The Ottawa Herald from Ottawa, Kansas on February 15, 1963 · Page 5
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The Ottawa Herald from Ottawa, Kansas · Page 5

Ottawa, Kansas
Issue Date:
Friday, February 15, 1963
Page 5
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?„ W >nB i B" a R3«' iff 1M g« fW i •'..' X4i ,.j ;VH vii ,»' iMl^ Hi| '<;'tf , ! ' ;ll!W|J;iiKl*i/;;J;Sft THE OTTAWA IHULB W ' Friday, February 15, INI ' • ATTRACTIVE NEW FACILITIES of Ottawa's Kansas State watch while two other interviewers, A. E. Sullins and Jim Rich- Employment Service office were shown at dedication and open ardson, pretend to take tests used in regular testing program, house today. In picture above, Cal Ewing, manager, is shown at (Herald Photos by Lois Smith) his desk in large work area. Below, Bertha Richardson holds ^stop Settlements Give Tax Collectors Bad Time By WHITNEY SHOEMAKER WASHINGTON (AP)-Tax collectors shudder every time they read in the papers or hear on the air that the government settled a debt with a well-known personality for, say, 20 cents on the dollar. From experience they know losers in past disputes with Uncle Sam will write letters demanding to know why mis big shot got off for one-fifth when they had to pay something like one-half. Angry taxpayers will stand up at meetings, denounce the government for compromising with wrongdoers and ask if honesty really pays. Lawyers at the Internal Revenue Service insist there was no surrender. What really happened, they say, was that the government finally ascertained and accepted all it could expect if the case went through court. "It is a false impression that we are giving away something and not getting all we are entitled to," says Rudy P. Hertzog, associate chief counsel at IRS. "Who the taxpayer is, whether he is prominent or unknown, has absolutely nothing to do with it," puts in Leo Bardenheuer, assistant director of the appellate division. Then why is there frequently such a difference between the amount the government asserts an individual owes in back taxes and penalties and the amount it eventually accepts? Hertzog says its mainly because in this kind of dispute IRS is unable to obtain sufficient data to derive an accurate figure. Sometimes it may result from a court decision modifying the law. But primarily, Hertzog contends, it's because available records are incomplete and the taxpayer or his attorney is unwilling until the case reaches the court stage to make a full disclosure. Two Washington attorneys who are always on the other ride in tax contests find themselves generally supporting the govern * ment'a case. One say ait puts an "unfair slant" on the tax collector's job to complain that he settled for so much on the dollar. Occasionally, this lawyer says, he has felt IRS entered some items in its bill "for trading purposes." He also expresses doubt the government suffers seriously from lack of information except in fraud cases. The other attorney—both asked to remain anonymous—said most difficulties arise from agents in district offices, particularly for the little guy who is unaware he has rights of appeal. In this lawyer's opinion, 'The government is much tougher on the big shot than on the little people." "Part of the difficulty," Bardenheuer says, "is the general impression that we have already determined on the basis of full information how much an individual owes and take less than we had determined. In fact, we make a determination as to how much he may owe. What is determined in the settlement is how much he does owe." Just this week the government settled an initial claim of about $315,000 against former Gov. Earle C. Clements of Kentucky for some $62,000 plus interest. IRS says that for lack of records, the government was unsure in which year certain items were taxable so played safe by assigning them to more than one year. When the right years were established, a duplication of more than $93,000 was eliminated. Furthermore, IRS relates, conclusion that fraud could not be proved resulted in dropping claims for another $146,000 in penalties and back taxes. IRS attorneys point to files indicating they have many more problems on a lesser scale. Uncertainty over some bank deposits led to a $9,687 assessment against a West Virginia couple. When records were produced, the government settled for $98. In Corpus Christi, Tex., a $3,405 case was settled without any payment when later evidence substantiated char itable contributions. All these are settlements of disputed tax liability. In a different type of case, the government will compromise for a smaller amount when liability is undisputed if, Hertzog says, "This is all we can reasonably hope to collect in the foreseeable future." Thus a chap in California who owes $7,290 won a compromise for $1,800. He must pay $700 at once and the balance at $40 a month. His income is estimated at $500 a month. Asks Tight State Rein On Blue Cross, Shield TOPEKA (AP) - Legislation to put tight controls on Blue Cross and Blue Shield insurance in Kansas is proposed by Rep. Hubert Fatzer, R-Fellsburg. Fatzer said he is preparing two bills and a resolution which would subject the organization to a legislative investigation, put it under strict state control and make it pay property taxes. Fatzer, chairman of the House Insurance Committee, said he hopes to have them introduced next week as committee bills. The House member said he would like for the Legislative Council to make a study of hos- pitals and their relationship with Blue Cross. One of his bills would direcl the insurance commissioner to examine Blue Cross-Blue Shield contracts and review its rates. The commissioner would also have authority over contracts the organization has with doctors and At present the commissioner passes on rates charged but has little authority to review the basis for the charges. The organization at present is exempt from paying property taxes by its status as a benevolent association. Missing Tanker Sea Mystery NEW YORK (AP)-The Amen can tanker Marine Sulphur Queen which disappeared Feb. 3 with its crew of 39, has been added to th list of mysteries of the sea. The Coast Guard said Wednes day night it was calling off the active search for the vessel, although all units have been directed to maintain a lookout for the missing ship during normal operations. The Coast Guard declined to speculate on the ship's fate. But it noted that a 500-hour search of the Atlantic and Gulf of Mexico by 63 aircraft had failed to turn up a trace of her. The 524-foot tanker, carrying molten sulphur, left Beaumont, Tex., Feb. 2 and was to have arrived at Norfolk, Va., Feb. 7. She was last heard from the night of Feb. 3 when a crewman sent a personal radio message from a point near Key West, Fla. No Venue Cha ge In Assault Trial FORT SCOTT, Kan. <AP)Change of venue was denied Wednesday for a young Negro facing trial on a charge of joining in the rape and kidnaping, of a white girl in a Fort Scott park on Aug. 20. District Judge Robert H. Miller refused the defense's contention for Dale Kinnell, 22, that a fair trial in Bourbon County is impossible. Kinnell and five other Negro youths were charged in the incident. Two have been convicted. Three others also await trial. Making Dimes From Pennies JACKSONVILLE, Fla. (AP)Secret Service agents are heading for the University of Florida to investigate pennies filed down to the size of dimes. Agent R. M. McDavid said Thursday many such coins have been found in vending machines on the campus at Gainesville. Mutilation of a U.S. coin is a federal offense. SUNDAY FEB. 17 - 2 P.M. to 6 P.M. WESTMINSTER ARMS APARTMENTS LOCATED AT 1210 S. MAPLE STREET NOW LEASING! * Two Bedrooms * Frigidaire 12-Ft. Refrigerator and Electric Range * General Electric Garbage Disposal * Nylon Carpeting-Living Room and Bedrooms (Over Luxurious Foam Rubber Pad) * Birch Cabinets * Six Spacious Closets 9 Individual Heating and Hot Water * Full Time Management and Maintenance * Country Kitchen With Dining Space and Rear Entrance * Fully Insulated * Will Include Beautiful Lawn and Landscaping and off-street Parking For Information... Call ALEXANDER-DOYEN t-V: AGENCY CH2-3000 112 E. 2nd * * * * * * I. R. S. PROPERTIES

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