Evening star., 1913-11-01
Presents Many Problems.

Collection OF the tax by government
winch has TO initiate its operation and
has no experience will tax the mental re-
sources OF the officials who have this
dutS in charge. Thousands of complica-
tions, some forescen and others not to be
guessed at. will provide years of work in
Interpretation by the controller of the
Treasury and the federal courts.
Ever since President Wilson signed the
tariff bill. with its income tax provision
carly I'm the present month. the machinery
of the Treasury Department has been at
work upon the regulations that are to
govern the collection of the tax. 1t has
been a task that has kept Assistant Sec
rctary Williams. Deputy Commissioner of
Internal Revenue Speer and other Off
cials constantly at work, and the end
Is not in sight
Thousands of letters and telegrams
bringing up for settlement points in the
new law. have poured into the depart
ment- They have come from every con-
ceivable source and. added to the labor
Of framing regulations, have made the
task of the experts one not TO be eIvied.
Must Meet the Demands.
believes that the regulations SO far
formulated are absolutely perfect but
they will stand until some one proves
tHdt tHe& SHou1u nc changed. ana OF
fcials are not INCLINED to believe that
expert LAWYERS employed by big cor
pcrat;ons particularly concerned with
collection ''at the source" of income
on bends. mortgages. salaries etc
have failed to understand them
Since the administration began fram-
ing an income tax law the talk has
gone the rounds in Washington that il
would lead to many fights in the
courts. and as the tariff bill progresseI
through the Senate many Il senator
quietly expressed the view that every
line of the income tax provision was
subject for law suit. With the law
suits the Treasury Department has lit
tie concern. 1t is not looking for
them. It's business is to 20 ont and get
the money ard that is VIVA: il Is try
ing to do. Officials believe that the
regulations they have out out are
framed not with AN idea of causing
trouble to those who must pay. but Ia
the only WY they could be- framed TO
safeguard the governments interest.
Applies to Banks and Corporations.
The man i'll the street who knows he
makes more than 5000 a year and who
is personally responsible Tor his share of
the tax does not need to begin worrying
shout his payment for the present The
Operation of the law today affects ONLY
banks. corporations and others respons;hl.
for payment on bonds. mortgages sal
aries. etc. For such part AS they are
bound by the law they must withhold
at the source
The amounts so withheld are not nav
able Immediately to the government, and
the money from the tax will not begin
moving into the Treasury for ,na1,y
months. The tax for 1913 is To be col
lected from March 1. shortly after the
constitutional amendment was ratified
until December 81. Withholding arents .
however, were required to begin deduct
ing the normal tax of / per cent al th.
source today. Withholding il for November
and December. with certain exceptions
The individual reporting upon his own
income OF moro than 5000 q year makes
liis return to the collector of internal
revenue in his district next March
Additional Regulations.
The Treasury Department last night is-
sued further regulations affecting co,,sc-
lions at the source of income. It's S,,
opsis follows:
Normal tax OF per cent is to he
withheld at the source where the income
originated ois
All persons. firms. organizations etc
having the receipt. custody disposal or
payment OF any annual income profits
or gains required to withhold tax ey.
cept as exempt by Law.
The following income is exempt from
normal tax OF l per cent being withheld
at source:
Dividends on capital stock or fro-,
the net earnings OF corporations and Iiko
organizations that pay the normal fax
of 1 per cent on Its net income.
PTeceeds from life Insurance con.