
Treasury Department announced to-
Sneeial attention will be directed
n the collection OF the excise tax on
sales BY manufacturers. the tax on
transportation, the so-called luxury
say. the jewelry tax, the tax on toilet
articles and proprietary medicines, the
soft drink tax and the admission tax.
Preliminary to the nationwide in
-estigation TO insure q proper account
ing Commissioner of Internal Revenue
nsvid Il. Blair has instructed his as
sistant supervisors in the field to or
ganise special squads TO canvass for
aelinoueuts. These men will head
"fying QuaGrons' which will visit
every large city in the United States.
Their directions are to conduct thor
ough and effective campaign, using
such methods as Will bring to justice
willful evaders and cause no embar-
rassmeur to persons who honestly are
endeavorjng to comply with the law.
Losing Millions Annually
Through the failure of retailers to
collect in full the tax on toilet articles
ana medicinal preparations it is esti-
mated the government is losing several
millions OF dollars annually. This tax
Of / cent for each 25 cents or fraction
thereof Of the amount for which the
article is sold IS collected by means of
stamps. The law provides that the
stamp shall be affixed by the dealer
and cancelled. Failure to cancel the
stamp is punishable, upon conviction,
bv fine of not more than S100. Ad-
ditional penalties Of q fine of not more
than 81 .00J for failure ard not more
than $4,000 for wiIful refusal to col
lect and pay the tax are provided, to-
gether with an added assessment equal
TO the amount Of tax evaded. Careful
sursey will be made of establishments
selling toilet articles and medicinal
preparations. and employers are ad-
yised to instruct their employees in
the laws and regulations governing the
collection of the tax on such sales.
Vendors Of soft drinks and ice cream
sold at fountains also will be investi-
gated The practice followed by many
dealers Of depositing the tax in small
dish, cup or cigar box does not permit
lected, and is contrary to regulations.
Where a receptacle is used to deposit
taxes, it must be arrangd into COM
p0rtment suitable for holding the diff
fcrent amounts collected. All dealers
Tho fail to keep proper records will be
subjected to the penalties provided by
Jaw
TheateF Men Face Prosecution
Recent arrests in New York Of thea
ter ticket brokers, charged with failure
to account for taxes on excess charges,
will be followed by similar prosecu-
tons for willful refusal to file monthly
tax returns Theaters and moving pie
ture houses which fail to print tickets
or cards Of admission in accordance
with regulations will be prosecuted.
The purpose of the drive will be one
Of education as well as enforcement.
Where, prior TO government investiga-
ton, amended returns are filed, accom-
panied by evidence to show that the
delinquency is due to no wrongful in
tent, the policy of the bureau will be
one of leniency. Where evidence is dis
covered tending to show willful evasion
or refusal TO collect and pay the tax,
the policy viii be to enter prosecutions
and urge the imposition Of extrme pen
alties
Revenue officers engaged in the tax
drive viii be clothed with authority
1Iom Commissioner Blair 10 examine
any books, papers, records or memo
randa bearing upon the items to be in
Guided in the returns, and to summon
for examination under oath al persons
having knowledge in the premises.