The independent-reporter. [volume] (Skowhegan, Me.) 1909-1955, 1914-06-18
Treasury Furnishes key to Income
Tax.

After weeks of study Of the COM
plexities Of the Income Tax law,
Treasury officials have issued 90
page booklet. ehristened it "Rcgula
tons no -, and sent it forth 10 col
pectation that it will clear up many
of the Misunderstanding concerning
the law which have arisen through
the country.
1t requires % pages Of the book 10
set forth the law itself, but 80 pages
arc used in telling how the net in
come to be taxed is ascertained by the
taxpayer. when and whore tax must
be paid, what penalties will be impos
ed for nOn-payment and what exemp-
tons and deductions will be allowed.
Many pages are devoted to an expla-
nation of that part of the law impoe-
ing l 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-
entity difficult problems, there will be
other regulations when new points arc
raised. The book is a compilation in
compact form of the regulations al
ready issued, with explanation of
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 un-
paid they must be ascertained and in
cluded in the individual return for
taxation.
1t is made clear for the first time
that persons who have a net income of
less than 100000, all derived from in
yestments, 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 a 50 or 100 per cent pen
atty added
Returns must be verified by oath or
affirmation and must be sent by col
lectors to the commissioner of inter
nal revenue in Washington by regis
tered mail Taxes unpaid after June
30 will bring a penalty of per cent
after 10 days notice and demand by
the proper collector, and interest at
the rate of / per cent a month from
the date due Returns must be made
10 collectors before March ! 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-
scribed 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
Governor, officers of State which im-
poses a 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
employee of the United States of any
information whatever set forth in any
return of annual net income is made
a misdemeanor, punishable by a fine
of $1,000 and one years imprisonment
and is the person found guilty is
United States employe he will be dis
missed and thereafter be incapable OF
holding office under the government.
Don't Lose Sleep Coughing Mt Night