Ottumwa tri-weekly courier. [volume] (Ottumwa, Iowa) 1903-1916, 1913-11-29


on questions regarding the income
1913. What part of this should B re
turn as income for 1913?
A-None.
Q-As payment for services rem
dered my client gave me some shares
of stock. Is this stock to be consid
cred taxable income?
! A.-The stock you received in lier
of cash for professional services is
taxable income. The value of the
stock, if bank stock, is it's book
value; if of another corporation, the
value in the last bona fide sale.
| Q.-Our corporation pays an in.
come tax on it's net earnings. Must
we withhold the tax on dividends
also?
A.-No. Your corporation paying
/ the income tax will not withhold any
amount on dividends to stockholders.
Only wife died in October. On
July 1 she received as interest $4,000
which she controlled and managed
herself. Should this amount be re-
turned by me as part Of aggregate in
come of husband and wife?
A.-Since you are not allowed the
additional exemption of $1,000, now
that you are a widower, you will only
make return Of your own income. The
$4,000 above referred to will in the
hands of the executor be administered
according to law.
Q.--Does each individual have to
make return of his income, under
oath, and if so, does the government
furnish the blanks?
A.-The law requires everyone hay
ing net income of $4,000 per annum
to make return under oath or affirma-
ton. The collector will furnish the
blanks later; he has none on hand
now.
is necessary for us to have license
to collect foreign coupons. If this is
correct please advise how to proceed.
A.-You should address to the col
lector of your district a formal letter
applying for license for the col
lection of foreign coupons; acknowl-
edgement of receipt of your request
will be your authority for making
these collections. The license will be
issued later on, when the amount Of
the bond, if any, will be determined.
OIL am in full charge of the prop
erty of another, collecting rents, look
ing after repairs and renting every
month the net amount to the owner.
Am l to be considered the source of
the income Of my client, and must l
withhold the tax, and when?
A.-Being in full charge Of the
property, in trustee relation. you are
the source and will withhold the tax
on all income paid to your clienr
above $4,000 unless he files certifl-
cate of exemption. For this year you
will withhold the tax only If such IN
come exceeds $4,000 for the months
Of November and December.
Q-When must money withheld as
income tax by a Withholding agen,
be sent to the collector?
A.-The collector is not advised on
this point. but expects ruling from
the department any day.
OIL collect rent for another I
also attend to repairs and taxes. Am
I the source and must I deduct the
tax?
A-The renter, and not you, is the
source He deducts the tax when he
pays rent in excess Of $4,000. The |;
owner of the property in making his !:
return makes his own deductions t
such as taxes, repairs, etc. |
GA left this country twenty !
years ago and engaged in the manu-
featuring business in England. He
has been back only once and that TO"
he purpose of renewing his Amer
an citizenship. Is he subject to the
income tax on his foreign as we'll as
domestic income?
Al If he is an american citizen
lis entire income is subject to the
AN trc same as that of any other
t!Her can citizen.
Q.-When and how will the collet-
ion of the income tax be made?
A--Returns must be made not
alter than March l Of each year Oil
blanks furnished the collector of in.
ernal revenue. You will later be mott
led of the amount Of your assess
nent and payment must be made to
he collector not later than June 80.
Q.-Does the law presume that an
agent should know whether or not the
person to whom he is paying rentals
,r interest is subject to the tax?
A-No. The agent, when he is the
is required to withhold
he tax when his payments to one
person exceed $4,000 single year.
That is the extent of his liability.