Evening star., 1951-03-29
Crime Probe SpotIights
Work Of Revenue Bureau
Its Job Is to Collect Taxes,
Not Prosecute Gongsters
The Political Min
By Gould Lincoln

Not Prosecute Gonesters
By Gould Lincoln
One of the curious things on which
the Senate Crime Investigating Commit
tee has turned the spotlight is the par
ticipation Of the Federal Government in
the 1l-gotten gains of racketeers, vice
promoters, gamblers, extortionists, abor-
tionists and corrupt politicians-via the
route Of the income tax. Uncle Sam.
by this means. gets his take" from such
characters as the late AL Capone and the
late Tom Pendergast.
At the same time, it is clear that only
through the prosecution Of some of these
racketeers, corrupt politicians and vice
promoters. ETC.. for evasion of income
taxes has 1t been possible to bring them
to justice. And inquiry discloses that
1t has been through the vigilance of the
Internal Revenue Bureau. it's investi-
gators and legal department that these
racketeers. gamblers and what-have-you
have been compelled to pay up their
taxes ana, in a considerable number
Of instances. serve Jail sentences. A
sad commentary, however, is the fact
that the crimes of which they should
have been convicted, and for which
they should have been made to pay,
go unpunished.
Indignation Misplaced.
The heat and Indignation of some
members of the Senate Crime Commit
tee, expressed toward the Internal Reve-
nue. Bureau on the ground that the
bureau has not gone after the gangsters
and racketeers hard enough. seem mis-
placed. The job of the bureau is to
collect taxes-not to prosecute the mob
sterS, vice promoters, etc. It is through
the bureaus efforts, however, that a
very considerable number of criminals
and corruptionists have been brought at
least to some measure of justice. And
the bureau deserves credit, not blame.
The mobsterS and racketeers and
gamblers have. of course, been able to
escape from the payment of taxes on
some Of their gains-although the bu-
reau has learned many of their tricks
and been able to bring them to justice.
The device Of making bank deposits in
the names of other persons or in the
names of relatives has been one method
adopted by racket operators and gam
blers. Only the most painstaking in
vestigation and detective work by the
bureaus agents has made it possible to
catch up on these criminals Where they
have just hidden away their gains in
cash, only by accident have they been
revealed.
Loopholes in the tax laws have en-
abled some Of the gangSters and gam
blers to evade full payment of taxes or
the payment of any taxes. These the
bureau and the Treasury Department,
OF which it is part. are seeking to
plug Cd by requiring statements of net
worth to accompany tax returns except
where the chief source of income is
wages. t2) by extending the statute of
limitations to six years instead of three
as at present, (3) by making it felony.
instead OF misdemeanor, to file wilfully
an improperly supported income return,
and t4) by granting authority to revenue
agents to examine books and recoros of
taxpayers before due dates of filing in
come tax returns where tax evasion is
suspected.
Lists Show Agents Activity.
The activity Of the agents of the In
ternal Revenue Bureau is shown in a
representative list" of alleged gamblers,
racketeerS, vice promoters, extortionists,
numbers operators, abortionists, graft
erS. and slot machine operators whose
conviction for income tax evasion has
been obtained since August |, l945. This
list, prepared by the bureau. shows 1873
such convictions in nearly all parts of
&c 1icf
OF 36 more such characters who are
under indictment for tax evasion. In
cluded in the latter list is the name Of
Sam r. Beard of Washington. D. c..
characterized as gambler" whose tax
deficiency and tax penalties are said to
total $3.50, ,734.56. He was indicted
March IA. 1851.
The list Of cases where convictions
and sentences have been obtained was
taken from among over 1.500 cases of
tax evaSions by all classes of taxpayers.
The revenue agents have been aided
now and then in their search for vio-
lators Of the income tax laws by tipsters.
The tips have come when gangsters
and criminals have split up-and one Is
trying to get even. Some Of the tips
AASVS NSAAAO 4A0k4 CkAPAOyCo WLO I1dN0
been fired from their jobs, even in So
called legitimate businesses.
One of the criticisms made by mem
bers Of the Senate Kefauver committee
is that in some of the cases of known
gangsters' income tax returns merely
round figures were given, with no details,
and listed as "wagers." horses" or
miscellaneous" 1t was pointed out
that the return of Jacob GREASY
Thumb) Guzik. believed by the commit
tee to be the second man in the cur
rent Capone gang in Chicago, showed
for one year merely miscellaneous,
100000"
It is maintained, however, that none
Of these people gets by without being
investigated by internal revenue agents
and that it is only in cases where it
can be proved conclusively that there
have been tax evasions that cases can
be brought.
This is the first OF two articles on
underworld income tar epnderSJ
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