Evening journal., 1914-02-24
NEW INCOME
TAX LAW IS
EXPLAINED
Local Deputy Revenue COIIeC-
tors Get Instructions
on Subject
MANY POINTS ARE
CLEARED UP IN BOOK


treasury department a 90-page book
let, entitled. Regulations No. 35,'
which the revenue officials say clears
up many OF the Misunderstanding
concerning the new income tax law,
which goes into effect March /, and
which concerns many residents Of
Delaware
Although officials are confident
that this booklet will prove a guide
70 taxpayers. which will settle many
apparently difficult problems, there
Will be other regulations in the fu-
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 already Is
sued, with explanations OF points
never before discussed. Under the
law, partnerships are not subject TO
the tax, but the regulations provide
that annual profits from a partner
ship paid to members shall be inclu-
ded In their returns. and where such
profits are undistributed and unpaid
they must be ascertained and inclu-
ded In the individuals return for tax
alton just the same.
10 Is made clear for the first time
that persons who have a net income
OF less than $4,000. all derived from
Investments 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 de-
ceased was alive.
. Where pnYaoua fuyaklo rnfttao a., ,.,, L..
the proper list or return or make false
return the regulations provIue that the
proper 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 30 or 100
per cent penalty added. Returns must
be verified BY oath or affirmation. Re
turns shall be sent by collectors TO the
commissioner of the internal revenue in
Washington by registered mail. Taxes
unpaid after June 30 shall bring pen
atty of five per cent after two days'.no-
ticc aud demand by the proper collector.
and interest az the rate of one per cent
a month from the date due. Returns
shall be made TO collectors before March
/, every year.
In dealing with the corporation fea
turc. il is explained that all returns
shall be public records subject 10 in
spection on the order Of tine president of
the United States under rules prescrib-
ed hv the secretary of the treasury.
Copies Of returns cannot be sent 20 any
person except the corporation or its at
torney, but on request of a governor.
officers Of a state which imposes a gen
eral income tax may have access 70 re-
turns by corporations doing business
in that State United States
district attorneys, may under certain re-
strictions. have access 70 the returns.
Disclosure by amy collector or other en-
ploye Of the United States or any in
formation whatever. set forth in any
return Of annual net income. is made
msdemeanor. punishable by fine Qt
81 900 and one years imprisonment, and
il the person found guilty is United
states employe he will be dismissed and
thereafter incapable of ever holding Of
Ace under the government.
Specifications Of Law.
A study of the statement blanks
which appear disclose that the object OF
the law Is 70 tax all incomes from all
sources. The law specifies the follow
IAN gains. profits and income de-
rived from salaries. wages or compen,
sation for personal services of any kind
and however paid.
"All income from professions or
vocat.ons, business trade or COM
merce.
IAN sales and dealings in property,
real or personal. growing out OF the
ownership or use OF OF interest IN
property, real or personal.
Interest, rent dividends and Sc
curities
transactions Of any lawful busi-
ness carried on for gain or profit.
Income. hut not the value OF prop
erty acquired by gift, bequest, devise
or descent. i,
Neither the return of any part OF
the principal invested in life insur-
ance TO the insured, nor proceeds OF
policies paid upon the death Of the
insured are included as income"
Deductions Allowed.
Deductions allowed from gross in
comes are as follows:
Necessary expenses actually IN
CURED in the carrying on OF any
business.
IAN interest accrued and payable
during the year on Indebtedness.
"An national. state. county, school
and municipal taxes.
Losses actually sustained during
the year in the business from which
income Is derived, not compensated
/ by insurance or otherwise, arising
from FIRE. storm OF shipwreck.
Debts actually ascertained to be
worthless and charged on during the
year.
"A reasonable allowance for the ex-
! haustion. or wear and tear on prop
erty. arising out OF its employment in
business,
IAN income, the tax OF which has
/ been paid at the source.
Amounts received as dividends
upon the stock OF any corporation
/ which IS taxed upon its net income.
but such dividends shall not be de-
ductable unless first reported In re-
l turn as part OF gross income"
The following deductions will nor
be allowed;
IAN personal, living or family ex-
penses
Taxes assessed against local bene-
fits.
"All expenses of restoring prop
erty OF making good the exhaustion
thereof for which an allowance has
been made.
Amounts paid for improvements
OF betterments made 20 increase the
value OF any property or estate"
Colds, constipation and headache ar
three common Affections and relieving
the constipation helps the cold and stop:
the headache. Use Foley Cathartie Tab