Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1913-11-03
SUCH RECEIPTS TO BE
DEDUCTED FROM TOTAL
Persons With varins Incomes 60 Make
Returns Individually - All Public
Officials, Of States or any ewbdivI-
vision Thereof Exempt-othsrs Who
Are Not Subject to Provisions.

come derived from interest upon bonds
and mortgages or deeds Of trust, or
other similar obligations Of corpora
citation and insurance companies, I'M
der the provisions Of section Of the
income tax law.
! The regulations in full are as fol-
lows:
| The source" in these regulations
shall be construed as referring to the
place where the income originates.
BY Whom Withheld.
All persons, firms. ETC., mentioned in
paragraph e Of this law, hereinafter
referred to as withholding agents.
namely. co-partnerships, companies,
corporations. joint stock companies or
| associations, insurance companies in
whatever capacity acting, including
lessees, mortgagors Of real or personal
property. trustees acting In any trust
capacity. executors. administrators,
ployers, and all officers and employees
Of the United States having the con-
troll, receipt, custody. disposal or paw
ment Of interest Except income de-
rived from interest upon bonds and
similar obligations Of corporations
upon which the normal tax Of per
cent has otherwise been withheld at
the source, as provided by these regu-
lations), rent, salaries. wages. royalties.
taxable anruities. emoluments or other
fixed or determinable gains. profits and
income Of another person exceeding
$4,000 for any taxable year, except as
hereinafter provided-shau deduct and
withhold from suoh annual gains,
profits and income such sum as Will
be sufficient, 20 pay the normal tax OF
1 per cent imposed thereon by section
Of this act. and shall make lawful re-
turn and pay the taxes 50 withheld to
the collector Of internal revenue Tor
the district In which said withholding
agents resides or has his. her or Its
principal place Of business.
The normal tax Of per cent shall
be thus withheld from all income de-
rived from fixed annual periodical rent
of realty or personally, interest lex
cept, as herein otherwise provided).
salaries, royalties, taxable annuities
and other fixed periodical income ex-
ceeding $4,000.
Itsms Not Subject.
Items upon which tax is not to be
withheld at the source'
l. Dividends on capital stock or
from the net earnings Of corporations
and Joint stock companies or associ-
ations and insurance companies. sub
ject to like tax, when said withholding
agents are required to make and render
a return In behalf Of another. a. pro-
vided herein. TO the collector Of his, her
or Its district.
4. Proceeds Of life insurance policies
paid upon the death Of the person in
sursd. or payments made by or credited
to the insured on life insurance. en-
dowmsnt or annuity contracts. upon
the return thereof to the injured at
the maturity OF the term mentioned IN
the contract, OF upon the surrender OF
contract, all Of which shall not be In
cluded ~ income under this law-but
this shall not be construed to exempt
said insurance companies from with
holding and paying the nosmai ta1 OF
/ Der cent on interest income paid by
insurance companies to bensnoiaF1es
Of policies when said interest exceeds
$4,000.
Return Own Varying Income.
4. Income Of an individual which ID
not nxed or certain and payable at
sttaed periods or - indefinite or irreg.
ular az to the amount or time Of ac-
crual. shall not be withheld at the
source, but shall be returned and the
tax shall be paid thereon by the indi-
vidual,
Income derived from the following
professions ana vocations come under
this head: Farmers, merchants agents
compensated on the commission basis,
LAWYERS, doctors, authorA inventors
and other professional persons. Such
persons shall make personal return OF
all their income. provided their total
income from all sources exceeds $4,000.
For example: When q lawyer re-
ceives q retainer Of $1,000 as a special
fee q deduction thesefrom shall not be
made by the payer, but when lawyer
receives q retainer Of $4,000 per an
mum and the exemption claimed Is
5000, $1,000 OF such income would be
taxed ana the tax retained at The
source, or II his exemption claimed
should be $4,000. $1,000 Of such income
would be taxed and tho tax withheld
at the source.
I. The value OF property acquired
by gift. bequest devise or descent.
Public offioials Exempt
5. Interest upon the obligation OF
state or any POLITICAL SUBDIVISION tAeEe-
Of, ana upon the obligations OF the
United States Of it, possessions; also
tho compensation Of the present Pres
ident of the United States during the
term for which he has been elected and
Of the judges Of the supreme courts OF
the United States now in office. and
the compensation Of all affairs and
employees OF a state or any political
subdivision thereof, paid by q state or
any political subdivision thereof, ex-
cept when suoh compensation Is paid
by the United States government.
This exempts from the income tax all
salaries paid to an individual by state
or any political subdivision theret.:
this would include salaries of state.
county and municipal officers, inciud-
ing the salaries Of public school teach
ers and special compensation paid by
states or subdivisions thereof for pro-
fessional services, whether in the shape
of salaries OF special fees.
Withheld But Once.
The normal tax Of 1 per cent shall
be deducted and withheld at the source.