15. Question. What is the base pay of Army and Navy nurses? Answer. An act of Congress approved December 22, 1942, provides that during World War II and for 6 months thereafter, the members of the Army Nurse Corps and the Navy Nurse Corps shall have rank and receive pay and money allowances for subsistence and rental quarters, and mileage and other travel allowances as now or hereafter provided by law for commissioned officers, without dependents, of the Regular Army and Navy in the sixth to the first pay periods, respectively. These are

The above pay is increased by 5 percent for each 3 years of service up to 30 years.

While on sea duty or duty beyond the continental limits of the United States or in Alaska the base pay is increased by 10 percent.

16. Question. May an enlisted man deposit any part of his pay with the Government for safekeeping?

Answer. Yes. Any sum may be deposited by a soldier in a fund known as "Pay of the Army fund."

17. Question. Will money so deposited draw interest?

Answer. Yes. For any sums, not less than $5 so deposited for the period of 6 months, or longer, the soldier, on his final discharge or at such time or times prior thereto, as may be prescribed by the Secretary of War, shall be paid interest at the rate of 4 percent per annum.

18. Question. Is this money subject to forfeiture by sentence of court martial?

Answer. No. Such money shall be repayable to the soldier, his heirs or representatives. It is not subject to forfeiture by sentence of court martial, but may be forfeited by desertion, and is exempt from liability for such soldier's debts.

19. Question. How should mail be addressed to personnel of the Army who are overseas?

Answer. Mail is not addressed to Army personnel to the country in which he is serving. Generally, there are only two post-office addresses. These are in care of the postmaster, New York, N. Y., or in care of the postmaster, San Francisco, Calif. Give the full name of the addressee and serial number, if known; give the rank and organization and the A. P. O. number. The sender's name and address should be shown in the upper-left-hand corner of the envelope and the necessary postage stamp at domestic rates, must be affixed.

20. Question. How should mail be addressed to Navy personnel? Answer. There are two main post-office addresses which should be used for men of the Navy afloat and overseas. These are in care of postmaster, New York, N. Y., and in care of the postmaster, San Francisco, Calif. If it is known that the ship is serving in the Pacific area simply address the mail in care of the postmaster, San Francisco. The address, full name, and rank or rating should be used to avoid

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confusion or delay. The sender's name and address should be shown in the upper left hand corner of the envelope.

21. Question. Can mail be sent to naval personnel postage free? Answer. No. Personnel of the Navy may send mail postage free but mail sent to them must bear postage at the domestic rates.

22. Question. What are the rules for foreign correspondence during war?

Answer. The director of censorship has issued rules, for the guidance of persons desiring to correspond with foreign nations during time of war. They are:

1. Postal communications with enemy or enemy-occupied countries. is illegal and will not be permitted, except:

(a) Through the agency of the American Red Cross, which will transmit short messages of a personal nature.

(b) Communications with prisoners of war.

2. In order to make the censorship of international mail as effective and economical as possible, the public is earnestly requested to conform to the following rules in regard to correspondence with persons in foreign countries other than occupied countries:

(a) The name and full address of the sender must be stated both on the outside of the envelope and in the letter itself.

(b) Correspondence should be in English if possible; the letters should be legible, clear, and brief. Avoid use of abbreviations, nicknames, phrases, or codes in place of customary reference or descriptions of any persons, firm, location, or other information. (c) If English is not used the name of the language should be written in English on the face of the envelope.

(d) No mention should be made of defense matters, shipping, or weather conditions.

(e) Firms employed on munitions or other Government work should not mention that fact in writing abroad.

(f) Firms and individuals, except as indicated in (g) below should refuse to act as intermediaries or agents for the receipt and transmission of postal correspondence on behalf of persons in foreign countries.

(g) A member of the Army or Navy corresponding with foreign countries will not give the name of his ship, or station, but should give as his address his Army or Navy post-office number of his unit in care of the postmaster, New York or San Francisco, or the address of a friend or relative in the United States, to whose care a reply can be sent for forwarding.

3. Failure to comply with these rules may lead to delay in transmission of mail or the return of correspondence to the sender.

23. Question. How should mail be addressed to a prisoner of war or an internee?

Answer. Letters may be sent to Americans who are prisoners or civilian internees upon official notification from the International Red Cross, Geneva, Switzerland, to the Information Bureau of the Provost Marshal that the person addressed is a prisoner of war or a civilian internee. Give the full name and rank of the prisoner or internee. Give the prisoner-of-war number, if there is one. If the prisoner is in

the Orient, no number is given but substitute for the number "formerly at Wake" or "formerly at Guam." Designate the prison camp by name, and number; for the Orient, substitute the phrase "held by Japan" or address the mail to the individual in care of the International Red Cross, Geneva, Switzerland, or in care of the Japanese Red Cross, Tokyo.

24. Question. What amount of postage is necessary when writing to a prisoner of war or internee?

Answer. None. Letters may be sent postage free if the sender places in the upper left-hand corner "prisoner of war" or "internee" and the words "postage free." The sender's address should be placed on the back of the envelope.

INCOME TAX

25. Question. When may the payment of income tax be postponed by reason of a person being in the armed forces of the United States? Answer. If such a person is serving in the United States, the collection of the tax (whether the tax falls due prior to or during his period of military service) is deferred without interest for a period up to 6 months after the termination of his military service if he establishes by a statement of his financial condition filed with the collector of internal revenue that his ability to pay is materially impaired on account of such service. The form of statement may be obtained from the collector. In the case of a person in the armed forces of the United States who, at the time the tax would otherwise be due, is serving on sea duty or outside the continental United States, the collection of the tax is postponed until the fifteenth day of the fourth month (approximately 105 days) following the end of the month in which the individual ceases (except by reason of death or incompetency) to be in such service outside the continental United States or ceases to be on sea duty, unless prior to the expiration of such fifteenth day, he is again a member of the military or naval forces serving on sea duty or outside the continental United States; or until the fifteenth day of the third month following the end of the present war, whichever date is the earlier. In such cases, it will be unnecessary to establish inability to pay the tax.

26. Question. Were members of the armed forces serving outside the United States required to file their income-tax returns on March 15, 1943?

Answer. The due date for the filing of income-tax returns was postponed in the case of any person in the military or naval forces of the United States, who at the time the return would otherwise be due, was serving on sea duty or outside the United States. The term "United States" means the States and the District of Columbia. The time within which a return may be filed in such cases is the fifteenth day of the fourth month (approximately 105 days) following the end of the month in which the individual ceases (except by reason of death or incompetency) to be in such service outside the continental United States or ceases to be on sea duty, unless prior to the expiration of such fifteenth day he is again a member of the military or naval forces serving on sea duty or outside the continental United States; or until the fifteenth day of the third month following the month in which the present war ends, whichever date is the earlier.

27. Question. Is the family allowance made to the dependents of the members of the armed forces of the United States exempt from Federal income tax?

Answer. The entire amount of the family allowance is exempt from tax on the part of the beneficiary. A portion is contributed by the Government and part is withheld from the pay of the enlisted man. The portion contributed by the Government is considered to be a gift and the amount withheld from the pay of the enlisted man is part of his income.

28. Question. Are allowances, in varying amounts, for clothing, subsistence, and quarters, made to officers (and, under certain conditions, to enlisted personnel), subject to income tax?

Answer. No.

29. Question. Is the pay allotted by the personnel of the armed forces to designated beneficiaries taxable to the beneficiaries?

Answer. No. The amount allotted is taxable income to the person making the allotment.

30. Question. Is any part of the pay received in the year 1942 by the personnel of the armed forces for active service during the present war exempt from Federal income tax?

Answer. Yes. If the person is not a commissioned officer and then only to the following extent-the person must be a member of the military or naval forces of the United States below the grade of commissioned officer on December 31, 1942, in which event he should not include in gross income the first $250 if he were single on such date or the first $300 if married or the head of a family on such date. These exclusions from gross income are in addition to the personal exemption of $500 allowed single persons and $1,200 allowed married persons.

31. Question. Is the amount paid to the beneficiary of a deceased officer or enlisted man representing 6 months' pay, known as "gratuity pay,' "taxable income to the beneficiary?

Answer. No. This amount represents a gift by the United States and need not be included in income.

32. Question. Is there a provision for the abatement of Federal income tax for members of the armed forces upon death?

Answer. Chapter 1, section 421, of the Internal Revenue Code, as amended by Public Law 68, Seventy-eighth Congress approved June 9, 1943, provides as follows:

"In the case of any individual who dies on or after December 7, 1941, while in active service as a member of the military or naval forces of the United States or of any of the other United Nations and prior to the termination of the present war as proclaimed by the President, the tax imposed by this chapter shall not apply with respect to the taxable year in which falls the date of his death, and the tax under this chapter and under the corresponding title of each prior revenue law for preceding taxable years which is unpaid at the date of his death (including interest, additions to the tax, and additional amounts) shall not be assessed, and if assessed the assessment shall be abated, and if collected shall be credited or refunded as an overpayment."

LIABILITY OF MEMBERS OF THE ARMED FORCES UNDER THE CURRENT TAX PAYMENT ACT OF 1943

33. Question. What is the tax liability for members of the armed forces under the 75 percent tax forgiveness provided for 1942 income taxes?

Answer. The 1942 tax liability is discharged as of September 1, 1943, and the tax for 1943 is increased, as a general rule, by (a) the excess, if any, of the 1942 tax over the 1943 tax, and (b) an amount equal to 25 percent of the 1942 tax or 1943 tax, whichever is the smaller. The balance of the 1942 tax equal to. 75 percent of such lesser tax is, in general, forgiven. Members of the armed forces, however, do not have to pay the increase referred to under (a) with respect to that portion of the 1942 income which is earned net income (i. e., from wages or salary) not in excess of $14,000. Thus, if a soldier earned $3,000 in 1942 as a civilian, incurring a tax liability of say $300, and has no tax liability on his 1943 service pay, he would not be required to increase his 1943 tax liability by the excess of the 1942 tax over the 1943 tax. If his total net income for 1942 was less than $3,000 the entire amount will be treated as earned income. If his earned income exceeded $14,000, the excess would be taxable as well as unearned income from other sources, such as rents, dividends, and other investments. If the tax on this excess income and on other unearned income for 1942 is larger than the 1943 tax, the difference would be added to the normal 1943 tax payable. The effect of the abatement or forgiveness provision in the case of a serviceman will in most cases result in a 100-percent abatement of the 1942 tax, by reason of his not having to increase his 1943 tax by the total excess of the 1942 tax over the 1943 tax, and of his having no tax for 1943 and therefore no increase with respect to the 25 percent of such tax. Any tax, however, due to a 25-percent increase will be payable half in March 1944 and half in March 1945. 34. Question. When does the increased income-tax exemption for servicemen become effective?

Answer. With respect to taxable years, beginning on or after January 1, 1943.

35. Question. How does it change the present special exemption for servicemen?

Answer. Under the old law, servicemen were permitted to exclude from gross income the first $250 of their annual service pay if single, and the first $300 if married. Such exclusion of this part of the service pay was in addition to the regular exemptions. It had the effect of making the exemption of single men $750 instead of $500, and of married men $1,500 instead of $1,200.

Under the new law, servicemen will be permitted to exclude from gross income the first $1,500 of their service pay, and in addition will get the regular exemption of $500 for single persons, $1,200 for married persons, and $350 for each dependent. In effect, the new law raises the exemption of servicemen to $2,000 if single, and $2,700 if married, plus $350 for each dependent.

36. Question. Does the exclusion of the first $1,500 of service pay from gross income apply to servicemen regardless of grade or rank? Answer. Yes. This is a change over the old law, which only applied to persons below the grade or rank of commissioned officer.