Indianapolis Times, Indianapolis, Marion County, 4 June 1952 — Page 12

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WEDNESDAY, JUNE 4, 1952 _.

By RICHARD STARNES Seripps-Howard Staff Writer

|evader and the person he { 1928 Flint, which took you a year| WASHINGTON, June 4—Every

ing.” * 3 In the mythical case of Mr. [to pay for, and drinking whisky | time a tax cheat spends a dollar, io... (1, tax sleuths probably which cost two-bits a Mason jar.” | he brings his day of reckoning 4 dig far enough into his|' At that point, if Mr. E. cona step closer. ; {background to learn—and to be The 1200-odd agents in the In- able to prove in court, If neces- he would lose his only possible] ternal Revenue Bureau's intel- gary.-that five years ago he was weapon against the net worth ligence. branch have seen too broke. ‘system. If he had said. “I was many slick tax-dodging gimmicks “In 1047, Mr. Evader,” they|born with a lot of dough and I to OF cnapiaoent, but they fondly| " believe they have a trump card that will beat any method of evasion. The tax sleuths’ trip is a pain-

ceded that he was flat in 1947,/go

Federal Tax Sleuths Make It Tough On Income Hiders

is pay- would say, “you were driving a|lived frugally because I didn’t who has spent a quarter of a cen-

{

want to support a slothful brother-in-law,” the agents’ work would have been immeasurably | more difficult. | They would, then, have had to, back so far into Mr. E.'s life with their adding machines that his claim would have become patently ridiculous. Even so, they claim they would have been able to snare their man eventually. But assume that M+. E. admits he didn't have a dime in 1947. “Now, “sir,” the agents would say, “you live in a $40, house,

THE INDIANAPOLIS TIMES

stakingly constructed and unbelievably detailed financial profile of the suspect. With it, the

~ |auto, you wear $150 suits, you ~ |spent $2000 last year alone send-

agents are able to buttonhole Doublentry Q. Evader and say something like the following: “Mr. Evader, you are a crook and we can prove it. In the last five years you declared a total of $50,000 gross income. In that same time you spent in excess of $500,000 for one thing and another. Thrift is a virtue, Mr. E., but we'd like to know why you neglected to pay taxes on that other $450,000.”

It Takes Time The financial profile, which the agents themselves like to call the “net worth” or" “expenditure” system, is just about the last shot in the locker when {t comes to catching tax evaders. It usually takes a lot of time-con- : . suming leg work to trap a cheater ~with this system: the intelligence

agents. don't use their elephant gun if they can do the job with

ling your children to school and,

a fly swatter, S But, after more conventional : methods fail, the tax detectives . ... . use the net worth system. Here oh Am what Frank Ldhn, chief of thé intelligence Unit, says about it: \ “Every time money changes. % hands, at least two people are in- \ volved. ‘If ‘money is paid In exchange for an automobile, or a house, or anything else of a real nature, there {is the additional evidence of the item purchased. But even if money. is spent only in payment for personal services, there are ‘always two parties to “ the transaction—the - suspected

\ %

: United Press Telephoto. FRONT LAWN BABY—Mr. and Mrs. Carl Dormal proudly display their new son, Gary, who was born on the front lawn of | their Chicago home Saturday. With the aid of her husband, Mrs. ' Dormal gave birth to the 8-pound boy just a few minutes before | leaving for the hospital, Parents have two other children.

The amount rung up on the cash register is what the Illinois Central charges — on the average — for hauling a ton of freight one mile. That's all — 11/; cents!

That small amount includes the increase recently granted the railroads. On the Illinois Central it adds only a tenth of a cent to the

previous rate.

The freight car remains the undisputed best bargain in transportation for commerce and industry.

And remember, the Illinois Central handles all kinds of freight — not, just the high revenue items. We believe our job is to provide transportation for everything, every day, everywhere. “That's our contribution to the prosperity and vigor of Mid-America’s business, industry and agriculture. ;

Keep this in mind, too: The Illinois Central, unlike motor freight carriers, air lines and barge lines, enjoys no federal subsidies. Yet we pay our full share of taxes — federal, state and local — $36 million last year. And we're proud of doing our full part to support = the necessary operation of government. .

5. Our promise to you — and all Mid-America — is this: So long as

Warne A. JornsTon President

ea : \

ILLINOIS CENTRAL

{you drive a new and expensive

moreover, you have a somewhat more than uncle-like relationship with a blonde young creature whose rent you pay to the tune of $200 a month.”

Hiding Not Enough

By this time, Mr. Evader has learned the hard way that merely hiding the source of your income is not enough. The agents—by questioning real’ estate brokers, auto dealers, grocers, liquor-mer-

chants, haberdashers and other people with things "to sell—are pretty close to knowing to the dime just how much money Mr: Evader has gotten away with, True enough, Mr. Evader might have a washtub full of $100 bills buried in his backyard that the, agents don’t know about. But his mistake was in not burying all of his undeclared income—bury-|

* |ing it and then forgetting it. |

Although the financial profile has won some recent notoriety before the King Tax Investigating] Subcommittee, it is at least as old

_'as the Al-Capore’ case, Scarface

2 CREA capecodiaudreds and a?

§pending thousands. The taxi sleuths spent years drawing a dnancial profile of the gang over-| lord and Al Capone spent years— in prison—contemplating the or) fidy of men who fight their battles with arithmetic instead of ma-| chine guns. Mr. Lohn, a soft-spoken man|

JUNE 4, 1952

tury catching tax evaders, has this advice for people who think it might be easier to gyp Uncle than to pay their taxes.

“Don’t do {t. It might take us| a little time, but if there is an

appreciable amount of money involved, we will find out about it. “Pay your taxes and you won't

have to worry about the Intelligence Unit. Probably sleep bet-

{On the Way Out

Bluing Technique

The ancient bluing technique in laundering is on the way out, says the 1952 Encyclopedia Americana Annual. ’ Fluorescent dyes which will mask a slightly stained or discolored fabric and make it seem a brighter white are already in use and gaining in favor rapidly.

SOLVE SCHOOL PROBLEMS through Times Classified Ma The best way to find more desir-| able living quarters, a good car or| a sturdy bicycle .. . Turn to The,

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That way, you won't have to wait while the Long Distance - operator consults Information. Your call goes through .. .

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- WEDNESDAY,

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