Evening star., 1943-01-17
New 5Pct. Victory Tax
To Have No Effect on
Income Returns
Experts Are Available
At Revenue Building to
Explain Withholding Levy

AiC hC" iiNC pei Cclib NICtoiy Lax,
now in effect, will cause no compli-
cations in the income tax returns
that many Americans now are
struggling with in order to have
them ready by March Is.
This was emphasized last night
by experts familiar with the new
tax. which has raised many ques-
tons recently regarding its with
holding provisions.
Westinghouse already have be-
gun to calculate the 1912 income
tax one-fourth of which must be
paid on or before the filing date
At the Office of the deputy collec-
tor in the revenue building, Twelfth
street and Constitution avenue NV,
inquiries already are pouring in.
People have begun much earlier this
year than ever before, officials said,
to get a line on how much they
will have to pay.
Actually it Is Simple.
They also want to understand the
victory tax. Experts are available
at room 1902 of the revenue build
ing, not only to help taxpayers
make out their returns, but also to
explain the new victory tax. There
is no reference whatever to the
victory tax in the 1912 income tax
return applications.
While the victory tax has ap- |
peared complicated, revenue experts |
declare in reality that it is simple /.
The Withholding provision, by which
employers now are taking out 5 per |
cent of any pay over $12 week |
is merely a compulsory system of |
saving until the tax falls due in |
March. 1914.
Regardless of how or when the |
first withholding" was made in pay
rolls over the end of the year, the
amount taken out is merely set
aside, and turned over to the
Treasury, to help the taxpayer pay
as you CO." on this per cent levy.
At the end of the calendar year
l943, the exact income will be COM
puted, and the exact amount of |
victory tax due can be fixed.
Refunds May Be Made.
= In hardly any instance. tax ex-
perts point out, will the individual |
nave saved up through withholding"
the exact amount of the tax he will
owe on March Is, 1914. Adjust
ments will be made at that time.
A Treasury statement, issued re-
Gently, in an effort to clear up con-
fusion resulting from inaccurate
and misleading statements" pub
lished by some papers other than
The Star, said: 'If the amounts
by employers exceed the
combined income and Victory Tax
liability the employe will receive
refund from the Collector of In
ternal Revenue"
THE withholding feature was de-
signed to help the taxpayer pay mis-
L943 Victory Tax when 1t rails due"
The Revenue Act of 1912, it was
pointed out, specifically directs that
shall be effective on
January /, 1943, and shall apply ito
III wages :. paid on or after such
late"
So the directive supplied by Con-
yress referred not to the period dur
ng which the wages were earned
out to the time when they were
paid.
Liberal Interpretation.
The collector of internal revenue
Interpreted paid" literally, it was
explained, to give employees the
'fairest possible treatment" He
ruled that all wages "constructively
paid" before January /, l943, would
De exempt from Withholding. That
IS, wages for payroll periods ending
on or before December 81. 1912,
even if actually delivered in 1943,
we're held to be available in 1912,
and therefore not subject to victory
lax withholding.
Where payroll periods overlapped
l942 and 1943 SO that the first wage
payment in 1943 covered some in
come earned at the end of 1912,
was required on the
whole amount.
Any differences between the
dliIoOIl1 Ol IiAoilcy WlbllliCiu uui 4llS
the calendar year 1943, and the
amount of Victory Tax actually due
will be ironed out in accounting
and adjustment.
No Gaps in Income.
Furthermore, it was pointed out,
there will be no gaps" in the
amount of income reported to the
Government for purposes of the in
come tax. Published reports to the
contrary were labelled by tax ex-
perts as entirely erroneous. Neither
the employe nor the Government
will lose, or gain anything through
the withholding method.
Nor is there any final discrimina-
tion against one group as compared
with another, regardless of when /
n N