Evening star. [volume] (Washington, D.C.) 1854-1972, 1924-09-19
REVENUE BUREAU
PROBE OUTLINED
Senate Committee Assured
by Secretary Mellon of Full
Access to Records.

records and files from Secretary Mel
Ion, the special Senate committee APP
pointed to investigate the Internal
Revenue Bureau expects to be ready
within six weeks to begin public hear
ings in new phases of its investi-
cation.
The scope Of the inquiry was mapped
out at an executive session of the
committee yesterday. at which the
Treasury Secretary appeared and gave
assurance OF his hearty cooperation.
With the spotlight of investigation
to be thrown on both the income tax
and prohibition units of the bureau,
Senator Couzcns of Michigan, chair
man of the committee, who was
authorized to appoint = force OF ex-
aminerS, engineers and agents to Cd
tain the information desired. said this
probably would require five or SIX
| weeks. Should the information be
available. however, the hearings, he
said. would begin before the elections.
Tax Payments Data Sought.
In addition to other information
sought, the committee submitted 10
Secretary Mellon a Questionnalre call
ing for certain exhaustive data on
tax payments on large personal ana
corporation incomes. Senator Cou-
Congress knowledge concerning
surtaxes that would enable it to reach
its own conclusions on the question
of reducing taxes on large incomes as
recommended by MIR. Mellon. Except
where fraud or irregularitles APP
peared. he said the data would be
treated as confidential.
The force of examiners. engineers
and agents Mr.. Couzens was authoriz-
ed to appoint is expected to look INTO
all charges of fraud and maladmlnls-
tration. gather from the prohipl'ioh
unit complete data concerning en-
ploves. including those who have
been dismissed. investigate the SHS-
TEN used in granting permits TOT
release of alcoholic liquors, and study
the records of hearings before the
Prohibition Bureau on the cancella-
ton and issuance of liquor permits.
Names and Addresses Demanded.
The committee in its questionnalre
called upon Secretary Mellon to
furnish names and addresses of each
taxpayer reporting net incomes ex-
cccding $500 900 for 1918; the returns
for 1920 of those who reported per-
Sonal net incomes exceeding S3Oo,o
for 1916; returns showing personal
net incomes between S1So.o00 and
5000. 600 for 1916; returns from 1920
of those who reported personal net
incomes between $3.50. 900 and $4,000
in 1916: returns showing personal net
incomes between 100000 and Sl5o.po0
in 1916; returns for 1920 of those who
reported net incomes between Sloo.ooo
and $1,000 for 1916. and returns for
1917 to 1928. inclusive, Of individuals
who reported personal net incomes
exceeding $1,000 900 in 1916.
'hf al
ports on the returns of individuals
whose personal net incomes did not
exceed 100000 in 1916. but passed
that figure in any subsequent year,
together with a notation of the first
year subsequent to 1916 in which
such individuals reported net incomes
exceeding 100000.
Salaries, Wages md Com missions.
The information sought also in
cludeS the business or profession
from which the income was derived;
the salaries. wages, commissions
bonuses, directors fees or pensions
received: the partnerships. personal
service corporations and fiduciaries in
which the individual participated;
profits from the sales of real estate.
stocks, bonds and other property and
from liquidating dividends; dividends,
exclusive OF stock dividends. on stock
of domestic corporations. net rents
and royalties; interest on obligations
of the United States and War Finance
Corporation not wholly exempt from
tax. and all other interests subject
to taxation, as well as all other tax
able income. with the source specified.
In each case the committee wants
to know deductions allowed by items,
the amount of income subject to nor
81 No r.
tax, and the amount of the normal
or surtax paid. Detailed information
as to profits from the sale of real
estate, stocks, bonds and other prop
erty, and the net gains from the sale
of capital assets, is called for,
together with the amount invested in
1918, 1919 and 1920 in various Gov
eminent bonds as we'll as in obliga-
lions of States and territories and
Federal farm loan bonds. Another
item will show the amount of inter-
est on such securities which was
exempted from surtaX and the in
come subject to limited exemption.
Search for DeIinqucnts.
Secretary Mellon was also requested
to inform the committee whether his
records show why persons who re-
ported net incomes exceeding $780,
900 during any year from 1916 to
1928, inclusive. failed to report such
incomes after 1928. If such failure
was due to death, the committee ask
ed to be furnished with tax returns
filed by the estates.
Separate information, with names
and addresses, about the returns of
all corporations reporting net in
comes for 1928 amounting to $4,000
or more and which distributed as
dividends less than SO per cent of
their net incomes also was requested,
the committee explaining what it
construed as net incomes.
The net income and income tax of
each corporation is to be stated, with
taxable income itemized. Divi-
dends paid must be given with a
statement whether paid in stock or
in other property. The Secretary is
asked to furnish a copy of schedules
b and X made in the returns of each
corporation affected, with the names of
the officers signing the return.