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"(c)* A nonresident alien individual shall re

and credits to

be allowed only ceive the benefit of the deductions and credits pro


case nonresident alien files return

8. Personal exemption

Allowed only to citizens or residents of the U. S.

Unmarried persons, $3,000

Married persons, $4,000

vided for in this section only by filing or causing to be filed with the collector of internal revenue a true and accurate return of his total income, received from all sources, corporate or otherwise, in the United States, in the manner prescribed by this title; and in case of his failure to file such return the collector shall collect the tax on such income, and all property belonging to such nonresident alien individual shall be liable to distraint for the tax."


"Sec. 7.* That for the purpose of the normal tax only, there shall be allowed as an exemption in the nature of a deduction from the amount of the net income of each citizen or resident of the United States, ascertained as provided herein, the sum of $3,000, plus $1,000 additional if the person making the return be a head of a family or a married man with a wife living with him, or plus the sum of $1,000 additional if the person making the return be a married woman with a husband living with her; but in no event shall this additional exemption of $1,000 be deducted by both a husband and a wife:


(The exemptions allowed below are for the supplementary war normal 2% tax on individuals. For the regular normal tax of 2% the exemption of $3,000 and $4,000 continues. An individual, therefore, is subject to a war normal tax of 2% on all income over $1,000 and $2,000, and to the regular income tax of 2% on income over $3,000 and $4,000.)

Basis of war income tax is

Sec. 3. That the taxes imposed by sections

of tax of Sept. 8, 1916

the same as that one and two of this Act shall be computed, levied, assessed, collected, and paid upon the same basis and in the same manner as the similar taxes imposed by section one of such Act of September eighth, nineteen hundred and sixteen, except that in the case of the tax imposed by section one of this Act (a) the exemptions of $3,000 and $4,000 provided

As amended October 3, 1917.

dependent child,


Provided, That only one deduction of $4,000 shall be made from the aggregate income of both husband and wife when living together: Provided further, Allowance for That if the person making the return is the head of $200 a family there shall be an additional exemption of $200 for each child dependent upon such person, if under eighteen years of age, or if incapable of selfsupport because mentally or physically defective, but this provision shall operate only in the case of one parent in the same family: Provided further, Exemption for That guardians or trustees shall be allowed to trustees make this personal exemption as to income derived from the property of which such guardian or trustee has charge in favor of each ward or cestui que trust: Provided further, That in no event shall a ward or cestui que trust be allowed a greater personal exemption than as provided in this section from the amount of net income received from all sources. There shall also be allowed an exemption from the amount of the net income of estates of deceased citizens or residents of the United States during the period of administration or settlement, and of trust or other estates of citizens or residents of the United States the income of which is not distributed annually or regularly under the provisions of subdivision (b) of section two, the sum of $3,000, including such deductions as are allowed under section five."

in section seven of such Act of September eighth, nineteen hundred and sixteen, as amended by this Act, shall be, respectively, $1,000 and $2,000, and (b) the returns required under subdivisions (b) and (c) of section eight of such Act as amended by this Act shall be required in the case of net incomes of $1,000 or over, in the case of unmarried persons, and $2,000 or over in the case of married persons, instead of $3,000 or over, as therein provided, and

Personal exemption from war income tax

is $1,000 and


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Sec. 8. (a) The tax shall be computed upon the net income, as thus ascertained, of each person subject thereto, received in each preceding calendar year ending December thirty-first.

(b) on or before the first day of March, nineteen hundred and seventeen, and the first day of March in each year thereafter, a true and accurate return under oath shall be made by each person of lawful age, except as hereinafter provided, having a net income of $3,000 or over for the taxable year to the collector of internal revenue for the district in which such person has his legal residence or principal place of business, or if there be no legal residence or place of business in the United States, then with the collector of internal revenue at Baltimore, Maryland, in such form as the Commissioner of Internal Revenue, with the approval of the Secretary of the Treasury, shall prescribe, setting forth specifically the gross amount of income from all separate sources, and from the total thereof deducting the aggregate items of allowances herein authorized:

(c) the provisions of subdivision (c) of Section nine of such Act, as amended by this Act, requiring the normal tax of individuals on income derived from interest to be deducted and withheld at the source of the income shall not apply to the new two per centum normal tax prescribed in section one of this Act until on and after January first, nineteen hundred and eighteen, and thereafter only one two per centum normal tax shall be deducted and withheld at the source under the provisions of such subdivision (c), and any further normal tax for which the recipient of such income is liable under this Act or such Act of September eighth, nineteen hundred and sixteen, as amended by this Act, shall be paid by such recipient.

time for filing

Provided, That the Commissioner of Internal Rev- Extension of
enue shall have authority to grant a reasonable ex-
tension of time, in meritorious cases, for filing re-
turns of income by persons residing or traveling
abroad who are required to make and file returns of
income and who are unable to file said returns on
or before March first of each year: Provided fur-
ther, That the aforesaid return may be made by an
agent when by reason of illness, absence, or non-
residence the person liable for said return is unable
to make and render the same, the agent assuming
the responsibility of making the return and incur-
ring penalties provided for erroneous, false, or
fraudulent return.

trustees, returns by

“(c) *Guardians, trustees, executors, adminis- Guardians and trators, receivers, conservators, and all persons, corporations, or associations, acting in any fiduciary capacity, shall make and render a return of the income of the person, trust, or estate for whom or which they act, and be subject to all the provisions of this title which apply to individuals. Such fiduciary shall make oath that he has sufficient knowledge of the affairs of such person, trust, or estate to enable him to make such return and that the same is, to the best of his knowledge and belief, true and correct, and be subject to all the provisions of this title which_apply to individuals: Provided, That a return made by one of two or more joint fiduciaries filed in the district where such fiduciary resides, returns by under such regulations as the Secretary of the Treasury may prescribe, shall be a sufficient compliance with the requirements of this paragraph: Provided further, That no return of income not exceeding $3,000 shall be required except as in this title otherwise provided.

Joint fiduciaries,

*Paragraph (d) repealed


́e) *Persons carrying on business in partner- members liable ship shall be liable for income tax only in their indi-individual

for tax


*As amended October 3, 1917.

Partnership as such, return may be required for

Partnership may fix its own fiscal year

vidual capacity, and the share of the profits of the partnership to which any taxable partner would be entitled if the same were divided, whether divided or otherwise, shall be returned for taxation and the tax paid under the provisions of this title: Provided, That from the net distributive interests on which the individual members shall be liable for tax, normal and additional, there shall be excluded their proportionate shares received from interest on the obligations of a State or any political or taxing subdivision thereof, and upon the obligations of the United States (if and to the extent that it is provided in the Act authorizing the issue of such obligations of the United States that they are exempt from taxation) and its possessions, and that for the purpose of computing the normal tax there shall be allowed a credit, as provided by section five, subdivision (b), for their proportionate share of the profits derived from dividends. Such partnership, when requested by the Commissioner of Internal Revenue or any district collector, shall render a correct return of the earnings, profits, and income of the partnership, except income exempt under section four of this Act, setting forth the item of the gross income and the deductions and credits allowed by this title, and the names and addresses of the individuals who would be entitled to the net earnings, profits, and income, if distributed. A partnership shall have the same privilege of fixing and making returns upon the basis of its own fiscal year as is accorded to corporations under this title. If a fiscal year ends during nineteen hundred and sixteen or a subsequent calendar year for which there is a rate of tax different from the rate for the preceding calendar year, then (1) the rate for such preceding calendar year shall apply to an amount of each partner's share of such partnership profits equal to the proportion which the part of such fiscal year falling within such calendar year bears to the full fiscal year, and (2) the

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