Evening star., 1952-07-20
Maryland Ready
Ito Crack Down
On Tax Evaders
Many Nonresident
Federal Employees
Ignoring State Law
By John V. Horner

" JVHU V. TIOTHST
Maryland is ready to crack down
hard on thousands of Federal
workers who refuse to honor it's
income tax laws.
These delinquent citizens are
Government employees domiciled,
for the most part. in Washington
or Virginia but working at Fed
eral installations in Maryland.
While many of them may be NON
taxable" because they pay in
comes in their home State Of
Virginia or in the District, the
Maryland law. nevertheless, re-
quires that they file returns in that
State.
Reciprocity helps these citizens
in a measure. Maryland credits
them with the amount of income
tax they pay in the other juris-
dictions. Thus. a taxpayer who
owes Virginia Cor the District)
as much as or more than he owes
Maryland, pays nothing in Mary
land.
On the other hand, the tax
payer who owes Maryland more
that he has paid to the other
jurisdiction owes Maryland the
difference.
Court Action Threatened.
The fiscal authorities at An
napddS are displeased with large
scale violation of the Maryland
laws. as reflected in returns filed
last April. If necessary, they said
yesterday, they will go into Cir
cult Court at Rockville or Marl-
boro to seek criminal indictments
against offenders.
In the last fiscal year, Maryland
picked up an extra SIS million in
revenue it might have missed.y
More than a third of this came
from newly discovered taxpayers.
The rest represents additional
payments from taxpayers whose
returns contained discrepancies.
All Are Required to File.
Under Maryland law, everyone
living in the State or employed
there is required to file an income
tax return If his income amounts
to 81 1000 for a single person, or
SO, 900, married. The latter cate
CORY includes couples with a total
income Of $4,000.
Not all those filing returns are
subject to taxation, of course. Pro-
vision is made for exemptions and
deductions and income taxes paid
in other States, If they are nom
residents of Maryland.
Maryland has no general law for
Withholding taxes. Only in the
case of non-residents who work
for private Maryland employers.
do employers withhold State in
come taxes.
So. the State has no check on
the great block of resident
Government workers who COM
mute to Federal installations in
Maryland from residences OUT,
side the State.
Benjamin Marsh, State income
tax chief. emphasized that all
Federal employees concerned should
file State returns. He estimated
only about 25 per cent of the
group would have to pay in Mary
land. Yet, Maryland wants re-
turns from the non-taxable rs
per cent so it can go to work on
those evading taxes due.
Withholding Law Weighed.
The fiscal authorities are won-
dering whether the State should
adopt a general law on with
taxes. If the next Leg
islature should do this, Maryland
would stand to benefit-in so far
as Federal workers are concerned
by a law signed Friday by Pres
ldent Truman.
This law. sponsored by SEN
ator Flanders and Representative
Proudly, both Republicans, of
Vermont, permits the Federal.
Government to enter into a with
holding arrangement for Federal
with any State having
a general withholding law. At
present, the only States affected
are Vermont and Oregon. The
territories of Alaska and Hawaii
also come within its scope.
The officials at Annapolis are
not waiting for enactment of gen.
eral withholding legislation to
work on the Federal employees fail.
(See DEF INOIJENTS pape A-6N