File #698: "WWII Office of Civilian Defense Civil Air Patrol GM-110.pdf"

WWII Office of Civilian Defense Civil Air Patrol GM-110.pdf

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G M - 11 0

500 Fifth Avenue

New York 18, N»y.

3 Fe^irxiary 1944

S u b j e c t ; Ta x S t a t u s o f C i v i l A i r P a t r o l A l l o w a n c e s a n d C o n t r i b u t i o n s .
To :

Civil Air Patrol Unit Commanders,

1, There has "been no change in the tax status of allowances I'eceived and

contributions made by CAP members since the issuance of National Headquarter's
l e t t e r d a t e d 2 0 F e b r u a r y 1 9 4 3 , s u b j e c t ' " Ta x S t a t u s o f A l l o w a n c e s R e c e i v e d a n d
Contributions Made."


2. It is now clear, however, that allowances received by Wing Commanders,
Executive Officers, or personnel on active duty are "allowances'"rn lieu of eub-

sistence." In view of this, it is perhaps more definitely established than it

was on 20 February 1943 that where such .allowances are reported in^. Income Tax

Returns they may be offset in all or part by deductions for ordinary and neces
sary expenses incurred by the taxpayers on their assignments, including the

entire amount expended for meals and lodging while away from their ^iomes pro
vided, of course, that they have-not given up their homes elsewhere. Purely
personal or family eai^jenses cannot be 'ded.ucted. •

3. Since it is now clearly establi''^ed that all allowances received are

"allowances in lieu of subsistence" and are in no sense payments for services,
Informational Returns setting forth the amount of allowances received by each
Individual are not being forwarded this year to either the-Treasury or the
individuals concerned. In exceptional cases, however, where a particular in-dividual has no record of the allowances which he did receive and where he can
not secure such information from other sources, this office will, so far as
possible, attempt to furnish such information on request.

4, Since 1 July 1943, no Victory Tax or Withholding Tax has been deducted
by National Headquarters from allowances which have been paid. Such deductions
are unnecessary where "allowances in lieu,of subsistence" are involved. Prior

to 1 July, the Office of Civilian Defense, which wap then making payment of such
allowances, had some question as to the necessity of withholding'such taxes and
therefore determined administratively that certain deductions shoiild be made.

The Victory Tax was therefore withheld and information concerning such with
holding was transmitted to the Treasury Department. In the ;relatively near fu

ture, when CCD rejords have been completed and transmitted to this Headquarters,

an attempt will be made to secure from the Treas\iry refunds of the Victory Tax
which, it is believed by this office, was improperly withheld. Further advice
as to this will be transmitted at the first possible moment.
3y direction of National Commander JOHNSON:

H E M Y A . H AW G O O D

Captain, Air Corps
Special Assistant