Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1916-02-05
MANY INSURANCE COMPANIES
FAILING TO REPORT NET RENE
NuEs TO COLLECTOR MURPHY.
ASSESSMENT CONCERNS
NOT sUsJEcT TO TAX
They Must Make Reports 70 Govern
mont and Collector Murphy Sends
Out Warning That Penalties Will Be
Enferesd-Therns Asks Expense
Money For Trip 70 Washington.
Special to imes-Republican.

4 Special to Tfmes-Repubiican.
Des Moines. Feb. 5.--Many mutual
4 insurance companies are failing to re-
port to Commissioner Lewis Murphy,
of the internal revenue service, their
net incomes, so Commissioner Murphy
says in letter to the state insurance
department. Commissioner Murphy has
charge OF this district of Iowa with
headquarters in Dubuque.
Some question arose a short time
ago as to whether or not an insurance
company operated on the mutual as
sessment plan, would be liable for the
income tax. The department at WASH
ington has ruled that those mutual
companies or associations whose gross
income consists solely Of assessments
7 made against its members are not sub
ject to the income tax. This applies to
those associations whose entire income
or receipts consists Of assessments
levied against and paid by its mem
bers, which receipts are collected for
no purpose other than to pay the
losses and expenses incident to the
business Of the company.
Some mutual insurance companies
assume that II they are not liable to
tax they are not required to file re-
turns of net income" states Commits
sioner Murphy in his letter to the state
insurance department The act OF
Oct. 8. 1919. prescribes specific PEN
atty of not more than 100000 for fail
ure to file returns OF net income nm
time.
Il much prefer that this penalty not
be incurred by any corporation or as
sociation in the district but the law is
mandatory in its requirements in this
respect and If an association or COR
poration fails, either thru refusal or
neglect and regardless of any misun-
derstanding it may have, to file returns
within the required time. it automati-
callv incurs the penalty. When the
penalty has been incurred by aelin-
quency in filing the return there is no
provision of law whereby the penalty
may be waived"
Thorne Wants Expense Money.
Clifford C. Thorne, chairman of the
Iowa board OF railroad commissioners,
has asked the state executive council
TO defray his expenses ito Washington,
where he wishes to appear against the
confirmation Of Louis Brandeis as
Judge Of the United States supreme
court Thorne Is bitterly opposed to
Brandeis with whom he has had some
experience at railroad hearings in
times past His attitude at Apne Of
these hearings Thorne has character
izGd as the act of traitor inasmuch
ass he played into the hands OF the
railroads. Thorne says. when nc TT1:s
paid for representing the people.
Ruling on Child Actors.
John Fletcher. assistant attorney
general, has ruled that children under
fourteen years OF age are not permit
ted to appear on the stage except un-
der the direction Of the parent as this
would be a violation of the child labor
laws. He holds also that judges OF the
district court can not issue permits to
youngsters to engage in street trades.
Tax on Insurance Policies.
In reply to request from the state
auditors office the attorney general
hasSlooked into the laws as to the tax
Ing of insurance policies and has Civ
en- an opinion that the surrender value
OF an insurance policy is liable for
taxes.