Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1913-10-02
PREPARED FOR A FLOOD OF
QUESTIONS ON INCOME TAX

Washington, Sept. o9.-The treasury de-
partment Is preparing for flood of ques-
tons about the new income tax. realiz-
Ing that this feature of the tariff bill
mately at the tax-paying citizen than do
the indirect taxes collected through the
customs duties.
One of the first steps taken to get gen.
eral information before the public will
be to distribute income tax blanks
through postoffices. internal revenue of
fees and other federal agencies. How
ever, the fact that he does not receive
a blank or a request to pay the tax will
not exempt a taxable person from the
penalties of the law.
Representative Cordell Hull of Tonnes
see. who drew the income tax provision
of the tariff bill which will soon become
law, made public to-day a detailed ex-
PLANTATION of the tax plan as it will touc.
the individual citizen.
The treasury regulations soon to be
prepared will make clear to every tax
payer the requirements of the law and
its application to income derived from
the various kinds of business" said Mr..
Hun. Any person who keeps familiar
with his business affairs during the year
should have no difficulty in executing his
tax return.
The income tax is divided into two
phases, the normal tax of one per cent.
on the whole income above three thou
sand dollars, and the additional tax that
,i+l,
$4,000 and is graduated to six per cent.
above 100000 Wherever the income tax
is paid at the source by a corpora ton
for its employees or in similar cases, only
the one per cent. normal tax Is so paid.
The individual has to pay any additional
tax himself, The provisions of the law
requiring the tax to be withheld at the
source does not take effect until Novem-
Der |, 1913.
For the first year the citizen will
make return to the local internal rev
enue collector before March l. 1914, as
to his earnings from March, 1913, to
the end of this year The collector
will notify him June how much he
owes and the tax must be paid by
June 80. After next year the tax will
apply on the full calendar year.
III the income of a person is under
$4,000 or If the tax on same is with
held for payment at the source, or If
the same is to be paid elsewhere in
the United States, affidavit may be
made to such fact and thereupon no
return will be required
The tax covers all incomes of citi-
zens of the United States whether liv-
ing here or abroad; those of foreign
ers living in the United States AMI the
net incomes from property owned or
business carried on In the United
States by persons living abroad
THE net income includes all income
from salaries or any compensation for
personal services; incomes from trades,
the. professions, business or commerce;
from sales or dealings in personal prop
erty or real estate; from interest, rent,
dividends and securities; from all lawful
business carried on for gain
Gifts or requests will not be consd-
cred income; nor will life insurance paid
to beneficiary or returned to the in
sured person as paid up or sur
rendered policy be taxable Interest on
such property will be included as in
come, however
l'pNeNei' tne amount mat may be de-
Quoted from total income includes the
cost of carrying on business, actual
losses, depreciation allowances and tax
exempt or tax paid money Living cx-
pcnses cannot be deducted nor can money
spent for permanent improvements to
property
THE form that is to be filled out by
the taxpayer Will be drawn up soon by
the commissioner of internal revenue. The
payer will have to give his gross revenue;
and then specify and claim the deduc-
tions to which he feels entitled Unless a
mans income tax is paid at the source