Evening star., 1946-10-27
D. {. 10 Widen
Income Tax
Prosecutions
Many New Cases
Being Prepared
For Early Action

District income tax officials are
preparing numerous" cases of sus.
pected violations in filing returns
here and will have them ready fol-
criminal prosecution soon, it was
learned yesterday.
Robert j. Dunham. supervisinp
examiner Of the District Income
Tax Division, said that whether the
prosecutions would fall under the
negligence provision of the tax
statute or the "willful violation
clause would be determined by pros
ecuting officials.
Prosecution for negligence" Il
handled by the Corporation Coun-
sells Office, and the United States
Attorney is authorized to handle
"willful" violations.
Penalties Vary Widely.
Conviction Of negligence in filing
returns carries maximum penalty
of $500 fine for each offense, while
a willful violation may bring 9
$4,000 fine or a years Imprisonment
or both upon conviction.
United States Attorney Edward
M. Curran said yesterday that each
case would have to be considered
separately in the light of the facts
and the law in deciding where II
should be prosecuted.
The Municipal Court Of Appeals ir
July upheld the United States At
torney's right to prosecute for will
full violations under the District In
come Tax Act of 1899. The opinion
was handed down in connection with
the quashing of charges in Munich
pal Court against two District schoo
teachers on grounds action against
them should have been brought BY
the Corporation Counsel's Office.
That case is now pending before
the United States Court of Appeals
Mr.. Dunham said, however, that the
tax Office intended to go ahead with
prosecutions on the basis of law SC
far established.
All Residents Included.
The division maintains prima
facie case of tax liability against
anyone who resides in the District
and holds that each resident shoulc
take some sort of affirmative" &C.
ton with regard to filing return.
here. His liability is contingent or
determination whether he is DOM
iciled here. 9 -
John r. Merrick, administrator OF
the income tax division of the as
SCISSORS office, pointed out that
printed forms are available for as
sisting persons in doubt to decide
whether they are liable to pay taxes
here.
Mr.. Dunham pointed out that each
suspected vioIator is given every OPP
portunity to prove compliance with
the law before prosecution is insti-
tuted.
The District Commissioners Spe-
cial Tax Committee recently recon-
mended broadening of the present
law so as to tax income not only
of District residents, but also non
residents whose income is derived
from q source within the District.
The proposal, which provides for
tax credit arrangements between
the District and the States, was
taken under study after public
hearings in September.
New Case Filed Friday.
The latest prosecution instituted
by tax officials is against Mrs. Elsie
D. Baker of 1000 Cathedral avenue
NV, who claims legal residence in
South Dakota. She posted $500 col
lateral pending a hearing Friday
before Municipal Court Judge
George D. Nelson on tax evasion
charges.
Mr.. Dunham said the division
does not consider she filed reports
during the years 1943, 1914 and
1945, although she returned blank
forms with attached notes saying
she was a resident of South Dakota
and therefore not liable to District
tax.