Jasper County Democrat, Volume 20, Number 78, Rensselaer, Jasper County, 29 December 1917 — MUST YOU PAY TAX ON YOUR INCOME? [ARTICLE]

MUST YOU PAY TAX ON YOUR INCOME?

Matter That Every American Is Called On to Determine Without Delay. MARCH 1 LIMIT FOR RETURNS Failure to File Them Involves Severe Penalties—Taxpayers Will Be Assisted by Treasury Officials in Every County. Washington.—The time has arrived for every American subject to the income tax division of the war revenue act to figure up his Income and file hls return. If he is unmarried and has a net income of SI,OOO or more, or If he is married or the head of a family and hls net Income is $2,000 or more, he must pay the tax. His return must be in the hands of the collector of Internal revenue in the district In which the taxpayer lives or has his principal place of business before March 1, 1918. The man who thinks to evade this tax is making a serious error. Revenue officials will be in every county to check returns. Failure to make a correct return within the time specified Involves heavy penalties. “Net income” means gross income less certain deductions provided for by the act. The law defines income aS profit, gain, wages, salary, commissions, money or its equivalent from professions, vocations, commerce, trade, rents, sales and dealings In property, real and personal, and interest from investments except Interest from government bonds, or state, municipal township or county bonds. Incomes from service as guardian, trustee or executor; from dividends, pensions, royalties, or patents, or oil and gas wells, coal land, etc., are taxable.

Normal Rato Is 2 Per Cent. The normal rate of tax is 2 per cent on net incomes above the amount of exemptions, which is $2,000 in the case of a married person or head of a family and SI,OOO in the case of a jingle person. A married person or head of a family is allowed an additional exemption of S2OO for each dependant child if under eighteen years of age or incapable of self-support because defective. The taxpayer is considered to be the head of a family if he is actually supporting one or more persons closely connected with him by blood relationship or relationship by marriage, or if his duty to support such person is based on some moral or legal obligation. Debts ascertained to be worthless and charged off within the year and taxes paid except Income taxes and those assessed against local benefits are deductible. These and other points of (he income tax section of the war revenue act will be fully explained by revenue officers who will visit every county in the' United States between January 2 and March 1 to assist taxpayers in making out their returns. Officers to Visit Every Locality. Notice of their arrival in each locality will be given in advance through the press, banks and post offices. They will be supplied with income tax forms copies of which may be obtained also from collectors of internal revenue. The bureau of internal revenue is seeking to impress upon persons subject to the tax the fact that failure to see this official in no way relieves them of the duty imposed by law to file their returns within the time specified. The penalty for failure to make the return on time is a fine of not less than S2O nor more than SI,OOO, and in addition 50 per cent of the amount of the tax due. For making a false or fraudulent return, the penalty is a fine not to exceed $2,000 or not exceeding one year’s imprisonment, or both, in the discretion of the court, and in addition 100 per cent of the tax evaded. As to the Farmers. The number of farmers who will pay income taxes has not been estimated by the government officials, but it is certain they will form a large percentage of the 6,000,000 persons assessed who never before have paid an Income tax. The average farmer does not keep books but if he avails himself of the services of government experts who will be sent to aid him, it will not be difficult for him to ascertain the amount of his net income. The farmer is making out his return may deduct depreciation in. the value of property arid machinery used in the conduct of his farm, and loss by fire, storm or other casualty, or by theft if not covered by insurance. Expenses actually incurred in farfn operation ' may be deducted, but not family or Jiving expense. Produce raised on the farm and traded for groceries, wearing apparel, etc., is counted as living expenditures and cannot be deducted.