The Telegraph-courier. [volume] (Kenosha, Wis.) 1888-1946, 1923-07-19
PUT PENALTY ON
ALL CHEATERR
Tax Commission to Assess
Punishment for IncOr-
rect Tax Returns.
TOO HIGH PER CENT

Madison, Wis.-Income Taxpayers in
Wisconsin who fail to make correct re-
turns or who falsify the amount of
their income, face a progressive pen
atty under regulations announced to-
day by the state tax commission under
provision of an act passed by the 1928
Legislature.
The imposition of this penalty, is
but one of a number of changes of
marked Importance in the Wisconsin
revenue laws, effectig corporations,
partnerships and banks, according to
the tax commission announcement. AL
though it failed to make general
revision of the income tax law, the
legislature is shown to have strength
ened the present statutes and to have
broardened their scope.
To aid the tax commission in It's
search for unpaid income taxes, the
legislature appropriated 100000 an
nually to be used for the support of
field auditors checking up returns back
to January l, 1915. Commissioner Car
roll Atwood announced that this ap-
preparation would provide for twenty
men in the field to investigate back
returns made by corporations and in
dividuals
Penalties Mount High.
'To encourage the report of correct
income tax returns, the legislature
gave the commission authority to exact
penalties from those who report in
correctly or falsify," Mr.. Atwood said
"The commission has established the
penalty which calls for an additional
assessment against back incomes rang
ing from 1868 per cent of the income
tax for 1921 to 6s.63 per cent on un-
reported income taxes of 1915, the last
year in which the commission is given
authority to investigate"
Announcement was made that from
8 to 10 new field auditors would aug
ment the present force now investigat-
ing corporation and individual returns.
The commission estimated that over
100000 additional income tax will
be uncovered by the field men this
year, when the penalty is added.
Goes After Foreigners"
In order to reach additional sour
ces of income tax, the legislature pro-
whose principal business is carried on
or transacted in Wisconsin shall be
deemed resident of this state for in
come tax purposes, and its income
shall be determined and assessed as if
it were incorporated under the laws
of Wisconsin, notwithstanding its
domicile elsewhere" =
The statute provides further for the
means of determining the tax that is
to be assessed against persons en-
gagged in business. both within and
without the state. 1t establishes that
ga resident who receives income from
nonresident trustee shall be taxed
the same as though such income had
been received by such resident with
out the intervention of trustee"
Another change in the income tax
law provides that individuals carrying
on business in partnership shall be IL
able for income tax only in their in
dividual capacity, with the net income.
of the corporation computed in the
same manner as provided for computa
tion of taxable income of persons 9TH
er than corporations, joint stock COM
panies or associations.
The stock Of national banks in Wis
consin is to be taxed by localities as
in the past, the tax commission is adj
vising all cities. Enactment of a state
law with provisions complying with
those of the national banking act has
closed the door on banks claiming ex-
emption, the commission says.
A change in the exemption under the
state inheritance law was made cult
ing the amount a widow might re-
ceive tax free, from $4,000 to $4,000.
This was the only important change
in the Inheritance laws.