Atlanta semi-weekly journal. (Atlanta, Ga.) 1898-1920, 1920-02-06
INCOME TAX FACTS
YOU SHOULD KNOW
NO.. 9

| fat rate Of 10 per cent is imposed on
the net income of corporations for the year
1919. For the year 1918 the rate was Il
per cent. Certain corporations, such as la
Dor and agricultural organizations, mutual
savings banks not having a capital stock
| represented by shares; fraternal beneficiary
societies, business leagues, chambers of COM
merce, boards of trade ETC., not organized
! for profit are exempt from taxation.
/ Every domestic corporation is allowed a
specific exemption of So 900, but, unless ex-
pressly exempt from taxation, must file a
return regardless of it's net income Re-
Turns are required also of every personal
service corporation, notwithstanding they are
| exempt from taxation. *
Persona Service Corporations
The term personal service corporation"
according to Treasury regulations, means a
corporation 1.-The income Of which is derived
/ from profession or business which consists
principally of rendering personal service, the
earnings of which are to be ascribed pr-
marily to the activities of the principal own
ers or stockholders, and in which the en-
ployment of capital is not necessary, or only
incidental" No definite and conclusive
tests, however, can be prescribed by which
it can be determined in advance of an ex-
animation of the corporations return
whether or not it is a, personal service cor
poration. The individual stockholders of a
! personal service corporation are taxed in the
same manner as members of a partnership,
and the net income from such corporations
must be accounted for by them.
Corporation returns must be sworn to by
the president, vice president, or other prin-
cipal officer, and by the treasurer and as
sistant treasurer. When required by the
Commissioner of Internal Revenue, corpora
lions subject to the tax must render return
duly verified under oath of its payments ( f
dividends, stating the name and address of
each stockholder the number of shares own
ed by him, and the amount of dividends paid
him.
Corporations, we'll as individuals and
partnerships, doirg a brokerage business,
when required b. the commissioner, must file
a return showing the names of their GUS
| toners the amount of their profits or loss
es, and giving such other information as
will enable the commissioner to determine
whether all income tax on profits and gains
Of such customers have been paid.
l. In determining net income upon which the
tax is assessed, corporations are allowed all
/ the ordinary deductions for business ex-
! penses, bad debt depreciation, losses, etc,
! granted the individual. Corporations. like
| individuals, may pay their income tax in full
at the time of filing the return, or in four
| installments. the first of which is due on or
| before March / s. the second on or before
| June Is. the third on or before September
No, and the fourth on or before December
| 10, 1920.
"Cyclone" Smith is a serious-ninded man.
| That is to say. Senator Ellison Durant Smith
of South Carolina, who talks SO fast that he
was dubbed "Cyclone' when he delivered his
maiden speech, has a high regard for the
constitution and the institutions erected by
"the fathers" But sometimes in the torrent
of his language he makes fortuitous state
ment. During a discussion of the high cost
of living in the senate agricultural commit
tee Senator Harrison, of MiSSiSSippi ex-
claimed, we must do something. about it
we will have revolution in this country
II would rather have revolution than
have the beautiful form of our government
| overturned" replied the serious-minded Sen
! atOr Smith. The other members of the cent
mittee smiled but the humor was lost OF
the South Carolinian, as he was Immersed
in Niagara of words