The sun. [volume] (New York [N.Y.]) 1833-1916, 1915-03-01
REPLIES TO QUERIES
ABOUT INCOME TAX
Pulling Questions Answered
for Those to Whom tho
Law Is Not Uar.
NEUTRALITY-SUSPICIOUS.

This is the last day for the Ming Of
income tax returns. Persors who man
their returns must have them in q post
office so that they will be postmarked
before IL o'cloc tonight in order to
he counted al having been filed within
the period set by the law. > fne rang
ing from $40 TO $1,000 is h penalty
for falling to nlo within n time limft.
There was a heavy rush on tho last
dav for filing last year AMI n similar
rush is expected to-day. but the col
~lectors' stats are better prepared to
handle II than in 1914
At the Internal Revenue Collector.
office in the Custom House, the busiest
office in the country, special prepara-
tons have been made to handle the
business expedltiously. The flood OF
returns which has been coming into
Collector Anderson's office for the last
week may tighten the work left for the
last day. although the press OF the work
has been so great that comparisons
between tho present and last year have
not yet been possible.
Lawyers Feet.
s7-L r B-Go A Is a lawyer ana
made an agreement some ars before
'he income tax law with r. his client. =
domestic t1rpurHtiou, FOR compensation IN
addition 80 regular charges In the even
OF recovery Of either profit Or damages, or
hoth, Cos - Ia q litigation hat had b"eu
In progress some years at time OF ahoys
arr",m.u'. The victory was won and 4
received the additional compensation in
the Year 1874. L. f. ttNtblo; II no'
must 30 he Included In grpss income a.
- r,'urn and deducted ther' from q
\ undertook thv above litigation on tie
basis ~ "a certain per diem. with the
understanding that r would IN tho event
of Success pay \ a !are"r per diem
received IN a lump sum IN 1919 she tots'
sum or III" addition - an MS per diem
charges which were distributed over a
number ~ years prior to the enactment
az Tn. income TAX lIv. l. the whole or
this sum ',Nlble ~ only the total Of IN.
additions 20 tn" original per diems thu
were charged since March /. 1897 T.
not, must 20 he included in gross income
I'm A. return and deducted th"refrom
90 e owns certain stock In domestic cor
portton. Tie sets aside a certain mum
her - shares. N" dividend Of which IL 20
he paid % u. g retaining ownership OF tho
stock. In tho year iaii the dividend o.,
thi- -tock. together with his salary o.
: 900. Niu4rh- - Income UP 20 aoou'
$500. IH th.s 500 taNab.s2 n no
mu. u make a re'urn7
Ngswtr-G) such compensation ~
taxable. t2) We should say that the
whole sum was taxable, FOR Il was not
due and payable until 1914. (3) II the
amount OF dividend set aside for y
were IN tho nature of a compensation,
u would have TO make a return. but u
this amount was a It or an allowance.
no return would be necessary.
Indebtedness. WHOLLY secured by Collateral.
s'-F l. C.-KiuJly inform me ;ps,
-htt indeatc ines- II r-ferr-d TO oy. q.
". ~, ,, s,f 'oyY %. , ,e ~.
ordinary business OF n. oorporation."
tnsvcr-Thls "a explained in the
Treasury Department rulings a.. fol
lows-"As used in tho act the expres-
= or collateral the subject OF sale &C..
refers TO physical or iangible property
bound Tor the performance OF certain
covenants or payment OF certain obl,ga-
tious. and which physical or Tangible
property ia the subject Of rale IN the
ordinary business. Of a corporat.on' own.