Evening star., 1952-08-24
Officials
Push Drive on
Tax De|inquents
Make Sure City Gets
Its Share of Record
Per Copito Income
By John w. Stepp

Tax officials of Washington, city
of highest per capita income, are
getting squared away on the final
phase of a drive against tax de-
linquents.
In a matter of days, Assessor
James l.. Martin will set up a new
field force that will determine
whether all the city's private busi-
nesses are paying their income
taxes.
This will be the assessors third
field force. Two others have been
operating for about three years on
the sales tax and the business per-
sonal property tax.
Their work, according to Mr..
Martin. has played substantial
part in bringing greater revenue
to the Governments Golfers. &
The personal property division
now is making a house-by- -house
study of all the Districts private
homes to ascertain how many oc-
cupants are ducking the tax on
personal belongings.
Augments Record Check.
This field work, Mr.. Martin ex-
plains, augments the routine
cross-checking of tax records in
the assessors District Building
offices. He comedies that much
of the city's increased revenues
is due to an increase in the num-
ber Of businesses, bigger business
volume and a larger population.
But" he emphasizes. "the ma
jority of the increase is due not
to natural growth but plain hard
work of picking up delinquent
taxpayers"
In the last three years. collec-
tions handled by the assessors
Office have risen from $86.1 million
to 1858 million. The Office is in.
charge of collecting and enforcing
Virtually all levieS except the ciga-
rette and liquor tax. It's chief
revenue-producers are the business
and individual income taxes, real
estate, personal property and
sales taxes.
Per Capita Income Up.
The SO million Jump in tax col
lections by the assessors office in
the last three years reflects the
IL per cent increase in per capita
income of 1851 over 1850. Indi-
vidual District-resident income
totaled $2.2 billion last year. The
figure boils down to a $1,584 per
capita income.
MI. Martins new field force
will consist of four men taken
from other divisions of his office.
While he hopes the number will
be adequate, he says he will not
hesitate to ask the Commissioners
for funds to provide added person.
incl If needed for the work.
"The revenues such workers
produce many. many times ex-
coed the cost of few salaries"
the assessor says.
The new division will work
closely with the two existing field
forces.
when the income force goes
into a place of business to get
income information" Mr.. Martin
Explained, "the men will also
check the personal property and
sales tax status of the place."
Income Check Speeded.
In the individual income tax
field, the assessor also is planning
to make the operation current.
Since 1949 when the system Of re-
Iquiring employers to file income
data on all their employees went
into effect the Office has been
conducting a massive screening
job. A further complication was
the raising of the amount of each
taxpayers exemption to $4,000.
The Office started with the 1949
tax year and mailed out $4,000 de-
llinquency notices of some 10000
suspected delinquents. But by con-
centrating on that year alone.
the check of 1850 and 1851 re-,
turns fell behind. Now, the checks
of all three years are being con.
solidated, Mr.. Martin explained.
Once these back records are
caught up, the assessor added,
the job of checking taxable resi-
dents in the future will be simple.
Information Return Used.
The employers information re-
turn, plus examination Of Federal
tax returns filed by District resi-
dents are the principal means Of
determining local tax delinquency.
Mr.. Martin believes the method
is satisfactory.
When it comes to tracking down
gamblers and others whose live
llhood is illegal or concealed and
who consequently file either no
returns or falsif1ed returns. Mr..
} Martin admits his Office is handi-
capped.
! You need an investigative staff
to run those people down, and the
4 benefits would not measure up to
4 the cost and effort" the tax Off
cial said.
! He added that his Office relies
on following leads given by police
arrests and the Federal Internal
Revenue Bureau. A further him
drance to checking this type OF
tax delinquent is the fact that
local tax enforcers cannot carry
their investigation beyond the
District Line. And while tax Of
f1cials have the right to examine
/ Washington bank accounts OF
suspected individuals, they can
not conduct fishing expeditions
in banks. Mr.. Martin said.
I Although his Office bases its
delinquency operation on the
cross-checking of existing tax
records, Mr.. Martin said that he
has not undertaken to examine
automobile registration records to
uncover tax fraud. Returns filed
total about $4,000, compared with
a motor vehicle registration here
of about 10000, including taxls,
trucks and buses.
s"ThiS kind of check would be