Evening star., 1914-01-29
When a Return Is Due From a
Fiduciary and How 1t
Should Be Made.
SPECIAL FORMS MADE FOR
TRUSTEES AND EXECUTORS
Attention Called to Two Additional
Subdivisions Under General
Heading of Deductions.


ninistrators. guardians and others a
great deal of trouble BY Treasury de-
cision 1906 there is required of every
fiduciary where the income of any bene-
ficiary. that is. where the income of one
of those who receives a part of the in
come from the estates is In excess of
$4,000 Cor $500 this year,. to make a
tiduc!ary return Of the estate. This re-
turn shall contain all the income which
the fiduciary has handled or received
during the period Of March 1 and De-
cember 81, 1913. This regulation calls
for a return of the income of the estate.
to be made out in the same form as that
made by an individual. and it also calls
for a list return, as Is required of with
holding agents.
The Treasury Department, realizing
the complications this would lead to, has
made both returns on the one form, and
that is form 141. The general topics
and their subdivisions will not be taken
up. as they are the same as are found in
the individual return. are treated in the
same way, and information regarding
them can be obtained by reference to
the articles hat have preceded this.
Your attention is. however, called to the
two additional subdivisions that appear
under the general heading of deductions
Z
placed here instead of in the general
summary on the front as they are the in
dividual returns.
For Amount of Dividends.
Subdivision : Is the place also to
put the total amount received for divi-
dends. and in subdivision s the total
at the bottom of column marked "A" or
that amount on which the tax has been
paid. found on page of the fiduciary re-
turn form. The first or front page ap-
pears in a little different form from
that of the personal return. 1t contains
only three subdivisions. while on the in
dividual there are six. Below the net in
come subdivision We find a double line
and then list return. This is the one
required by the regulations, or otherwise
the two are made on the one form. This
list return is divided into six columns, an
explanation of which follows:
l. Here should appear the full names
of all the beneficiaries who receive any
income from the estate.
.. The address. Here should be given
the house number. street. city or town,
and state.
3. The amount Of income to which each
beneficiary is entitled; that is, the amount
of the net or taxable income as it APP
pears opposite subdivision ). to which
each is entitled should appear opposite
their names. The total of these should
equal the amount OF the net income as
found OH page J. subdivision >.
4. The amount of exemption claimed
Nothing can go into this column unless
opposite each maine; unless the bene-
iiciary has filed with the tiduciary thirty
days prior to March l, 1913, an exemp-
ton form uOO1 or 1O0S). After the name
OF any beneficiary who has filed this
form should be placed the amount OF ex-
emption claimed. 5000 or $1,000
- Amount tiduciary is liable for tax on
Here is put the difference between the
exemption claimed, as shown in column 4
and the amount of income received as
shown in column ). it being the amoun
of income from which the fiduciary shouIG
deduct the / per- cent tax No tax to b.
deducted unless the amount for the two
months November and December) ex
ceeds $500.
t.. Amount of tax withheld. Here i:
put l per cent of the amount as founc
in column .. or the tax the tiduciary de
ducts from the income of each bene
nciary. Now as the law does not apply
to any Withholding agents before the Isl
of November-that is, that they are no
responsible for the tax on any incom.
received or paid before that time, it viii
be necessary to add to this list return
this year. For this year there SHOULD
/, be filled out only columns /. and 3
that is, the name. the address and amoun
of taxable or net income received.
Then drop a line or so and write this
heading, Income received from Novem
ber to December 81. 1913" Then go back
again and figure what the net income was
for those two months, and after giving
the names of the beneficiaries again, fl
out columns three. four. five and six
+, taking the net income for the two month:
as the net income or taxable income. Tht
| fiduciary should only withhold the ta2
| for the two months November and De
cember). The total of the amounts il
column six is the tax for which the 1idu
| ciary is liable. This concludes the fidu
ciary return With the interest, item.
filed with certification 1919. the corpora
ton would have no way of knowing tina
| these beneficiaries were subject to tn,
tax, there being nothing in that certificat,
| to indicate it. Therefore. they would no
pay the tax. and the beneficiaries woult
have to pay. This would be hardship
of the corporation paying the tax wher
an individual personally could take ad
vantage of it.
| Special Form Provided.
For this reason form 1919 is provided
in which the fiduciary does not claim
the exemption, leaving the RESPONSE
| bility for such tax with the withhold
ing agent or paying corporation. ant
at the same time notifying the cor
| poration that the beneficiaries of the
estate are subject to a tax. This goe.
| in class IA on page of the fiduciary
| from paying a tax on that amount.
There is also provided form 1015
| which is used when the corporation i.
| not paying the tax. and this certificate