Show INCOME TAX lAX TAXIS IS EXPLAINED H t BY AUTHOR Treasury Is to Distribute BlanKs Blans in Order to Get Information Information In In- formation Before Public V. V I 7 WASHINGTON Sept 30 The rhe The treasury ur department is preparing for a n flood of qU questions about the new income income in in- come come tax realizing that this feature of the tho tariff bill about to become law strikes moro more intimate intimately at tho taxpaying tax tax- paying citizen than do 10 the indirect taxes collected through h the customs duties One Ono of or the first steps taken to get et general information before the public Win will be bo to distribute income tax blanks through h internal intern l revenue offices of of- and other federal agencies How HoW- over over tho fact that ho does not receive re re- re- re o cei a blank or a request to pa pay the theta ta tax will wm not exempt a taxable from tho the penalties of the tho law Jaw Author Explains I Representative Cordell Hull of Tennessee Ten fen I who drew the income tax provision pro I vision of the tho tariff bill which will soon oon become law aw has made mad public I Ia a detailed explanation of the tax plan as it will touch the individual citizen The treasury treasury- rc regulations soon to be bo prepared will make mako clear to every o taxpayer taxpayer tax tax- payer tho requirements of th the tho law and its application to in income como derived from tho the various kinds of business said Mr Hull cc Any Any person who keeps fa familiar fa fa- with his business affairs duril during J the year ear should have no difficulty in executing his hiB tax return Tho The income tax is divided into two phS phases the C normal tax of 1 I percent percent per percent cent on the whole income above and nd the additional tax that be begins ns with an extra 1 per cent above abo and is graduated to 6 per por cent cent above Wherever tho the fn income omo tax is paid C at at the tho sour SOUl i f by a corporation for its s employees ces or in similar cases only the 1 per cent normal tax is iseo eo 80 paid The individual has bas to pa pay i any additional tax himself The Tho proVisiOn provision pro pro- I vision of or the tho law requiring tho the tax to tobe tohA be he withheld at the source does docs not take effect until November 1 I 1913 Plan for tor First Piret Year For the first ul year ear the tho citizen will make return to tho local Internal revenue revenue reve rove nue collector before fore March 1 I 1914 H. H as asto asto asto to his earnings from March I 1 1913 1013 to the end of at this year The collector will notify him June 1 ho how much ho owes and the tax must be bo paid by June Juno 30 10 After next nut year far the tax wI will apply on the full tull calendar year If It the Income of ot a person pernon In Is under or if It the ta tax on the tho same Is la withheld withheld with with- held for foT payment at the source or If It the tho Nome game Is to to-be to be paid paM elsewhere in the affidavit may be made to such fact and thereupon no return will he required The tax covers 0 all incomes 8 of ot citizens citizen of ot the United States StateR whether living livin- here or abroad those thoe of ot foreigners tor living in inthe Inthe inthe the United States and the not net Incomes from property owned or business carried on in the United Stat States b by pc persons livIng living living liv liv- ing abroad Net Income The Th net income Includes all Income from salaries or an any compensation for personal per per- tonal onal services incomes s from trades pro pro- profusion fusion bu busIness or commerce from ales or dealings in personal property or real rut estate from tnt interest rent dividends ct from securities for tor all business carried carded on for tor gain Bequests will not b be b considered In Income In- In come nor will life In insurance urance paid to a n beneficiary or returned to the Insured person as a up paid or surrendered policy pot pol t icy be taxable Interest on such pro property prop erty will be bo included as income how how- ever The Tho amount that ma may be deducted from a total Income includes the cost of ot carrying on business actual losses depreciation allowances and tax-exempt tax or tax paid mane money Living expenses cannot cannot cannot can can- not be bo deducted nor can enn money spent pent for permanent Improvements to property Duty of Taxpayer The Th form that IB Is to be bo filled tilled out by bv bythe bytho the tho taxpayer will Ill bo ls drawn up soon floon b by the collector of ot Internal revenues The Tho taxpayer taxpayer taxpayer tax tax- payer will have to give his gross revenue rc and then specify and ond claim time the deductions deductions deduc deduc- dons to which 1 he feels entitled Unless a mans man's income tax is ill paid Rt at source he must hunt up a tax blank till fill It out and Bee sac that it finds Its wa way to the proper official in his district before March MarchI 1 I 1914 v t Firms corporations corporation and the like having hav hay ing the handling of ot interest rents sat sat- ries or other portions of the Income of oC an any citizen orG are compelled to d deduct the tax for the individual and pay paT it to the government The individual then will Ill receive receive re re- re- re a receipt showing ho has bas paid paltI his I tax |