Jasper County Democrat, Volume 22, Number 97, Rensselaer, Jasper County, 3 March 1920 — U. S. INCOME TAX EXEMPTS NOBODY [ARTICLE]

U. S. INCOME TAX EXEMPTS NOBODY

Every Person Who Had Income in 1919 Must Determine Own Liability. MARCH 15 LAST FILING DATE. Surest Way Is to Follow Form 1040 A. Free Advice in Doubtful Cases. Severe Penalties In Law. ✓ Nobody is exempt from Income Tax. An obligation is laid directly on the shoulders of each citizen and resident to consider his own case and to get his return in on time if one is due. With each return showing a tax due a payment must accompany the return in the full amount of the tax or at least one-quarter of the tax. All returns for 1919 must be filed on or before March 15. Must Show True Figures. In figuring up his earnings for income tax purposes a person must take Into consideration all items of taxable income, and each item itself must be accurate in amount. Guesses and estlmtiies uuifil be avoided, for the return is made under oath. Everybody who had an income dur.ng 1919 must now determine whether his or her net income was sufficient in mount to require an Income Tax return. The best way to find out is to get a Form 1040 A and follow the in structions printed on it. That form will serve as a reminder of every item of income; ami if a return is due, it tells how to prepare ami file it. One of the important points to keep in mind is that a person's net income is found by a computation prescribed in the law, and that each item of income from every source must be considered, unless specifically exempted. Another thing.to remember is that the personal exemption allowed taxpayers by law has no relation whatever to the requirement to file return. This exemption is not to be considered until a person has figured out his net income and determined whether it was sufficient to require him to file a return. Then, if a return must be filed, he should read carefully the instructions for claiming exemption, and complete his return. If in doubt on any point as to Income or deductions, a person may secure free advice and aid from the nearest Internal Revenue office. Many banks and trust companies are also furnishing similar service during banking hours.

Heavy Penalties in Law. For failing to make a return on time the penalty is a fine of not more than SI,OOO and an addition of 25 per cent to the tax, if any. For making a false or fraudulent return the penalty is a fine of not more than SIO,OOO or imprisonment not exceeding one year, or both; and, in addition, 50 per cent of the tax. There are other penalties for failing to pay tax when due and for understatement of the tax through negligence. Many Sources of Income. Asid/ from what one may earn by his services, there are many other sources of income. If he sold any property during 1919 he must figure out the gain Realized. If he rented buildings, land, apartments or rooms such rents must be considered taxaable, and he may claim deductions for necessary expenses incidental to rents. Bank interest is a common source of Income and is taxable whether withdrawn or not. Any amounLof interest credited to a depositor is income to the depositor. Interest on mortgages and notes 5 is taxable; also bond interest received from corporations. A taxpayer who cashed his insurance during 1919 must report as in.come any excess received over the total of premiums paid. Members of partnerships or personal service corporations or beneficiaries of an estate or trust must report theft shares of Income distributable to them whether or not actually withdrawn. Dividends of domestic corporations must be reported. Many other forms of income are taxable, unless specifically exempted.