The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1895-03-22

Prospective income taxpayers of this
district are evidently not in any particu-
lar hurry to make their reports to the
local revenue collectors, and it is highly
probable that there will be no rush an
til almost the very last day fixed by law,
April 18th. The Supreme Court of the
United States is still silent upon the ques-
tons submitted to it some time ago, al
though the general feeling is that de-
cision Will be forthcoming by the early
part of the coming month at the very
farthest. Everything will, of course, de-
pend upon that decision. but there seems
10 be no apprehension among the officials
Of the administration as TO the result OF
the Supreme Court hearing, all being OF
the opinion that the law VIII stand as II
received the signature of the preSluent.
This opinion is shared by some of the
brightest legal minds IN the United
States, and il seems hardly probable that
those citizens and corporations OF this
SlonS OF the act will be released from
making their reports. Since the passage
and approval of the act some very pecu-
liar developments have taken place, and
II IS very evident that the next Congress
will be forced to make some additional
provisions for the bill. 1t is short i'll sew
eral ways. \ special dispatch just re-
ceiyed from Washington gives the fol-
lowing details of some OF those short
ages:
a peculiar feature of the income-tax
law has been discovered by the officials
who are preparing TO give it effect. There
is no provision in the law to reach the
incomes of non-reSidentS derived from in
terest upon railroad and other American
securities. In the tariff bill as it passed
the House it was provided that interest
upon the bonds of corporations should be
regarded as net earnings, and that per
cent. should be deducted from the amount
ftnnS
holders of their bonds, whether residents
or not. The Senate, however, changed
this so as to exempt from the tax all in
terest upon bonds or other Indebtedness.
The effect of this is to exclude the for
eign bondholder from the operation OF
the law, while the resident bondholder Is
in excess of $4,000 without regard TO
whether that income is derived from in
terest upon bonds or income from other
sources.
In the case of the leading railroads OF
the country, the annual interest paid up
on bonded Indebtedness exceeds upon an
average several times the amount of the
net earnings. and as a great portion OF
these securities are held abroad, 1t can
be seen that the government will lose
millions that ought to be paid to the
treasury, if the tax is to be collected al
all.
The collection of tax imposed upon the
interest paid bondholders by railroads
would have caused the treasury no trou-
Indebtedness and the annual interest
charges are published in the reports OF
the roads, and the collectors would have
nothing to do in the matter but demand
the amount of tax upon the whole
amount of interest paid.
large number of income tax returns
are being received at the internal reve-
nue. bureau by every mail, and the work
of examining, extending, and filling them
is well in hand. and is going forward
without any hitch. Nearly all of the. col
lectors throughout the country have
made their February reports. They show
a very satisfactory acQuiescence on the
part of income-taX payers in all of the
regulations governing the collection OF
this branch of the service is being aug
mented as rapidly as needed by transfer
| of capable clerks from other bureaus
and altogether the work is said TO be ir
an eminently satisfactory condition. The
utmost secrecy as to the amount anC
character of the returns is being OBJ
| served, but it is believed that the receipts
SO far are beyond the expectations of the
officials
The following instructions have beer
sent to collectors of internal revenue:
Corporations are required to make in
come tax returns to the collector or 9
! deputy collector of the district in which
| their principal office, from which all OF
their business is directed and where theil
mess are kept, is located. Branch
| houses and Sub-agencies are, therefore
not required to make returns to collect
ors of that part of the business under
their control.
In viey of the foregoing, collectors are
| instructed to ascertain from all agents
managers. or other persons in control Of
| the branch or local business of corpora
tons situated In their respective district S
| the exact location of the principal office
of the corporation which they represent
and to forward the information received
| from such agents or persons to the col
! lector of the district in which said prin
cipal Office is located.