Great Falls tribune. [volume] (Great Falls, Mont.) 1921-current, 1922-03-01
CASH INCOME
IS NOT ONLY
COMPENSATION
Revenue Agent Explains How
Other Items Must Be Con-
sidered in Tax Returns.

! Persons may be held responsible ir
their income tax reports for conpensa-
ton other than cash, according to Col
| lector c. A. Rasmussen of the internal
| revenue service for the district Of Mon
| tana.
In speaking Of that phase of the in
come tax situation Tuesday, Mr.. Ras-
musson said:
I'm filing their income tax returns
for the year 1921, taxpayers must re-
member that taxable income is not
| necessarily cash. Where services arc
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 exam
pie, the value of merchandise received
BY clerk of grocery store as part
payment for his services must be re-
ported as income. Compensation paid
an employee of corporation in shares
Of stock is to be treated as if the cor
poration sold the stock at its market
value and paid the employee in cash.
Gives illustrations
"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 as part payment for his services
services are to be reported as income
hotel clerk given room aud his
meals spart payment for his srcyices
is required to report as income the
amount he would have to pay for board
and lodging elsewhere.
Where living quarters, food and
clothing are provided for an employee
solely for the convenience of an en-
ployer, the value thereof need not be
included in the income Of the employee.
For example, where because of the To-
cation and nature of the work, it il
necessary that employees engaged in
fishing and canning be furnished with
board and lodging BY the employer, the
value of such board and lodging may
be considered as contributed for the
convenience of the employer Board
and lodging furnished seamen in addi-
ton to their other compensation is held
to be furnished for the convenience of
the employer, and the value thereof
need not be reported in the returns of
such employees. Uniforms, rations and
medical or hospital service afforded
enlisted men or seamen need not be
reported as income. These are fur
n1shed by the governm ent for its own
purposes and are not compensation for
service.
Hospital Employees
THE value Of board and lodging
furnished employees of hospitals as
part compensation for services is to
be reported as income If, however. |
an employee of 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 ac- |
rept quarters and meals at the hospi-
taI, the value of such need not be re-
ported as income. If the employee is |
On duty certain number Of hours, and |
could. if desired, obtain board and !
odging elsewhere than at the hospi-
al and at the same time perform the |
duties required Of him, the ratablc |
value Of the board and lodging fur
lished him is considered additional |
The value of quarters, subsistence,
aundry. heat and light furnished Off
:ers and employees Of the public health
service constitutes income and must be
included in their returns for the year."