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Text of Income Tax Lap

Revenue Act of 1918 itle 1-General Definitions ........................... itle 11Income Tax ...............

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Part 1-General Provisions efinitions ................................. ividends defined

What dividends are taxable. asis of determining gain or loss. ...... Iventories ......... et Losses ............................................ iscal year with different rates..... arts of income subject to rates for different years........

Part 11Regarding Individuals. ates of normal tax.........

......... 'ates of surtax. lates of tax for 1919..........

..... let income defined ......... iross income defined........ ncome exempt from tax. Deductions from net income. tems not deductible............ Credits allowed in calculating normal tax............ Personal exemption ........

.................. Non-resident aliens—allowance of deduction and credits.. 107

Personal exemption.
Partnerships and personal service corporations ..........

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107

Profits of corporations taxable to stockholders............ Deduction at the source.....

.............. 1
As to non-resident alien.
When owner is unknown.

Amounts deductible.
Credit for taxes—foreign, etc. .......

......... 1 Returns--individual, parnership, fiduciary ................. 1 Changes in accounting period.

....... ] Time and place for filing returns....

....... Understatements ............

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Part III-Regarding Corporations
Organizations subject to tax..........
Rates of tax for 1918.....
Rates of tax for 1919.........
Rates for railroads under federal control
Non-taxable organizations
Net income defined....
Gross income defined...
Deductions allowed .......

Domestic corporations.
Insurance companies.

Foreign organizations.
Items not deductible........
Credits allowable ................
Deduction at source-for foreign corporations......
Credit for taxes (to foreign countries).....
Corporations returns
Keeping corporations accounts......
Consolidated returns .........
Exceptions ...................
Affiliated corporations .....
Foreign corporations

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Domestic corporations ......

................ 122 Time and place of filing returns.......................... 123

123

Part IV-Administrative Provisions
Payment of tax....

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In advance.
By installment.
Interest charges.
Recomputation.
Examination, etc., of return.

Overstatement,
Understatement.

If fraudulent,
Returns under Section 3176 of Revised Statutes.

When tax is overdue.
Taxpayer's intention to depart from the U. S., etc.
Receipts ........

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Refunds
Penalties

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Return of payments of dividends .........
Returns of brokers—available to government.....
Information at the source—in general...................
Returns open to inspection ..........

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Under what conditions.
Publication of statistics........

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Collection of foreign items..........
Citizens of United States possessions........
Porto Rico and the Philippine Islands.

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Title XIIIGeneral Administrative Provisions
Advisory Tax Board created ........

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Membership.
Office.

Powers and duties. Legislative Drafting Service.

............ 130 Other administrative provisions made part of this act.... 131

Table No. 1, pages 18-20, shows the Rates and Amounts of Tax to be paid by individuals, citizens or residents, on incomes from $2,000 to $10,000,000. An adjustment of the Table for non-resident alien individuals is also given. An Example of a Method of Computing the Income Tax is included on page 21. The graphic charts on pages 22-23 give the Average Tax on Net Income from $2,000 to $2,000,000 for the tax laws passed in the years 1913,1916,1917, and 1918 showing the great increase in 1918. Table No. II on pages 24-27 gives the Comparative Values of Taxable and Tax-free Securities.

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