The Washington times., 1917-12-31
INCOME TAX
PAYERS MUST
FILE RETURNS
I. BY MARCH |
ny BILL PRICE.

ny BILL PRICE.
Federal laws require that between
tomorrow and March l every person
in the United States receiving an in
come above 81 .Oon per annum, IL
single. aud above $4,000 per annum,
IL married. shall make return to
Uncle Sam for the purpose Of paying
the taxes imposed in the several in
come tax laws.
The penalty for failing to file re-
turns or or before March l is 80 per
cent OF the amount Of the tax and a
fine not exceeding $1,000; if a
graudulent return is made a $1,000
fine or imprisonment for not over a
year or both.
Under the individual income tax
,aw it is possible to begin soon to
make out the returns. the blanks for
which will be available in any inter
nal revenue office or in banks, which
will give a helping hand to clients.
The Government printed some time
ago several millions OF blanks for in
dividuaI income tax, but there is talk
that these may be withdrawn and
others substituted.
pAhEE NoA
The Government has not, however
printed the blanks upon which busi-
ness men-individuals, partnerships
o. corporatiOns-mus make returns
under the war excess profits act, for
TIE reason that the mystifying pro-
visions of the law have not been full
ly interpreted. and blanks can not be
printed until this is done.
II is not announced how soon these
blanks viii be ready, and there is a
probability that the Government will
have to extend the time for filing re-
turns by business concerns. realizing
as il does. the immense enlightenment
that will be required after interpre-
), tatiOns are concluded and the blanks
are ready.
The Internal Revenue Bureau has
cleared the atmosphere considerably as
10 the making Of returns by the great
mass or small business men, but as to
the larger establishments there still re-
mains an Interpretation Of just what in
vested capital" is. This. OF course, is
most important 10 every establishment
doing a large business. and Congress
may have TO take a hand later in deter
mining what II meant as TO this particu-
lar phrase. Naturally. it is not possible
10 get blanks printed for returns until
what constitutes invested capital is de-
fined.
Rulings Aid Many.
To the immense majority OF business
men in Washington there have been
handed down rulings that will enable
Them to know where they stand. These
rulings viii exempt hundreds OF these
men from paying the war excess profits
tax. although they will still be amsnable
20 the individual income tax for all in
comes above 5000 where they are the
heads OF families
A one-man firm or partnership having
= net income Of less than 5000 will be
free from war excess taxes. This will
apply TO all sorts Of business in Wash
ington.
In case OF an incorporated concern the
excess profits tax will be based on a net
income in excess Of 5000. less by 5000
than in the first class. There will be. in
addition 10 this exemption, a deduction
OF at least per cent on invested capital.
May Deduct Salaries.
In both partnerships and incorpora-
lions reasonable salaries paid TO the
partners for services actually rem
dered by them may also be deducted.
the salaries not TO exceed those
usually paid in similar lines OF bust
ness. Deductions are likewise al
lowed OF amounts paid during the
year 10 an individual partner as in
terest upon 4 bona fide loan.
Intangible property" as used in re-
gard TO invested capital, has been
construed to mean property similar TO
good will. trade marks, etc. Stocks,
bonds, bills and accounts receivable,
notes. and other evidences Of indebt-
edness are held TO be tangible prop
erjy
Commissioner Roper expects 70
name . number OF field men who will
be stationed throughout the country
70 assist in the preparation OF re-
rurns. These men vii not be avail
able until there is complete crys-
utilization Of the mass of rulings al
ready made and those yet. 10 be rem
dered.
Employers TO Aid.
That the Government may be able
to check up returns, II necessary. ev-
cry employer must file statement
showing salaries paid Of $500 or over.
Il g. just a. important that this re
turn be made as ii is that the income
81 llF eulploAeT De given. Every ten
ant who pays rent Of $500 or more in
any year must nle a statement to
that effect. naming his landlord and
the amount OF the rent
This viii strike a large number Of
citizens Of Washington who rent fur
nished or unfurnished apartments and
houses running from $500 20 up in the
thousands.
The minimum incomes subject to
TAX under the old laws were $4,000
Tor unmarried persons and 81 900 for
married. Now IL Is 81 900 and s.. 900.
respectively, and will require returns
from thousands Of employees of the
Government and Washington business
concerns.