Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1914-02-07

/ per cent per annum upon the amount
by which the total net income exceeds
$50, 200 and does not exceed $4,000;
per cent per annum upon the total
net incomes between $4,000 and $780,
900; per cent upon $4,000 to $780,
600: per cent upon 100000 to $780,
600; per cent upon $500 to $780,
600. and 6 per cent upon net incomes
over 100000.
This tax will be obtained in two
ways-by what is known as collection
at source and collection firm the indi-
vidual. According to the first method
all companies, corporations etc, having
the custody or disposal of the interest,
premiums. annuities, rents. etc, OF
another person, exceeding $4,000 for
any taxable year, is required by the
law TO withhold / per cent of these
gains and pay it to the government di-
rectly. But no such collection at the
source will be made upon dividends.
etc, of corporations subject to the cor
poration tax.
THE other method, that of collection
from the individual, will be undertaken
in this manner Every person of legal
age subject to the tax will be required
TO make accurate return of his annual
income to the collector of internal rem
enue OF Che district in which he re-
sides. this statement setting forth spec
ifically his gross amount of income
from all separate sources, and from
this total must be deducted the aSgre-
gate items of expenses and allowances
TO which I referred.
IF the income taxpayer has his resi-
dence in a foreign country his returns
will be made to the collector of the
district in which his principal business
in the United States is carried on. But
if the taxpayer is liable only to the
normal tax of 1 per cent he need not
make return of income derived from
dividends on stock of corporations
taxable under the corporation tax.
Partnership will not be required to
make returns of profits or income, for
the reason that the individuals COM
posing these partnerships will account
for all income in their individual re-
turns.
THE taxpayer mist include in his
statement of income gains, profits and
income derived from salaries, wages
or compensation for personal services
of whatever kind and in whatever form
paid, or from professions, business,
trade, commerce or sales or dealings
in property, whether real or personal;
also income growing out of the owner
ship or use of or interest in real or per-
sonal property, and from interest,
rents, dividends, securities of the
transaction of any lawful business car
ried on for gain or profit. Proceeds of
life Insurance policies, however, are
free from tax, and need not be in
cluded in the return of income. Meth
er shall interest upon United States,
state, county or municipal bonds be in
cluded.
Citizens must make these returns
of their income whether living at home
or abroad, but nonresident aliens are
to make returns only upon in
come derived from property in the
United States
physicians. lawyers and other per-
sons receiving fees for professional
services must include all actual re-
ceipts of such fees rendered in the year
for which return is made, together with
all unpaid accounts, charges for SER
vices or contingent income due for that
year, if the same are considered good
and collectible. Debts may be consid-
cred worthless only after legal pro-
ceedings to recover them have proved
fruitless. Interest on notes, bonds and
other evidence of Indebtedness, If good
and collectible at the end of the year,
must be returned as income whether
actually co lected or not.
Amy Ierson or officer of any cor
poration who makes a false or fraudu- |
lent return will be subject to a fine /
as high as $4,000, or to a term of i'm |
prisonment as long as one year, or
both, al the disccet of the court. |
And furthermore, the commissioner of |
In ernal venue is authorized to /
double his tax"