Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1919-02-07

washington, Feb. 7.--The drastic pro-
visions relating to income taxes con-
tanned in the conference committees
revenue bill, with the levy on war
profits and excess profits, furnish a
great part of the burden that will be
imposed on the public to meet govern
ment expenses. Details Of this vastly
important income tax section are sub
Joined:
Under the general definition of per
sonal service corporatien." the conferees
amended the Senate and House bills SO
as to exclude amy foreign corpora
tion, or any corporation. so per cent
or moro Of whose gross income con-
sists either "a OF gains. profits, or
income derived from trading as a prln-
missions. or other income. derived from
a Eevsrnment contract ot SsnttrsSsos mt So.
V.%s.r ,nass o'iTsi9 II. is,s Apr'' o. '''''"' ''
Dividends, the method for determin-
ing gain or ,oss. and inventories, are
explained in detail. Concerning re.
turns for the fiscal years Of 1913 ana
1920, the conferences report spec,nss,
makes ss' return 1SS: 'N9 for fiscal year sesin.
ming in 1si7 and ending In 1918. his
tax under this title for the hrst taxa
Bile year ohall be the sum OF: "
The same proportion & tax 11r @ the
Of the revenue act OF 1915 as amended
BY the revenue act of 1917 and under
Title l OF the revenue act OF isi,'
which the portion of such period iali-
is of the entire period. and go the
same proportion OF tax for the .1. en-.
tire period computed under this title
at the rates for the calendar year
IBIS which the portion OF such perlop
1918 is OF the entire period: Provided,
that in the case CT a personal service
corporation the amount to be PAID snai
be only that specified in Clause u:
ANY amount heretofore or mere
after paid an account OF the ta1 i'm,
posed for such fiscal year by Iitle |
OF the revenue act Of 1915 as amend.
ed by the revenue act OF l9lI' anu
by Title of the revenue act OF WI,
by this act, and II the amount 30 paid
exceeds the amount Of such tax I'M
posed by this act. or. In the case OF
amount specifed in Clause u!, the
excess shall be credited or refunded
Section 252.
"(b) II a taxpayer makes q return
for fiscal year beginning In 1918 ana
ending In 1919, the tax under tnls
title for such fiscal year shall be the
sum Of: % The same proportion &
h tax for the entire period computed
under this title at the rates speciheo
for the calendar year 1918 which me
portion OF such period falling within
the calendar year 1918 Is of the entire
period, and (2) the same proportion
CT tax for the entire period COM
puted under this title at the rates
specified for the calendar year 1918
which the portion of such period fal-
of the entire period.
"(c) II fiscal year OF a partnership
begins in 1917 and ends in 1913. or
Notwithstanding the provisions OF sub
division (b) ~of Section els. U) the
rates for the calendar year during which
such fiscal year begins shall apply to
an amount OF each partners share of
such partnership net income deter
mined under the law applicable to such
year) equal to the proportion which the
part OF such fiscal year efalling within
srch calendar year bears to the full
fiscal year. and (2) the rates for the
calendar year during which such fiscal
each partners share OF such partner
ship net income determined under the
law applicable to such calendar year,
equal to the proportion which the part
of such fiscal year falling within such
calendar year bears to the full fiscal
year: Provided, that In the case Of a
personal service corporation with re-
spect to a fiscal year beginning In 1917
and ending in 1913. the amount specified