The Hays free press. [volume] (Hays, Kan.) 1908-1924, 1922-03-09
Internal Revenue Service
Collector


This statement is issued by Collect /
ors of Internal Revenue, H. H. Mot
ter, Wichita, Kansas, under date of /
March I, 1922.
Compensation for personal serv- /
ices in the form of salaries, wages, |
commissions, fees, tips, bonuses and |
pensions form the principal item in
the returns Of millions of taxpayers. I
AS a general rule, all such income is (
subject to tax However, there are
exceptions with which the taxpayer
in the interest of self as we'll as the |.
Government, should familiarize him
self.
Salaries paid to its officers and
employees by a state or political
subdivision thereof" Getty, town,
county or hamlet) are exempt from
taxation. The reason for this is that
the Federal Government does not tax
such activities of a state. Fees re
ceived by a notary public commits
STONED by a state are not taxable,
neither are fees paid jurors by al
state or political subdivision thereof.
Witnesses in law suits, however, even
though subpoened by states attorney
are not considered employees of the
state, and fees received by them are
subject to taxation.
The commissions of a receiver ap-
pointed by state, county or municipal
court are not taxable. The commits
sions of an administrator or execu-
tor are taxable because they are not
paid by state or political subdivi-
sion, but out of the estate of the de-
ceased. .
Salaries Of federal officers and en-
ployees, including those Of the terri
tories and the District of Columbia,
are subject to tax. Salaries and fees
paid by the United States to its am
bassadors, ministers or consuls ac-
credited to foreign countries or by a
foreign Government to United States
citizens are taxable, and the amount
spent by them for entertaining is not
deductible. Fees paid a juror by the
Federal Government are taxable in
come, likewise the fees received by a
referee, trustee or receiver, under
the National Bankruptcy Act. The
fees received by a notary public com
missioned by the District of columbia
are taxable.
Annuities paid by the government
TO retired employees are subject to
tax to the extent that the aggregate
amount OF the payments exceeds the
amounts withheld from the compen-
sation of the employees. Amounts
deducted and withheld from the basic
salary, pay or compensation paid to
employees in the civil service of the
United States, in accordance with the
provisions of the act providing for
pensions to Government employees
should be reported for income tax
purposes. The total compensation of
the employees should be reported in
gross income. No corresponding de
auctions can be taken for the
amounts withheld, inasmuch as such
amounts are payments towards the
purchase Of annuitites provided foI
in the act.
Inquiries received indicate the i'm
preston in the minds of many per
sons that all school teachers are
exempt from paymet of the income
tax. Teachers are not exempt be
cause engaged in educational work
As a rule the salaries paid public
school teachers are exempt, but only
for the reason that they are EN-
ployees of a state or political sub
division thereof.
The special exemption of $500
allowed under the revenue act o
1918 persons inactive service in mil
itary and naval forces is repealed b,
the revenue act of 1921. Soldier
and sailors are allowed only the ex