The Calhoun chronicle. [volume] (Grantsville, W. Va.) 1883-1984, 1913-11-13
Collector Hays Explains Income
Law

The Chronicle is in receipt of a
letter from Collector of Internal
Revenue S. A. Hays which fully
explains the new income tax law
which is now in effect.
The Letter is a.. ful!owp:
The New Income Tx Law,
known a. Sec. 2 If the Act of
October Bird. 1913. is now a law.
and a great deal OF miaunder-
standing exists as to it's provi-
sions.
Every person residing in West
Virginia who has net income
over and above the legitimate ex-
penses of his business mot fam
lily expenses) of $4,000, 90 or over.
must make return to the Col
lector Of Internal Revenue on or
before Marci 1. 1914, for te +,
months of the year from March
LIST, TO December 3lst. 1913.
The first return covers ten
months, or from March LIST. to
December 3ist. 1913, and per-
sons are only entil led to Sc of
their exemptions OF $4,000 or
$500, 90 and other deductions for
depreciation, interest, etc., or
the expenses must be confined to
the ten months for which the re-
turn is made. If the party max
ing the return is a married man
or woman living with his wife or
her husband, he or she is entitled
to an additional exemption of
$1,000. 90 or 1888, 33 for the ten
months.
All persons having knowledge
that they are liable for this tax,
must write to Collector S. A.
Hays at Parkersburg, w. Va. for
blanks in time to make their re-
turns before March LIST, 1914.
The law also provides that af-
ter November 1, 1913, any per-
son, firm or corporation having
control of or the payment of sal
aries or of funds, except divi-
dends, shall deduct and hold the
government tax owed by them 70
any person over $4,000. 90 or Sc
thereof for the first ten months,
unless a certificate is filed with
them. showing the person to
whom said income is due and pay
able is exempt from the payment
of the tax. An additional tax is
also required under the Act of
per cent on income from $40, 600,
90 to $50, 600, 90 and additional
rates for larger incomes. The
normal tax of / per cent from
dividends of corporations will be
included in and paid by the cor
poration making its return as
such, but these dividends must
be considered and reported by
the individual in making up his
returns from any additional tax
if his income is over $50. 900.
The law also provides for the
retention at its source of the
normal tax of l per cent on all
collections of interest maturing
on bonds. mortgages. deeds OF
trust or similar obligations, al.
though the amount of such inter
est does not exceed $4,000, 90 un-
less there is filed with the cou.
pons for collection a certificate
by the owner or some one author.
lzed by him showing his exemp.
tons from the tax. These Ger.
tificates or forms may be secured
from the collector.
The provisions of the law as t.
the retention Of the tax due the
government at its source goes in.
to effect November 1st, 1913
Parties should write to the Col.
lector for information concerning
these provisions.
The Corporation Tax Law was
also modified by this Act, so thai
corporations after March LIST
1913, pay on their entire net in
come, without any exemption
All corporations, therefore, viii
make but one return for 1913
but for the first two months un
der the old law, and they will b,