Evening star. [volume] (Washington, D.C.) 1854-1972, 1895-03-08
THE TAX ON INCOMES
officials and Residents Who Are
q, Made Liable.
NO COLLECTOR APPOINTED YET
But the Work is Going on Just the
Same.
PROVISIONS OF THE LAW

NJ SION . OF The LA w
There is evidently some hitch over the
selection of an income tax collector for the
District of Columbia. The appointment is
vested in Collector Vandiver, whose dis
trict embraces the states of Maryland and
Delaware and the District of Columbia.
Under the recent act of Congress making
special provision for the appointment of
over 200 additional deputy collectors for
the collection of the income tax, Collector
Vandiver was allotted five assistants. The
allotments were made by the Secretary of
the Treasury. Although the assignment
to localities was left in all cases to the re-
spective collectors, there seems to have
been tacit understanding that one at
least of the additional deputies allowed to
Collector Vandiver would be specially as
signed to the District of Columbia. 1t is
known that that particular section Of the
country numbers among its residents many
persons who are subject to the tax.
1t is estimated that there are more peo-
pie whose annual incomes exceed the $1,000
limit residing within the bounds Of the ten
miles square constituting the national cap
ital than Ia any other locality of similar
dimensions in the United States. Not the
least of these, numerically, are the ofhciais
of the federal government. Chlef In TINS
class is the President of the United States.
He will be taxed at the rate of per cent
on $4,000, representing his official salary.
minus the deduction OF $t,ooo ana at tne
same rate on his private income from
rents, Investments, etc, In addition. All
the members of the cabinet, Justices OF
the Supreme Court, the higher officers OF
the army and navy stationed in this city,
many of the federal bureau officers. the
District Commissioners, the members OF
the District judiciary, the Court OF Claims
and not a few subordinate officials, VINO,
by judicious investments, are in receipt OF
taxable incomes, are liable to the tax. Mem
bers of Congress are liable to the tax, but
the collection from them will probably be
made at their respective homes.
The Local Collector.
Collector Vandiver has already appointed
four of his five deputies and has assigned
one to the state of Delaware and the other
three to the state of Maryland. He fire.
quently runs over from his headquarters
at Baltimore and spends considerable time
in consultation with the officials of the
internal revenue bureau in regard to the
execution of the income tax law. His last
visit was day before yesterday. He was
questioned about the income tax collector
for the District of Columbia and said he
had not yet fully made up his mind with
respect to that appointment. He said he
was attending to that particular business
himself for the present and that all returns
made by residents of the District were
being forwarded direct to him unopened.
Although the time for making such returns
for the year 1894 has been extended until
April Is next, he had already received
quite number Of them. At his sugges-
tion, all returns from residents of his dis
trfct, filed at the Treasury Department,
have been forwarded to him at Baltimore,
and similar course has been followed in
entrusted
lar deputies in this city. He made no ex-
PLANTATION of his failure to assign an in
come tax collector to the District. but init
mated that he would make an appointment
of that kind in the course of a week or
two. According to his view of the case,
there is no, special necessity for haste in
the matter, inasmuch as Congress has ex-
tended the time for making returns.
Status of the Law.
The probabilities are that the United
States Supreme Court will pass upon the
test cases involving the constitutionality
of the income tax law, before April Is
next, up to which time returns for 1884
may be legally made. If the law shall be
declared unconstitutional and hence void,
there will. of course, be no occasion for
returning incomes. But until that point
is judicially determined 1t must be assum-
ed that the law is valid, and that 1t must
be complied with in every particular.
AS has been already stated in The Star,
there are two classes to this tax, the per-
sonal and the corporate income. In the
first, or personal class, tax is levied on
all incomes above $4,000. whether derived
from fixed salaries. professional fees,
profits in business, investments. gifts or
inheritances. The tax is 2 per cent on the
excess of $500 per annum For the cal
endar year 1894 the return must be made
by or before April 10, and the assessment
made thereon by the collector must be paid
on or before July l next. Every citizen of
the United States. whether at home or
abroad, and every person residing in the
United States, whether citizen or alien
having an income of more than $1,000, re-
CARELESS of its source, is subject to this
tax. Any person, neither citizen nor a
resident, deriving such an income from
property or Investments in the United
States, is also liable to the tax.
Although only incomes above $4,000 are
subject to the tax, every person whose in
come last year exceeded s., 500 is required
to make a return on or before April 10
next. Guardians, trustees. &C., are requr-
ed to return the incomes of minors and
others for whom they hold trust funds,
when such income exceeds $500 per an
mum.
Blank forms for returns are provided by
collectors of internal revenue for the va
ricus districts. Some persons may receive
these blank forms from the collector by
mail or messenger. but the failure of the
collector in this respect in no wise relieves
persons subject to the law from the pen
atty imposed III IdlliHs 10 make the pre-
scribed return. If they do not receive the
blank forms in the manner indicated it
is their duty to apply for them. There are
two forms, one for persons and the other
for corporations Each contains full in
structions as to the method of filling them
out.
Under the law if any person having a
returnable income willfully neglects or re-
fuses to make a return within the pre-
Scribed time or makes a willfuly false or
fraudulent return,the collector or his deputy
is authorized to make the return, according
to the best information he can obtain by
the examination of such person or any
fusal to make the proper return, the col
lector is directed to add a penalty of SO
per cent to the amount of the tax due and
in case of false or fraudulent return he
is required to assess a penalty of 100 per
cent. The law makes 1t a criminal Of
Tense for any official or other person to
diYulge informal ton about any inconna 70