The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1913-10-18
MR.. HULL EXPLAINS
INCOME TAX LAW
Tennessee Representative, Au-
thor OF Measure, Tells How 1t
Will Be Worked.
MANY AFTER INFORMATION
Taxable Persons Will Be Fur
nished With Blanks; il Not,
Must Apply for Them.
Especial to The Times Dispatch.

Washington. October 17.-The in
como tax law, as just passed by Con-
gress, is the thilfG, that is attracting
much attention all over the country at
the present time. Those who will be
out for information as to just how and
when they must meet Uncle Sans re-
uuirements.
To-day Congressman Hull. OF Ten
ressee, the author of the new pro-
vision. was asked for u statement of the
measure, and he said:
Under the new income tax law every
citizen whose net income exceeds So
900 will be required to pay n normal tax
OF per cent upon such excess. How
ever. for the year 1913. the tax will be
met by the net income accrung from
March 81 to December 81.
Applies Since March I.
The taxpayer whose annual net in
come exceeds $4,000 for the year 1918.
Will, therefore, only be taxed on that
portion of the same accruing from
March 1 TO December 81 in excess of
$4,000 for an individual and s3,333.33
for married persons. The normal tax
Of l per cent applies from the lowest
to the highest taxable income. Each
taxable person will be furnished a
blank return by the district collector
or the deputy which ouch taxpayer
will be required to fill out and return
to the Office Of the collector Of the dis
trict in which he resides between Jam
uary l and March l. 1914.
If any taxpayer should fail to receive
such blank he will be required. under
penalty, to apply to collector or
deputy for IA blank return. Blanks
will probably be on deposit with most
postmastcrs for the convenience OF the
taxpayer.
The Treasury regulations soon TO be
prepared will make clear to every tax
payer the requirements of the law and
Its application to income derived from
the various kinds of business. Any
person who keeps familiar with his
businesses affairs during the year to
the extent that at it's end he knows
with reasonable accuracy the amount
of his aggregate annual profits. the
matter Of executing his tax return
would he both simple and convenient.
Exemption of $4,000 Allowed.
The statutory exemption Of $4,000
is allowed for personal living or fam
lily expenses; however, this and other
gross income. for which special dcduc-
lions are allowed by law, must be en-
brace!i in the return OF gross income,
and the commissioner OF internal reve-
nue. viii make these deductions when
he assesses ana computes the tax. Each
taxpayer will he notified of the amount
of tax du" by June !. 1914, and Will
he required TO make payment by June
50 1911.
The normal tax upon individuals is
assessed and collected by either one
or both OF two methods. namely.--per-
sonal return of the taxpayer, and de-
duction ant payment at the source Of
the income. For the year 1913 all
such Individual taxpayers Will make
Il personal return of income 20" the
purpose Of the assessment ard pay
m"nt OF the tax. except as TO mat por-
tion OF the income from which the
tax Is deducted and withheld ut the
source during the months of Novem-
Der and DeccmOer, 1913.
This method OF assessing and col
lecting the tax only relates 70 fixed
annual or periodical incomes exceed
ing $4,000 per annum, such rs fixed
annual or periodical interest, salaries.
rent. royalties. partnership profits. etc.
Under the provisions of the law, this
method requiring tax to be withheld
at the source. does not take effect un-
til November |. The tax withheld up
on any amount OF taxable income dur
ing November or December will only
be | per cent of such income exceed
ing $4,000.
Corporation to Withhold Tax.
This method of Withholding the tax
upon income IN excess of $4,000, con-
tain some exception, which relates TO
interest on coupon bonds anu other
like Indebtedness. but ii does not en-
brace interest paid by banks TO de-
positors or int crest upon notes or other
like obligations unsecured by mort
gage or deed of trust. The per cent
tax upon such interest accruing to all
individual bondholders will be with
held by the debtor corporation or it's
paying agent and paid to the govern
mcnt. althouSh an individuals income
is under $4,000
IF the income OF n person is under
$4,000. Of If tho tax upon same is with
held for payment ut the source. OF ii
the same is paid elsewhere in the
United states, such person may make
affidavit to such fact. and thereupon
no return VIII be required. However,
this does not mean that all people will
thus have to make affidavit; only those
whom the collector or his deputy upon
reasonable g:oundS might believe were
subject to tax would make affidavit"
c(,