Pullman herald. [volume] (Pullman, W.T. [Wash.]) 1888-1989, 1922-03-10
INCOME INCLUDES
ITEMS BESIDES CASH

The following statement is issued
by Collector of Internal Revenue
Burns Poe, for the district of Wash
ington:
In filing their income tax returns
for the year 1921, taxpayers must
remember the taxable income is not
necessarily cash. Where services are
paid for with something other than
money, the fair market value Of the
thing taken in payment is the
amount to be included in income. For
example, the value of merchandise
received by clerk of a grocery
store as part payment for his serv-
ices must be reported as income.
Compensation paid an employee of a
corporation in shares of stock is to
be treated as if the corporation sold
the stock at it's market value and
paid the employee in cash
Promissory notes received in pay
ment for services and not merely as
security for such payment constitute
income to the amount of their fair
market value. Living quarters and
meals furnished as compensation for
services are to be reported as in
come. A hotel clerk given room
and his meals as part payment for
his services is required to report as
income the amount he would have to
pay for board and lodging elsewhere.
The value of quarters, light and
er stationed at an army post or paid
from funds allowed for such pur-
poses when officers are stationed
elsewhere is taxable income in an
amount equal to the cost to the gov
eminent of furnishing such quarters,
etc Where an officer or enlisted
man is allowed certain communication
in lieu of quarters, light and heat
the entire amount received for such
purposes for the taxable year must
be included in gross income.
ing, etc, are provided for an en-
ployee solely for the convenience of
an employer, the value thereof need
not be included in the income of the
employee. For example, where be-
cause of the location and nature of
the work, it is necessary that en-
plOyees engaged in fishing and can
ming be furnished board and lodg-
ing by the employer, the value of
such board and lodging may be con-
sidered as contributed for the con
lodging furnished seamen in addition
to their other compensation is held
to be furnished for the convenience
of the employer, and the value there
or need not be reported in the re-
turns of such employees. Uniforms,
rations and medical or hospital serv-
ice afforded enlisted men or seamen
need not be reported as income.
These are furnished by the govern
ment for its own purposes, and are
not compensated for services.
The value of board and lodging
furnished employees of hospitals as
part compensation for services is to
be reported as income. Ii, however,
an employee of a hospital is subject
to immediate service on demand at
any time during the "a hours of the
day, and on that account is obliged
to accept quarters and meals at the
hospital, the value of such need not
be reported as income. If the en-
ployee is on duty a certain number of
hours. and could, if desired, obtain
meals and lodging elsewhere than at
the hospital, and at the same time
/ perform the duties required of him,
the ratable value of the board and
lodging furnished him is considered
additional compensation.
The value of quarters. subsistence,
/ laundry, heat and light furnished Of
ficers and employees of the public
health service constitutes income and
must be included in their returns for
I the year.
To avoid penalty, returns must be
filed on or before midnight of
March IS