Evening star., 1940-04-18
Income Tax
Receipts Off,.
Check Planned
District Returns
To Be Compared
With Federal List

District tax officials prepared to-
day to begin soon thorough two
way check-up on local income tax
returns and payments, as the latest
count of receipts showed they were
almost 81 ,000, 900 below the estimated
revenue of $3,20O,000.
Assessor Edward A. Dent stressed
that he had not made, last fall, any
estimate Of the revenue from the
net personal and the corporate in
come levies, but that in compliance
with the law he would invoke all
available resources to check the ac-
curacy Of the returns and determine
If any payments not yet reported
are due the District. The deadline
for personal returns was last Monday
midnight.
He said his agents would check
District income returns against those
made to the Federal Government
and also against the old business
privilege tax returns in the case Of
business and professions subject to
that tax.
Corporation Tax Receipts Down.
The latest count showed that the
District will collect, on an annual
basis, only s1324.226 from the S per
cent corporation income tax. where
as some District officials had antici-
pated the receipts would be around
$1,000 900. The income tax agents
have sorted out of the mail all Of
the returns made so far bv business
concerns. These numbered 2,755 and
more than half, or 1860, reported no
taxable income and therefore, paid
only the s25 filing fee.
Mr.. Dent said there were about
| 200 business concerns which had
been granted extensions of time for
filing returns because they operate
on a fiscal year basis
However, Mr.. Dent said, there was
little hope that the corporation pay
ments would exceed 81 SOC, 900. which
would leave the returns from the
corporation levy roughly $700000
short Of the early goal
Personal Returns Near Estimate.
A much better picture is shown
for the personal tax levy. with the
count at noon showing of 5000 ,760.
Mr.. Dent said he felt sure the final
returns would reveal revenue con-
siderably in excess of the estimated
81 900 000 He said there were per-
haps 10000 personal returns yet to
be tabulated, although he had no
way of guessing how many would
show no taxable income. Up to
now, out of 1924 returns counted,
1924 showed taxable income.
, Should the District receive not
5 much more than s1,400,000 in the
corporation income tax, this would
indicate tax base of some SIG, ,000.-
900, whereas some officials in making
. early estimates of the possible reve-
, nue. used tax base of 1000 900.
However, reference to the income
! tax returns to the Federal Govern
, ment by business concerns giving
, District addresses indicated that for
1888 the tax base was s139l4O00;
for 1884, S22871 900: for 1885. ST.
O23. 900: for 1886, SAC, ,287 900, and for
1887, the latest year on which the
District has received information,
! $4,000 900.
Explanation for Dror.
District officials said they thought
l some explanation for the unex-
pectedly low corporation returns
might be found in the necessity of
r making apportionment of income to
D District concerns for business which
T they had done in other Jurisdictions
Il as we'll as in the fact that while the
E Federal income tax is applied to
inter-corporation dividends, such in
a come was not taxed under the Dis
4 trict law.
4 Mr. Dent announced that under a
a ruling by Corporation Counsel FL
t wood H. Seal any foreign corpora
ton furnishing during 1899 any ma
t terials to the United States or Dis
y trict governments for use in the
t District, either on bids or general
e contract. was subject to the tax on
the net income derived from such
:, business.