Atlanta tri-weekly journal. [volume] (Atlanta, Ga.) 1920-19??, 1923-03-01
$7,770, S92. l
Other Revenue

ULner h6Vc0u0
On top of this are accumulated
items of approximately $80,000,000
in penalties for violation of the in
ternal revenue laws, which means
double the amount of the tax rate
that used to be imposed on liquor
sales when the traffic was legal.
This eighty million was held up in
the courts for awhile until a SUI
preme court decision made clear
the fact that the old internal reve-
nue. laws had not been repealed by
the Volstead act. Now the treas
ury department is arranging for
hearings so that interested parties
may present their claims for relief
before distraint proceedings are
started whereby the government
seizes all the property of the delin-
quent tax payers.
Even if only half this amount is
ever collected, it would still show a
big margin of gain for the govern
ment over the cost of enforcement.
The several states, of course, col
lect their own fines and if prohibit
ton is only paying it's way so far
as federal expenditure is concerned,
it may be said with truth that in
the states it is making money.
Take the case of Ohio, for exam
pie, which spent $216,000 in en-
forcement of prohibition and col
lected 100000 in fines. This item
was divided between the state and
the county treasures so that the
communities which did the prose
cutting received about $1,360,000 last
year out of prohibition cases.
There is no way Of telling eX-
actly the sums that have been re-
covered by the treasury in income
tax cases. One case is pending in
which a "bootlegger" made out an
income tax return for $4,000 when
he had in reality an Income of So
100000. Curiously enough the de-
partment of justice in some in
stances has been unable to get the
evidence to convict individuals gull
ty of participating in illegal liquor
traffic, but has managed to tip off
the treasury department so that IN
vestigation could be made whether
fraudulent income tax returns were
made out.
Many Ways to Track Incomes
Prosecutions have been Instituted
for perjury in making out false in
come tax returns when in reality
there wasn't enough proof availa-
BILE to get a conviction under the
Volstead law. Mrs. Mary Walker
Willebrandt, assistant attorney gem
eral, has direct supervision not only
over the prohibition cases, but the
investigation of income tax frauds
so the two frequently go hand in
hand.
Usually the "boot1eggers" are
afraid of the criminal features OF the
income tax law. They may be able
to escape with fine or light
sentence on a Volstead law viola
ton, but an income tax fraud is a
much more serious matter. Many
'bootleggers'' fear that if they de-
post their money in the banks, the
government will detect the size or
their incomes. Some keep their
cash in safety deposit vaults, but
what they do not realize Is that the
government has many ways Of keep
ing track of purchases. Most states
require registration of ownership or
automobiles. This information Is
accessible to the federal government.
One clew leads to another. A sus-
pect who returns an income tax
statement showing he is engaged IN
some small retail business, for IN
stance. but who has bought or sold
large quantities of securities or who
has engaged in large real estate
transactions can often be caught as
the government has no difficulty in
getting the necessary information
the right to inspect books under q
from business houses because 1t has
variety Of existing statutes.
The ''bootlegger' who boards his
cash gets little joy out of life. Many
q violator of the law who has made
huge profits has put government
agents on the scent without know
ing it, simply by extravagant pur-
chases in a city or town where he
is well known. There are many
who are escaping detection, but as
the government departments co-or-
dinate their activities and one bu-
reau helps out the other, the
chances of getting at the incomes of
the "bootleggers" will improve daily.
Every man must state his bust
ness and sources of income In his
income tax return and swear to it.
Many "bootleggers" have an osten-
Sible business and make regular re-
turns to the government, but they
conceal their true source of income.
There is no way to detect fraud
simply by examining the income tax
return itself.
is Getting Results
Suspicion develops as a rule out
of some, circumstance which starts