The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1909-10-04
First Statements Must Cover
The Calendar Year
Of 1909.
AN EXPLANATION is MADE
REVENUE BUREAU EXPLAINS
THIS SECTION AND REQUIRE
MENT OF THE NEW STATUTE
INQUIRIES ARE MADE.

Washington, Oct 4.-Many OF the
corporations chartered in Indiana do
not seem to understand that the new
corporation tax law is retroactive.
Letters of inquiry from them indicate
that they have an impression that the
first statement to be made by them to
the government Is to be based on the
business of 1910. While the act did
not become a law until August this
year, it goes back to January 1, so
that the first statements will have
to be for the full calendar year of
1909.
The returns to the internal revenue
collector must be made on or before
March 1, 1910. This means that a cor
poration will have the months of jan
uary and February to make up from
its books for the year 1909 the state
ment required. AS already noted in
these dispatches Il large number of
corporations are complaining of the
form which the statement must take.
It is asserted that rot one-half the cor
porations in the country keep books
from which the required report can be
made. The internal revenue bureau
will soon have it's rules and regula-
tons for the collection of the tax
ready for submission to the attorney
general, who, by direction of the presi-
dent, is to pass on them before they
go out to the internal revenue collec-
tors in the states.
Principal Features Explained.
For the information of corporations
the internal revenue bureau has pre-
pared a summary of the principal fea-
lures of the new tax law. It is as fol-
lows:
/. The law applies to every domes-
tic corporation, joint stock company
or association, organized for profit
and having capital stock or share
capital, and every insurance company;
also to every foreign corporation as
to business transacted and capital in
vested in any state or territory Of the
United States.
2. A tax of one per cent Il per
cent? Is imposed on the entire net in
come over and above $1,000 in each
calendar year. exclusive of dividends
received from corporations, etc., on
which the tax is imposed, beginning
with the year ending December 81,
1909.
8. On or before the first day of
March, next succeeding, and under
oath or affirmation of the president,
vice president or other principal Off
Ger, and the treasurer or assistant
treasurer, a return, covering the pre-.
ceding calendar year shall be made to
the collector of internal revenue for
the district in which the principal
place Of business or office is situated
in the form prescribed by the com.
missioner Of internal revenue. with
the approval of the secretary of the
treasury.
Indebtedness and Income.
This return, as provided for in Arti
Gle III of the act conforms to the
method prescribed in Article II for as
pertaining the net income and shall
contain the following Information:
(a) The total paid up capital stock
or share capital outstanding at the
close of the year.
(b) The total bonded and other in
debtedness at the close of the year.
Co The gross income received
from all sources during the year.
(D All dividends received within
the year On stock of corporation, etc.
subject to the same tax
(e) The total amount of all ordin
airy and necessary expenses actually
paid within the year out of the earn
ings, in the maintenance and oper
alton Of the business and property
stating separately all rent, franchise
and like payments required to be