The Bridgeport evening farmer., 1915-01-18
U. s. TREASURY'S
 NEW RULINGS ON
 INCOME TAX LAW
Pamphlets Embodying Deci- sions Cover Wide Range
 of Taxable Revenues
.Alimony Considered Part of Income and Is Subject to
 Levy Clergymen Liable

There VIII De Wa1llng ana GAaSn1ng of teeth in many quarters when the text of new treasury decisions on the income tax Dill announced by w. H. Osborne, commissioner of internal revenues and approved by William G. McAdoo. secretary of treasury, under date of December 1 4. and now issued in pamphlet form for distribution by the local revenue %bureau becomes Known to the public generally.
 This list of decisions f1lRng a. 24-5 page closely printed pamphlet con tains information Of the greatest value to the corporation head, the lawyer, business man and individual and does away with much of the uncertainty regarding the income tax law which has heretofore beset those who en- deavored to make declarations to the best of their understanding.
 It will be particularly depressing news to the members of the alimony club, the life insurance holder, cap ita1ist club, guardian, gratuity taker, to the hospital or other institution Ee- ceiving bequests by will to judges and to f1y-by-nfg corporations. On the other hand the actress and actor will find cause for jubilation for it gives them possesSion aof handsome theatrical wardrobes without necessity of income tax payments and the treat ing expenses of salesmens are made exempt rom 1taxaIlOn ana the en- tertainnent account will notsfbe cur tailed by the tax requirements.
 Without attempting to give in de- tail a full text of the decisions which are so important as to warrant every corporation head. lawyer and banking official in securing copy of the dez cisions from the local office at once, the following may be cited as among the most important rulings:
 Actors and actresses may keep their wardrobe, when used son the stage. exclusively, without payment, pToyid- ing that when put to personal use, payment1is made after deducting for as a fixed and deteru1inabIe income and wives receiving more than $ 3, GOO will be compelled to make the income tax deduction from the full amount and pay it to the government.
 Bad debts may be charged off From the income schedules Bond pre- 1niums paid by employees may be Charged off.
 All clubs are found not to be ex-- empt and every club must submit the. nature of their organization and aims in a sworn statement by their prin- cipa1 officer, to the treasury depart ment before they may be immune from taxation.
 Commissions paid salesrnen may be charged off by the business house but must be accounted for by the sa.les- man receiving Chem,
 Profit sharing corporations paying bonuses to employees whose salary and bonus is in excess of $s.oOO. aggregate. must deduct the income tax and pay it direct to the government. This likewise applies to living quarters fur nished to employees
 A hduciary acting for a ward is given special privileges in filing re-. turns on special forms pbtainable at the local office of the internal revenue department.
 The value of property acquired by. gift is not subject to income tax. but all profits or incomes therefrofn are so subject, and if the property so ac- quired is Subsequently, sold at a price. greater than the appraised value the gain in value is held to be income and is taxable.
 The salaries of judges of the su-. preme and inferior courts of the Unit ed States. appointed subseqdelt to October 3, 1S13, and of Judges who have been retired are subject to the. tax.
 Easter offerings and fees received. by c1ergynen for funerals, masses. marriages baptisrns etc, arc consid4 cred Income subject to tax Christ ; mas gifts, however, are not consider ed income within the meaning of the law sE
 Agricultural and horticultural or gandzations promoting county fairs and holding exhibitions. provided they are not actually engaged in these pur-s suits for profit and no part of the income inures to the benefit of a pri- vate stockholder or individual. are held to be exempt from taxation.
 Donations by corporations for speci- ic purposes Of their business such as sick ward endowment to a hospital l. for the, use of their employees is ex- empt, but other donations to hospitals or institutions are subject to tax
 So-calleds spending or treating money actually advanced by corporations to travelling men as a part Of selling ex- pense is exempt but statements show ing the purpose for which it vas spent must be made.
 Corporations must make their nav ments on the calendar year or adopt specified fiscal years set by the treas ury department.
 The value or amount of gift to a, corporation is held to be income to such corporation and should be re- the gift is received. The provision in the original act which exemnts gifts, bequests, etc. from tax imposed is found to apply to individuals only and not to corporations. This will cause all hospitals, churches, etc. ete Q pay taxes on such bequests.
 A supply of the pamphlets of de- cisions will soon be on hand at the local office and may be had by an plication here or to the Collector. Of Internal Revenue. James J Walsh, at Hartford.
 C0NINJTfsTTCTYr DANExC