The Telegraph-courier. [volume] (Kenosha, Wis.) 1888-1946, 1922-03-16
BLAINE CALLS A
SPECIAL SESSION
Orders Legislature to Meet
March p to Open Lists
of Income Tax.
is SURPRISE ATTACK
Old Battle Over Tax Returns to
Be Waged by SOlons and Gov
ernOr Expects Victory.
by Associated Press Leased wire.)

by Associated Press Leased Wire.)
Madison, Wis.-The Wisconsin legis-
lature was called by Governor ]. ].
Blaine today to convene at 10000 o'clock
on the morning Of Wednesday, March
% in special session. Repeal of the
secrecy clause of the income tax law
and extension of authority to the state
tax commission to investigate income
tax returns over a period of six in
stead of three years are named by
the governor as subjects for legisla-
tive action at that time.
He has been informed, Governor
Blaine declared in statement accom-
panying his proclamation converting
the legislature, that Hundreds of mil
lions of taxable income has not been
returned to the assessors, and that
some hundreds of thousands of dollars
rightly due the state and municipali-
ties, have not been collected, that in
some instances double books Of &C
counts have been kept, and taxable in
come has been retained by conscious
fraud as well as by reason of careless
ness and ignorance of the law"
Five Subjects Outlined.
Five subjects are outlined for con-
sideratlon and action by the legislature
to meet the situation pictured by the
governor. These subjects, which con-
stitute the limit of legislative action,
are listed as follows:
Ito repeal provisions of the sta
tutes which prohibit public officials
from divulging or making known infor-
nation in connection with and income
tax return, known as secrecy clause.
2-To amend Section Il, ten of the
statutes by striking out the words
"three years." and inserting the words
"six years" to the end that tax Of
fcials may go back less than six years
previous to the year for which an in
come tax statement is returnable in
correcting income returns, or in MAX
ing assessments where no assessment
has been made,
3-To amend Section I'LL of the
statutes in the same manner that
Sect1on fI.IO IS amended.
Must Have Reviews Made.
ITO provide that tax authorities,
in cases where there has been mis-
take in the income assessment, or
where no assessment has been made,
or where the income tax return is in
correct due to an intent on the part
of the person or concern reporting
shall be required to review all of said
returns and make the proper assess
ment for all years for which an in
come return or assessment should have
been made; and providing that where
any fraudulent return or statement
has been made or withheld with intent
to defeat or evade the assessment, the
assessments shall be made in the year
discovered and the normal tax COM
puted at twice the original rate, in
addition to the penalties provided by
the law for making false or fraudu-
lent return and statement and provid-
ing to further that the statute of linn
itation for assessment of income taxes
shall not begin to run, in any case Of
fraudulent return of or failure to re-
turn an income tax, until such fraud is
discovered by the taxing authorities.
$40 transfer from the general
fund to the soldiers educational bonus
fund $4,000 heretofore transferred to
the tax commission from the bonus
fund, and to appropriate to the tax
commission sum sufficient to carry
out the provisions of the law relating
to income taxes.
Complete Work in Three Days?
Governor Blaine is of the opinion
that the legislature can complete the
business of its special session in two
or three days, and at q cost under
eight thousand dollars.
con the other hand" he declared,
"if special session were not now
called, or if the legislature fails to act
upon my recommendations, the state |
and its municipalities will lose humid
reds of thousands of dollars. To wait |
another year means only additional in
spectors, with additional appropriations |
and with a loss of fraudulently with
held income taxes for another year by
upwards of $500 corporations.
After explaining the secrecy clause |
of the income tax law which prohibits |
the tax commission or any tax official
from diyulging to the governor or any
other official or to the public the name
of any corporation or individual who |
has made fraudulent or erroneous
return, the governor says. that it is
estimated from information he has
that "there are at least 5000 corpora
tions out of the $4,000 in the state
whose income reports are incorrect. |