Evening star., 1914-02-06
INCOME TAX LAWS
TERMS EXPLAINED
Return for Party Who Dies
Within Assessment
Period.
RULES FOR FIDUCIARIES
IN ADJUSTING ESTATES
Penalty for Refusing or Neglecting
to Make Return and for
False Statements.

No ;'3-Question Suppose d man dies
on the 23ti. of December. is there a re-
| turn made for him. and who makes that
return:
! Answer. Where a man dies in the
| period. t.lat is between the lst of January
and the 31st of December. or this year
! the lst of March and the 3lst of Dccenl-
! Der. and the net income which he received
between those periods is in excess of
| $i,TO or s2."O0 the year. the fiduciary lex
ecutor. administrator. etc. should make
| return for the decedent on form 1870
No other return is required of the
| hduciary, that is for the period between
| the time OF the decedents death and the
| time when the interests i'll the income of
| the estate are determinable This means
when the accounts have been approved
| by the court and the income is to be dis
tributed From that time on the fiduciary
Is required to make return before the
ist or March each year, Il the income of
any of the beneticiaries is over 5000
Both the normal and the add tional tax,
which is due. on the decedent's return
snail be considered debt against the es-
tate OF the decedent uhe dead person
eState).
Government Obligation Income.
The fiduciary shall not include in his
return the income from any obligation
of the United States or its possessions.
or that of any state or political sub
division thereof. The tiduciary is con-
sloered the duly authorized agent of the
decedent until his appointment as ex-
eCutor or administrator by the court
Ihe compensate ton of the fiduciary shall
be included in the amount that is
placed opposite subdivision one on page
three in the fiduciary return 1o4D.
NO 4o-teuestion. What is the form
for debtor corporation to designate
duly authorized agent?
Answer Debtor corpora tionS shall file
with the collector of internal revenue
!of It's district a proper notice. as to
the appointment of paying or fiscal
agent or agents. to act for it in mat
tiers pertaining to the collection of the
income tax.
No. 4l1ouestion; How long do GER
corporations to claim the exemption on
registered interest"
Answer. The same form Shall be used
Tor registered interest as that used for
| the other, but shall have been filed with
the debtor corporation five days before
the due date of the interest
Subject to Additional Tax.
No 42-QucstioD. On what income is
the additional tax figured?
Answer. The additional tax is figured
on the net income of every Individual, l.,
and shall include, the law says ..the in
come derived from thu. gains or profits. if
divided or distributed. whether divided
or distributed not. of all corporations
JOINT stock companies associations
however created or organized This in
cludes dividends etc
No. 4}-Question. To whom other than
individuals does the income tax law ap-
ply?
Answer. The law subjects all corpora
tions, joint stock companies or associa-
tions. and every insurance company or
gafllzed in the United States no matter
how created or organized. TO Il normal
tax OF per cent on their annual net
income arising and accruing from all
sources. 1t also subjects the income ac-
cruing from business transacted and cap
ital invested in the United States of cor
poratlons organized authorized or exist
ing under laws of foreign countries From
this We Will be safe in saying that all
dividends received from all corpora tons
joint stock companies or associations and
insurance companies are exempt from the
pay yment of the normal tax of ! per cent
because they subject to a like tax.
Penalty for Refusal or Neglect.
No. i4-Question. What is the penalty
of corporation that refuses or neelects
to make such returns?
Answer. For refusal or neglect to make
such return, for the making of any
false or fraudulent return. the penalty is
that such company shall be liable for d
fine not to exceed s10.tE,.
No. -.5-Question. How long MAJ we
, omit putting in the numbers Of the o5li-
cations in the ownership certificates?
Answer. At the present time
Treasury decision 1901 allows the num-
bers on obligations required by the
certificates to be omitted until after
March II. 1914.