Evening journal., 1914-02-13
GUIDE ON
INCOME TAX
Treasury Officials Issue Book
LET TO Internal Revenue
Collectors
GIVES LAW AND
ITS EXPLANATION

WASHINGTON, Feb. 13.-Aftcr two
weeks of study Of the complexities
OF the Income Tax law, Treasury Of
fcials have issued a 9O-page booklet.
christened IL Regulation No. 80"
and sent it forth TO Collectors of In
ternal Revenue, in the expectation
that IL will clear up many OF the mis-
understandings concerning tie law
which have arisen throughout the
country
Il takes % pages OF the book to set
forth the law itself, but 90 pages are
used in telling how the net incoma
to be taxed is ascertained by the tax
payer. when and where the tax mus.
be paid, what penalties will be inn
posed for non-payment and what eX-
emptions and deductions will be al
lowed. Many pages are devoted TO
as explanation of that part of the law
imposing a 1 per cent tax on the in
come of all corporations. which re-
places the old corporation tax.
Although officials are confident
that this booklet will prove a guide
TO taxpayers. which will settle many
apparently difficult problems, there
will be other regulations in the flu
ture when new points are raised. The
book does not contain a new set of
regulations, but is a compilation in
compact form OF the ones al
ready issued, with explanations Of
points never before discussed.
Partnerships Not Taxed.
Under the law, partnerships are not
subject to the tax, but the regula-
tions provide that annual profits
from partnership paid to members
shall be included in their returns
and where such profits are undis-
tributed and unpaid they must be as
certained and included in the individ-
ual's return for taxation just the
same.
1t is made clear for tie first time that
persons who have n net income of less
than $4,000, all derived from invest
ments and upon which the tax has been
withheld at the source, shall not be re-
quired to make any return. Executors
and administration of estates of persons
are required TO pay the tax on the net
income for the part of the year in which
the deceased was alive.
Where persons taxable refuse to make
the proper list or return or make false
returns, the regulations provide that the
lproper collector of internal revenue
shall. after due notice, make the return
for such person and the tax shall be as
sessed on this return. with 90 or 100
per cent. penalty added.
Returns To Be Sworn To.
Returns must be verified by oath OF
affirmation Returns shall be sent by
collectors to the commissioner of inter
nal revenue in Washington by regis
tered mail Taxes unpaid after june 30
shall bring a penalty of 3 per cent, after
no days notice and demand by the
proper collector, and interest at the rate
lof I per cent. month from the date
due Returns shall he made to collectors
before March l every year.
In dealing with the corporation fea
ture. il is explained that all returns
shall be public records. subject TO ia
lspection on order of the President of TIN
United States, under rules prescribed b,
the Secretary of the Treasury. Copic
of returns cannot be sent To any pcrsoi
except the corporations or its attorney
but ON request OF q governor, officers o
n State which imposes n general incom'
tax NAV have access TO returns by cor
lporations doing business in that State
United States district attorneys may
under certain restrictions. have acces
TO the returns Disclosure by any col
lector or other cmploye of the Unite'
States of any information whatever. Sc
forth in any return Of annual net in
come. is made a misdemeanor, punish
able by fine of $1,000 and one year
Imprisonment. and if the person foun'
guilty is a United States employe D.
will be dismissed and hereafter be inca
pable Of ever holding Office under th
Government.