Daily Kennebec journal., 1914-02-13

Treasury Furnishes
Key to Income Tax.

Washington, Feb. 12.--After weeks
of study of the complexities of the In
come Tax law, Treasury officials on
Wednesday issued a 90page booklet
christened it Regulations No. 33,"
and sent 1t forth to collectors of in
ternal revenue in the expectation that
it will clear up many of the misun-
derstandings concerning the law which
have arisen throughout the country.
1t requires 90 pages of the book to
set forth the law itself, but so pages
are used in telling how the net in
come to be taxed is ascertained by the
taxpayer, when and where tax must
be paid, what penalties will be impoS-
ed for non payment and what exemp-
tionS and deductions will be allowed.
Many pages are devoted to an expla-
nation of that part of the law impos-
ing a 1 per cent tax on the income of
all corporations, which replaces the
old corporation tax.
Although officials are confident that
this booklet will settle many appar-
emily difficult problems, there will be
other regulations when new points are
raised. The book is a compilation in
compact form of the regulations al
points never before discussed.
Under the law, partnerships are not
subject to the tax, but the regulations
provide that annual profits from
partnership paid to members shall be
included in their returns, and where
such profits are undistributed and I'M
paid they must be ascertained and in
eluded in the individual return for
taxation.
1t is made clear for the first time
that persons who have a net income of
less than $4,000, all derived from in
vestments, and upon which the tax
has been withheld at the source, shall
not be required to make any return.
Executors and administrators of es-
tates 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 a person taxable refuses to
make the proper list or return, or
makes false return, the regulations
provide that the proper collector of
internal revenue shall, after due no
tice, make the return for such person
and the tax shall be assessed on this
return. with so or 100 per cent. pen
atty added.
Returns must be verified by oath or
affirmation and must be sent by COL
leetors to the commissioner of inter-
nal revenue in Washington by regis
tered mail Taxes unpaid after June
80 will bring a penalty of per cent.
after 10 days notice and demand by
the proper collector, and interest at
the rate of l per cent. a month from
the date due. Returns must be made
to collectors before March 1 every year.
in dealing with the corporation fea-
ture it Is explained that all. returns
shall be public records subject to in
spection on order of the President of
the United States, under rules pre-
seribed by the secretary of the treas
ury. Copies of returns cannot be sent
to any person except the corporations
or its attorneys, but on request of a
Governor, officers of a state which i'm
poses general income tax, may have
access to returns by corporations do
ing business in that state. United
States district attorneys may, under
certain restrictions, have access to the
returns.
Disclosure by any collector or other
employe of the United States of any
information whatever set forth in any
return of annual net income, is made
a misdemeanor, punishable by fine of
$1,000 and one years Imprisonment,
and if the person found guilty is
United States employe he will be dis
missed and thereafter be incapable of
holding office under the government.