Evening journal., 1914-01-26
SHOW INCOME
TAXEXEMPTIONS
Lederer Explains Tow Claims
fer Deductions Should
Be Filed
GIVES EXPLANATION
OF The ORDER

PHILADELPHIA, Pa. Jan. 2O.---
Continued inquiries at the office Of
Ephraim Lederer, Collector of inter-
nal Revue, concerning the procedure
to be followed in filing claims for
exemptions and deductions under the
Federal income tax law led the Col
lector 10 issue another statement for
the guidance OF the public. I. fol-
lows.
"Unless the tax upon the income
of q particular person has been With
held at the source. he need file no
claim for exemption or reduction
with the Collector. The persons
whose incomes have been withheld
fall into two classes.
"First-ThOse whose income has
been withheld upon income in the
form of coupon or registered inter-
est. II at the time OF depositing the
coupons or interest orders, the per-
son flied a certificate claiming or
disclaiming the exemption, he need
do nothing further except to file the
usual return on from 1910, taking
credit for the deductions allowed by
the law.
Secondly Persons whose income
for the months of November and De-
comber. 1913, from rents, interest on
mortgages or salaries, has exceeded
the sum of $4,000 for these two
months. In such cases where the tax
on such income has been withheld. it
can be received back from the with
holder by filing with such withhold
er q claim for exemption, either form
1907, which will cover the exemption
of S2,500 or $5,333.33, or, if necessary
in addition, claim for deductions on
form zoos, covering expenses OF
business, interet paid. etc, but he
may file the first or both OF these
forms with the Collector"
Mr.. Lederer was asked to cite an
example of how his statement is to
be Interpreted He said:
"A concrete example of the Occa-
sion for making claims for exemp-
ton or deduction, OF both, on Forms
1907 and zoos, is where an indlvid-
ual landlord receives from his ten
ant in the two months commencing
November I and ending December 81.
more than $4,000 in rent In such
case It is the duty of the tenant TO
make a return to the Collector ana
pay the tax on all Of such income.
unless within not less than 30 days
before March i, 1914, the landlord
files with him a claim for the exemp-
tion of S2,50O OF S3,333.33 on Form
1907, and IL this Is done the tenant
withholds the tax on only the eX-
cess over the amount OF exemption
claimed.
"in addition, the landlord also has
the right to file with the tenant a
claim for the deductions, on Form
1908, TO which he Is entitled under
the law, such as expenses OF the
business, interest and taxes paid,
etc., and If they amount to more than
the excess over the exemption claim
ed. the tenant refunds the remain
der of the rent or income. being the
tax. TO the landlord
"rhe same example applies 70 an
employe receiving a salary, a mort
gage receiving interest. and 10 any
other person who became entitled to
more than $4,000 i'm November and
December. 1913. which was part of
fixed and determined annual in
come payable to him by any other
person or company.
"As the. provisions for collecting
taxes at the source apply only TO
income payable after November /,
1913. there will not be much occasion
for the use of claims for exemption,
Form 1907, or for deduction, Form
1905"