Evening journal., 1919-02-27
All Partnerships
TO PAY INCOME TAX
Revenue Men Call Atten-
ton to New Feature of
Present Law
PROMPT RETURN
is MANDATORY

internal Revenue officials express
fear that lot Of people interested in
partnerships will overlook the require
tment Of the new law that each and
every partnership must make a return
OF income.
This is a feature Of the new law,
EWhich differs materially from the old
Zones and which win increase enor-
nously the work Of the Revenue De-
partment. II IS now thought that
hnless there is wide publicity regard
= Ing the new feature a great many pen
llties will have to be paid.
Each partnership Under the new law
must make return, no matter whether
the income is large or smaff OF whether
The statement shows deficit In place
of income or a surplus.
Under the 1917 law returns had to be
-made by partnerships only when the
eincome was in excess Of $1,000 and
under the 1916 law no return was re-
CURED from partnerships. Here IS sec
e lion 225 OF the new law:
: "That every partnership shall make
"a return for each taxable year. stating
specifically the items Of its gross in
come and the deductions allowed by
this title, and shall include in the re-
turn the names and addresses Of the
individuals who would be entitled to
share in the net income II distributed
and the amount OF the distributive
share OF each Individual. The return
shall be sworn TO by any one Of the
partners"
In advance OF the Issuance OF Form
Z i04o which should be distributed
: before the end Of the week and which
= provides for returns on incomes Of
: 5000 or more, the local internal reve-
nue. bureau In a statement issued yes
! terday called attention 10 the fact that
= surtax rates. which apply 70 incomes
IN excess Of 5000, are changed by the
. new revenue bin The statement fol-
lows.
Under the new act the rate IS I per
cent on the net income in excess Of
5000 and not over $1,000. and increases
by step OF per cent. for each 5000 OF
net income up to, and including, as
per cent. on net income IN excess Of
$4,000 and not over si00onn-From this
point the rates run as follows:
Fifty-two per cent on net income
over 100000 and not over si50O0O. Sc
per cent. on net income over Si50,000
and not over 5000 0o0: 60 per cent. on
net income over s2O00on: 63 per cent.
T on met income over $4,000 and not
: over s500O00: Ga per cent. on net in
, come over $4,000 and not si,OO0.0O0
and 65 per cent. on net income over
,si.oo0OO0
Under the acts in force for 1917, the
surtax rates ranged from 1 per cent on
the amount Of net income over 5000
and not over $500, to 63 per cent. on
the net income above si.O00,O00
The following Illustration will show
!. the faverage taxpayer how 20 compute
MS Income tax
A single man had a net income for
1913 OF 5000. First he deducts his
personal exemption OF $1,000. leaving a
balance Of $1,000 on the FIRST $1,000
le pays az the normal rate Of 6 per
ent, S240. On the remaining $1,000
e paws at the normal rate Of 70 per
ent.. Si20. In addition he pays a sur
Ak Of $40. I per cent. on the amount Of {
lis income between 5000 and S6,000 s
lis total tax is $780, 2
A married man with two dependents :,
aad net income for 1918 OF $500. 5
from this he deducts his personal ex- &
emption Of $1,000, plus 5000 for each de- .
pendent On the f-st $4,000 OF the bal q
ance Of S5i0O he win pav az the normal
rae OF per cent, SPA. On the remain :
ing si,ioo he will pay at the normal 4
rave OF y per cent, si32. on the amount {