Evening star., 1932-03-01

into, It was apparent that this activity
had pricked the conscience of many
taxpayers who had failed to file re-
turns or to make honest returns. Since
the first publicity relating to these
cases, the Government income from
taxes has been increased in this dis
! trict by hundreds of thousands of dol
lars which came from delinquent and
amended returns from taxpayers. many
| of whom were engaged in gambling
and various other businesses of an il
legal nature
Q-What do you mean by delinquent
and amended returns?
A.-When taxpayers, who never filed
returns, are moved to file such returns
covering several previous years and pay
the tax due with interest and penal
ties, such returns are called delinquent
returns. When taxpayers are moved
to file corrected returns, including in
come which had not been reported on
their original returns, they are called
amended returns.
Q-There has been some comment
in the press of the Government shar-
ing, in the way of taxes collected. in
the profits derived from Illegal business; s
cases Of this kind, We would be estab-
lLolllllb d GLASS VI IdA-CACtupI ClIlLCho
In theory of course, a business should
not be conducted in violation of State
or Federal laws. If so conducted. and
at a profit, the revenue laws tax this
profit, Notwithstanding its source.
Owe read in the press about
large assessments made against gang
sters or persons engaged in bootlegging,
gambling and SO on. Does the Govern
ment ever collect these large assess
mentS?
AIR. Kuhn. assessments of this
kind are frequently rushed through by
the Government before the taxpayer
has chance to hide or diSsipate his
assets. In such cases the bureau
promptly places liens upon bank ac-
counts, safe deposit boxes, real estate.
and, in fact, all of the known assets OF
the taxpayer. If the taxpayer fails to
pay the taxes, interest and penalties
assessed, the Government proceeds to
foreclose on the liens 1t seizes the
bank accounts. it sells the real estate
and other assets at auction, applying
the proceeds on the taxes due. During
the last fiscal year the Government
forecloSed a tax lien on a beautiful
home on Miami Beach owned by
Chicago bootlegger. When the prop
erty was auctioned by the collector of
internal revenue we got 1000 to ap-
ply on his tax. In another case the
Government foreclosed lien on a
brewery property for which the tax
payer paid $475, 900 in cash and then
spent a large amount for improvements.
This property, consisting of eight acres
with valuable buildings on a railroad
side track and frontage on one of the
principal streets in Chicago, Is now
owned by the Government and will be
sold when real estate conditions war
rant.
Q.-Is the Government warranted
in attempting to clean up crime sit
uationS by prosecutions for tax evasion?
In other words, why should the funds
of the United States Government be
used. when the local prosecuting at
torneys, police officials and others ap-
parently are unwilling or unable to
stop the reign of crime in particular
locality?
Am investigating and prosecuting
the public enemies for tax evasion the
United States Government has only
done its duty. The Commissioner, of
Internal Revenue muSh comply with
the statutes, and cause the prosecution
of all persons wilfully evading taxes,
when evidence of the crime is obtained.
That is not a policy put into execution
by me as commissioner, it is the law
passed by Congress- If in prosecuting
tax evaders We are able to assist any
city or State in reducing the number
of crimes, We are glad to do so, but we
do not attempt to take any response
bility for stopping the activities Of per-
sons engaged in violating State laws