Evening star., 1948-04-11
District Income Tax
Returns, Business
Levy Due Thursday

for two District taxes and city Off
cials think one of them is not going
to be paid this time by a lot of
people who should pay.
They are not so worried about the
municipal income tax because Wash
ington residents have had good
deal of practice with 1t. But this
will be first experience with the
new unincorporated business tak for
most of the city's small businesses,
and the tax Office is afraid that de-
spite extensive publicity many of
them will default unintentionally.
AS of now, the experts do not real
ly know what to expect from the
unincorporated business tax. The
official estimate of the yield is
81, 500 900, but that Is only q guess.
5000 Licenses Issued.
About 5000 of the city's unincor-
porated businesses have taken out
licenses and few of these will fail to
file, officials believe. But there may
be as many as 5000 other businesses
still unlicensed, that are liable to pay
under the law. Nobody knows how
many of this group will meet the
Edeadline. ssef
Persons mailing their income ano
unincorporated business tax returns
together with the first half years
installment on the amount they owe
will have complied with the law
if the envelope is postmarked before
Thursday midnight. But If they
file and pay in person, they will have
to get to the District Building before
it closes at 4:45 pm. Thursday.
For both taxes, persons filing
late returns are technically liable
to a penalty charge of five per cent
month, up to Is per cent. Fol
those filing on time but paying
late, the legal penalty is one half o.
one per cent a month.
| May Not Penalize Tardy.
This year, in the case of the un'
Incorporated business tax, the Dis
trict will not try to collect penal
ties for tardiness if examiners arr
convinced the person failing to fit
or pay on time honestly did no
understand he was liable for tht
tax.
The Thursday deadline does mo-
apply to few of the citys unin-
corporated businesses. Concern!
which keep their books on a flsca
year not corresponding to thu
calendar year are not involved II
this collection.
But the great majority of unin.
corporated businesses here do keer
their books on a calendar veal
basis, and they must file return.
this week If their gross income ii
1947 exceeded $4,000.
Frequent Queries Answered.
Walter C. Thompson. who handles
unincorporated businesses for the
municipal tax Office, said yesterday
he receives constant queries indicat-
ing concerns do not understand the
new tax. Here are some of tht
most frequent questions and tht
answers:
@. How do I figure the gross in
come to see If I must file return.
A. 1t is everything your business
takes in. II you operate store
it is your total sales, before any O.
your costs have been deducted.
Q. I have several unincorporatet
businesses. None of them crossed
$4,000, but together they crossed
more than that. Must I file re-
turn?
A. Yes.
@. I don't actually operate a bust
ness, but I get income from somt
buildings which I own and rent
Must I file if these rentals came II
more than $4,000?
A. Yes. You are, in fact, in ar
unincorporated business.
@. I am dentist. Must I file;
A. No-a profession prohibited by
law from incorporating is not lie.
gally an unincorporated business
In the District, dentists, podiatrist!
and certified public accountants art
not permitted to incorporate. The
following professions. which by Gus.
tom and ethics do not incorporate
are also exempt from the tax: pub.
lie accounting mot certified, CHR.
opody, law, medicine and surgery
osteopathy. pharmacy, physiothera'
py and veterinary medicine.
@. If all my income comes from
my mincorporated business, and
file an unincorporated business ta1
return, must I also file a persona
income tax return?
A. Yes.
$4,000 Paid 46 Income Tax.
According to Allan Brooke, as
sistant administrator of the in.
come tax division, returns from
that levy should be about the same
this year as last. For 1946s approx
imately 5000 Washingtoaians PAID
g ~