Perrysburg journal. (Perrysburg, Wood Co., O. [Ohio]) 186?-1965, 1913-11-07
INCOME TAX IS
NOW effective
Set Of Regulations Issued by
Treasury Department.
SEVERAL POINTS EXPLAINED
Penalty for False or Fraudulent Re-
turn or Statement With Intent
to Evade Law ls Fine
or Imprisonment.

Washington, %. C.-The treasury
department has just issued another
set of regulations governing the ad-
ministration of the income tax feature
of the new tariff bill. which became
effective Nov. l.. These new rules de-
fine the position of the individual in
relation to Withholding the normal
tax of per cent at the source, sup
plementing regulations already made
public defining the duties of corporate
interests and banks under the new
measure.
Normal Tax Explained.
The treasury department points out
that The personal exemption Of a single
man or woman for 1918 will be $4,000
and man and wife living together
1888 49, instead of 50, 900 and $4,000 re-
spectively, provided by the law as eX-
emptions in normal years. This reduc-
tion was made because of provision In
the Underwood Simmons tariff bill max
ing incomes taxable from March to
Dec. 81, 1918.
These liable under the supplementary
regulations for Withholding the normal
tax of l per cent at the source include
all persons, firms, organizations, ETC.,
having the receipt custody, disposal or
or gains except those exempted by law.
The normal tax, 1t Is explained, Is not
to be withheld until such time as the
total annual payments of an annual In
come exceeds $4,000. Then the tax is
required to be withheld on the amounts
of the total payments, unless claim OF
exemption is filed with holding agents.
Collectors of the income tax are advised
that the holding agent is not required TO
withhold the normal tax of / per cent
until on or after Nov /, and then only
on amounts accruing on and after Nov.
/, 1913, when in excess of the stated
exemptions.
All cases where the person whose in
come is subject to tax Is in reality eX-
empt under provisions of the law may
claim such exemption from the with
holding agent or collector of internal
revenue. Persons subject to the normal
tax of / per cent when absent from the
United States or physically unable to
make returns required by law may under
certain conditions appoint agents to act
for them.
The penalty for false or fraudulent re-
turn or statement with intent to defeat
or evade the income tax is a fine not eX
ceeding $4,000 or Imprisonment not eA
ceedng one year, or both, at the dis
cretion of the court, with costs of prose-
cution.
Exempt From One Per Cent.
The following income is exempt from
the normal tax of per cent being with
held at the source:
Dividends on capital stock or from the
net earnings of corporations and like
organizations that pay the normal tax
of ! per cent on its net income.
Proceeds from life insurance contracts,
except annual interest payments in eX-
cess of SO, 600.
Income of individuals which is not fixed
or certain, such as income of farmers,
merchants, agents compensation on COM
mission basis, lawyers, doctors, authors,
investors and other professional persons
with no fixed annual income.
The value of property acquired by
gift, bequest or descent.
Interest upon the obligations of the
United States or its possessions or
state or any political subdivision there
Of Salary of president and federal
judges. All salaries paid by a state,
county or municipality, including sala
ries of public school teachers.
Agents and trustees relieved from
Withholding the normal tax of l per cent
under certain conditions.