The Washington times., 1913-11-16

. ness: (b) from fire, storm or shlpWrecE'
, and not compensated by insurance or
otherwise.
| (9 Debts due and found worthless
and charged off.
! t6 Reasonable allowance for wear
and tear of property. No deductions for
new buildings, permanent improvements
etc, increasing value of property.
| O Dividends received from corpora
/ tons which pay income tax.
tS Amount of income on which tax
is paid or withheld at its source: no de-
I duction Il (a) that income doesn't ex-
coed 5000; (b) that income is irregular
/ as to time or amount.
| tSD Interest on obligations of the Unit
cd states, a State or political subdivi-
sion of a State.
| United States; (b) Judges of the Fed
eral courts (c) officers and employees
of State or a political subdivision of
State, provided same is not paid by
! the United States Government
| G1) The sum of $4,000 per annum !;
Plus $1,000 for a married couple living
| together.
(Note: The above deductions are also
allowed in calculating net income for
! the additional tax. with the exceptions
the additional tax.)
| SOACSllOu al luc SOulCC.
The most conspicuous novelty in the
new law is its provision for deduction,
and payment of the tax at the source"
| This is outlined in the following para
graph of the chart
A. What Deduction at the Source Re-
quires-G) Persons and corporations
holding Gas 'source-holders) taxable
| funds payable 10 another. must deduct
and pay the normal tax thereon. (2)
The source-holder is personally liable
for such tax. (3) Only the normal tax
Of per cent is to be deducted. Any
| additional tax to be paid by payee. O
! No tax is deducted on dividends of COR
porations which pay the income tax.
B.. When the Tax Is to Be Deducted
at the Source-O Whenever the payee's
| income at that source exceeds 5000
| apart from dividends on stocks of cor
rorations which pay income taxi. C0
Where the income, even though less
than 5000 is from (a) Interest on bonds
mortgages, or deeds Of trust. or corpora
tions. domestic or foreign. (bp Interest
| from foreign bonds. (c) Dividends on
foreign corporations pr insurance COM
panies doing business in foreign coun-
tries
emotions and Allowances at the Source
l. The $500 exemption. To obtain ex-
emption on the ground that his entire
net income is under s. 900. payee must
file with sourceholder a notics claiming
this exemption. Notice to De filed at
least thirty days before return is due
2 The other deductions (see above).
The payee must file with sourcenolder
true return Of his income from all
sources and the deductions claimed. This
return to be part of the return made by
the sourceholder. 3. If the payee is a
miner or insane. or absent from the
United States, or unable by illness to
make such return, the sourceholder may
der oath that he has sufficient knowI-
edge Of payee's affairs.
Corporation Income Tax.
The special provisions applying to
taxes payable by insurance companies
and mines are not included in the
pamphlet. The general corporation in
come tax is. however, clearly outlined.
A. Amount of TaN-The normal tax
of / per cent only.
b. On What the Tax Is Assessed-(D
Domestic corporations: Entire net in
come. (2 Foreign corporations: Net
income accruing from business trans
acted and capital invested in the United
States.
c. What Is Net Income?-Gross in
come less: n) Expenses of maintenance
and operation, including rentals. (O
All losses not compensated by insurance
or otherwise. 90 Reasonable wear and
tear. "a Amount of interest paid on its
Indebtedness. (0 Sums paid for taxes
d. What Return Must Contain-O
Total amount of capital stock outstand-
ing. (2) Total amount of bonded or
other Indebtedness. 80 Gross income.
a. Deductions as above specified. (5i
Net income after making these de-
ductions.
L. BY whom report must be signed
l. BY president, vice president. or
other principal officer. and .. BY treas
urer or assistant treasurer. Return to
be under oath or affirmation.
Penalties for Violation.
The penalties for disobedience or eva
sion of the law are severe, and worthy
| of careful study by every citizen. The
| chart" sets these forth in this way:
A. For neglect or refusal to make re-
turn on time: ]. Individual-(a Fine
Not less than $50 or over 5000. (b)
There shall De added to the tax per
| cent of the amount thereof, and l per
cent per month from time 1t became
due. .. Corporations-(a) Ffne-Not OK
ceeding $4,000. Cb) There shall be added
to the tax per cent of the amount
thereof. and / per cent per month from
time it became due.
Il. For making a false or fraudulent
return: /. Individual or officer of a cor
t;pp-Eripa rnf axcaadiny inn