Evening star. [volume] (Washington, D.C.) 1854-1972, 1919-11-05
TAX, SOURCE PAID, ].
|SADDED INCOME
Revenue Ruling That Goes
Back to 1917.10-Brok- }
ers' Records.
BY L, A, FLEMING,


internal revenue promises to add con-
and to disturb not q few returns filed
in 1917 and 1918. The records of 1917
are now under review. and several
cases have developed where residents
of this city have been called upon for
additional payments to their 1917
taxes.
January %. 1915. a decision waa
handed down as follows: Taxes as
sessed against the stockholders of a
bank and paid by the bank In behalf
of the stockholders do not constitute
an allowable deduction from the gross
income of a bank.
The amount Of taxes so paid shalt
be included in his return as income.
the said amount to considered as
additional dividend to the amount OF
taxes paid"
AS now construed the amount of
taxes paid by a corporation on Its
bonds. under covenant agreement,
per cent. is treated as additional In
come. and the taxpayer must add this
to his income before computing his
tax. 1t is entirely different from the
payment of taxes on all the bonds
over again-simply the payment OF
income taxes on that part OF the tax
This will not be a sedious matter for
the man Of modest income or of mod
crate income. but ii will add material
ly to the income OF large investors
active it will be brought back to 1917
and 1918.
The American Security and Trust
Company received 1917 return the
proposition calling for nearly 5000
additional taxes and other instances
are known where the new applica-
tion Of the ruling has been applied.
Under the old rates OF and II per
cent for normal tax these payments
will be heavier than under the agreed
rate effective for 1919 income. namely,
| and per cent, 4 per cent on In
comes up to $4,000 and per cent on
incomes over $4,000 net. plus the sur
Many experts believe that 1t may be
necessary even now for Congress 10
! amend the revenue law to increase
! the income taxes on the current year.
Either this or the hotation OF an
other bond or note issue to care Tor
the big deficit that has accumulated.
Stock Transfer Tax.
Regulation 40. just issued. provides
for the keeping Of sales records by
brokers. as follows:
"O) Date Of transaction. I'd Line
number Uf at an exchange). CD Name
Of broker or salesman who executso
sold or from whom bought. cd Num-
Der Of shares dealt in. 90 Name or
description of stock. CD Price OF stock.
If without face or par yaIue. teI
stock (s) Face or par value OF stock
per share. 10) Tax paid on shares hav-
ling face or par value. Old TAX paid on
shares without face or par value. 90
State tax paid. II any Optional naicn 1.Sp
{l4) Folio number (optionaD. QS)
I Name of customer for whom sold or
transferred. or from whom bought or
transferred. U6) Number OF shares
borrowed or loaned shares returned.
18) Method Of settlement or adjust
ment. ...
persons keeping such records may
incorporate therein additional col
such columns to be placed so as not
to interfere with the columns and
headings hereby prescribed. These
records must be- In, book form, ana
all entries therein must be iegioly
for a period Of at least two years
Such record forms win not be sup
piled by the department. =,
Floor brokers, or "two-dollar men,"
room traders" ETC., must also Keep
II
Statements of all transactions must
he made under oath on or before the
18th of each month and at such other
time as the Commissioner shall desie :
nate. A monthly statement OF stamps
purchased, on hand, trades made,
cleared, the number Of shares having
par value, of no par value, ETC.. must De
made.
Floormen shall render. records OF
only such transactions as the actuai
names Of buyer or seller were not
"given up"
Personal Mention.
I w. L. Bealc. well known In rea es-
tate circles, has Joined the stan OF the
American Security and Trust Com
pany as real estate officer.
Frank w. Stone, vice president OF
the National Savings and Trust Com
pany, returned this morning from
hunting trip in the Adirondack. Mr..
Stones party was successful In Dag
cling several large deer. but the bank
ing expert admits that he was un-
1 fortunate as he did not fire his rif1e
on the trip.
Lanston and Traction Active.
Lanston Monotype and Capital Trac-
ltion shares were the active leaders
on the local stock exchange this sitter