Evening star., 1922-03-16
MEN OUTSIDE LAW
SAFE IN PAYING TAX
Income Bureau Unlikely to
Report BootIeggers or
Bo0kmakerS on Races.
BY DAVID LAWRENCE.

Bootleggers, handbook makers or
any other class of individuals of the
underworld paying a tax on income
derived by fraudulent or unlawful
means are not likely to have their
offenses called to the attention of
other branches Of the government or
state authorities.
THE primary function Of the income
tax division Is to collect revenue" said
Carl Mapes. solicitor of internal reve-
nue.. today. "and to see to 1t that
proper returns are made for all in
come received. We are far too busy
to do anything else. but, of course, If
any other department OF the govern
ment calls upon US to see the income
tax return Of any individual or busi-
ness we are bound by law to permit
inspection"
There's another obstacle, however
in the way Of prosecution. Would an
income tax return, made out and
sworn to by an individual. constitute
evidence? Doesn't the federal Con-
stitution give a man the right not to
incriminate himself? These points
have been thrashed over by govern
ment lawyers with the result that
they are considerably In doubt what
could be done with an income tax re-
turn which disclosed that an -individ-
ual had been engaged in unlawful
pursuits.
Could Ask Farther Facts.
It's true that the prohibition en-
forcement agency of the government,
which Is part Of the Treasury De-
partment. could ask for any returns
1t wishes, and If 1t suspected that an
individual was engaged in violating
the prohibition laws, careful watch
could be kept for evidence of further
transactions. But it is a matter of
much doubt whether the income tax
return showing a lump Of past trans
actions would be of any value with
out further evidence furnished by
persons who had knowledge, for in
stance, Of the sale of liquor illegally
or any other violations Of existing
law.
Inasmuch as the income tax diyi-
sion Is anxious to get as much reve-
nue. as possible and does not feel its
duty is to inquire how any man
makes his money, no matter how le-
gitimate is his business. the whole
which officials here are not particu-
larly anxious to talk. But the i'm
preston one gains is that despite
earlier reports to the contrary, the
income tax returns are not as much
a source of information as 1t was
thought they would be. There is rea-
son to believe that many bootleggers
for example, were SO sure of their
ground that they made out their
returns without fear of difficulty
Just how they described their bust
ness l,n1aasa is difficult IT, to know though
sions," broker" and kindred terms
now contained on the income tax
forms are broad enough to cover most
of the activities Of the bootlegger and
handbook maker.
Tax Laws Hard to Dodge.
1t will Immediately be asked why
q man who makes his money through
Illicit means should hesitate to evade
paying income taxes. But there is
q check upon failure to pay income
taxes. The government has the right
to compel banks to produce records
Of its depositors. Similarly. the gov
ernment can ascertain whether an
individual had any money or not by
examination of the books of concerns
which may have sold goods to him.
Even cash. transactions, it. is con-
tended, can be traced.
One of the most interesting cases
of income tax evasion occurred re-
Gently, but was not made public. The
government learned that a certain
Individual had large sums of money
available, but had made out no in
como tax return. Inquiry disclosed
that the individual feared making out
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