Evening star., 1913-11-19
Not Considered Exemption.

Deen IlVlng III single bleSSedneSS.
Not Considered Exemption.
The income tax law provides that IL is
unnecessary for individuals receiving
incomes of less than S3.OD to make any
returns. This is not regarded by inter
prefers of the law as exemption; exemp-
ton. IN their opinion. is given only to
taxpayers Individuals with these in
comes of less than $500 are considered
merely as immune
Regulations have been adopted provid-
ihs that $1,000 exemption can be claim
Cd by either husband or wife on their
JOINT incomes, or apportIoned between
them. Both cannot claim it. This is a
construct on that would make an eXemp-
tion of only $4.UO0-to take a possible in
stance-in a family where the husband
and wife both receive over $1,000 income
But. If the law does not require returns
on individual incomes of less than 5000,
a married man in receipt of less than
that amount, and his wife, if her income
came short of tit would seem-would
not De required to make. returns, and
would be immune from tax, although
their joint incomes were nearly $1,000.
III man received more than $1,000 and
less than $4,000 and his wife received an
income of less than 5000 would she be
exempted from making return. and
could the husband claim the exemptiOn of
$1,000 allowed by the regulations to one
oil the members of a matrimonial CO.
partnership by the regulations already
promulgated?
Ii these are affirmative propositions,
how incOnsistently, it is pointed out the
impost would be imposed in the case
wnere wife and husband each receive
more than $1,000 income and are required
10 make returns. Where they do not
have to make returns there is an i'm
munity, under this possible application o:
the impost. of something short of $4,000
Should husband be able to claim the
Si.GD exemption on that much income.
and his wife. with nearly a s., 900 income.
not be required to make return there
would be family income of 81 600 free
of tax Yet If the individual incomes
oI man and wife were each above $3,1OJ,
ard the return made necessary, then on
the joint incomes only $4,000 exemption
could be claimed. tax being asses ssed
against all the balance of their receipts.
May Go to Attorney General.
Unable to find any way to discover
the spirit of Congress in framing the
law. the interpreters who are devising
the regulations are inclined to apply
the impost in just this way, despite tine
seeming irreconciliabilities. But this
has not yet been determined. 1t may
be that the Attorney General will be
burdened with the task of solving the
riddle.
Employers of actors are also putting
up an income tax problem. Many
actors are In receipt of salaries con-
tingent upon the success of a play and
its continuance on the road Should
the play fail and presentation be sus-
pended the actor will be out of a job
unless he is fortunately transferred to
another company under the same man
agement
;cH L.
must withhold the income tax. as at
the source. when such salaries reach
more than $4,000. The regulations will
probably define these salaries as indie
terminate. and therefore to be collected
from the individual. This would re-
! lieve the management of the RESPONSE
bility.
Real estate agents have been general
| ly advised by the income tax division
| that they need not concern themselves
with rentals passing through their
| hands When rents exceed $4,000 d
year the tenant will be expected to
/ withhold the tax at the source. Other
| wise the landlord as an individual will
/ be expected to make his own returns.
/ In the case of foreign realty owners
/ real estate agent will be allowed &c
| make his return and claim exemp
tions on power of attorney to act for
such foreign resident.
/ Where corporations have assumed pay
/ ment of all taxes to be levied on div
i dendS the income tax collection division
| will look to the corporation for paymen
| Of the impost II has been limited tina
! some corporations. which have sue!
agreements in their bonds. are incline'
| to regard the income tax as not comm;
| under the provision and disposed to re
quire the bondholder to pay the tax
This does not concern the tax collectors
the corporation must collect at the Sourc
| or pay as individual The quarrel is be
! tween the corporation management an
1 the bondholders, who must settle il else
where than in the internal reven,i
bureau.
Conference With Bankers.
Representatives of New York bank
ing houses conferred yesterday wit
Assistant Secretary Of the Treasur,
Williams, Commissioner OF InterHa
| Revenue Osborn and Deputy Commits
| sioner Speer in charge Of the incom
tax, on the best methods Of procedur
in the case of aliens living abroad wh
hold investments in American securi
ties.
Such aliens are exempt from the ia,
but the methods by which corporation
and banks may refrain from withhold
ing the one per cent normal tax at tn
source have not been determined
Representatives of J. r. Morgan G. co.
Brown Brothers & Co.. the National Cit
Bank Redmond & Co.. the Banl. .
Go. We're present at the conference Di