The New York herald., 1922-09-17

Special Dispatch TO THE New York HERALD.
New York Herald Bureau.
Washington, ID. c., Sept. 10.
TY NCLE SAM now keeps 10000
persons busy rounding up in
ternal revenue taxes due each
year fIom American taxpayers.
In ten years the number OF tax
payers has grown from 100000 to
100000. largely because Of the income
tax law.
Upward of 5000, 900 personal tax re-
turns filed with the Internal Revenue
Bureau each year set forth taxpayers
obligations to the Federal Govern
ment. Income taxes last year repre-
sented three-fourths of the $4,000, ,000,-
900 collected by the nations revenue
force.
The Government believes It has an
alright system to insure payment of
all tax liability of it's citizens. Revenue
Commissioner David II. Blair declared
that the number of tax evaders are
relatively few. and they become fewer
with each passing year.
The Governments policy toward
willful income tax evaders is to pursue
them relentlessly. A systematic method
Is followed by the Internal Revenue
Bureau in checking up returns. When
there are indications that the Govern
ment has been defrauded special
agents are detailed to make investiga-
tons and these sometimes lead to
Grand Jury indictments.
Nearly 5000, 100000
Recovered Last Year
Nearly 5000. 100000 was paid into
the Treasury last year in delinquent
income taxes. This sum represented
payments by those who either had
falsified their income tax returns and
were heavily penalized, or by those
who were guilty only OF excusable
errors and were invited to meet ad-
ditional assessments which were levied.
In drives to round up income taxes
and prevent frauds Commissioner
Blair's staff includes a corps of skilled
investigators, commanded by Chief
Elmer Trey. and these men. together
with 1000 field agents. cover the coun-
try like blanket in the detection OF
income tax delinquents. Innumerable
sources for rounding up income tax
delinquents are at the bureaus COM
mand
Information gathered at the source"
In varied ways enables the Govern
ment to determine the individuals liza
bility Records supplied to the bureau
show all sums of 81, 900 and more paid
by all individuals. trustees, guardians
and other fiduciaries and by partner
ships and corporations. Thousands of
file cases bear data relating to the
status of both individuals and corpora
tions.
Anonymous complaints mark the
starting point of a large number OF
the Governments tax Investigations.
Sometimes these complaints prove
groundless. The larger percentage Of
them, however. show up discrepancies
in tax returns already made or re-
veal v-illful attempts to beat the Gov
ernment. according to revenue officials.
Brief notes sent to the Internal Rev
enue Bureau with tip that 1T might
be interesting TO look into Mr.. Blanks
income" have in thousands of cases
uncovered taxes that might have been
lost to the Government.
Bookkeepers Sometimes
Give Valuable Hints
Disgruntled bookkeepers have fur
nished complaints that have led to the
- IA11 a
ditional revenue. Complaints from such
sources as these in many instances
have developed that large corporations
which have made returns have juggled
their books to deceive the Government
Such attempts are quickly shown up
after investigation.
The biggest tax welchers in the
United States, revenue officials said
are bootleggers.
In several large cities revenue agents
have uncovered liquor frauds that re-
suited in the collection OF several mil
lions in taxes, revenue assessments
and penalties. In one city where the
liquor traffic was controlled by a group
OF a half dozen men, all wealthy and
politically influential. revenue agents
developed sixteen tax fraud cases. col
iected s2.000.000 in taxes due on in
come as shown by suddenly accumu-
lated holdings. In cases thus developed
revenue agents found important
leads" TO other tax frauds among
wealthy bootleggers In score of cities.
1t is not difficult for the Govern
ment's agents to ascertain the extent
Of profits made by the larger boot
leggers. Suspects are quickly run
down after revenue men get on the
trail. II is difficult for them TO cloak
their profits by depositing money in
banks under assumed names.
Every Cfew Run Down
That Promises Revenue
Every clew given to the Internal Rev
enue Bureau Is run down. None is over
looked. though It often hapens com
plants have been made by malicious
individuals. and inquiry merely results
In n wild goose chase. IL Is not the
policy OF the Government ever to dis
close information regarding taxes duc
or paid by taxpayers. Congress has
imposed the rule OF secrecy In such