The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1921-06-11

only people of more or less advanced
income.
! At the time the Administration OF
President Harding got into the sad
die. the income tax unit personnel
had grown to nearly 5000 workers,
clerks and investigators Little change
has been made so far by the new Ad-
ministration.
Hundreds of the income tax detec-
tives were trained at q special school
conducted by the bureau in prepara-
ton for the drive to audit returns
of taxpayers. Clerks, accountants.
examiners and ofhcials anxious Tor adj
vancement worked days and attended
the training school nights. The result
is that the Federal Government now
has a force of tax experts and finan-
ciai gum shoers" equal in efficiency
to that OF any nation in the world,
according to officials of the Revenue
Bureau.
In the first days of the drive to
ferret out fraudulent and incorrect
returns only a single audit or check
was made for each return of earnings
RETURNS of all incomes under $1,000
year were audited in the ofhces Of
the collectors scattered throughout
the United States where these returns
were first filed. The returns of larger
incomes were sent to Washington,
where they were checked by a train
ell force OF examiners.
AS more trained examiners became
available through the school methods
in use in Washington, they were sent
to the district offices where they be-
gan the auditing of returns of all
classes. Later the same returns were
audited a second time in Washington
The specialized training given work
ers at the school in Washington en-
abled the entire force including the
district workers to handle more re-
turns.
ERRORS PROMPTLY CORRECTED.
Under the present system, many
tax payers who made mistakes in
their returns receive notices to this
effect within a month after the re-
turns are f1led. In many cases the
correction is made through cores
pondence with the tax payer. The
additional tax payment is made
promptly by check and the incident
is closed. This occurs in the case
of persons and firms where the in
correct return was made inadver-
family and with no intent to defraud.
In the case of the deliberate at
tempt to make a wrong return to
escape paying a large tax, the meth
cd of the audit force is entirely
different. Suit is began IL necessary
to force the full payment and, in ad-
dition, a fine is assessed which some
times nearly doubles the payment
offered in the original incorrect re-
turn. The income tax laws provide
severe penalties for deliberate fraud.
REAL ESTATE WATCHED.
The Revenue Bureau has innumer-
able ways of discovering the true in
come of taxpayers. One Is to check
the returns with the local f1es of the
Offices where real estate transfers are
recorded. Thousands of persons now
are enjoying profits realized on the
sale of houses and apartments which
sometimes are not included in their
income tax duplicates. The Revenue
Bureau tax sleuths try to preserve all
POSSIBLE secrecy concerning their
sources of information as to incomes,
since to publish them would forewarn
persons seeking to make fraudulent
returns
The audit of returns II made to
yield 81 ,0Oo. 900 900, as hoped, during
the next twelve months will put into
the Governments pocketbook about
one-auarter of the entire sum needed
to meet the Governments EXPENSES
for a year. according to an estimate
by Secretary of the Treasury Mellon.
1t will pay the interest on the entire
rational debt and leave a surplus Of
nearly 500, 0O0, OOO