The Telegraph-courier. [volume] (Kenosha, Wis.) 1888-1946, 1912-03-07
GET SALARY OF EMPLOYEES
Corporations Will Have TO Make De-
tailed Reports of Everything Con-
rected With the Business That
Brings Money Into the Company.

lions in Kenosha this morning all re-
ceived from the state tax commission
the blanks to be used IN making up a
report for the assessment of incomes
under the new law ard in every cor
poration office in The city these blanks
ale being studied with view of Civ
ing the managers a better understands
ing of the law for while volumes have
been published in regard to the In
come tax law few people seem to have
a clear understanding of it. The re-
port to the state commission must be
made on or before the first day Of
April so that all reports can be made
up by the managers of the corporations
during the month Of March. In con-
nection with the statement Of the in
come of the corporation is statement
Of salaries paid to employees and this
must be sent to the commission on or
before the first day of March. On &C,
count Of the delay in getting out the
blanks to some of the corporations it
will be almost impossible for some
people to comply with this portion of
the law.
In the instruction TO the corporations
the commissioners say:
/. Computations In ascertaining
the amount of tax due from corpora
lions deriving income both from within
and without the state, the following
computations are necessary:
First, Ito determine proportion of
income taxable in Wisconsin,.
(a) Ascertain total net income with
in and without the state by subtract
ing the sum Of the deductions from
the total gross income.
20 The income received from rem
tails, stocks, bonds, securities or other
evidences of indebtedness is taxable
whether derived from sources within
or without the state, and the amount
of such income should therefore be as
certained and deducted from the total
net income (a). The remainder with
constitute apportionable net income.
The ratio or fraction obtained in the
above apportionment may also be used
by the corporation in connection with
its bonded indebtedness to ascertain
the portion Of the interest on the
bonds assessable to the bondholders
collectively.
Second, The computation necessary
TO determine the rate DE tax consists
in ascertaining the proportion which
tho taxable income bears to the total
assessed value OF the property used
and employed in the acquisition of
such income. If it is obvious that the
taxable income exceeds II per cent of
the assessed value of such property,
tho assessed value need not be stated.
But if it is claimed that the taxable
income is less than u per cent of the
assessed value of the property, and
that therefore rate of less than 6
per cent should be adopted, then the
assessed value Of the property used in
the acquisition Of the taxable income
should be given so that the computa-
tion may be verified by the tax com
mission. Under such circumstances
the rate will be determined as follows:
(a) Take the assessed value of
stocks, bonds, securities, or other evil
dences Of indebtedness and of proper
ty yielding rentals, whether within or
without the state.
(b) To this amount add the assessed
value of all property within the state
Of Wisconsin used in making the in
come.
(c) Dividing the total taxable net
income by the sum thus obtained (b),
win give the percentage which the
taxable income bears to the assessed
value of the property used and en-
pROyed in its acquisition.
Third. If the income of the corpora
tion is derived from different taxing
districts in the state, a computation
may become necessary to ascertain
what proportion of the tax should be
allotted to the respective localities.
The computation will be made by the
tax commission, but the net income de-
rived from each locality should be
stated, if the books Of the corporation
are kept in such form that this can
be done. If not, a statement should
be furnished showing the value of the
property located and the amount of
business transacted within each taxing
district, and the amount assignable to
each district will be determined in ac-
cordance with plan similar to that
set forth in the first computation
above.
2. Filling Out Returns.
(a) Read the return through before
answering any questions.
(b) Ill returns must be filed out
with ink or typewriter.
60 Two returns are SEM. to each