THE NOME NUGGET
Published Monday, Wednesday, Friday, by The Nome
Publishing Company, Nome, Alaska.
Telephone Main 114 P. O. Box 518
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Entered in the Post Office in Nome as 2nd Class Matter
MEMBER OF ASSOCIATED PRESS
^ --- - ~*
Income Tax
Returns Must Be
Filed By March 15
TACOMA, Jan. 3 (Special) —
Income tax forms have been mail
■ed today to 132,000 taxpayers of
the federal internal revenue col
lection district of Washington &
Alaska, to report incomes earned
during the year of 1939. The
number of returns distributed
is the largest quantity ever mail
ed by the Tacoma district office:
since the war-profit tax days of
1919 and 1924, when tax rates
and exemptions were more strin
gent. An increase of 2,000 tax
payers was recorded over the
number who had filed in 1938,
according to Thor W. Hendrick
sen, Acting Collector.
The recent congressional enact
ment of the Public Salary Tax
Act this year will subject the sal
aries of a public school teacher
v-. |t;,|,||,,frolic officials of state,
county* .Aid local municipalities
to the federal income tax law.
The collector’s office estimates
approximately 30,000 persons in
this state, of which 12,000 are ed i
ucators, received compensation
for personal services from pub
lic aources and may be liable
for returns for the first time on
March 15, the filing date. Based
on national estimates, however,
it is expected that less than
10,000 of these officials receive in
c me sufficient to require pre
paration of returns, probably not
more than 5,000 will have to pay
taxes. Through the cooperation
of state and county administra- 1
tion officers, salaries are being !
reported to the bureau in accord 1
ance with statutory requirements'
and report forms are being dis
tributed to this new class of tax- j
payers. Deputy collectors are con
ducting schools of instruction j
throughout the state for the ed- j
•ueation of these new taxpayers, j
Federal government employees i
have always been subject to the!
federal income law, but now, un j
"cter the reciprocal provisions of
the new Public Salary law, these!
federal workers are also subject ■
to state income tax laws in stat i
es where such laws are oper- j
ative.
The Internal Revenue Code,
now in effect, maintains the nor
mal tax rate of four percent for
individuals and the schedule for
surtaxes also is changed. The on
ly new provision in the law now
effective, relates to an allowance
for a carry-over of losses incur
red in the prior year, which are
limited to the net income of the
year involved. Full explanation
of this benefit to taxpayers is
given on the instruction sheet
which accompanies all returns.
Depulicate copies of all classes
[ of returns are again required &
must be filed on or before the
due date of March 15.
The statutes require that all
single individuals who had a net
income of $1,000 or more; all
married persons who had an ag
gregate net income totf $2,500 or
more and all persons who had a
gross income of $5,000 or more
must file federal income tax re
turns regardless of income tax
liability. Form 1040-A designed
f r individuals who had a net in:
come of less than $5,000 derived
from salaries, wages, dividends
or annuities. Form 1040 is to be
used by those individuals who
have an income in excess of
$5,000 and from other sources in
eluding business and professions.
Corporations with a total in- J
come of less than $250,000 and a
net income of not more than i
$25,000 are again receiving a new i
form adopted last year, 1120-A.
Corporations with an income in j
excess of $250,000 are receiving,
the revised form 1120. Both!
forms provide schedules to re
port income in accordance with |
existing statutes. Fiduciary and j
partnership forms 1041 and 1065, j
respectively, have been mailed |
to this class of taxpayers of re-,
cord.
The collector warns again that j
a penalty up to twenty-five per
cent is assessed for delinquency
in cases where taxpayers fail to
file on the due date. To awid
penalties and interest charges,
all taxpayers are urged to file at
| the earliest possible date.
Deputies in Tacoma and in
| branch offices in the following cit
: ies: Seattle, Spokane, Belling
ham, Walla Walla, Everrett, Wen
atchee, Aberdeen and Yakima,
and Juneau and Fairbanks in A1 j
aska, are available to assist tax- j
payers in the preparation of re- J
turns.
--
Statistics On
Wash, and Alaska
Collection Dist. i
Total collections, Collection
District of Washington and Alas
ka, for the fiscal year ended June
30, 1938:
All classes of tax—$33,051,843.-!
51 which includes income taxes
of $15,158,723.15 and Social Se
cuflity Taxies of $7,471,828.15.1
The balance includes miscellan-;
eaus taxes such as Liquor, Nar
colic, Gift and Estate taxes.
The total number of taxpay
ers who filed returns during
1939 in the Collection District of
Washington and Alaska is 132,
000. This included 22,175 report
ing incomes in excess of $5,000
only 16 percent of which how
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ver paid income taxes. Persons
filing returns reporting less than
$5,000 were 37,033 of which only
28 percent paid income taxes. Of
the total of 13,000 corporations
in the state, all of whom filed re
turns, only 3,150 or two percent
made sufficient income to pay in
come taxes.
The St^te Superintendent of
Schols reports there are 11,886
persons employed as teachers in
the schools of the State of Wash
ington. Available information dis
cl es 5,561 persons employed in
the State of Washington depart
ments and institutions. It is es
timated that approximately 10,
000 persons are employed by
counties, cities and other polit
ical subdivisions thereof.
Quotations from Hearings be
fore Committee on Ways and
Means, House of Representatives,
76th Congress from statement by
John W Hanes, Under Secretary
of the Treasury in re Public
Salary Act:
“Another purpose is to end,
once and for all indefensible tax
exemptions which produce in
equity and result in public dis
approval.”
“Federal employees pay only
Federal income taxes; State and
local employees pay only State
taxes; 17 States impose no in
come taxes on wages or salaries.”
“The general level of govern
mental salaries is comparatively
low. In 1937, of 2,600,000 State
and local employees pC‘log5 b
40 percent received $1,000 or less
and approximately 2,300,000 or
90 percent received $2,500 or less
Thus, 90 percent of State and lo
cal employees, if married, would
not be subject to the Federal in
come tax.”
“The probable effect of the el
imination of tax exemption on
the revenues of State govern
ments cannot be readily estimat
ed.”
HE -AW RED —Though Councilman Michael Sullivan
(above) of Cambridge, Mass., got council to pass resolution purg
ing “Lenin" and “Leningrad" from city’s reading matter, here’s
the catch: no provision was made for bill’s enforcement.
NAZI GREETING FOR ALLIED BOMBER S—With this monoplane of type “Messerschmitt ME-109” do Nazis repel
enemy bombers, according to information passed by German censors. Called “most modern pursuit ship,” plane attains 310 m.p.h. _ _
dream theatre
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BEAUTY’S SNOW DEEP —Dame Nature showed her
ski'd, painting serene U. S. capitol before congress opened Jan. 3.
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