Lapas attēli

PREFACE The accompanying regulations embrace the various administrative features of the law (sec. 2, Act of Oct. 3, 1913) imposing a tax on incomes. They contain instructions relative to the preparation of returns, etc., and are designed to assist both the taxpayer and the officers charged with its enforcement in complying with the requirements of this law.

Liberal construction of the law has been given that those charged with withholding the tax at the source may not do so unnecessarily. Withholding agents may forward evidences of nonliability to payment, when such evidences are received by them, to collector for the district in lieu of the tax. This will relieve them of the necessity of withholding such tax.

The regulations are arranged according to general sub jects, as follows:

Part 1. Individual income returns and collections.
Part 2. Collections at the source.

A. Bonds, mortgages, deeds of trust, etc.
B. Bonds, mortgages, deeds of trust, etc., by first

bank or collection agency where certificates of

owners are not filed.
C. Bonds, mortgages, dividends, etc., of foreign cor-

D. Salaries, wages, rent, etc.

E. Fiduciaries. Part 3. Relative to corporations, joint-stock companies or associations, and insurance companies.

Part 4. Assessment and collection.

All forms of certificates herein provided shall be 8 inches wide and 34 inches from top to bottom, and printed on paper of substantial weight and texture.


Regulations concerning the tax imposed by Section 2, Act of October

3, 1913, on net income of Individuals, Corporations, Joint-Stock Companies, Associations, and Insurance Companies.


WASHINGTON, D. C., January 5, 1914.



Persons Taxable. ARTICLE 1. Section 2 of the above-named act imposes a tax of 1 per centum (designated as the normal tax) on net incomes arising or accruing from all sources during the preceding calendar year to

(a) Every citizen of the United States, whether residing at home or abroad; and

(b) Every person residing in the United States, though not a citizen thereof; and

(c) From all property owned and from every business, trade, or profession carried on in the United States, by a person residing elsewhere.

Additional or Super Tax. ART. 2. Said section also imposes an additional tax on all net incomes of individuals exceeding $20,000, as follows:

1 per cent on incomes exceeding $20,000 and not exceeding

$50,000. 2 per cent on incomes exceeding $50,000 and not exceeding

$75,000. 3 per cent on incomes exceeding $75,000 and not exceeding


4 per cent on incomes exceeding $100,000 and not exceeding

5 per cent on incomes exceeding $250,000 and not exceeding

6 per cent on incomes exceeding $500,000.

Net Income Defined. Art. 3. The Net Income shall consist of the total gains, profits, and income derived from all sources (designated as gross income) less deductions numbered first to sixth, inclusive, specifically enumerated in paragraph B of the act. (See Article 6.)

Normal Tax; Upon What Computed. In computing the taxable income for the purposes of the normal tax there shall be deducted from the net income as above ascertained:

(a) The amount included in the gross income received as dividends upon the stock or from the net earnings of any corporation, joint-stock company, association, or insurance company which is taxable upon its net income;

(6) The amount of income the tax upon which has been paid or withheld for payment at the source; and

(c) The specific exemption of $3,000 or $4,000, as the case may be, except in the case of nonresident aliens.

Gross Income. What it Includes. Art. 4. Gross income includes all gains, profits, and income derived from

(a) Salaries, wages, or compensation for personal service of whatever kind and in whatever form paid.

(b) Professions, vocations, business (including income from copartnerships), trade, commerce, or sales or dealings in property, growing out of the ownership or use of or interest in, real or personal property.

(c) Interest, rent, dividends, securities, or transaction of any lawful business carried on for gain or profit. (See Art. 67 as to interest on deposits and certificates of deposit.)

« iepriekšējāTurpināt »