The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1924-12-15
HUGE I AK
EVAS|0N5
Barred
Senator couzens Tells How
Big Corporations Find Loop
Holes in Law

An alleged tax evasion Of ST.
100000 by the United States Steel
Corporation has been unearthed by
the Senate committee investigating
the Internal Revenue Bureau,
Senator Couzens fRep.) Of Mich
igan, the committee chairman, an
nonnced today.
CouEens said The loss to the
Government came about through
IN allowance or q $50, 100000
amortization claim to the steel cor
poration, part Of which the COM
mittee thought 10 be unlawful.
Tax evasions amounting to mil
lions Of dollars have been revealed
by the special Senate committee in
vestigating affairs OF the internal
Revenue Bureau, 1t was announced
by Senator Couzens.
The Governments greatest tax
losses, Couzens said. were discov.
eredl in the administration of tax
assessments Against corporations.
Numerous instances, he said. were
found where the Government was
deprived of millions of dollars in
taxes by illegal allowances to cor.
porations for amortization claims,
washed sales" of stock, and alleged
commitments for wartime, facili-
ties.
Asks Help Of Public.
In making public statement IN
the committees work to date,
Couzens issued an appeal for indi.
viduals to file helpful suggestions"
with the investigators.
THE committee invites the pub
lic," Couzens said, ito send in help
ful suggestions as to what might I've
done to simplify the procedure in
the bureau as well as to simplify
the statutes
In discussing the tax evasions
Couzens declared the committee aid
not charge dishonesty in the bureau,
but rather found much looseness
In the execution Of the work"
Cases Of Washed Sales"
"The committee has. found cases
that look like what fs termed in
Wall Street has washed sales for
the purpose of tax evasion" his re-
port added. ''It appears that the
bureau has not given sufficient at
tention to those attempts to evade
taxes.
Taxpayers have made excessive
claims for amortization, alleging
that they purchased excess facili-
ties for war purposes.
Many of these war facilities were
actually needed in the development
OF the,taxpayer's business and would
have been built anyway so that
the allowance of amortization for
excess equipment lost to the Govern.
ment many millions Of dollars. This
means that for many plants now in
use, the Government has contributed
millions of dollars through credits
to taxpayers"
These mistakes, Couzens charged
up to "laxity" on the part of the
bureaus investigators who failed to
determine the exact use of the tax.
payers properties.
Cites $6OO,OO Loss.
Another great loss of taxes. Cou.
zens said, was found in the allow
ance Of commitments for war IA
cilities, made prior to the Armistice.
In some instances, he said, such
claims were allowed and in others
were refused. The variety of de-
cisions, he added, represents loss
to the Government of millions OF
dollars of revenue.
Citing one particular case, Cou-
,zens declared a large shipbuilding
concern on the Pacific coast had
been allowed a claim OF $500, 900 by
the Shipping Board.
THE same claim was allowed by
the Internal Revenue Bureau" he
added, thus losing to the Govern
ment some 100000 in taxes. This
developed a clear case of lack of
proper working arrangements be-
tween the two Government depart.
ments, the responsibility for which
rests upon the Internal Revenue