836

AN ANALYSIS AND

INTERPRETATION

OF THE

Federal Income Tax Law

BY

Hon. HENRY M. FOOTE

(Late Assistant to the Attorney General of the United States, Department of Justice)

AND

Hon. ROBERT J..TRACEWELL
(Late Comptroller of the United States, Treasury Department)

1914

W. F. ROBERTS COMPANY, PUBLISHERS

WASHINGTON, D. C.

ADDITIONAL TAX

Levied upon net income in excess of $20,000...

Income included and excluded in making return for..

Not assessed on income in trustee or debtor's hands..

COLLECTION OF NORMAL TAX ONLY AT THE SOURCE.

8

8-9

12

Deductions from income taxed at source, how obtained...
Trustee or debtor to make return

12

13

........

Trustee or debtor to make return for one disqualified or unable
'to make it

14

Trustee or debtor not to withhold tax after claim for exemption
under par. C is filed

12

Trustee or debtor will withhold and pay tax from fixed, deter-
minable, annual gains and profits, in excess of $3,000......
License to be obtained to make collection of foreign payments of
interest and dividends

12

15

Normal tax withheld only after November 1st, 1913.

12

32

CORPORATIONS.

Pay normal tax only on net income.

17

Foreign corporations pay on business and capital invested in the
United States

17

Return of on or before March 1st, or 60 days after time

Deductions to be made from gross income in return....
Foreign corporations-deductions from gross income on business
and capital invested in the United States...
Tax only for January and February, 1913..
Commissioner Internal Revenue will assess tax...

.19-20

.20-21

22

23

23

23

Tax payable on or before June 30th on return of March 1st..
Tax payable 120 days after return of day designated..
DIVIDENDS OF CORPORATIONS.

Not subject to normal tax in hands of individual, trustee or
debtor

Subject to tax as income of corporations.

Subject to additional tax in hands of individual if net income
exceeds $20,000

Dividends of foreign corporations subject to tax..

EXEMPTION AND DEDUCTIONS.
How claimed by individual in return
How claimed to trustee or debtor

FIDUCIARY AGENTS.

Must make return and pay tax for one they represent.
One of two or more may make return...

INCOME.

Gross of individuals

Gross income of corporations

Exemption and deductions from gross income in ascertaining

net income

Net income subject to tax

Only income derived from fixed, determinable, annual gains and
profits in excess of $3,000 taxable in hands of trustee or
debtor
Income from interest obligations of corporations subject to tax
if less than $3,000

......

...

....

......

Return may be increased by collector

6

Appeal from collector to Commissioner of Internal Revenue..

10

No return unless income exceeds $3,000 for calendar year....10-25
Return should be made if individual claims the benefit of de-
ductions and exemption

10

TAX.

Deductions in making return

Normal tax on individuals

Additional tax on net income in excess of $20,000..

Trustee or debtor pays only normal tax

Corporations pay only normal tax

On net income of individuals in excess of $3,000, although not
from fixed, determinable, annual income as is required
when tax is withheld at the source by trustee or debtor... 7-10