Evening star., 1924-12-15
LOSS OF MILLIONS
IN REVENUE SEEN
Couzens Cites One Case In.
voIving $500, ,OOO-Loose
Methods Alleged.
By the Associa ted Press.

By the Associa ted Press.
Chairman CouZens of the special
Senate committee investigating the
Internal Revenue Bureau declared in
a statement today that the commit
tee had found much looseness in the
execution of the work" of the bureau,
resulting in the apparent loss of mil
lions Of dollars of revenue to the
Government.
I'm some OF these cases. the chair
man declared, the department Off
Gals have admitted errors, and while
the committee charges no dishonesty,
It finds much Iooseness in the execu-
tien@ OF the work "s7s--- s-4zsss.zs<4z-sssss-
Noting that review had been or
dered of one case involving an al
legged overallowance of $500, 900 in
taxes to one company Senator Couzens
said special Investigators were now
working on other cases which will
be taken up this week by the COM
mittee. He invited the public to send
In suggestions for, simplifying the
procedure Of the bureau as we'll as
the statutes.
Sees Injustice to some.
This lack of uniformity" Senator
Couzens declared, worked great in
justice to some taxpayers and excess
sive reductions to others. The in
Justice arose, not because the evil
dence showed that many taxpayers
paid taxes they should not pay. but
rather that taxpayers were relieved
who should not have been relieved.
For example, a large shipbuilding
concern on the Pacific was allowed a
claim by the United States Shipping
Board involving 100000. and the same
claim was allowed by the Internal Rev.
enue Bureau, thus losing to the Govern
ment some 100000 in taxes. It de-
yeloped a clear case of lack Of proper
working arrangements between the two
departments, the responsibility for
which was upon the Internal Revenue
Bureau.
THE committee has been assured that
an effort will be made to collect this
100000 and il it is collected. as the
committee believes it should. fully 10
times the cost Of the committees work
will have been collected in one case.
War Claims Criticized. :.
.,The committee found other cases
where claims were allowed for amorti-
zation on plants and equipment pur-
chased before our country entered the
World War, and yet it was clearly pro-
yided by statute that only amortization
was to be allowed on war plants and
war equipment which were purchased
after we entered the war.
'The committee also found that
taxpayers received advantages over
other taxpayers because of the meth
DDS used in keeping their books. The
cases that the committee has ex-
amtned in this connection represents
a loss to the Government, If the
committees Interpretation Is correct,
Of many millions of dollars of rev.
enue to the Government.
Tho committee has come across
cases of what looks like what is
termed in Wall Street as washed
sales for the. purpose of tax evasion,
and it appears that the bureau has
not given sufficient consideration to
these attempts to. evade taxes. Tax
payers have made excessive claims
for amortization. alleging that they
purchased excess facilities for war
purposes. Laxity in fixing the ex-
tent of the use of these plants sub
seuuent to the war has developed
in our hearings"