Evening star., 1951-12-11
Sharp Rise Reported
In Tax Fraud Cases;
Prosecutions Pushed
By the As,eeioied Pres.


The number of tax fraud cases
turned over to the Justice Depart
ment for prosecution increased two
and half times in July, August
and September. compared with
last year.
That was during the time a
House subcommittee investigation
of tax scandals. now running at
full steam, was just beginning to
warm up.
In the same period. despite the
mounting total of fraud cases,
there was sharp decline in the
number dropped without full
prosecution.
This picture of a toughening in
the Governments drive against
tax fraud was outlined today by
Internal Revenue Commissioner
John B. Dunlap in a report to
Treasury Secretary Snyder, who
has general supervision over the
Revenue Bureau.
Mr.. Dunlap also reported that
rs Revenue employees were fired
and % quit while under investiga-
ton. from January through Sep
tember. Few of these had been
announced previously.
68 Fired, IS Resigned.
Adding announced firings and
forced designations since Septem-
ber. the toll among tax service en-
ployes has reached at least 1O3
in IL months-68 fired and IS re-
signed.
The Revenue Bureau had no
comparative figures Immediately
available. except to say there were
only 40 separations for cause in
the fiscal year which ended in
June. 1856.
Earlier, the bureau reported
nearly a million taxpayers owe
the Government $632 1863 ,000-
some $50 million of it clipped from
pay checks by employers but not
turned in to the tax collector.
The report on tax f~>ud cases
gave this comparison for the July
September quarter:
In 1850, 110 new cases were
turned over to the Justice Depart
ment from the penal division of
the Revenue Department. The
Justice Department declined pros
ecution in 63 cases, dropped or
dismissed So others after they
reached court, and got 48 convic-
tions. There was a backlog of
1,l01 cases at the beginning of
the period, 1,064 at the end.
Ga Defendants Convicted.
In 1851. 268 cases were turned
over for prosecution. Only IL
were dropped or dismissed, and
prosecution was declined in only
A. Sixty-four defendants were
convicted.
This is an increase of 144 per
cent in the number Of new cases.
an increase of 80 per cent in
convictions; a decline of So per
cent in the number of cases dis
missed and drop of 33 per cent
in the number which the Justice
Department refused to take to-
court.
On the firings. bureau spokes-
man said the total of 103-less
than half of which have been an
nounced-includes routine oustersI
for such charges as drunkenness,
morals. ineficiency, etc, which
have not been brought into the
current investigations. There isl
always some attrition, he added,
among the bureaus $1,000 en-
ployes.
The figures on tax delinquency
we're announced by the bureau yes
terday, covering accounts as of
October 81. The total included
S505 million in income taxes.
Bureau Under Fire.
The bureau-itself under heavy
fire from a House investigating
committee-said tax delinquency
is on the increase, but not alarm
ingly. To illustrate, it said that
as Of September 80, 1850, there
were 892,025 delinquent taxpayers
who owed the Government $685.
384 900.
A bureau official said some en-
ployers are using for their own
LOST.
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