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Page 2-Thursday, March 18, 1982-The Michigan Daily
Tax frauds up
as IRS audits
fall to new low
IN BRIEF
WASHINGTON (AP) - An increase
in tax fraud and unintentional errors
may be costing the Treasury more than
$70 billion a year, an all-time high, but
the odds that cheaters will be caught in
an IRS audit will fall to a record low
this year, government officials told
Congress yesterday.
The General Accounting Office, the
investigative arm of Congress, com-
plained before a House subcommittee
that enforcement efforts by the Internal
Revenue Service are not keeping up
with the increase in number of income
tax returns filed each year and with a
noticeable rise in cheating.
PRELIMINARY findings from a new
IRS study made available to Congress
estimates that lost Treasury revenues
from non-compliance with the tax laws
now totals $72 billion, up from $27
billion in 1976.
However, the number of individual
returns audited by the IRS for cheating
or honest mistakes will fall from 26 of
every 1,000 in 1976, to 16 of every 1,000
during the current fiscal year, which
began last Oct. 1, the IRS
acknowledged.
The lost tax revenue is nearly as
large as the record budget deficits of
$100 billion a year, that Reagan ad-
ministration officials predict for 1982
and 1983.
"THERE IS a trend toward contempt
and abuse of the system which
seriously undermines the basic concept
of voluntary compliance on which the
system depends," William Anderson,
director of the GAO's general gover-
nment division, told a House Gover-
nment Operations subcommittee.
"Extensive evidence is available to
show that non-compliance among both
corporate and individualtaxpayers is a
serious problem and is getting worse,"
Anderson said.
He speculated that rising taxes may
be a major factor. "As the tax bite in-
creases, some people are venting their
anger by being a little more dishonest
on their tax form," he said.
Anderson referred to surveys in-
dicating that a fourth of all taxpayers
will admit to some cheating if their con-
fessions are not reported to the IRS.
"Maybe there's a larger percentage of
people today with a touch of larceny in
them," he said.
The GAO, noting that the number of
tax forms filed annually is rising faster
than the number of IRS agents and
auditors, urged an increase in the
agency's enforcement work force. An-
derson said IRS figures show that
hiring an additional 5,000 agents would
increase revenues by $600 million af-
ter deducting the costs for the added
personnel.
Compiled from Associated Press and
United Press International reports
OPEC may lower oil prices
NEW YORK- The Organization of Petroleum Exporting Countries could
be forced to lower its base price by about $6 a barrel in face of weak demand
and the global oil glut, analysts said yesterday.
Sources said the 13-nation cartel will discuss a 2 million barrel-a-day
production cut at its emergency meeting in Vienna tomorrow to counteract
the surplus that has reduced OPEC's share of world oil trade and prompted
non-cartel members to slash their crude prices.
"This cut will not be sufficient to cope with the oil glut," an oil source in
Vienna said.
World oil production is running about 2.5 million barrels a day above
demand, which has been depressed by recession and destocking in the oil-
consuming nations.
Shuttle countdown starts today
CAPE CANAVERAL, Fla.- Officials ordered the countdown for the space
shuttle's third test flight to begin on schedule today, even though the prime
landing runways in the California desert are too soaked with rain to support
an emergency touchdown.
Thus, if Columbia is launched on schedule Monday, another desert runway
at White Sands, N.M., would be used for a landing should the mission be for-
ced to abort.
It was not known at what point Edwards would be available for a touch-
down, or for how long White Sands would be the landing zone if astronauts
Jack Lousma and Gordon Fullerton are launched Monday.
Despite the unavailability of Edwards on launch day, Gen. James
Abrahamson, NASA associate administrator for space transportation,
directed Launch Director George Page to start the countdown at 4 a.m. EST
today, aiming for a liftoff at 10 a.m. Monday. Work at the launch pad has
been extremely smooth, with crews running several hours ahead of schedule
as the countdown start neared.
Leftists ambush Salvadoran
national guard vehicles
SAN VICENTE, El Salvador- Leftist guerrillas ambushed a national
guard truck and burned three other vehicles yesterday in an area of San
Vicente province that the government claimed to have cleared over the
weekend.
Elsewhere, unknown gunmen shot a prominent surgeon to death in Santa
Ana, the nation's second-largest city. The bodies of five people killed in
political violence were found in San Salvador, judicial authorities said, and
another 10 civilians were reported dead in fighting Monday in three suburbs
of the capital.
These and other scattered incidents of violence were reported as the coun-
try prepared for a March 28 constituent assembly election.
Meanwhile, the Christian Democrat Party yesterday unanimously ap-
proved U.S.-backed junta President Jose Napoleon Duarte as provisional
president if the party should win the elections.
Floods force more evacuations
Rivers rising toward record flood levels forced massive evacuations
yesterday in the Midwest, where more than 10,000 people were already
homeless and others marooned in neighborhoods surrounded by water.
About 7,900 evacuees are residents of the three-river city of Fort Wayne,
Ind., where'President Reagan donned rubber boots Tuesday and briefly
joined a sandbag brigade. The president praised the volunteer workers as
"the spirit of America," but has not yet offered federal aid.
With the worst believed yet to come in Fort Wayne, a city of 170,000 in the
northeastern corner of the state, crews were sandbagging eight miles of
dikes and officials opened seven more° Red Crossemergency shelters,
bringing the total to 11.
The flooding caused by days of rain and melting snow - the legacy of a har-
sh winter - also vas spreading to other Indiana rivers, Tippecanoe, Yellow,
Kankakee and Elkhart.
0
Daily Photo by DEBKAH LEWIS
Flood on the tracks
As the Huron River overflowed this week, it engulfed one of the railroad
tracks near Fullmr Road. The hardy trains still use the track, however.
Housing officials step up dorm security measures
(Continued from Page 1)
slapping wrists in a residence hall, for God's sake."
Doria last month sent a memorandum to Markley
residents outlining several recent crimes in the
dorm, and urging students to keep their doors locked,
even while they are in the room.
The Markley director also said he plans to remind
residents of the danger thrugh a series of posters
posted throughout the dorm.
ALAN LEVY, building director of West Quad, plans
to install key punch locks on the doors of women's
restrooms to discourage peeping toms and other in-
truders.
Housing authorities emphasize that'residents need
to follow several basic precautions- such as keeping
I can't go around slapping
wrists in a residence hall, for
God's sake.'
-Kevin Doria
Markley building director
their doors locked - which they continue to overlook.
They also should immediately call security officers if
they suspect that a crime is in progress.
Most arrests in dorms occur when a student alerts
a residence hall security officer, according to Dave
Foulke, coordinator of the University's security ser-
vices.
Residents also should familiarize themselves with
who belongs in the dorm and who does not, Foulke
said, adding that students shouldn't let their guests
wander through the dorms alone. .
A woman in Markley Hall suffered second degree
sexual assault in a stairway by men assumed by
authorities to be guests of a resident.
Residents "must realize the serious implications of
this 'open door' policy, and be ready and willing to
deal with them," said West Quad's Levy.
4
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Open Forum on Security
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Car stolen from Bursley lot
Police yesterday reported a 1978 maroon
Chevette was stolen Monday night frm
the Bursley parking lot on Duffield Rd.
There are no suspects, they said.
Local market robbed
Thieves last night broke into the Quik
Pik market, marking off with $160 in
cash and $119 in lottery tickets. After
prying open the front door of the
market, at 2300 Ellsworth, they forced
the safe open, according to police.
Fraternity burglaries continue
Burglars Sunday night broke into
Alpha Tau Omega fraternity, at 1415
Cambridge. Police said the burglars
forced a door to gain entry, and took $600
in cash.
Earlier last week, thieves took a gold
crest emblem valued at $1,000, from
Theta Chi fraternity, at 1345
Washtenaw.
A break-in of the Delta Delta Delta
sorority, at 718 Tappan, also was at-
tempted late Sunday night. The in-
truder pried open a door, setting off the
house fire alarm. The intruder then
fled, according to police.
Flood warning issued for Ann
Arbor
The National Weather Bureau
yesterday issued a flood warning for
Ann Arbor, when the Huron River rose
to a depth of 15 feet. The Ann Arbor
Utilities Department is monitoring the
river and, according to Harvey Mieske,
an employee of the department they
expect no problem with flooding. "It
looks like the river crested at 16.8 feet
Tuesday night at 8 p.m.," Mieske said.
Correction
A Police Note in the March 16, 1982
issue of the Michigan Daily (Police to
hold auction) inaccurately reported the
date of the auction. The correct date is
Sunday, March 31.
&tie 3idjtguu 19afIu
Vol. XCII, No. 131
Thursday, March 18, 1982
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