Payment in Advance Payment in advance may be made either in installments or in full. If paid in installments, one-fourth of the estimated tax due must be paid before the expiration of thirty days after the close of the taxable year, one-fourth within two months after the close of the taxable year, one-fourth within four months after the close of the taxable year and the remainder of the tax on or before the time fixed for payment. Any amount paid in excess of tax liability will be refunded. Interest on Advance Payment Credit of interest not exceeding three per centum per annum, calculated upon the amount so paid from the date of payment to the date now fixed by law for such payment, may be allowed on payments made in advance. No credit, however, shall be allowed on payments in excess of taxes determined to be due, nor on payments made after the expiration of four and one-half months after the close of the taxable year. Distraint in Case of Non-Resident In case of the failure of a non-resident alien individual to file return, the collector of internal revenue shall collect the tax due and all property in the United States belonging to the delinquent shall be liable to distraint. The Federal Income Tax Law Act of September 8, 1916 As amended October 3, 1917 (Amendments under the Act of October 3, 1917, are printed in italics) Title I.-Income Tax Part I.-On Individuals SEC. 1. (a) That there shall be levied, assessed, Normal collected, and paid annually upon the entire net income Tax received in the preceding calendar year from all sources by every individual, a citizen or resident of the United States, a tax of two per centum upon such income; and a like tax shall be levied, assessed, collected, and paid annually upon the entire net income received in the preceding calendar year from all sources within the United States by every individual, a nonresident alien, including interest on bonds, notes, or other interestbearing obligations of residents, corporate or otherwise. (b) In addition to the income tax imposed by sub- Additiondivision (a) of this section (herein referred to as the al Tax on Incomes normal tax) there shall be levied, assessed, collected, over and paid upon the total net income of every individual, $20,000 or, in the case of a nonresident alien, the total net income received from all sources within the United States, an additional income tax (herein referred to as the additional tax) of one per centum per annum upon the amount by which such total net income exceeds $20,000 and does not exceed $40,000, two per centum Dividends per annum upon the amount by which such total net income exceeds $40,000 and does not exceed $60,000, three per centum per annum upon the amount by which such total net income exceeds $60,000 and does not exceed $80,000, four per centum per annum upon the amount by which such total net income exceeds $80,000 and does not exceed $100,000, five per centum per annum upon the amount by which such total net income exceeds $100,000 and does not exceed $150,000, six per centum per annum upon the amount by which such total net income exceeds $150,000 and does not exceed $200,000, seven per centum per annum upon the amount by which such total net income exceeds $200,000 and does not exceed $250,000, eight per centum per annum upon the amount by which such total net income exceeds $250,000 and does not exceed $300,000, nine per centum per annum upon the amount by which such total net income exceeds $300,000 and does not exceed $500,000, ten per centum per annum upon the amount by which such total net income exceeds $500,000 and does not exceed $1,000,000, eleven per centum per annum upon the amount by which such total net income exceeds $1,000,000 and does not exceed $1,500,000, twelve per centum per annum upon the amount by which such total net income exceeds $1,500,000 and does not exceed $2,000,000, and thirteen per centum per annum upon the amount by which such total net income exceeds $2,000,000. For the purpose of the additional tax there shall be included as income the income derived from dividends on the capital stock or from the net earnings of any corporation, joint-stock company or association, or insurance company, except that in the case of nonresident aliens such income derived from sources without the United States shall not be included. All the provisions of this title relating to the normal tax on individuals, so far as they are applicable and are not inconsistent with this subdivision and section three, shall apply to the imposition, levy, assessment, and collection of the additional tax imposed under this subdivision. (c) The foregoing normal and additional tax rates shall apply to the entire net income, except as hereinafter provided, received by every taxable person in the calendar year nineteen hundred and sixteen and in each calendar year thereafter. Income Defined Net Income SEC. 2. (a) That, subject only to such exemptions and deductions as are hereinafter allowed, the net income of a taxable person shall include gains, profits, and income, derived from salaries, wages, or compensation for personal Source service of whatever kind and in whatever form paid, or Derived from professions, vocations, businesses, trade, commerce, or sales, or dealings in property, whether real or personal, growing out of the ownership or use of or interest in real or personal property, also from interest, rent, dividends, securities, or the transaction of any business carried on for gain or profit, or gains or profits and income derived from any source whatever. persons (b) Income received by estates of deceased during the period of administration or settlement of the estate, shall be subject to the normal and additional tax and taxed to their estates, and also such income of estates or any kind of property held in trust, including such income accumulated in trust for the benefit of unborn or unascertained persons, or persons with contingent interests, and income held for future distribution under the terms of the will or trust shall be likewise taxed, the tax in each instance, except when the income is returned for the purpose of the tax by the beneficiary, to be assessed to the executor, adminis Income Received by Estates |