The Fargo forum and daily republican. [volume] (Fargo, N.D.) 1894-1957, 1913-11-06

Continued From Page One.
n not to be envied. No one in the
treasury department believes that the
regulations so far formulated are alb
solutely perfect, but they will stand
until some one roves that they should
be changed.
May Lead to Suits.
1t is believed in Washington that
the income tax will LEAD to many
fights in the courts. With the law
suits the treasury department has lit
tie concern. 1t is not looking for them,
its business is to go u and get the
money and that Is what it is trying to
do. Officials believe the regulations
they have put out are framed not with
an idea Of causing trouble to those
who must pay, but in the only way
they could be framed to safeguard
the governments interest.
The operation of the law affects
only banks, corporations and others
responsible for payment on bonds
mortgages, salaries, etc. For
such part as they are bound by the
law they must withhold cat. the
source" The amounts so withheld
are not payable Immediately to the
treasury and the money from the tax
will not begin flowing into the treas
ury vaults for many months. The tax
for 1913 Is to be collected from March
l, shortly after the constitutional
amendment was ratified, until Dec. 81
Withholding agents, however, must
begin deducting the normal tax Of ]
per cent at the source tomorrow,
withholding it for November n De-
cember, with certain exceptions. The
individual reporting upon his w ina
come Of more than $4,000 a yea makes
his return to the collector of internal
revenue in his district next March.
The Regulations in Full.
Here is the full official report:
Synopsis OF regulations, requiring
normal income tax of l per cent of in.
dividuals to be withheld at source:
Normal tax of l per cent is to be
withheld at the source where the in
come originates,
All persons, firms, organizations, etc.
having the receipt, custody; deposit or
payment of any anual income, profits
or gains, are required to withhold tax
except when exempt by law.
The following income is exempt from
normal tax of 1 per cent being with
held at source: IT,.
the net earnings of corporations ano
like organizations that pay normal tas
Of 1 per cent on it's net income.
Proceeds from life insurance con-
ITdCIS, S&C6pL ANNUAL EcSL pay -
in excess of $4,000.
Income Of individuals which is no.
fixed or certain, such as income OF
farmers, merchants, agents compen'
doctors, authors, inventors and other
professional persons, with no fxed an
nual income.
The value Of property acquired BY
gift, bequest or descent.
Interest upon the obligations OF TIT
United States or it's possessions, or {
state or any political subdivision Their,
Of. Salary of president and federa
county or municipality, including sala'
ries of public school teachers. =.
Agents and trustees relieved IRON
Withholding the normal tax OF l pc
cent under certain conditions.
Personal exemption of $4,000 n 7,
man and wife living together S4'ooo
This exemption for the year 1913, 10
single person is $2,500 n to q ma
and wife living together $3,333,83.
The normal tax not to be withhelt
until such time as the total paymenLi
of an annual income exceeds Ss:Qo'
then the tax is required to pc with
ments, unless claim for exemption !
filed with holding agent.
Persons liable for the normal tax Q
1 per cent may claim from withholding
benefit Of a deduction of taxes, interes
and other items as provided by law.
Withholding agent not required 7
withhold the normal tax of l per cen
on amounts accruing on and afte
Nov. 1888, when in excess of $4,000.
Persons subject to the normal tax 9
!. per cent when absent from the Unite
States. or physically unable to max
returns required by law, may, unde
certain conditions, appoint agents 7
act for them.
Penalty for false or fraudulent re
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