Norwich bulletin., 1916-11-30
tARE RESPONSIBLE FOR
 TAX OF EMPLoyEs.


 important Decision concerning Income
 Tax Announced by Internal Revenue
 Department.
 An important decision concerning the income tax has been announced by the internal revenue department. Ac- cording to this decision, corporations or organizations exempt from filing a net income return must now file a withholding return, or, in other words, be responsible for their employees that receive SS,000 a year or more. From the salaries of employees receiving that amount or over they must withhold the equivalent of the tax and file the withholding return, thus assisting the internal revenue depa rtment in the col lection of taxes. Heretofore the cor porations or organizations exempt from filing a net income return have not been held responsible for the filing of returns by their employees with salaries of $3,600 a year or more.
 The following notice concer:lsH the new decision has>been sen. ouSx.om the office or the collector of internal revenue:
 Attention is invited to the language of paragraph G, act of oct. 3, 1918. and section Il, act of Sept. g, 1916, with regard to the exemption of cer- tain corporations and organizations and their income from the income tax.
 Under paragraph c of the act of Oct. 3, 1913. the language was: Pro vided, however, that nothing in this section shall apply to -" tnaming nine different kinds of corporations or organizations}. Under this language it was held that the corporations or organizations included within the ian- guage of this proviso were net affect ed by any of the provisions of the statute, and that not only was tt.efr income exempt from tax but the cor porations or organizations were also themselves exempt from the withholdz 4 ing requiremen nts of the law.
 Section II, act of Sept. s. 1916, pro : vides: (a) that there shall not be taxed under this title any income re : different kinds of corporations or or ganizations are named). It is held under this language that tue statIte relieves from lax only the income of the corporations or organizations named i'll paragraph Gal of section II, ganizations are required to answer under all the provisions of the statute as to withholding ard making returns of tax withheld.
 Therefore, tlI corporations or or ganizations which were relieved from lltS d1U accounting pro- visions of the act of Oct. 5. 1913, will be required to withhold and account under the act of Sept. 8 1916
 The 14 kinds of corporations or or ganizations named in section II are:
 First-Labor. agricultural or horti- cultural organization.
 Second - Mutual saving bank not having capital stock represented by shares.
 Third-Fraternal beneficiary society, order, or association. operating under the lodge system or for the exclusive benefit of the members of a fraternity itself operating under the lodge sys- tenn, and providing for the payment of life, sick accodent or other benefits to the members os such society, order or association or their dependents.
 Fourth-Domesttc building and loan association and cooperative banks without capital stock organized and operated for mutual purposes and without profit.
 6 Fffth-Cemetery company owned and operated exclusively for the benefit of its members.
 Sixth-Corporation or association or ganiZed and operated exclusively for religious. charitable, scientific or edu- catlonal purposes, no part of the net income of which inures to the benefit of any private stoekholder or iudi- vidua1
 SeVenth-Rusiness league, chamber of commerce or board of trade not or ganized for profit, and no part of the net income of which inures to the ben- eft of any private stocknoIder or indi- viduaI
 Eighth-Civie league or organization not organized for profit but operated exclusively for the propotion of so-
 Ninth-club organized and opersted exr pJr 41r- v,Io and other non profitable purposes, no part of the net income of which in- ures 10 the benefit of any private stockholder or member.
 Tenth-Far,nerS or other mutual hail, cyclone or fire insurance com pany, mutual ditch or irrigation com pany, mutual or cooperative telephone company, or like organization of a purely local character, the income of which consists solely of assessments. dues and fees collected from members for the sole Pprpose of meeting it's ex- penses.
 Eleventh Farmers, fruit growers or like association, organized and op- erated asSa sales agent for the pur- pose of marketing the products of it's members and turning back to them the proceeds of sales, less the neces- sary selling expenses, on the basis of the quantity Of produce furnished by them.
 Tweffth-Corporation or association organized for the exclusive purpose of holding title to property, collecting in- come therefreIn, and turning over the entire amount tf1ereef, less expenses, to an organization which itself is ex- enpt from the tax imposed by this title; or
 Thiffeenth-Federa land banks and national farm loan associations as pro- yided iil section 2s of the act approved July 17,s1g1e, entitled "An act to pro vide capital for agricultural develop n1ef1t, to ereate standard forms of in vestnlert based upon farm mortgages.