Every evening, Wilmington daily commercial., 1923-01-13
MILLIONS OVERPA|D
IN INCOME TAXES
Max Rolnik, Expert, Says This
is Due TO Misunderstand-
ing OF the Law.
New York Time.

New Nrrb TIMES
MISUNDERSTANDING ~ the inccme ten
law results annually IN cvefreyrnent
of more than $50. 600 600 20 tho FEEDER
al Treasury Department. MaN RClnik,
tax expert and member of tho firm
~ IAelie Ranks a co. tod members
~ the American Institute ~ Bank
ing I'm an address az Elizabeth
Taxes will never meet public an
prevail" Nj Rolnk said. "hut thov
arc bound 90 hecomo moro unpopular
r. the tax collectors hound one man
for tan underpaymeuts and permit
another man 20 make an overpavment
o1 HE taxes. The ori%re should b.
treated with equal fairness on l'oth
sides Those Who are charged with
Tho rospone bil'ty ~ collecting tho tax
Ga have iusi "a much W an obligation So
the taxpayer a. to tho Treasury. The
function ~ providing an adequate
revenue through taxes IL vested by
law with Congress and not with tho
taN collectors. TaNpaVene VIII take
advantage of every ellght Technically
iu tho intcrprct alton ~ tho law just
as long rs tho Treasury Department.
paws more attention 90 underpa y1ncnts
I than TO overpavments OF taxee."
Reasons for overray mcnt.
ar Bolnik eaid that In reviewing
the tax returns ~ corporations and
| individuals no has found the most
/ frequent reasons for overraymen. 20
/ I've.
:. Failure 20 claim deduction for
/ depreciation ~ buildings used Tor busi-
moss PURPOSES or from which rentale
are ohtqined
/ .. Failure 20 deduct intereet and
. taxes on the taxpayers residence.
4 3. Failure to deduct losScs ON ma
7 chinery ecrapped or on property ahan-
/ doned in business use.
4. Enormously REPORTING rs a pront
an increase in the market value ~
/ securities. merchandise or real estate
before they have been cold or other
I wise disposed OF
3. Failure Of partners 20 claim their
share OF loss incurred in the partner
ship. or 90 credit the dividends from
, corporations and the interest from
Federal securities in computing their
/ normal tax.
s. The mistake Of confusing stock
I dividends with cash dividends.
=. The negligence Of small corpora
lions in not notifying stockholders
when dividends paid by them are not
taxable.
s. Failure Of individuals 10 deduct
the cost Of property lost through
storm. fire. shipwrecl. or by theft
Mr.. Rolnik denied that the elimi
nation Of the excess profits tax ha
reduced the tax burden OF all corpora
tons. lie pointed out that corpora
tons earning lees than s per cent wer,
forced TO pay a higher tax because
n the rate Increase from 10 per cen
10 12ia per cent. while the elimination
Of the excess profits tax has been o
no help as they never were requires
10 pay H.
Important Tax Law Changes.
The most important changes I'm thu
. tax laws are the reduction Of the sur
b tax rates: the elimination OF the ex
cess profits tax; the increase In tn
, corporation tax from 10 per cent 4
1919 per cent; and the elimination o
. taxes on profits derived through ex
, changes OF property" Mr. Rolnik add
ed. An important application Of tn
- idl - - IN toihtNsloh Nlti tN'H"hbt
~ stock 81 one corporation for stoc
u another. No tax rs chargea'ble OF
. any profit thus derived.
The provision of the new tax law
which permits taxpayers for the frs
time 10 offset one years loss agaiRs
the income Of later years Is a com
mvnsense measure. Under this priv
eye taxpayers IN their 1922 returnl
1 may deduct from their income an