Evening journal., 1909-12-15
GETTING READY
TO COLLECT TAX
Collectors Office Making Out
List Of Concerns in This
District

To enable the Government 70 collect
the new corporation tax. which goes
into effect the first Of the year. the
Office force of the Collector of Revnue
for Baltimore district is making out
lists of all the corporations in Mary
land. Delaware and the District of
Columbia. Some time before the first
of the year the collector will send
to all the corporations whose names
have been secured blank forms on
which they viii be required to state
information giving their net income
/ for the past year.
It was hoped that the blanks would
/ be out before this, but an inquiry at
the Government Printing Office elecit-
ed the information that they are yet
IN the hands of the printers. Since.
however, the orders from Washington
direct that they be sent out by Janu-
airy Il is expected that they will be
here I'm the course Of the next few
days,
Speaking this morning for the de-
partment plans for ascertaining the
/ amount and collecting the tax, II. c.
Dodson, OF Baltimore, who has charge
of the work for the district Internal
! Revenue Collector called attention 10
the fact that the sending out Of forms
was a courtesy on the part Of the de-
partment. and that the failure to re-
ecive such a form did not exempt any
corporation for the provisions of the
law.
"The act requires" said Mr. Dodson
"that a report giving all the informa-
tion which is considered needful be
sent TO the Government by March 1
In order to get this information into
form easily handled. and at the same
? time 10 assist the corporations, the
department is sending out thes,
blanks"
Franklin MacVeagh, Secretary Of the
, Treasury. has issued official instruc
, tions regarding the collection Of th'
corporation tax levied by Congress a
the special station last summer.
! While the object Of the law Is tn
collection Of a tax of per cent. OF
the profits above $1,000 Of all corpor
ations engaged in interstate and fore
ign commerce. Secretary MacVeagh'
orders show that the Government in
tends to exercise supervisory inspec
tion and authority over corporation
I which no state government has eve
g possessed.
- The tax will be collected by the In
o. ternational Revenue Bureau throug
/ its district collectors. There are NOR
h than 100000 corporations subject TO II
T 1.-THE term net income, says the Sec
retary. means not only net profits aris
ing from the operations Of the princi
II pal business of the corporation, but a
q items Of income received from othe
]. sources. such as investments. holding
n I'm other companies and businesses"
T. The term ''gross income" is defined I
include gross profits and embraces a
items Of income received by a corpoi
, alton from any source whatever.
The Secretary concludes by warnin
ivolators or evaders that they win
vigorously prosecuted.
"The Department feels that I'm dea
I ing with the Incorporated business
tho country, II is dealing with homes
men in the main" he adds. "HoV
ever. the regulations are sufficient
rigid TO restrain anyone who does nc
measure up TO the standard"
Applications for forms and regula
tions should be made TO the Interns
Revenue Collectors of the districts
Failure 10 receive the blanks or an
notice relative thereto will not excus
a corporation from making the retur
required by the law, nor will il reliv
It from penalties.