The farmer and mechanic. [volume] (Raleigh, N.C.) 18??-19??, 1913-11-04

FIGHTS IN THU COURTS.
Feared by Some. But Treasury Depart.
ment l. Not Concerned "a 10 That.
Washington. Oct. 3i.-Since the al
m~lnIstration began framing al IN
coEe tax law, the talk has gon. the
rounds IN Washington that [ would
lead TO many tights IN the courts. hut
with law suits the treasury depart
ment has little concern. II j. not
Looking for them. its business is to 20
out and get the money.
Officials believe that the regulations
they nave put out are framed not with
an idea Of causing trouble 10 thos.
who must pay, but in the only way
they could be framed to safeguard
the Governments interest.
The So, 900 Taxpayers Need Not Worry
The man in the street who knows
he makes more than $4,000 a year and
who is practically responsible for MS
share of the tax does not need to be-
gin worrying about his payment Tor
the present. The operation of the law
tomorrow affects only banks. corpo.
rations and others responsible for pay
1nent on bonds. mortgages. salaries.
| etc. For such part as they are hound
by the law they must withhold las
the source The amounts So With
held are not payable Immediately -
the ~reaSury and the money from the
tax Will not begin flowing into the
treasury department for many
months. The tax for 1913 IS 10 lee
collected from March /, shortly after
the constitutional amendment was rat
fled until December 81. Withholding
agents, however. u begin deductIug
the normal tax Of one per cent at
the source tomorrow Withholding Z
for November and December. wItA
certain exceptions. The individual re-
porting upon his own income Of more
than $4,000 q year makes ms return
to the collector Of internal revenue n
his district next March.
Further Regulations Issued.
The treasury department. tonight -
sued further regulations affecting col
iectionS at the source Of income. IS
synopsis follows.
Normal tax OF one per cent Is to -
withheld at the source where tAc y
come originates.
All persons, firms. organizations,
etc, having the receipt custody. DIS
posaI or payment OF any annual n
come, profits or gains, are required
to withhold tax except as exempt =
law.
The following income is exempt
from normal a of one per cent b.-
ing at sources.
"Dividends on capital stock or from
the net earnings Of corporations and
like organizations that pay the nor
nal tax Of n per cent on It's ret m.
come.
In come of individuals which = no.
fixed or certain. such as income 81
farmers. merchants. agents ompen
stated on commission basis, lawyers
doctors. authors, inventors ana oth.#
professional persons, with no hxed al
nual income.
A. 10 Requests.
l.. The value of property acquired
! by gift, beduest OF descent.
: Interest upon the obligations ~ ~.
j United States or It's possessions or
! state or any political SUBDIVISION
2 thereof. Salary Of President ant
Federal Judges.
THE normal tax l. not to- be with
= held until UGH time a. tho total pas
uients of an annual income @N'e"d
! $4,000. then the tax is required 10 +
withheld on the amounts ~ ~" .ots
payments unless claim for eS'HH i"
Is fled with withholding agent
u Persons liable for personal TAX
: OF percent may claim from WI
holding agent or collector Il fnteFns
Revenue. benefit Of : ~dedu"flon
: taxes. interest and other items FIG rrs
I V.ded BY law.
q withholding agent X not require
z 10 withhold the normal ta1 II ore Is
I. cent anil on or after NGAenirr
le and then only on amounts acCrutn
e on and after November ]. 1913 whe
l. in excess OF $4,000.
K. Persons subject to th- nrrrnai -
u of one per cent NJ absent fTo!
8 he United States or PHYSICALLY unab
10 make returns required ~ "a. ina
= under certain conditions. aIyotr
agents 10 act for them.
THE penalty for false or fraud.
= lert return or statement with tnter
IL to defeat or exafe tn. tax - = -
- # not exceeding 81 GOO az impri~'
p.ur no ex..e6Tg ore X-@f. ~ f.tf